Good morning. This is Sara Hwang, Head of IR from LG Energy Solution. Thank you for joining our Q1 2024 earnings conference call. First, I'd like to introduce who are present today. 이창재 CFO, 강창범 CSO, 장승권 In charge of Finance and Accounting Group, 이상현 In charge of Finance, 정재우 In charge of Planning and Management, 김경훈 In charge of Advanced Automotive Battery Planning and Management, 노인하 In charge of Mobility and IT Battery Planning and Management, and 최신근 In charge of ESS Battery Planning and Management. For your reference, the presentation for business performance and strategy will be conducted with simultaneous interpretation, after which we will have Q&A with consecutive interpretation. The presentation slide will be left as live and also downloadable on the corporate website. In this conference call, I'm going to briefly share our Q1 2024 performance, and then CFO will explain recent progress and major action plans, followed by Q&A session. Please note that the forward-looking statement, including the call, are subject to change according to amendments in future business environment and corporate strategy. First, let me explain business results. In Q1, revenue marked about ₩6.1 trillion, down 23% quarter-over-quarter. With our corrective response for cylindrical batteries for EVs, mainly for the volume of the customer, the revenue of small-size batteries grew by double digits. The revenue of large-pouch batteries for EVs declined quarter-over-quarter, with a decrease in shipment volume impacted by sustained conservative inventory holding by EV customers due to slow demand trend following the previous quarter, and continuous decline in metal prices in the latter half of last year reflected into battery ASP. In the meantime, ESS showed a significant drop in revenue due to the base effect caused by a concentrated response to the power grid demand in the last quarter, in addition to the combined impact of seasonality of reaching into the off-peak season. For profitability, on top of decline in revenue, fixed cost burden was incurred due to the utilization rate of the production line in Poland, which remained at low level, and Michigan plans to transition into new lines. Adding to that, with the persistent lagging impact of input raw material prices due to a decline in metal prices, despite receiving one-off compensation from certain customers in return for not having satisfied the minimum purchase guarantee, OP in Q1 recorded ₩157.3 billion, representing 53% decline quarter-over-quarter. The IRA tax credit effect was down quarter-over-quarter to record ₩188.9 billion, attributable to the impact of customer demand and the shutdown of some production lines in the Michigan plant for the remodeling purposes mentioned earlier, excluding such effect, with operating loss of ₩31.6 billion. In non-operating items, even with interest expenses of about ₩41 billion due to gains on valuation of derivative instruments and others, impacted by the depreciation of the Korean won against the U.S. dollar at the end of the period, non-operating profits came in at ₩65 billion. Accordingly, net profit recorded ₩189 billion, similar to the previous quarter, with net profit margin of 3.1%, up by 0.7% quarter-over-quarter. Next, financial position, the total assets in Q1 2024 increased by about ₩3.8 trillion compared to the previous year-end to stand at ₩49.275 trillion due to acquisition of tangible assets and increase in cash and cash equivalent, with liability to equity ratio of 85% and net debt to equity ratio of 28%. For cash flow this quarter, in spite of positive cash flow stemming from EBITDA generation of ₩0.8 trillion and a fund inflow of ₩1.6 trillion from the issuance of Korean won-denominated bonds due to CAPEX spending of around ₩2.9 trillion for expansion of JV capacity in North America, the cash balance at the end of the first quarter increased by ₩219 billion compared to the previous quarter-end, reaching ₩5.288 trillion. The EBITDA margin improved by 1.1 percentage points quarter-over-quarter to 13.3%. With this, let me end my explanation on the business performance and move on to the next part on recent progress and future action plans by CFO Lee Chang-jae. Good morning. This is Lee Chang-jae. First, the most noticeable achievement that we have pursued since this year is the expansion of stable operation in North America. Since this February, our second JV with GM in Tennessee in the U.S. has started operation in earnest and is shipping out products as planned at the moment. These products are to be supplied to new EV models based on GM's BEV3 platform. Through discussions with the customer, we plan to gradually expand our production capacity up to 50 gigawatt-hours down the road. Furthermore, the GM JV Phase 2 is of great significance in that it is a smart factory-applied production facility, which has highly improved productivity through cutting-edge quality assurance inspections for each process. It was enabled by introducing more advanced automated manufacturing processes than before. In addition, we have begun the construction of the Arizona plant, our second standalone capacity in North America. Arizona capacity is not only the first cylindrical battery plant in North America but also holds significant meaning as an ESS-exclusive production facility. With this, we can secure price competitiveness through cost savings in logistics, customs, and others, and receive production incentives. Additionally, we'll be able to provide differentiated customer value with more timely local response to customer needs. At the Arizona plant, the 46 series, a new cylindrical form factor, and the ESS products based on LFP chemistry will be produced. They are scheduled to begin mass production from 2026. Through Through this, we aim to solidify our technological and market leadership. Let me update you on our progress of new businesses. We have been making continuous efforts to expand our business beyond battery production and sales into software and service areas with a mid-to-long-term perspective to widen our business scope and create a virtuous cycle. As part of this effort, we decided to collaborate with Qualcomm Technology in March to pursue the development of advanced BMS solutions for next-gen EVs. Based on the analysis of over 10,000 battery data points collected from the field, we hold over 7,000 patents in battery management systems alone. With a predictive accuracy of up to 90% in safety diagnostic algorithms, we have established top-tier capabilities in this industry. In addition to our outstanding BMS diagnostic software technology, we plan to leverage Qualcomm's high-performance cloud platform to develop advanced diagnostic solutions with over 80 times improved computing power. We will be able to execute more sophisticated battery algorithms in real time and implement cutting-edge BMS functionalities. Through this, we will provide differentiated value that enables global OEMs to achieve optimal performance, efficiency, and safety in their next-generational EV models. Another meaningful achievement in our new business area is the expansion of the battery swapping station business nurtured as an in-house venture. The BSS business provides a service for electric two-wheelers, such as e-bikes, where used batteries are exchanged with fully charged ones, reducing charging time and enhancing user convenience as well. The BSS operates based on BMS technology, enabling real-time management of data points such as remaining lifespan and temperature. Currently, it is being operated only in Seoul but going to be expanded nationwide by 2025. One notable aspect of the BSS business is that we can have direct access to battery field data. Based on this, we are conducting R&D activities to analyze consumer usage patterns and develop technologies that can extend battery lifespan. We plan to apply these findings to future cell designs. Next, supply chain establishment and financial progress. In February this year, we signed a contract with CNGR to secure about 160,000 tons of LFP cathodes for the next five years. These materials will be supplied from China and Indonesia, and these will be utilized for ESS battery production. Furthermore, we have also secured additional 85,000 tons of lithium concentrate from Australian mines. With this, we intend to increase the amount of secure metals eligible for IRA subsidy requirements. Through these efforts, we aim to establish a stable supply chain for product portfolio and material diversification. Regarding financial progress, we have been securing investment resources through competitive funding activities on time. In February, we successfully issued corporate bonds worth a record-breaking ₩1.6 trillion in the Korean corporate bond market, issued as green bonds, recognizing the environmental-friendly nature of our business. Leveraging our excellent credit rating, we're able to fund at favorable interest rates. In the meantime, to ease the financial burden from our expansion investment in North America, we have entered into a long-term lease agreement for the Arizona plant building for 20 years. This is to mitigate the initial burden of construction investment and spread cash-outs that were previously concentrated in the short term over a longer period. Next, we would like to explain our major action plans to secure fundamental competitiveness for this year. First, we'll respond more proactively to changes in market dynamics related to EVs and customers. On the investment front, we'll closely examine the demand changes for ongoing projects. Also, we will adjust the investment scale and execution speed in consideration of the priority of investment execution. With these efforts, we'll improve investment efficiency in terms of construction costs, equipment expenses, and others related to business expansion. In terms of operational efficiency, we'll establish measures to maximize the utilization rate of production sites that have been invested so far. This will help reduce fixed cost burdens while optimizing operational costs such as logistics expenses and utility costs. By doing so, we aim to strengthen our fundamentals. Secondly, we'll secure cost competitiveness through raw material innovation. To reduce fundamental material costs, we're expanding the direct sourcing scope of raw materials from major metals such as lithium to precursor. Additionally, through direct investment in the value chain, we are going to further enhance our material cost competitiveness. Also, we expect that we'll be able to achieve improved profitability going forward. Thirdly, on the operational front, we'll actively respond to the demand of OEMs based on strong partnerships with key customers, in particular in the second quarter. We initiated the mass production of 10 gigawatt-hours in the Hyundai Motor Group JV in Indonesia without a hitch. In the second half of the year, we plan to start module production in Stellantis JV, which is of 45 gigawatt-hours in total scale and located in Ontario, Canada. With these spaces, we will diversify our global production house. Lastly, we'll expand our product lineups to lead the market based on our unmatched technological leadership. Following the establishment of production lines in Ochang at the end of last year, the cylindrical 46 series is expected to be mass-produced smoothly from the third quarter. Furthermore, starting from the end of last year, we have initiated mass production of ESS LFP in Nanjing, China. By actively responding to demand in the power grid market, we plan to increase the supply to North America and Europe. Investors, analysts, and shareholders, this year, we acknowledge that there are challenges posed by geopolitical shifts globally, inflation burden from prolonged high interest rates, and heightened volatility in the EV market. It is true that these factors influence our business results in the near term. However, we view these as temporary pains that are inherent to our journey towards bigger growth going forward. Given this, we'll further solidify our fundamentals and establish solid footing to grow as global number one. Thank you. This is the end of our presentation. Let me move on to the Q&A session. For more participants to get chances, please limit your questions to two. 질문을 하실 분은 전화기 버튼의 별표와 1번을 눌러주기 바랍니다. 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. Questions will be taken according to the order you have pressed star and one. For cancellation, please press star and two on your phone. 처음으로 질문해 주실 분은 한화증권의 김현수 님입니다. The first question will be presented by Kim Hyun-soo from Hanwha Securities. Please go ahead with your question. 안녕하십니까. 한화증권 김현수입니다. 질문 기회 감사드립니다. 저는 실적하고요, 규제에 관련돼서 두 가지 여쭙겠습니다. 먼저 실적 관련해서는 2분기 실적 흐름 어떻게 보고 계신지 먼저 좀 말씀 부탁드리고요. 그리고 2024년 연간으로도 전망 공시 연초에 해주셨었는데, 이와 관련해서 현재 보고 계시는 연간 전망도 말씀 부탁드리겠습니다. 그리고 두 번째는 규제 관련한 대응 전략에 대한 건데요. 최근에 미국 연비 규제 완화가 있었고, 유럽도 배기가스 규제 완화 같은 이런 규제 환경의 변화가 나타나고 있는데, 이와 관련돼서 수요 둔화의 장기화 가능성도 대두되고 있습니다. 그래서 이에 대한 대응 전략은 어떻게 세우고 계신지 말씀 부탁드리겠습니다. 감사합니다. This is Kim Hyun-soo from HANA Securities. Thank you for this opportunity. I would like to ask two questions. One on earnings performance and second on the regulation. To address my first question on your earnings performance, I would like to ask the company to please share the overall outlook or how you currently see the performance shaping for the second quarter. Also to share your latest update in respect to the 2024 full-year earnings outlook. I know that there was earlier communication on this, but I would like to hear the company's latest position on the 2024 full-year outlook. Moving to my second question, this is related to how the company is responding to the changes in the regulation. As we have noted in the U.S., we are also seeing that there has been some relaxation in respect to the fuel efficiency standard. EU also, on its part, has actually eased its carbon emission regulation and standard as well. Thus, with these developments, there is some concern arising that the slowdown on the demand side could be prolonged further. So I would like to ask the company to please respond to how you see the developments happening going forward. SFO 이창실입니다. 좋은 질문 감사드리고요. 먼저 첫 번째 질문하신 2분기 및 연간 전망은 제가 설명드리는 게 좋을 것 같고, 두 번째 질문하신 연비 규제 완화에 따른 EV 수요 둔화 가능성에 대해서는 저희 CFO께서 답변을 드리도록 하겠습니다. 먼저 2분기 및 연간 전망에 대해서 말씀을 드리겠습니다. 잘 아시는 것처럼 2분기에도 리튬과 같은 주요 메탈가 하락에 따른 환가 영향이 아직 남아 있는 게 사실입니다. 또한 유럽을 중심으로 해서 여러 가지 고객 수요 회복에도 다소 시간이 걸리는 것 같습니다. 그렇지만 전동화에 상대적으로 적극적인 미국 전략 고객사들의 신차 출시에 따른 JV 물량 증가가 있기 때문에 2분기 매출은 당연히 1분기 대비 증가할 것입니다만, 당초 저희가 기대했던 수준에는 다소 못 미칠 가능성이 있습니다. 손익 관점에서는 북미 생산량이 늘어남에 따른 IRA 택스 크레딧 증가 효과가 있고, 특히 유럽 공장은 여러 가지 저희가 노력 중에 있습니다만, 아직까지는 가동률이 정상적인 수준으로 올라오지 못하고 있습니다. 그리고 미국 단독 법인은 지금 우리가 추가적인 생산성과 품질 개선을 위해서 리모델링 작업을 진행하고 있기 때문에 일시적 가동 축소 영향이 있고요. 그리고 메탈 가격 하락에 따른 원재료비 레깅 영향은 아마 2분기를 기점으로 정리가 될 것 같습니다만, 2분기까지는 이러한 부분들이 영향을 조금은 미치고 있어서 수익성 관점에서는 1분기 대비해서 유의미하게 개선하기는 쉽지 않아 보입니다. 그렇지만 하반기에는 주요 고객사들의 신규 모델 출시가 확대될 것으로 보이고, 지난 이틀간 여러 주요 OEM들의 실적 발표가 있었습니다만, GM JV 2기가 본격적으로 램프업이 되고 하는 여러 가지 포지티브한 팩터들이 있기 때문에 상반기 대비해서는 상대적으로 실적 개선의 가능성이 크다고 봅니다. 다만 최근 북미 중심의 정책 변화와 대선 영향 등의 대외 변수가 남아 있어서 전방 시장의 수요와 고객사의 물량 변동 가능성은 전혀 배제하기가 어려운 것도 사실입니다. 그렇지만 앞서 전체적으로 제가 설명을 드렸던 것처럼 저희 회사는 이러한 시장의 변화들을 예의주시해서 여러 가지 변화가 일어나는 부분에 대해서는 더 선제적으로 능동적으로 대응을 해 나가도록 하겠습니다. 그리고 이미 수주가 되어 있는 프로젝트들은 하반기 내에 조기 매출화를 하기 위한 그런 협의들을 OEM들과 진행할 것이고요. 그리고 이미 투자돼 있는 캐파에 대해서는 가동률에 대해서 최대한 올릴 수 있는 구조로 해서 고정비 부담을 줄이고, 당연히 저희가 해야 될 일이겠습니다만, 근본적인 원가 개선과 주요 오퍼레이션 비용 최적화에 대해서도 더 정교하게 저희가 활동을 벌여서 수익성 개선에 총력을 다해 나가고자 합니다. 이상입니다. This is CFO 이창실. Thank you for those two good questions. I will first answer the question on the overall earnings outlook. Then I will ask the CSO to answer the second question related to the possibility of prolonged slowdown in EV demand due to the relaxation of the fuel efficiency standard and the company's response strategy. In the second quarter, we expect the decline in prices of major metals such as lithium will have an impact on our ASP. More time is needed for customer demand to recover, especially in Europe. However, with the increase in the JV volume due to the launch of new vehicles by US strategic customers, we believe that our performance in Q2 will be improved compared to the previous quarter. We will also be talking about from a bottom-line perspective. To mention that if we look at the North American production, as the production expands, the IRA tax credit effect is expected to also increase as well. While we're making various efforts, we still see the utilization rate in our European plant remaining at a low level. We are at present currently in the process of remodeling our US standalone plant. We are actually doing this in order to increase its productivity and improve our quality. At the same time, we also see that the lagging effect from the raw material prices as a result of the decline in the metal prices still has an impact on our Q2 earnings. We believe that this impact will be phased out in Q2. Of course, if we're talking about Q2 outlook, it will still have some impact. With that said, we're also going to be quite challenged in having a significant improvement in our bottom line compared to the previous quarter. However, as we go into the second half, our major customers will launch more new EV models. There's a full-scale ramp-up for the GM GV2 as well. We are also seeing that there are various positive factors happening. This was actually also resonated by the various OEMs' earnings announcements that we have actually heard in the last two days as well. On a relative basis, we are also going to actually see some possibility of improved earnings performance compared to the previous quarter. At the same time, we're faced with the fact that there are still external factors such as the policy change most recently in the US and also the possible impact that the election will bring forth. Thus, we cannot actually exclude the possibility of changes happening in the demand on the EV market as well as the customer volume as well. Accordingly, the company will closely monitor changes in the market and actively and preemptively respond to changes in the business environment. At the same time, we will make efforts to quickly realize sales revenues of projects that we have secured orders on within the second half of this year and minimize the fixed cost burden by maximizing the utilization rate of currently invested capacity. Last but not least, this is something that, of course, we have always been focused on and will continue to strive to improve profitability through cost innovation and major cost optimization. These activities, I will make sure that we are actually conducting them with more precision going forward. 두 번째 질문에 대해서 답변드리겠습니다. CSO 강창범입니다. 말씀하셨듯이 미국의 연비 규제 CAFE하고 유럽 배기가스 배출 규제 Euro 7이 완화되었습니다. 이로 인해서 2030년 기준의 전기차 침투 전망을 보시면 기존에는 50% 이상 정도 예상했었는데, 최근에는 40% 중반 내외 수준으로 하향될 수 있다 이렇게 판단이 됩니다. 자동차 OEM들의 대응을 보면 규제 완화에 따라서 EV 확산 속도 조절하는 모습을 볼 수 있을 것 같고, 이와 함께 전기차 도입을 확대하기 위한 보급형 솔루션 확대에 노력하고 있다고 판단이 됩니다. 저희 엔솔은 크게 두 가지 방향에서 대응하고자 합니다. 첫 번째로는 성장 포텐셜이 높은 ESS 사업 기회를 적극 확대하고, EV에서 신규 수주 기회를 확보해서 기존 생산 라인의 가동률을 극대화해 나가고자 합니다. 두 번째로는 보급형 EV 솔루션을 중점 강화해서 전기차 시장 확대에 적극 기여해 나가고자 합니다. 이를 위해서 고전압 미드니켈 LFP CTP 제품을 출시하고, 코스트 경쟁력이 좋은 4680 원통형 제품을 적극 확대해서 보급형 시장 확대에 기여하도록 하겠습니다. 이상입니다. Moving on to your second question to the CSO 강창범. I would like to address the second question related to the recent changes in the regulation in the US and in Europe. As you have mentioned, in the case of US corporate average fuel economy, the CAFE regulation, as well as Europe's carbon emission regulation, Euro 7, there has been a relaxation in respect to the standards that have been announced previously. Thus, what we are currently seeing is that the OEMs are making adjustments in respect to how they were actually forecasting the overall outlook and the EV penetration rate in the long term. On a global basis, that level has actually gone down from 50% to 40%. As a result, if we look at the short-term changes, it's possible that we can actually see more volatility in respect to how the OEMs are pacing themselves and changing the speed of their electrification as well. But at the same time, we also recognize that in order to actually have some cost savings related to EV, there will be a growing need to actually provide more lower-end solutions into the market as well. For this end, LG Energy Solution is actually responding in two areas. The first is really to look at the high growth potential of the ESS business. We want to make sure that we're fully leveraging the ESS business opportunities going forward. In order to do so, we're going to continue to make sure that we're leveraging our existing infrastructure to increase our utilization to meet this end as well. Moving to the second response measure is really to make sure that we are keeping pace with the overall development and the strengthening of the mid to low-end EV market growth as well. As this market actually grows, we will also make sure that we have the right products to address these markets. This means that we will also be continuously making sure that we are producing the high-voltage midnickel and LFP products as well. In respect to the cylindrical form factor, we'll make sure that we're going to be able to expand the production of the 46 series, which is more price competitive than the previous 2170. We're going to make sure that we continue to expand our lineup to meet the mid to low-end EV lineup as a very competitive battery company. 다음 분 질문 받겠습니다. 다음으로 질문해 주실 분은 HSBC 증권의 조우형 님입니다. The next question will be presented by Jo Woo-young from HSBC Securities. Please go ahead with your question. 안녕하세요. HSBC 조우형입니다. 질문 기회 감사드립니다. 저도 투자와 수요 관련해서 각각 하나씩 질문드리겠습니다. 먼저 수요 쪽에서는 배터리 수요 측면에서 올해는 북미 사업이 더욱 중요해 보이는데요. 저희 북미 전략 고객사인 GM의 EV 판매 현황 그리고 전망 공유해 주시면 감사드리겠습니다. 두 번째는 투자 관련한 질문인데요. 여전히 EV 수요 둔화에 대해서 우려가 좀 높고, 이에 따라서 OEM들의 전동화 계획의 불확실성도 다소 높아 보입니다. 이와 관련해서 저희 CAPEX 집행 계획에는 변동 가능성이 없는지 궁금합니다. 이상입니다. 감사합니다. This is Jo Woo-young from HSBC Securities. I also have two questions. I would like to ask about the company's investment and the overall market demand. I will first ask the question related to the market demand. Specifically, because of recent developments, we can actually recognize that your business in North America will have greater importance. So if the company can, please share the EV sales status and outlook for GM. Moving to the question on the investment side, there is concern in the market related to the slowdown of demand in the EV market. As such, there's also a greater possibility of OEMs making changes to their electrification plan as well. So could the company please comment on these two questions? 예, 안녕하십니까. 자동차 전지 기획관리 담당 김경호입니다. 첫 번째 수요 관련된 답변 제가 드리고요. 투자 관련된 답변은 CFO님께서 드리도록 하겠습니다. 북미 주요 고객은 2023년 말에 볼트 EV 모델을 단종하였고, 올해 초에 신차 출시 일정 조정 등에 영향이 있었습니다. 이로 인해 고객사의 1분기 EV 판매 실적은 크지 않았던 것으로 보입니다만, 얼티엄 플랫폼 차량 판매는 지속적으로 증가하고 있습니다. 고객은 IRA 보조금 혜택과 차량 가격 인하 등에 힘입어 4월부터 신규 모델 출시가 잇따라 계획되어 있으므로, 2분기부터는 고객사의 차량 판매 실적도 상당히 개선되지 않을까 기대하고 있습니다. 이틀 전에 고객의 실적 발표에서 밝힌 바와 같이, 올해 초에 밝혔던 GM의 연간 EV 생산 계획 20~30만 대는 역시 유효할 것으로 파악하고 있으며, 하반기는 상반기보다 전망이 밝다고 보고 있고, 물량 증가로 이어지도록 기대하고 있습니다. 물론 최근 시장 환경이 녹록지 않아 판매 상황을 예의주시하며 지켜봐야겠습니다만, 당사는 고객과 JV를 공동 운영하고 물량 협의를 긴밀하게 하고 있으므로, 이를 JV의 운영 계획에 반영하여 생산과 투자 속도를 면밀히 조정해 나가도록 하겠습니다. 이상입니다. This is Kim Kyung-hoon from Advanced Automotive Battery Planning and Management. I will address your question on the demand side, and I will then ask the CFO to answer the question on the investment. Due to the discontinuation of the Volt EV model at the end of 2023 by our major customer in North America and the adjustment of the new car launch schedule, the customer's EV sales performance in the first quarter of this year appears to have been not great. In fact, however, the sales of alternate platform vehicles are continuously increasing. From the customer, we have heard that they are planning a series of new model launches within this year, starting in April thanks to IRA subsidy benefits and vehicle price reductions. We anticipate that the customer vehicle sales performance should improve significantly from the second quarter. As stated by the customer in his earnings presentation two days ago, it appears that GM's annual EV production plan of 200,000 to 300,000 vehicles announced earlier this year is still valid. Thus, we believe that there are brighter prospects in the second half compared to the first half of this year. We'll make various efforts that this actually leads to the increase in our volume as well. Of course, recent changes in the market environment. We recognize that the recent market environment is not easy. We need to keep a close eye on every situation. However, since we are jointly operating the JV with the customer, we'll continue to closely discuss various aspects, including the volume, and reflect that into the operation plan and adjust the speed of production and investment. 두 번째 질문에 대해서 말씀드리겠습니다. CFO 이창실입니다. 여러 가지 걱정을 많이 하시는 것처럼 최근에 시장과 고객의 변화가 많은 것 같습니다. 지난 1월 실적 발표 때 제가 올해 투자는 작년과 유사한 수준으로 계획하고 있다고 말씀드린 바 있습니다만, 최근의 시장과 고객 상황의 변화를 볼 때는 현 시점에서는 당분간은 대외 환경과 전방 시장의 수요 개선에 대한 가시성이 크지 않은 것 같습니다. 그래서 저희 엔솔은 중장기 수요 대응이나 북미 내 선제적인 캐파 확보를 위한 필수적인 신정설 투자에는 단연히 선택과 집중을 하되, 앞서 말씀드렸던 바와 같이 투자의 우선순위를 좀 철저히 따져보고 능동적인 투자 규모 및 집행의 속도를 조정함으로써 CAPEX 집행 규모를 다소 낮추고자 합니다. 이를 위해서 저희 회사는 고객사들과의 긴밀한 소통을 통해서 투자의 적합성을 더욱 정밀하게 분석해서 집행할 수 있도록 할 계획이고요. 추가 CAPEX 지출을 최소화하고 가동률을 좀 높일 수 있도록 사업 구간의 유휴 라인의 이관 등 여러 가지 방안을 동원해서 자산 운영을 최적화하고, 또한 경쟁 입찰 기반의 설비 가격 인하와 설치비 절감 등을 추진해서 설비 원가의 경쟁력을 확보하는 부분도 집중해 나가고자 합니다. 이상입니다. This is the CFO. I will answer the investment question. As you have mentioned, there are various concerns currently on the market side as well as on the customer side. In light of the recent circumstances surrounding the market and the customers, I want to go back and say that during the earnings call that we had in January, our plan was to actually keep this year's CAPEX spending at a similar level to the previous year. However, if we actually think about what has happened recently for some time in the near future, because in terms of the lack of visibility of the external environment and lack of visibility in seeing demand improving in the EV market, for LG Energy Solution, what we will be doing is really having a select and focused approach to make sure that we're focusing on the essential new investments to respond to the mid to long-term demand and preemptively securing capacity in North America. As mentioned, we will make necessary adjustments to be proactive in investment size and execution speed. This will be done all in consideration of investment priorities so that the efforts that we're making are geared to reducing our CAPEX scale as well. For this end, for the company, we will communicate closely with our customers to adjust the speed of investment execution by more precisely analyzing the suitability of the investment plan. At the same time, we want to make sure that we're minimizing additional CAPEX spending. In order to improve utilization, we'll strive to optimize asset management through transfer of idle lines between business divisions and other measures as well. Lastly, we will also be focusing on reducing equipment and installation costs through competitive bidding. We plan to continue efforts to reduce equipment investment costs by securing equipment cost competitiveness. Thank you. 다음 분 질문해 주시기 바랍니다. 다음으로 질문해 주실 분은 한화투자증권의 이영욱 님입니다. The next question will be presented by Lee Young-wook from Hanwha Investment and Securities. Please go ahead with your question. 네, 안녕하세요. 한화투자증권 이영욱입니다. 질문 기회 감사드립니다. 저는 수요 관련해서 두 가지 질문 드리겠습니다. 일단 첫 번째로 테슬라 판매량이 감소하고 있는 추세로 보입니다. 금일 테슬라 실적 발표에서는 2분기부터 판매량이 개선될 것이라고 언급하긴 했지만, 당사가 보시는 테슬라향 배터리 수요와 이와 관련해서 당사 매출에 미치는 영향에 대해서 말씀해 주시면 감사하겠습니다. 그리고 두 번째로는 유럽 쪽인데요. 유럽 수요 둔화로 당사 폴란드 공장 가동률도 지금 저조한 상태로 알고 있습니다. 폴란드 공장 가동률 조정의 장기화 가능성과 이에 따른 당사의 대응 방안에 대해서 말씀해 주시면 감사하겠습니다. 이상입니다. This is Lee Young-wook from Hanwha Securities. I would like to first thank you for this opportunity. I have two questions. They're all very much related to the demand, market demand. My first question is related to the overall decline in the Tesla EV sales. During its recent earnings call, Tesla has mentioned that they believe that improvement in earnings will come from the second quarter. Having said that, I would like to also hear from LG Energy Solution how you see the demand of your customer playing out in the future and what would that how would that impact your business going forward? My second question is related to the overall slowdown in demand in the European market. As a result, my specific question is related to the possible longer prolongation of the adjustment that you're making in your Polish plant utilization and how the company is actually responding to this as well. 첫 번째 질문해 주신 EV 원통형 판매량하고 그다음에 당사에 끼치는 매출 영향에 대해서 답변드리겠습니다. 답변자는 소형 전지 기획관리 담당 노인학입니다. 최근 고객사는 실적 발표를 했는데요. 일단 1분기 판매 물량이 지정학적 리스크에 따른 물류 차질과 그다음에 공장의 개조, 중국 시장의 경쟁 심화 등으로 시장 기대치 대비는 다소 저조했다는 것을 설명한 것으로 알고 있습니다. 다만 당사의 1분기 원통형 EV 매출의 경우에는 작년 말 타이트한 재고 운영 이후에 고객사의 리스토킹 수요에 따른 판매 확대로 전분기 대비는 증가했습니다. 향후 고객사 차량 판매 추이에 따라 당사 원통형 매출도 다소 영향이 있을 수 있는 바, 지속적으로 수요 모니터링을 하고 고객과 긴밀한 논의를 통해서 리스크를 최소화해 나갈 계획입니다. 아울러서 올해 하반기부터에는 오창에서 46 시리즈 원통형 제품 양산이 예정되어 있고, 고객사 또한 저가 차량 계획을 유지하는 것으로 언급한 만큼 추가적인 시장 기회를 모색할 계획이고요. 타 고객향 EV, LEV용 매출 증대와 함께 신규 애플리케이션의 확대 노력을 통해서 원통형 배터리의 매출 성장을 지속할 수 있도록 하겠습니다. 이상입니다. This is No In Hak from the Mobility and IT Battery Planning and Management. I will answer your question related to the overall sales of the EV cylindrical batteries and the impact this will have on the company's business. As you have heard from the recent customer's earnings release call, the sales volume in the first quarter was somewhat lower than expected due to logistics disruption from geopolitical risk, renovation of some plants, and also the intense competition from China. They have, during their call, explained that their performance was actually less than expected. However, in the case of LG Ensol's first quarter cylindrical EV sales, after the tight inventory management at the end of last year, sales increased compared to the previous quarter driven by the customer's restocking demand. Depending on the customer's future vehicle sales trend, our cylindrical battery sales may be somewhat affected. Thus, we plan to minimize risk by continuously monitoring market demand and engage in close discussions with customers. We also have, in the second half, we have mass production of the 46 series cylindrical products scheduled in Ochang. As the customer also has mentioned, to actually keep the plan to also roll out more LEVs going forward, we will also make sure that we're very active in capturing new market opportunities as well. Thus, we will also make sure that we will be able to develop the new applications so that we'll be able to also ride the growth of the LEV market as well. Thank you. 두 번째 질문해 주신 폴란드 공장 가동률 조정 장기화 가능성과 당사 방안에 대해 답변드리겠습니다. 답변자는 기획관리 담당 정재욱입니다. 유럽의 경기 불안 및 보조금 축소, 중국 업체들과의 경쟁 심화 등 복합적인 대외 환경 요인들로 인해서 유럽 OEM들의 수요가 감소함에 따라 당사도 작년 4분기부터 폴란드 공장의 가동률을 하향 조정하였고, 이로 인해서 지금 현재 고정비 부담이 상당히 발생하고 있는 상황입니다. 이러한 상황은 상반기까지는 불가피하게 당사 수익성에 영향을 미칠 것으로 예상하고 있으며, 그럼에도 당사는 자원 운영을 최적화하고 인원 투입 효율화 등 비용 축소 노력을 지속하는 한편, 유휴 라인의 타 어플리케이션 전환 검토를 통해 시장 상황에 능동적으로 대응해서 하반기를 기점으로 폴란드 법인의 가동률을 개선해 나갈 계획입니다. 이상입니다. On the second question related to the possible utilization rate adjustment in Poland being prolonged and the company's response plan, this is Kim Young-woon from the Advanced Automotive Battery Planning and Management. The answer to your question is that as demand from European OEMs has decreased due to complex external environmental factors such as economic instability, subsidy cuts, and intensifying competition with Chinese companies, we have lowered the utilization rate of our Polish plant since the fourth quarter of last year, which has resulted in carrying a sizable burden on the fixed cost side. This situation is expected to inevitably affect our profitability until the first half of this year. Despite this, we'll continue to make efforts to reduce costs such as optimizing our resource operation and improving operating efficiency. We will actively respond to market conditions by reviewing the conversion of idle lines to other applications starting in the second half of the year. We plan to improve the utilization rate of our Polish subsidiary. 시간 관계상 마지막으로 질문 받겠습니다. 마지막으로 질문해 주실 분은 SK증권의 박형훈입니다. The last question will be presented by Park Hyung-hun from SK Securities. Please go ahead with your question. 네, 질문 기회 감사합니다. 안녕하세요. SK증권 박형훈입니다. 두 가지 내용인데요. 첫 번째는 전기차 산업 관련해서 질문드리고 싶습니다. 지금 OEM 고객사들은 하이브리드와 플러그인 하이브리드에 집중하려는 것 같습니다. 이에 따른 위협과 기회 요인을 어떻게 판단하고 계신지, 그리고 생각하고 계시는 대응 전략이 어떤 것일지 공유 부탁드립니다. 두 번째 질문은 ESS와 LFP 내용인데요. 아직 산업은 초기 단계지만 지난해 우리가 ESS 시장에서 국내 1위 기업이 됐고, 또 LFP에서는 지난해 국내 3사 중에서 가장 먼저 레시피 확보에 성공했다는 점들이 모두 긍정적으로 평가될 수 있을 것 같습니다. 이와 관련해서 ESS와 LFP 각각에 대해 생산 그리고 판매의 현재 상황과 향후 계획을 업데이트해 주시면 감사하겠습니다. 이상입니다. This is Park Hyung-woo from SK Securities. I would like to thank you for the opportunity. I want to actually ask you about the EV market as well as the ESS market. In respect to the EV side, it seems that the OEMs are very much focused on hybrid and plug-in EVs. I would like to ask the company how you actually see this development. What are the threats and opportunities for the company? Moving to my second question related to the ESS LFP business. Of course, for ESS LFP, this is still in a very early stage of development for the industry. But the company has actually made two notable achievements. Most recently, on the ESS side, you have actually raised yourself as a top player in the domestic market. Out of the three companies, you were the first to secure the recipe for the LFP. With these very significant upsides, I would like to actually ask the company to please share the current status as well as the future outlook for your sales and for your production and sales status. 첫 번째 질문에 대해서 답변드리겠습니다. CSO 강찬범입니다. 최근 연비 규제 완화와 단기적인 EV 성장세 둔화 때문에 OEM들의 PHEV EV 모델 출시 확대가 예상되고 있습니다. PHEV, HEV가 확대되면서 차량 대수 기준으로는 XEV 중에 비중이 늘어날 것으로 예상됩니다. 그런데 PHEV하고 HEV가 대당 배터리 용량이 작기 때문에 2030년 기준으로 보면 용량 기준으로는 한 10% 언더 정도 수준에 머무를 것으로 예상됩니다. 저희 엔솔에서는 기존 라인 활용을 해서 PHEV, EV 고객의 수요에 적극적으로 대응해 나갈 계획을 갖고 있고, EV에 포커스하는 기존 전략은 지속 유지 강화해 나갈 계획이 있습니다. 이상입니다. This is the CSO 강찬범. I would like to answer the first question on the recent development of PHEV and HEV. In terms of the recent changes, the first is the relaxation of the fuel efficiency regulation. We're also seeing an overall slowdown in the growth of the EV market. At the same time, the OEMs are making efforts to continue to expand the sales of PHEV and HEV. In terms of the number of the car park for these electric vehicles, overall, we'll see that the XEVs will continue to increase its share of the EV penetration into the market. If you also look at the overall capacity of the batteries that are loaded onto these PHEVs and HEVs, they're actually much lower. In terms of the overall capacity, in terms of how the PHEV and HEV cars will take up in the electric vehicle market, for the outlook for 2030, we believe that they will still be under 10%. With that said, the company will focus on making sure that we expand the existing lines to respond to the growing demand for these plug-in hybrids as well as hybrid vehicles. For the company, our plan to continue to focus on building batteries for electric vehicles remains unchanged. Thank you. 두 번째 질문, ESS LFP 생산 판매 현황 및 계획에 대해 말씀드리겠습니다. 답변자는 ESS 전지 기획관리 담당 최신근입니다. 당사는 2023년 말부터 중국 남경 라인 일부를 LFP용으로 전환하여 생산 중에 있습니다. 올해 북미 유럽 지역 중심으로 다양한 어플리케이션별 LFP 배터리 공급 예정이 있고요. 이에 따라서 LFP 매출 비중은 점진적으로 증가될 것으로 예상됩니다. 향후 ESS 시장 내 LFP 수요 증가에 대비해서 2025년 하반기 중국 남경 LFP 롱셀 양산을 시작하고, 2026년부터는 미국 애리조나에 약 17GW 규모의 캐파를 구축할 예정입니다. 이러한 LFP 생산 캐파 확보와 더불어서 당사의 강점인 SI 용량을 적극 활용하여 최근 EV 시장 침체 대비 성장 포텐셜이 높은 ESS 시장에서 성장의 폭을 확대해 나갈 수 있도록 하겠습니다. 이상입니다. In respect to your question related to the overall status and the outlook for the ESS LFP production and sales, this is Choi Shin-gun of the ESS Battery Planning and Management. The company, as of the end of 2023, has converted some lines in Nanjing, China, to LFP production. We are also making sure that we are responding to supply LFP batteries for various applications starting from this year to North America and Europe as well. In light of the growth of the LFP demand in the ESS market going forward, we are focusing on improving our LFP product competitiveness by mass-producing the LFP long cell from the second half of 2025 in Nanjing, China. Starting from 2026 in US, Arizona, we will also have an ESS dedicated capacity of 17 gigawatt-hours prepared to meet such demand as well. At the same time, we'll fully leverage our SI capabilities as well to tackle the slowdown of the EV market by focusing on the ESS market, which has very high growth potential. This will help to offset any decline coming from the overall slowdown in the market. Ultimately, this will help to drive the growth of the company. 네, 감사합니다. 이것으로 LG 에너지 솔루션의 2024년 1분기 실적 발표 컨퍼런스 콜을 모두 마치겠습니다. 경청해 주셔서 감사합니다. Brings us to the end of 2024 first quarter earnings. Thank you.