Good morning. This is Hun Sik Yu, IR project leader at SK Innovation. Thank you for taking the time to join us today on this 2022 Q4 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 Suk Kim, for the presentation. Good morning. I am Yang Suk Kim, CFO of SK Innovation. First, let me start by thanking our shareholders and investors for your continued interest in the company. On this call with me today are executives from SK Innovation and its major subsidiaries, who will be available to answer your questions during the Q&A. Now let me start the presentation on SK Innovation's 2022 Q4 highlights. Despite inventory losses from lower crude prices and operating losses due to weaker refining margins in the fourth quarter, for the full year, the company still posted a record level operating profit of KRW 3,998.9 billion. In particular, the lubricants business achieved its highest annual operating profit of KRW 1,071.2 billion, as supply remained tight, leading to high margins. SK Trading International took advantage of the volatile market situation to increase the overseas sale of high margin products and generated bunkering trade profits by blending more lower cost crude, resulting in full year operating profit of KRW 607.2 billion. In addition, our battery business, SK On, continued to increase sales volume with new capacity going online, leading to KRW 2,875.6 billion in sales, the highest per quarter numbers to date. That is around 31% up quarter-over-quarter, and a jump of 170% versus the same period last year. For 2022 in total, SK On ended with sales of KRW 7.6 trillion, an increase of 150% YoY, and we expect 2023 to be another year of significant top line growth, thanks to new capacity ramp ups. In relation to the IRA guidance, which included details as the Advanced Manufacturing Production Credit, or AMPC, announced by the U.S. Treasury on December 30, we have reviewed comprehensively the contents that have been announced to date. Once additional details are announced in the future, we will be able to provide more information, such as the size of actual benefits we would enjoy and accounting treatment. As of now, the company estimates that it will be able to enjoy a maximum around KRW 4 trillion in benefits from 2023 to 2025 in relation to the IRA AMPC. Moreover, as we expect large scale capacity expansions in the U.S. to be completed by 2025, once full production starts in 2026 and after, we expect this amount will increase significantly. Thanks to this policy support, the company will ensure to move ahead with capacity expansion plans in the U.S. according to plan, and build out its North American supply chain to further solidify its position in the market. With this as an overview to SK Innovation's Q4 highlights, let me now go into the details of our Q4 business performance. I will first start with the Q4 full company performance, including sales and operating profit. On sales, driven by weaker demand and lower crude prices due to concerns about a global economic recession and a resulting decline in refining and petrochemical product prices, sales declined KRW 3,616.7 trillion QoQ to KRW 19,136.7 trillion. For operating profit, the weaker crude prices and refining margins, coupled with lower PX spreads for the petrochemical business and initial costs related to running new overseas capacity for the battery business, the number was down KRW 1,387.2 billion QoQ to result in an operating loss of KRW 683.3 billion. On the non-operating side, FX related gains due to the stronger won and an increase in product derivative gains led to improvement of KRW 335.8 billion QoQ to end at a loss of KRW 64.6 billion. To break down the non-operating loss, FX losses were KRW 187.5 billion, derivative gains KRW 44.4 billion, net interest expenses KRW 141.9 billion, equity method losses KRW 73.4 billion, and other expenses KRW 81.1 billion. Next, let me walk you through the balance sheet. As of 2022 end, total assets increased KRW 17 trillion 692.3 billion YoY to KRW 67 trillion 237.2 billion because of an increase in inventory and trade receivables coming from higher crude and refining product prices, while tangible and intangible assets from investments also increased. Liabilities during the same period increased KRW 13 trillion 977.3 billion to KRW 43 trillion 901.5 billion due to factors including an increase in trade payables due to stronger crude prices and an increase in borrowings. The debt and equity ratio was 188%. In addition, net debt increased YoY on the back of facility investments for battery capacity expansions from KRW 6,101.9 billion at the end of last year to KRW 14,514.8 billion. Now let me dive into the Q4 performance of each business line. For refining, the operating profit declined KRW 977.7 billion QoQ to an operating loss of KRW 661.2 billion. Due to the fall in crude in the fourth quarter, stemming from growing concerns about a global economic recession and inventory-related losses, including lower cost or market, LCM, was KRW 624.6 billion. In 2023, we expect China reopening to lead to stronger demand, while factors limiting supply, such as the EU sanctions on Russian refining products and the OPEC+ production cuts will together result in solid refining margins. Next, the petrochemical business. Operating profit decreased KRW 196.7 billion QoQ to a loss of KRW 88.4 billion because of weaker margins as aromatic spreads fell. The impact of LCM and an increase in fixed costs also had a factor. Let me talk about the outlook for our core products. For PE and PP, we expect that though there will be additional supply coming from new capacity in the region, the reopening of China should improve demand, which we believe will also contribute to gradually improving spreads. In the case of PX, a large-scale PX facility is expected to go online in the region during the first half. At the same time, new PTA capacity expansions of a similar level and stronger demand from China is overall expected to result in moderately improving spread levels. Let me move on to the performance of the lubricants business. Despite an improvement in margins from lower cost levels, the operating profits for the lubricants business decreased KRW 67.6 billion QoQ to KRW 268.4 billion due to a decrease in sales volume as it was a seasonally low season and inventory-related losses, including LCM. In 2023, we expect the lubricants to show solid spreads because of tight base oil supply as UCO production volume decreases due to sanctions against Russia and gas to oil demand. Next, let me go over the E&P business. Q4 E&P operating profit weakened KRW 43.9 billion QoQ to KRW 116.6 billion due to lower crude and gas prices, even though sales volume had increased. Let me discuss the battery business. The Q4 sales for the battery business increased as sales volume continued to grow with new capacity going online. The top line increased by KRW 681.4 billion QoQ to achieve a record high quarterly number of KRW 2,875.6 billion. On the operating profit level, the increase in new overseas capacity resulted in fixed cost increasing in advance. The level of losses increased QoQ, leading to operating losses of KRW 256.6 billion. In 2023, with new overseas capacity ramp-ups, we expect top-line growth to remain strong. Based on the negotiation power provided by a growing EV market and an increasing demand for batteries, we will continue to improve the profitability of the business. For the details about the capacity expansion plans by region, please refer to the appendix. Let me talk about the INE Materials business. In Q4, strong sales of key customers improved the consolidated operating profit of the INE Materials business by KRW 22.1 billion QoQ, resulting in operating losses of KRW 4.9 billion. We expect 2023 will be another year of sales growth and more cost competitiveness, which is expected to result in a gradual improvement in profitability. Let me discuss the company's net zero strategy. In 2022, SK Innovation's emissions recorded approximately 10.7 million tons, representing a reduction of 14% from the Scope 1 and 2 emission levels for the energy and petrochemicals business in 2019. This performance is in line with the company's pathway to achieve its midterm targets of 25% reduction in 2025 and 50% reduction in 2030 under its net zero roadmap. To cut emissions, the company is actively utilizing a wide range of options, including improving process efficiency, transitioning towards eco-friendly fuel, optimizing operating facilities, and introducing renewable energy. In addition, as we mentioned during the Q3 earnings call, SK Innovation is aiming to achieve net zero in Scope 1 and 2 before 2050. Thus, we will continue to implement the net zero roadmap established in 2022 to ensure we can continue to reduce our emission levels going forward. For your reference, the company's net zero activities and performance will be disclosed transparently in detail to all stakeholders through our ESG report to be issued in August. On the next page, let me discuss 2022 dividends. To honor the commitment we made to shareholders on our midterm dividends. For the shareholder returns related to the 2022 financial performance, the company has decided to pay year-end dividends that represent a dividend payout ratio of 30%. In light of the highly uncertain business environment and large-scale CapEx plan for 2023, the company has decided on dividends in kind that use treasury shares. The final decisions on dividends will take place during the general shareholders meeting. In addition, no decision has-Possible SK On IPO. In the event that we do review a listing, we are planning to actively explore measures to protect the interest of SK Innovation shareholders. In addition to reinvesting into the company for its own growth, special dividends and other measures to enhance mid to long term shareholder value are under review to ensure we match the trust of our shareholders who have shown unwavering support for the company. This is the end of today's presentation, and we will now start the Q&A session. The Q&A session will be conducted with consecutive interpretation. For approximately two weeks before this call, we received questions in advance via our homepage or website. Before taking live questions, we would like to first address some of the most frequently asked key questions. First question that we have previously received is on the company's overall CapEx guidance and the financial position. I would like to invite our CFO to respond to this question first. I am Young Suk Kim, the CFO. Allow me to respond to the first question that we received in advance. This year's CapEx plan. This year there will be a full-fledged investment in order to complete BOSK capacity in time. In light of such business plan, we set aside for an investment plan amounting to a total of KRW 10 trillion. Looking at more detail for the battery business, we are planning to invest a total of KRW 7 trillion to secure new capacity. On the non-battery business side, meaning recurring basis and strategic investments, we're planning around KRW 3 trillion of investments. Such investment will drive engines for growth in battery and materials business as well as already commercialized green business. We will support commercialization of new businesses, including BMR and recycling of scrap plastics. I will now talk about how we will be managing the company's financial position under the bigger CapEx spend plan versus last year. Of the KRW 10 trillion CapEx, BOSK, which accounts for a major portion, will be funded through partnering equity investment, more or less on a pro rata basis. We are also discussing many items at disposal to fund our CapEx spending, including government incentives from the local markets. Once such items materialize, I expect we can significantly lower the company's CapEx burden. We expect refinery business to perform quite well, backed by structural demand and supply issue, while chemical business is expected to see demand recovery from downstream products following PTA capacity additions and China's recovery, which will lead to a better PX margin. Lubricant business had a record high year in earnings and such favorable market backdrop is expected to continue. We are also looking forward to a much better performance from the battery business versus 2022. Despite good business performance in 2022, steep crude price hike drove up working capital, which was a drag on operational cash flow. This year we expect the impact of good earnings to more or less directly feed into cash flow improvements and enhance the company's financial position. On top of enhanced operational cash flow, and KRW 500 billion of SK On second phase pre-IPO funding, we are looking into various ways to improve financial standing, including finding an additional investor on the same terms. Once these efforts pay off, despite bigger CapEx spend versus last year, I believe we will be able to manage and keep our financial position stable. Second question relates to the reasons behind the performance decline that we've seen in 2022 for SK On, ways towards profitability as well as 2023 guidance. This question will be answered by the executive from SK On. Hello, I am Kim Kyunghoon, CFO of SK On. Allow me to respond to the second question. Looking at Q4 earnings, there was an increase in ramp-up costs following new plants coming online. SKBA number two and SKOJ number two, posting rise in cost from ramping and delay in production yield improvements all amounted to operating loss, reporting at KRW 256.6 billion, which is down by KRW 120 billion QoQ. Q4 EBITDA was down KRW 108.9 billion QoQ to KRW -99.5 billion, failing in quarterly EBITDA turnaround following Q3. In the fourth quarter, when removing the fixed costs from the new sites, EBITDA loss had been greatly downsized. Looking back at year 2022, we continued on with activities to improve profit, including improving productivity, adjusting the sales price or the ASP to the OEMs. Due to the negatives such as decline in sales and semiconductor supply issues versus what was forecasted and higher commodity price from global inflation, labor cost increase and rise in power costs from Russian and Ukraine War, as well as increase in FX rates. The fact that we weren't able to respond on a timely basis contributed to deterioration of the profit. Aside from such external factors, on slower than expected ramp up of new factories in the U.S. and Hungary, operating loss amounted to close to KRW 1 trillion. We haven't fully realized profitability as we are in the growth phase where sales and revenue growth are both quite steep, we have identified issues on the profitability side, developed measures and are in the process of implementing those plans. This year 2023, we plan to focus both on growth and profitability, and such measures will include improving productivity at sites, discussing our ASP with OEMs and strengthening purchasing power. We believe results of such improvement activities will start to feed through as visible outcomes starting the second half of year 2023. 원재 생산성 재고와 관련하여 수익성에 큰 영향을 미치는 수익, 수율 향상을 최우선 과제로 설정하고 공장 설비와 오퍼레이션 측면의 수율 향상 과제를 도출하여 추진 중입니다. 특히 수율이 안정화된 우수 법인을 Best Practice Site로 선정하여 생산성 재고 과정에서의 Lesson Learned를 헝가리, 미국 등 신규 사이트에 적용할 수 있도록 일하는 방식과 프로세스를 개선하고 있습니다. 또한 이미 수율이 안정화된 사이트에서도 추가적인 수율 개선을 위한 과제를 지속 발굴하고, 발굴하여 실행하고, 이를 다른 사이트에 확대, 적용할, 적용해 나갈 계획입니다. On productivity improvement, first priority is improving yield, which affects profitability the most. We are in the midst of carrying out projects that drive up operational yield on process and equipment. We chose sites with stabilized yield as Best Practice Sites, taking lessons learned to new sites at Hungary and the U.S., thereby improving the process and the way in which we work. For those sites where yield is already stabilized, we will continue to find and implement measures to further bring improvements and will also apply them to other sites as well. OEM 판가 조정 관련하여 metals 포함한 원소재 가격, 환율 등 수익성 측면의 변동 요인은 최대한 판가에 연동하여 손익 변동 리스크를 제거하고, 인플레이션으로 인한 cost 증가에 대해서는 기존 판가를 조정하는 적극적인 조정하며 적극적으로 추진하고 있습니다. 이미 2022년도에도 주요 OEM들과 협상을 통해 metals 연동 구조 개선, 환율 연동 cost 상승분 보전 등의 성과가 있었고, 2023년에도 추가적인 개선의 결과가 나타날 것으로 기대하고 있습니다. On OEM ASP discussions, metal and material price and FX rate and factors that impact our profit is passed through to the selling price as much as possible to remove the risk of variability in profit. For the cost increase on the back of inflation, we are actively engaging in price discussions. Already in 2022, through talking with major OEMs, we improved pass-through mechanisms for metals, linked FX rate impact, and recouped incremental costs. We expect to bring added improvements in 2023. 마지막으로 구매 경쟁력 강화에 관련해서는 매출 확대에 따른 구매 물량 증가 등 당사가 보유한 bargaining power를 적극 활용하여 원소재, 양극재 등의 구매 단가를 인하하고 소재별 supplier 다변화, value engineering들을 통해 안정적인 공급망 구축 및 원가, 원가 경쟁력 확보를 추진하고 있습니다. Lastly, on purchasing power. Leveraging the bargaining power we gained from purchasing more volume on growing sales, we are seeking to lower purchasing price for materials and cathodes, et cetera, and diversify suppliers as well as carry out value engineering in order to set up a robust supply chain and gain cost competitiveness. 2023년에도 경영 환경의 불확실성이 심화될 것으로 보이지만 신규 가동 사이트의 생산량 증대에 힘입어 2023년에는 2배 수준의 높은 매출 성장세를 유지할 것으로 보고 있습니다. 수익성 측면에서도 앞서 말씀드린 바와 같이 손익 개선을 위해 전사적으로 역량을 결집하여 실행력을 높이고 있는 만큼 하반기에는 가시적인 손익 개선 효과가 나타날 것으로 기대하고 있습니다. In 2023, we expect uncertainties to heighten. However, on increased production volume from new sites, we believe we can maintain double the rate of growth in 2023. In terms of profit, we're putting in all our efforts in putting all the measures into action. In the second half of the year, we expect to see visible PNL improvement. 이러한 손익 개선 활동을 바탕으로 2023년 연간 EBITDA plus 달성 및 영업이익 개선을 목표로 하고 있으며, 2024년은 연간 영업이익 흑자 전환 후 지속적으로 영업이익률 개선을 달성해 나갈 계획입니다. Based on such improvement activities, for the product, for the PNL, our objective for year 2023 is to achieve annual EBITDA plus and improve our operating profit. We believe that after we turn around in our operating profit, in 2024 on a per annum basis, we will be able to continue on with an improvement of the OP margin as well. 이상 사전 질문에 대한 답변을 마치고 현장 질문을 받도록 하겠습니다. 질문하시기 전에 소속 기관과 성명을 말씀하시고 질문해 주시기 바랍니다. Yes. We will now take the live questions. Please, when you pose your questions, introduce your name and affiliation before submitting your questions. 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. 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 the number star one. For cancellation, please press star two. That is star and two on your phone. 다시 한번 말씀드리겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. Once again, if you have a question, please press star one. star and one. 처음으로 질문해 주실 분은 골드만삭스의 Nikhil Bhandari 님입니다. The first question will be provided by Nikhil Bhandari from Goldman Sachs. Please go ahead with your question. Yes. Hi. Thank you so much for the opportunity to ask a question. A couple of questions. Firstly, when you quantify the IRA benefits of maximum KRW 4 trillion in 2023-2025. Can we check how are we arriving at that number? Is that assuming $35 per KWh on all the headline capacity or on the likely production out of those capacities times $35? So can you help confirm that? And what will be the mechanism that we are expecting for receiving this credit? Will that be like at the end of every year, you will show how much your capacity is or how much you produced? And will there be an offset of your tax bills? If there is no tax liability, then how do you expect to receive those benefits? If you can provide whatever clarity you have on that. The second question is on the normalization of the plant yields. It looks like, if I get it correctly, we are still guiding full normalization yields to happen sometime by mid of this year. After that, we expect to achieve more PNL profitability improvement in the second half of the year. More specifically, there were some concerns around the module size requirements to be met for VW. Where are we in terms of that? Is that sorted out or are there any concerns? Just trying to slightly better understand the path of the profitability of first half versus second half. Should we expect losses of the current intensity to continue in the first half or will there be an improvement every quarter by quarter? Thank you. [Non-English content] [Non-English content] 예, SK On CFO Kim Kyung-hoon, 답변드리겠습니다. 우선은, 그, 방금 말씀하신 KRW 4 trillion IRA 수혜 관련해서는, 저희가 예상 판매량, 미국의 지금 현재, 기존에 있는 공장의 예상 판매량에, 그, 셀에 $35, 모듈에 $10을 더해서 $45을 갖다가, 간단히, 곱해서 나온 숫자입니다. 캐시- Yes, hello. I am Kyungh oon Kim, CFO of SK On. Responding to your first question about the IRA benefit of $4 trillion. Basically what we did was a simple arithmetic based on the forecasted sales volume off of the U.S. existing plants. We simply took $35 for cell and $10 dollar for module, and which is $45, and did multiplication. 택스 크레딧에 대해서는 뭐 비슷한 질문이 그전에도 나왔었었는데, 이건 tax credit을 지금 현재로 저희가 알고 있는 바는 tax credit을 받을 수도 있고, 그리고 아니면은 cash를 받을 수 있는 옵션이 있다고 저희는 알고 있습니다. 이거는 저희 이거에 대한 cash를 받는다든지 tax credit을 받는 거는 저희가 알고 있는 판매량에 근거해서 나오는 숫자로 알고 있습니다. In terms of the tax credit and the mechanism through which we will be receiving that, we received a similar question in previous occasion as well. As far as we understand, as of now, we can actually receive tax credit or actually receive cash. That receiving cash or tax credit will be based off of the amount that we sell into the market. 다음은 수율 정상화에 대해서는 당연히 저희가 방금 말씀드렸다시피 노력을 하고 있는 상황이고요. 하반기로 가면 갈수록, 수율 정상화는 점점 더 가속화될 거라고 예상을 하고 있으며, 방금 말씀하셨시피 분기별 숫자는 상반기보다는 하반기로 가면 갈수록 더 증진적으로 좋아지는 숫자가 나올 걸로 기대를 하고 있습니다. Regarding normalization of the yield, as you've mentioned, yes, we are putting in quite a bit of effort to normalize the yield level. We expect that as we enter into the second half of the year, we will see a acceleration in the actual normalization of the yield. As you've also mentioned, once we go into the second half, we will see a better quarterly performance. The following question will be presented by Jin Myung Lee from Shinhan Investment and Securities. Please go ahead with your question. Ne, 안녕하세요. 신한투자증권 이진명 연구원입니다. 먼저 질문 기회 주셔서 감사하고요. 저는 2가지 질문드리고 싶은데 먼저 첫 번째 질문은 올해 저희 정유 설비와 화학 설비들의 가동률 운영 계획을 좀 말씀해 주시면 감사하겠고요. 두 번째는 이제 배터리 사업부에서 작년 3분기 같은 경우는 강달러에 좀 부정적인 효과가 발생을 했었는데 올해는 좀 환율 관련된 영향을 어떻게 보시는지와 이런 고객사 노출 정도를 좀 어떻게 판단하시는지 말씀 부탁드리겠습니다. Thank you for the opportunity to ask questions. There are two questions that I would like to ask you. The first question is with regards to your capacity on the refining side and on the petrochemical side. How are you planning to run the utilization of these capacities? The second question that I would like to ask you is the FX impact related to your battery business. In Q3 of last year because of the strong US dollar that had a negative impact on your battery business as a whole. How do you perceive the overall FX impact for this year? In addition to that, in terms of your exposure across the customer portfolio, how do you believe that that will actually take place? [Non-English content] Yes, maybe I can address your first question. This is Shin Moon-kwon, from the Performance Management Team Leader of SKE. With regards to your question about how we will run the overall utilization of our refinery capacity. Of course, in line with the trends that we see in refinery margins, we aim to optimize the overall utilization and the use of our overall capacity. However, in light of the fact that we do believe that there will be uncertainties in the market this year, we are focused on very flexible management of that overall utilization. In general, we will make a determination about how we will run capacity going forward three months prior to the actual date. One month prior to the date and even at the last minute, there can be changes in that decision according to market conditions. [Non-English content That have been said for 2023 as a whole. As of now, for the first quarter, the overall way that we are planning to run the actual operations in terms of the actual utilization. In light of the fact that we do have turnarounds that we have slated for the quarter, we do think that it will remain at around the mid 80% level. In addition to that, for the CDUs and for the more upgraded facilities that we have, for example, for the FCCs and others, we do want to maintain at 100% utilization, so that we can maximize the overall refining margins and also the profit levels that we are able to achieve across the capacity. For the year as a full on the CDU side, again, we do believe that the full year utilization will be at around the upper end of the 80% range. For more of the upgraded facilities, we are planning to maintain 100% utilization. SK Geo Centric 경영기획실장 김영수입니다. 화학 사업 가동률에 대해서 말씀드리겠습니다. 저희 화학 사업은 평균적인 가동률을 계속 유지하고 있으며, 금년 특이 사항으로는 10월 중순에 40일 가량 정기 보수가 예정되어 있습니다. NCC부터 정기 보수를 시작하여, 일사 BDO, FP, 폴리머 공장까지 40일 가량의 정기 보수를 제외하고는 평균적인 가동률을 유지할 것으로 예상하고 있습니다. This is Yong Su Kim, the Head of the Corporate Planning Office at SK Geo Centric. Maybe I can address the second part of your question about the petchem business overall utilization. For the petrochemical business for this year, we are planning to maintain utilization at the average levels that we have seen. One of the more special effects that would take place this year is that in mid-October, we are planning around 40 days of a turnaround in terms of maintenance. As a result of that, during that 40-day period, we will start with our NCC capacity and then go on to the BDO and also polymer processes that we have for the overhaul. As a result of that, with the exception of those 40 days for the remaining period of time, again, we are planning to run utilization at average levels. 예, SK On CFO 김경훈입니다. 우선 환율 리스크가 작년에 있었고요. 3분기에 영향을 많이 줬습니다. 환에 대한 리스크에 대한 관리를 저희가 작년부터 시작을 했고. This is the CFO of SK On Kim Kyung-hoon, maybe I can address the second question that you have. As you have mentioned, for the third quarter of last year on the FX risk side, we were exposed to some of the risk, as a result, the third quarter had the largest impact last year. As a result of that from last year, we have been more actively managing the overall FX risk that we are exposed to related to our business. In line with that effort, with discussions with the OEMs that we have had, we have linked some of the FX changes to for the raw materials and component parts that we have in the price. Some of that effort has come to fruition. However, we still are exposed to some FX risk, though much less than we have seen for last year. As a result, since we do have a fundamental risk exposure on the FX side, again, in 2023, we are planning to take additional measures. For example, maybe engage in some hedging activities to manage the FX risk and volatility appropriately. The following question will be presented by Hyun-Ryul Cho from Samsung Securities. Please go ahead with your question. I'm the CFO of SK On, Kyunghoon Kim. Responding to your first question. Yes, you are correct. Our objective is to turn positive in terms of EBITDA in 2023 and operating profit turning around in 2024. Your question related to the fact that despite that we have a lot of new plants coming online in 2024, how are we going to be able to post an operating profit and a positive OP? There are actually two reasons. First is from the existing plants. We currently have 88 GWh capacity that is fully stabilized, and hence we expect there to be a steady cash flow generation going forward. Second part is with regards to the new plants, we will be setting up Hungary number two and China Yancheng factory number two. For these sites, we already have ample amount of experience and know-how that we had built from the number one factories. I believe that we will be able to minimize the ramp-up related cost. On top of the cost minimization as well as the cash flow generation from the existing plants, we believe we will be able to turn positive in operating profit in year 2024. Yes, I am Moon Kwan Shin from Performance Management Team at SK Energy. Responding to your question about the refinery market. First, to just paint an overall picture for 2023. With the sanctions on Russian products and the slash in the OPEC production, we expect there to be shortage in supply and hence tightness in the market is expected to continue. On top of that, due to the soft landing of the global economy and rebound in China's demand, we believe that in terms of the crude oil price and the product price, the uptrend will continue. Relating to the impact from the Russian sanctions. If you look at crude oil from Russia, basically they can sell into China and the Indian market in a roundabout way, circumventing those sanction measures. When it comes to the petrochem product itself, it is not easy to circumvent those sanctions. We think that for the overall product related market backdrop, we think that it's going to be quite positive due to such supply constraint. To the extent, and we would have to wait and see to what extent EU is going to allow for that roundabout way of exporting. Once that actually stabilizes, we think that even for the petrochem product, The refinery product, excuse me. The market, we think that the trend is going to be more positive and hence there is going to be some improvement on the gradual improvement on the refinery margin. The following question will be presented by Oscar Yee from Citi. Please go ahead with your question. Yeah. Hi. Thanks. Thanks for the chance to ask question. First question is regarding your comment about IRA benefits. Based on your current discussion with OEMs, are you receiving some request from your key customer in sharing some of this sort of IRA fortunes or benefit? If that is the case, can we expect sort of like half-half split between your company and the OEMs? Second question is, would it be possible if you can share some guidance about your battery shipment growth, for example, for 1Q versus 4Q on a QoQ basis and also probably 2023 versus 2022 in terms of the numbers? Thanks. This is the CFO of SK On, Kyunghoon Kim. Maybe I can take your first question about the IRA. To address this question, as of the current time, we are not in a position in which we would be obligated to share any of the benefits that we would be able to reap under the IRA. However, that have been said from our customer's standpoint, if there is a request to share some of that benefit, then our first priority would be to see through the benefits that we reap, how much of the costs that we incur can be covered. That would be of course the first priority. Thereafter, if we think that the costs have been sufficiently recovered, then I do think that we could consider whether or not we would share some of the additional benefits with the OEMs. However, again, this is not an obligation on our part. On the second question that you asked about the overall shipments on a shipment basis in terms of our overall volume. Unfortunately, we're not in a position in which we would be able to share specific numbers with you. I think what we can say is that as we have just mentioned, on the top line level, we are expecting a double level of growth to take place this year versus last year. As a result of that, in terms of your estimations, that should represent in terms of sales volume also, about a double level on a YoY basis. If we look at the per quarter trends that would take place across the year, we do think that from the first quarter on a QoQ basis, quarter-over-quarter, there will be a gradual improvement that should take place. Again, unfortunately we cannot share any specifics with you.