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LG Energy Solution © LG Energy Solution. All Rights Reserved Q3 2026 Earnings Conference Call
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Contents Part.2 Key Achievements and Initiatives Part.3 Appendix 5 6 7 Key Achievements Market Trend Key Initiatives 9 10 11 13 14 15 Q3 2026 Earnings Conference Call Part.1 Financial Performance Business Performance Financial Position Cash Flow andCapex Income Statement Financial Position Cash Flow
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Disclaimer © LG Energy Solution. All Rights Reserved The information regarding business performance of LG Energy Solution is provided for the convenience of investors of the Company prior to the review by external auditors. Please note that some of the information contained herein may change in the course of the final review by external auditors. The financial information contained in this document has been prepared on a consolidated basis in accordance with K-IFRS or Korean International Financial Reporting Standards. Some of the statements as contained herein can be forward-looking considering the current business environment and the Company’s business strategies. Therefore, in accordance with uncertainties inclusive of changes in future business environment and corporate strategies, actual results may differ materially from those expressed in the aforementioned statements.
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Part.1 Financial Performance Business Performance Financial Position Cash Flow and Capex Q3 2026 Earnings Conference Call
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Revenue Operating Profit 5 Revenueincreased +28% QoQ, driven by significant ESS shipment growth, High-voltage Mid-Ni EV pouch shipment increase and continued solid supply of 21/46-Series cylindrical batteries for EV North America Production Incentives Effect recorded KRW 416.9bn, driven by ESS-led volume growth. Operating profit improved QoQ, driven by improved utilization in Europe, continued growth in cylindrical battery volumes, and eased fixed-cost burden from gradual stabilization of ESS capacity in North America. 365 241 417 601 113 756 9.9% 1.5% 7.8% 6,065 7,560 9,643 Cash Flow & CapexFinancial PositionBusiness PerformanceFinancial Performance Business Performance (Billion KRW)(Billion KRW) North America Production Incentive Effect OP Margin Operating Profit Note : Starting from the fiscal year 2026, North America Production Incentive will be consolidated into the revenue figures due to changes in accounting presentation methods. For comparison purposes, past financial figures will also be adjusted accordingly. Q2’26 Q3’26Q3’25 Q2’26 Q3’26Q3’25
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6 125% 157% 171% 76% 96% 98% 59% 72% 82% Q3’25 Q2’26 Q3’26 Assets 67,010 77,878 70,314 Cash and Cash Equivalents, etc.* 5,324 7,170 4,262 Liabilities 37,273 47,591 44,346 Debt 22,728 29,123 25,565 Equity 29,737 30,287 25,968 Cash Flow & CapexFinancial PositionBusiness PerformanceFinancial Performance Financial Position Leverage RatiosFinancial Position (Billion KRW) Liabilities to Equity Debt to Equity Net Debt to Equity Q2’26 Q3’26Q3’25 * Note : Deposits held by financial institutiosincluded
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7 10.5 Q3 YTD YoY -53% 0 2 4 6 8 10 2025 2026 Cash Flow Q2’26 Q3’26 Beginning Cash Balance 3,745 7,170 Cash Flow from Operating Activities 25 (338) EBITDA 1,330 1,972 Working Capital (1,185) (1,022) Cash Flow from Investing Activities 1,788 (1,299) Capex (1,041) (1,067) Cash Flow from Financing Activities 1,468 (701) Net Changes in Cash 3,425 (2,908) Ending Cash Balance 7,170 4,262 3.8 Q3 YTD Q3 YTD 8.0 YoY -40% Cash Flow and Capex Capex(Billion KRW) (Trillion KRW) * Note : Deposits held by financial institutions included in Beginning/Ending Cash Balance Cash Flow & CapexFinancial PositionBusiness PerformanceFinancial Performance
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Part.2 Key Achievements Market Trend Key Initiatives Key Achievements and Initiatives Q3 2026 Earnings Conference Call
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Key Achievements 9 Business Operation/Supply Chain Secured Direct Supply of Behind-the-Meter BESS Project for Big Tech Customer Proven non-PFE* supply capabilities backed by domestic production track record Pursuing additionalorders for security critical AI data center based on the partnership Expanded Long-term Supply Volumes based on Cost Competitiveness of High-voltage Mid-Ni Gen 2 Product Securing stable revenue base in Europe by increasing volumes and extending supply period of existing contracts * PFE : Prohibited Foreign Entity * AC : Alternating Current * PCS : Power Conversion System * EMS : Energy Management System ESS EV Qualified as an NVIDIA DSX Ready BESS Partner Expanding AI data center-specific business opportunities through high-capacity LFP-based AC* Link and In-house SI capabilities AI Data Center Product Competitiveness Integrated BESS Solution Battery PCS* Cooling EMS* Easy installation/scalability enabled by integrated modular design Anomaly detection through safety-focused design SI capabilities(i.e. design, control, analytics) Stable local supply in North America Load smoothing and voltage control through fast response Enhanced Supply Responsiveness through Phased Expansion of ESS Back-end Capacity in North America Strengthening stable supply capabilities through completion of new link line SOP* and phased expansion of pack capacity Diversified Supply Chain of LFP Cathode Strengthening non-PFE compliance through LFP supplier diversification, including Korean suppliers Signed Long-term Supply Agreements for North American Lithium Concentrate and Lithium Carbonate 240k t Canadian lithium concentrate (4 yrs) / 80k t U.S. lithium carbonate (10 yrs) Enhancing local sourcing capabilities and supply stability for key raw materials SupplyChain Operation Continued Utilization Improvement Driven by Volume Growth Maximized utilization of ESS capacity in North America and EV cylindrical production line in Asia, backed by solid customer demand Increased utilization of Poland capacity through High-voltage Mid-Ni volume for Europe and resumed production at the North American JV North America Pack/Link Sites Michigan Illinois Ohio Arizona Ontario Pack Link Key AchievementsKey Achievements and Initiatives Key InitiativesMarket Trend * SOP : Start of Production
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Market Trend Key Achievements and Initiatives Key Achievements Market Trend Key Initiatives US Europe Upstream Production for allied countries not accepted and Made-in-EU is required for IAA compliance Prolonged geopolitical tensions with increasing supply uncertainty Strong demand momentum for U.S.-made ESS supported by supply chain security policies Softer BEV demand, but HEV/EREV opportunities remain Competitive advantage for players with local production capabilities Strong EV momentum driven by carbon regulations and autonomous driving Improved battery economics on a TCO basis Reduced battery cost burden 10 Purchase and installation of power grid-related equipment from Covered Foreign Entities prohibited Covers all electrical equipment including BESS and inverters Proposesa higher cost-gap threshold for exemptions from local-content requirements, reinforcing the need for regional production European gas prices reached a four-year high The average fuel requirement for 2031 eased Expected limited effects following the elimination of penalties already applied in Jul. 2025 FSDapprovals secured in 10 European countries Stronger incentives to purchase new EVs equipped with autonomous driving features Continued decline in keymetal prices Lithium carbonate prices reached a YTD low Executive Order Announced to Strengthen Power Grid Security Final CAFE Rule Confirmed IAA Amendments Announced Approvals Expanded for Autonomous Driving in EU Oil and Natural Gas Prices Continued to Rise Raw Material Prices Stabilized * FSD : Full Self-Driving * IAA : Industrial Accelerator Act * CAFE : Corporate Average Fuel Economy * HEV : Hybrid Electric Vehicle * EREV : Extended-Range Electric Vehicle * TCO : Total Cost of Ownership - Detailed implementation rules expected in Dec. 2026 - From 49.3 mpg to 34.9 mpg - Final legislation targeted for H1 2027
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Key Initiatives 11 Operation Supply Chain Proactively Capture Growing Demand for U.S.-made ESS by Expanding Local Capacity Convert additional pouch lines from EV to ESS and secure new prismatic lines Maximize Capacityacross Production Sites and Address Localizationand New Form Factor/Chemistry Needs North America Enhance Local Supply Competitiveness through Form-Factor Diversification Optimize pouch capacity and secure 46-series production lines Lay the Groundwork for New Market Entry through Product Development and Production Aim for production of SIB samples for the PoC of key ESS customer within this year Enter new application with a high-power LFP 2170 Europe Asia Build a Flexible Global Supply Chain Responsive to Market Changes Secure Structural Cost Competitiveness Enhance operational flexibility through direct metal purchasing and expanded supply of key materials to suppliers Proactively Build Supply Chains Compliant with Regional Regulations Diversify the North American non-PFE supplier base with consideration for Q/C/D : Expand LFP cathode supplier base to four or more North America ESS Capacity (GWh) Prismatic (Lansing) Identify and develop non-PFE suppliers for next-generation products such as SIB and LMR Localize key materials and components in preparation for tighter European requirements Strengthen raw material procurement competitiveness by leveraging mid- to long-term volumes Tabless LFP2170SIB ESSPilot (Korea Mother Factory) * SIB : Sodium-Ion Battery * LMR : Lithium Manganese-Rich * PoC : Proof of Concept * Q/C/D : Quality, Cost, Delivery Key Achievements and Initiatives Key Achievements Market Trend Key Initiatives ’26-end ’27-end a Address Customer Demand by Establishing the First Cylindrical Production Site Start 46-Series production by end-2026 to support awarded projects Secure Tabless 2170 line to meet HEV demand (Arizona) 46-Series Tabless 2170 North America Cylindrical Capacity (GWh) 10 20+ 46-Series EV Pouch 100% EV PolandCapacity Roadmap ESS Cylindrical Previous To Be ’26-end ’27-end 50+ 70+
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Appendix Part.3 Q3 2026 Earnings Conference Call Income Statement Financial Position Cash Flow
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Appendix Income Statement Revenue (Incl. North America Production Incentive Effect) 6,723 6,056 6,065 6,474 25,319 6,555 7,560 9,643 Cost of Goods Sold 5,253 4,563 4,253 5,371 19,440 5,314 6,015 7,380 Gross Profit 1,470 1,493 1,812 1,104 5,879 1,241 1,545 2,263 (%) 21.9% 24.6% 29.9% 17.0% 23.2% 18.9% 20.4% 23.5% SG&A 1,095 1,001 1,211 1,226 4,533 1,449 1,432 1,507 Operating Profit 375 492 601 (122) 1,346 (208) 113 756 (%) 5.6% 8.1% 9.9% (1.9%) 5.3% (3.2%) 1.5% 7.8% EBITDA 1,231 1,375 1,519 913 5,037 887 1,330 1,972 (%) 18.3% 22.7% 25.0% 14.1% 19.9% 13.5% 17.6% 20.5% Net Income before Tax 365 (27) 553 (476) 414 (859) (128) (231) (%) 5.4% (0.4%) 9.1% (7.4%) 1.6% (13.1%) (1.7%) (2.4%) Net Income 227 91 536 (772) 81 (944) (329) (297) (%) 3.4% 1.5% 8.8% (11.9%) 0.3% (14.4%) (4.3%) (3.1%) 2025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3(BillionKRW) 2026 North America Production Incentive Effect 458 491 365 333 1,647 190 241 417 13 The above financial figures for 2025 have been recalculated using the same standards for comparison with the current year's performance. This information is provided for the convenience of investors and has not yet been reviewed by external auditors. Income Statement Cash FlowFinancial Position
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Financial Position Assets 62,299 62,983 67,010 67,148 71,806 77,878 70,314 Cash and Cash Equivalents,etc.* 3,574 5,440 5,324 3,779 3,745 7,170 4,262 AccountsReceivable 5,317 4,595 4,849 4,311 5,157 5,975 6,755 Inventory 4,282 4,054 4,883 4,350 5,354 6,445 6,851 PP&E 40,290 39,999 42,855 40,795 42,538 45,923 40,797 Liabilities 31,028 34,682 37,273 37,826 41,889 47,591 44,346 AccountsPayable 2,831 2,207 2,332 2,153 2,957 3,683 3,846 Debt 17,613 20,857 22,728 22,512 24,682 29,123 25,565 Equity 31,271 28,300 29,737 29,322 29,916 30,287 25,968 Share Capital 117 117 117 117 117 117 117 Liabilities to Equity 99% 123% 125% 129% 140% 157% 171% Debt to Equity 56% 74% 76% 77% 83% 96% 98% Net Debt to Equity 45% 54% 59% 64% 70% 72% 82% Leverage Ratios 20262025 Q1 Q2 Q3 Q4 Q1 Q2 Q3(BillionKRW) 14 Appendix Income Statement Cash FlowFinancial Position * Deposits held by financial institutions included.
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Cash Flow Beginning Cash Balance 3,899 3,574 5,440 5,324 3,899 3,779 3,745 7,170 Cash Flow from Operating Activities 1,162 250 1,267 1,753 4,432 (316) 25 (338) Operating Profit 375 492 601 (122) 1,346 (208) 113 756 Depreciation 856 883 917 1,035 3,691 1,095 1,217 1,216 WorkingCapital 22 326 (958) 891 282 (1,044) (1,185) (1,022) Cash Flow from InvestingActivities (3,441) (2,717) (2,463) (2,261) (10,881) (1,020) 1,788 (1,299) Investment in Facilities (3,014) (2,717) (2,171) (2,515) (10,417) (1,648) (1,041) (1,067) Cash Flow from Financing Activities 1,950 4,447 999 (1,111) 6,286 1,189 1,468 (701) Borrowing/Repayment 2,222 3,244 1,872 (216) 7,122 2,170 4,441 (3,558) Net Changes in Cash (325) 1,867 (117) (1,544) (119) (34) 3,425 (2,908) Ending Cash Balance 3,574 5,440 5,324 3,779 3,779 3,745 7,170 4,262 20262025 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3(Billion KRW) 15 Appendix Income Statement Cash FlowFinancial Position 1. The financial information states herein has been prepared in the manner different from the standard applied to the cash flow statement of the auditor’s report. 2. Deposits held by financial institutions included.