Good afternoon, this is Taiyoung Kim, Head of IR and Planning Team at Samsung Electro-Mechanics. Thank you for joining our 2024 first quarter earnings conference call. On today's call, I am joined by our CFO, Sungjin Kim; EVP Kwangwook Bae, the Team Leader of Marketing Team; VP Kyu-tae Park, Head of Support Team, Component Division; Hyunjoon Kim, Head of Support Team, Optics and Communication Solution Division; and VP Hongjin Kim, Head of Support Team, Package Solution Division. We will start with a presentation on our Q1 company level and divisional business results, followed by market trends and outlook by products before taking your questions. First, our first quarter results. In Q1, our revenue was KRW 2,624.3 billion, which is approximately 14% increase QoQ and a roughly 30% increase YoY. The details regarding our revenue increase, decrease factors by division will be explained later during the divisional results. In Q1, operating profit was KRW 180.3 billion, which is approximately 63% increase QoQ and 29% increase YoY. Pre-tax profit in Q1 was KRW 219.5 billion. Net profit was KRW 183.1 billion. Next, in terms of our financials, as of end of Q1, total assets was KRW 12,179.9 billion, which is a roughly 4% increase from end of Q4. In terms of major financial indicators, liability to equity was 48%, debt to equity 22%, which is a slight increase QoQ. Equity ratio was 67%, which is a slight decrease from Q4. Next are the divisional results and future outlook. First, the Component Division. The Component Division's Q1 revenue was KRW 1,029 billion, which is a roughly 5% increase QoQ and about a 24% increase YoY. In Q1, while overall set demand was weak due to seasonality, supply of industrial MLCC, such as for AI servers and power equipment, increased. Also, automotive MLCC demand for hybrid vehicles and ADAS remained solid, driving increase in our supplies. This improved our product mix towards higher end products and driving revenue growth. In Q2, the component market is expected to see increased MLCC demand, driven by moderate growth of set demand. Accordingly, SEMCO will focus on responding timely to high-end MLCC demand, such as small size and high capacitance MLCCs for IT applications, and further increasing revenue of industrial and automotive MLCCs in growth areas such as AI servers and ADAS. Next, the Optics and Communication Solution division. The division's Q1 revenue was KRW 1,173.3 billion, which is a 32% increase QoQ and 47% increase YoY. In Q1, IT camera module revenue increased QoQ, with the increase in supply of the 200-megapixel cameras and high image quality slim Folded Zoom to strategic customers, combined with the full-scale mass production of high-spec camera modules with multi-step iris for Chinese customers, which resulted in overall increase in flagship camera module demand for key customers. Revenue of automotive camera modules also increased, thanks to increased supply to overseas customers. In Q2, while camera module market is expected to be affected by IT camera seasonality and slowdown in auto OEM's EV shipment growth rates, demand for differentiating camera modules is expected to grow, supported by flagship smartphones and advances in automotive camera technology. Accordingly, we will respond on time with high-performance camera modules for the new flagships of Korean and overseas customers scheduled to launch in the second half. For automotive camera modules, we will increase supply of high pixel camera modules and strengthen our specialty technology-based product lineup. Lastly, for the Package Solution Division, Q1 revenue was KRW 428 billion, a roughly 3% decrease QoQ, but an 8% increase YoY. Demand in certain applications, including mobile and PC, slowed down, which resulted in QoQ decrease in revenue. For BGA, despite increased supply of ARM processor substrates to overseas customers, the supply of AP substrates decreased, resulting Flip Chip BGA, while supply of high-end automotive substrates related with ADAS and autonomous driving increased, the sluggish demand in certain set markets, including PC, resulted in a drop in substrate supply and revenue. In Q2, in the package substrate market, downstream set markets, including PC and server, are expected to see gradual recovery of demand, and we will focus on increasing supply mainly around products expected to show demand increase, such as FC-BGA for PC and server CPUs, as well as BGA substrates for memory. Furthermore, demand for high-end, high-performance package substrates, such as for servers and AI accelerators, is expected to continue growth, and we will prepare our capabilities for timely response by stabilizing the operation and mass production of the new plant in Vietnam. That completes the presentation on our 2024 first quarter results. Now, Kwangwook Bae, the head of our Marketing Team, will talk about marketing, market trends and outlook by key product group. Good morning, this is Kwangwook Bae, the head of the Marketing Team. I would like to share the current update and outlooks for MLCC, camera modules, and substrate markets respectively. For MLCC, in Q1, component demand continued to remain sluggish due to overall slow set demand tied to seasonality. However, SEMCO continued to increase customer qualifications and supply, particularly around industrial and automotive high-end products with relatively higher demand, and achieved a moderate revenue increase QoQ. Looking at Q1, MLCC demand by application. First, for IT MLCC, despite the effect of flagship phone launched by strategic customer, IT MLCC demand continued to remain weak following the Q4, due to seasonal weak demand of North American smartphone and PCs. On the other hand, thanks to growth in AI server and industrial power demand, industrial MLCC demand increased QoQ. For automotive, despite decrease in demand for finished vehicles, the trend of increasing electronic content per vehicle drove growth in automotive MLCC demand. In Q2, with a gradual recovery expected in set demand, MLCC demand is expected to slightly increase. By application, IT MLCC demand is expected to increase, supported by the launch of new Chinese smartphone models and introduction of new platform-based AI PCs, and the continued growth of AI servers and industrial power is expected to increase industrial MLCC demand. For automotive, even though EV growth rates has been decreasing, hybrid vehicle sales is increasing, and the trend of more electronic content per vehicle are likely to keep automotive MLCC demand growing. SEMCO will increase small size, high capacitance MLCCs for IT applications, also high capacitance MLCCs for AI servers, and high temperature, high voltage MLCC for power applications. We're also developing new applications such as satellite internet, and factory automation. For automotive, our focus will be on increasing high-end MLCC, such as high voltage MLCC for powertrain and small size, high capacitance MLCC for ADAS. Now, for camera modules, in Q1, within the IT camera module market, demand was, demand relevant to SEMCO increased, thanks to a launch of new flagships by major customers and increased adoption of Folded Zoom. In automotive camera modules, demand for our products increased, driven by continued adoption of ADAS on vehicles and launch of new models by global EV customers. In Q2, camera demand is expected to decrease as sales of flagship smartphones launched in Q1 level off. Accordingly, we will continue to extend the high volume camera market with a timely response to new flagship launches planned in the second half by the strategic customer and global customers. Also, in line with the recent customer needs to strengthen telecameras, we will provide specialized solutions, including lens shift and super macro, to strengthen our dominance in the high-end camera module market. For automotive cameras, we will focus on increasing our customer base by leading the development and promotion of next generation new products and technology needed for advanced automotive autonomous driving, such as heated cameras for always-on sensing and hybrid lens, water repellent coating, and heat dissipation technology. Furthermore, in line with the trend of stricter driving monitoring regulations, we will use our high pixel, ultra high angle cabin cameras to win market. Lastly, for substrates, in Q1, BGA demand for ARM processor increased, thanks to launch of new ARM processor. However, overall BGA market decreased QoQ due to seasonality. Flip Chip BGA demand for automotive ai servers remained solid, but demand tied to PC was weak due to seasonality. In Q2, despite the demand of new substrate products, such as ARM processors related with new laptops and tablets, substrates for AP and memory BGA demand is expected Flip Chip BGA, demand for pc applications is expected to gradually recover as the second half Windows replacement demand kicks in and AI PCs are launched. With the demand of regular servers and AI Flip Chip BGA demand is expected to increase versus q1. Accordingly, in BGA, we will focus on actively booking BGA orders for high-end ARM CPUs and flagship APs, as well as memory substrates, while also continuing to participate in next-generation products based on technology leadership to preemptively build out our revenue base. For Flip Chip BGA, our focus will be on actively capturing the rebound demand for AI PC and other related products, and to gradually ramp up our Vietnam new plant to expand our supply. Thank you. The first question will be presented by Sung Kyu Kim from Daiwa. [Foreign language] I have two questions. My first question is about the MLCC business. Can you share with us the shipments, inventory, and ASP of your MLCC business in Q1, and also what you expect to see in the second Flip Chip BGA business. i think currently in the market, there are concerns Flip Chip BGA, as the overall pc and general purpose server markets remain sluggish. Can you Flip Chip BGA market? to answer your first question about our Q1 MLCC shipments inventory, ASP, and second quarter outlook. In Q1, our MLCC shipments remained flat, similar to the previous quarter. However, our revenue grew versus the previous quarters, thanks to the increase in revenue of our industrial MLCCs related with AI, and also the solid automotive MLCC revenue. On a blended basis, our ASP improved as our product mix improved with the increase in share of industrial and automotive MLCCs. Also, as a result of increased revenue, our inventory days also slightly decreased. Looking towards the second quarter, we expect there to be continuous growth factors, including the launch of new smartphones by major customers, and also the continued increased growth in revenue of automotive and AI-related industrial MLCCs. We expect our second quarter shipments to increase versus the first quarter. [Foreign language] To answer your second Flip Chip BGA, caused by adjustments in the components inventory of key set customers, including PC and server customers, and also seasonal weakness in demand. This has caused supply competition to worsen, and regarding the first half, we expect our business performance to remain weak. However, looking towards the second half, we are expecting there to be a gradual recovery of substrate demand, related with not only AI PCs, but also the demand for replacing PCs preemptively before the end of Windows 10 support, scheduled next year. Also, at the cloud industry level, the existing server install base is aging, and there is expectations that that there will be an increase in server replacement demands to replace the existing server base with new server base. And this is expected to also improve the demand for server CPU substrates. Accordingly, we will actively focus on increasing supply of PC server and other high-end substrates, and also work with various customers to pursue AI accelerator substrate supply, so that we will be able to grow our Flip Chip BGA business this year. The next question will be presented by Giuni Lee from Goldman Sachs. [Foreign language] ... I have two questions. The first question is related with AI. In the market, there is quite a lot of interest regarding not only generative AI, but also on-device AI. I'm wondering what kind of benefits SEMCO is expecting to enjoy from the AI trend? For example, related with AI, are you expecting there to be increase in content or what kind of market growth are you expecting? And currently, what kind of customer promotions are you engaging in? Second question is related with the automotive MLCC side. If we look at the end markets, even though the demand for EVs is slowing down, hybrid vehicle sales appear to be continuing very well. Given the situation, what kind of impact do you think this will have on the automotive MLCC market? Do you have any changes in your growth outlook regarding your automotive MLCC business? [Foreign language] To answer your question about AI, when we look towards possible AI application, in addition to AI servers, we think that AI will be adopted onto different, a larger number of applications, including smartphones, PCs, TVs, and wearable devices going forward. And with these applications, adopting high performance AI, CPUs, and MPUs, this will naturally lead to an increase in ultra-small size, ultra-high capacitance MLCC, as well as high multilayer, large-size package demand. Especially, we believe that this year, the market size for MLCC and Flip Chip BGA for AI servers would more than double versus 2023, respectively. In the case of MLCC for AI servers, we're in the process of expanding our customer base around high, ultra-high capacitance MLCCs. In the case of Flip Chip BGA for AI servers, we're focusing on increasing supply and diversifying customers around the large size, high multilayer Flip Chip BGAs. Also, we are in the process of technology development and promotion with the aim of entering key CSP companies that are planning to adopt their own AI chips. Our goal regarding the AI business is to more than double our AI-related revenue, including AI servers, each year, and we are actively working to diversify our customer base. [Foreign language] Your second question was about our outlook on our automotive MLCC growth. As you mentioned, EV growth rates are expected to slow down versus the past, but even still, in 2024, EV is likely to remain in double-digit high growth levels. Also, a hybrid vehicles which have been consistently maintaining high growth rates, require as much as 2 times the MLCC versus an internal combustion engine vehicle, and therefore, hybrid vehicles is expected to have a positive impact on automotive MLCC demand. ADAS penetration continues to increase, and in 2024, level two and above, ADAS adoption rates are expected to exceed 40%. Therefore, the overall automotive MLCC market high growth rate outlook remains unchanged. With that outlook in place, SEMCO will continue to secure a strong automotive lineup, including high capacitance MLCCs for ADAS, and high temperature, high voltage MLCC, which have been our development focus. This is to which, and our goal is to deliver above market revenue growth. We will also increase production volume of overseas plant to improve our supply stability, to strengthen the foundation for growth going forward. The next question will be presented by Junseo Park from Mirae Asset Securities. I have two questions. First question is about the automotive camera module business. Recently, Tesla and other EV OEMs, their shipment growth rates are leveling off. With that in mind, what kind of outlook do you have for your automotive camera module business? Second question is about the MLCC business. During the last call, you mentioned possibilities of diversifying the applications for the MLCC business, including AI server. Since the last call, has there been any changes? Can you give us updates and also further outlook? Now, to answer your question about diversifying our MLCC applications, some applications that we can think of would include AI servers, factory automation, robots, and satellite internet. These are applications that are expected to grow at high rates of above 10% CAGR, and to become key applications within the industrial MLCC market. Especially if we look at AI servers, which is a growth market within the industrial MLCC, the AI servers are operated at higher temperatures versus existing IT devices, and therefore it requires high temperature, high capacitance MLCCs. In the case of factory automation robots, because they're using more autonomous operations and are adopting high voltage motors, it requires high capacitance, high voltage MLCCs. As you know, SEMCO has the high capacitance, ultra high capacitance MLCC technology that we have acquired for IT applications, and also the high reliability technology that we use for our automotive MLCC applications. Therefore, by leveraging what we existingly have, we have been actively developing the industrial growth markets. For example, we already have been achieving visible results, including being participating into various projects of key customers in various areas. In the first quarter, the market revenue of these markets have been showing higher growth versus the previous year. Going forward, we will continue to diversify our customer base and increase our market share. The next question will be presented by Eoyeon Hwang from Nomura. I have two questions. First question is about your Vietnam package plant that you have been investing quite sizably during the past two years. Can you give us an update of your Vietnam plant operation this year? And do you have plans of additional expansions in Vietnam? Second question is just an overall CapEx plan question. Do you have any changes in your CapEx plan this year? If there are any new business areas that you would be investing in, can you share with us some details? To answer your question about the operation of our Vietnam new plant and future expansion plans. First of all, the new plant in Vietnam completed customer qualifications necessary for mass production earlier this year. It will start operation from Q2 this year, and therefore will start to accrue revenue from Q2. We will operate the Vietnam plant in line with the customer's demand. Now, regarding plans of additional capacity expansion for the package substrate business, we maintain our basic approach that our investments will be executed in line with the market and customer situation. But that said, this year, our main focus will be on improving the yield and also achieving the operational efficiency of our Vietnam production lines, rather than on additional investments and expansions. [Foreign language] To answer your second question about our CapEx plans, as I mentioned last time, this year, our company level CapEx size is expected to be similar to last year, while we maintain focus of our investments into key areas where there is demand growth, such as AI and automotive. In terms of MLCC, we are planning to increase the capacity investments to respond to the automotive demand growth, which is expected to continue. Some investments highlights regarding new businesses would include securing the glass substrate pilot line, and these are examples of our investments that we are making to secure core technologies and also build out our business foundation. Going forward, we will continue to maintain this approach of making the necessary capacity increase investments to further strengthen the market influence of our existing business. At the same time, making investments to develop technology for our future growth in order to maintain a momentum of continuous growth. The next question will be presented by Kangho Park from Daishin Securities. [Foreign language] …I have two questions. First question is about the glass substrate business. There's in the market quite a lot of interest and talk about developing or launching new businesses related with glass substrates. SEMCO is also developing glass substrate business. Can you give us an update and also overall outlook going forward? Second question is about your outlook for the business overall. Your first quarter results have come above, significantly above market consensus in terms of both top line and operating profit. Do you think this trend can carry forward in the second quarter? Overall, can you give us your outlook on your business performance in the future? Your first question was about our development of the glass substrate business. Glass substrates, compared to the existing substrates, have advantages in terms of finer pitch and also larger substrate sizes, and therefore, is expected to be effectively used in the high specification semiconductors for AI or server applications. That's why we have been working with not only the key material or equipment companies, but also related companies, to secure the source and core technologies necessary for developing glass substrates. We plan to build out our glass substrate pilot line this year. We're also developing products by reflecting the needs of global customers, and we'll pursue the glass substrate business by preparing mass production after 2026, which is in line with the customer's roadmap. Your second question was regarding our guidance, business guidance, going forward. Just looking back on the first quarter, despite there being demand decreasing factors in some markets, such as the seasonal weakness of the PC and other IT devices, in Q1, flagship smartphone launches by smartphone OEMs, including the strategic customer, increased MLCC and camera module sales. Also, coupled with the increase in sales of our camera modules and also the high-end MLCC sales tied in with the industrial and automotive applications, as we have mentioned, our Q1 results improved on a quarter-on-quarter basis. Now, looking towards second quarter, the flagship smartphone launch effect is expected to decrease versus the previous quarter, but major applications, such as PCs and servers, are expected to show gradual demand recovery. Also, we expect sales of the high-end products, such as automotive MLCC and server Flip Chip BGA, to continue to expand. So overall, looking towards the second quarter, we expect to deliver solid performance. Even though the increasing tensions, geopolitical instability in the Middle East, the oil price increases and higher interest rates remaining longer, are all contributing to higher levels of uncertainty in the business environment, and the visibility in the business outlook remain limited, we will focus our capabilities on key areas such as the industrial, automotive, MLCCs, automotive camera modules, and high-end packaging substrates to respond to the growing AI server and automotive markets in order to deliver improved business performance. In addition to this, our focus will be on minimizing the volatility of our business performance by strengthening our internal competitiveness, such as yield, productivity, and higher quality, and also nimbly responding to any market changes by continuously monitoring changes in the external business environment and customer demand. Thank you. [Foreign language]