Good morning. Thank you very much for joining the earnings conference call of Samsung Electro-Mechanics. Today, we will have a presentation by the company, followed by a Q&A session. If you have a question, please press star one on your phone. We will then start the call with the presentation by the company on its 2025 second quarter results. Good morning. This is EVP Dongwoo Lee, Head of IR and Planning Team at Samsung Electro-Mechanics. Thank you for joining our 2025 Q2 earnings conference call. On today's call, I am joined by our CFO, Kim Sung Jin, EVP Taegon Lee, who is the Head of Strategic Marketing, VP Jun-Taek Park, Head of Support Team, Component Division, Chang Hyung Joe, who is the Head of Support Team, Package Solution Division, Han Joon Kim, Head of Support Team, Optics Solution Division, and VP Taiyoung Kim of the Planning Team. We will start with a presentation on our Q2 company level and divisional business results, followed by market trends and outlook by product, before taking your questions. First, our 2025 Q2 results. Q2 revenue was KRW 2,784.6 billion, an approximately 2% increase QoQ and 8% increase YoY. The details regarding revenue increase/decrease factors by division will be explained later during the divisional results. Q2 operating profit was KRW 213 billion, an approximately 6% increase QoQ and around a 1% increase YoY. Pre-tax profit in Q2 was KRW 171.4 billion, and net profit was KRW 129.7 billion. Next, in terms of our financials, as of end of Q2, total assets were KRW 13,200.5 billion, a roughly 1% decrease QoQ. For major financial indicators, liability to equity decreased 1 percentage point to 46% from Q1's 47%, and debt to equity was 22%. Equity ratio was around 68%, both similar to Q1. Next are the divisional results and future outlook. First, the Component Division. The Component Division's Q2 revenue was KRW 1,280.7 billion, a roughly 5% increase QoQ and 10% increase YoY. In Q2, major industrial MLCCs, including MLCCs for AI servers and networking equipment, continued growth, and demand from XEV and ADAS drove increase of automotive MLCC supply to Tier 1 customers. Overall, MLCC revenue increased, particularly around industrial and automotive, and product mix also improved. In Q3, demand for industrial and automotive MLCCs is expected to remain solid with launch of next-generation AI GPUs and greater penetration as XEV and ADAS. Accordingly, we will focus on timely supply of new products targeting AI servers and ultra-high-capacitance MLCCs for network equipment and drive automotive revenue growth by expanding the lineup of high-capacitance, high-voltage MLCC targeting ADAS. Also, given the new smartphone launches scheduled by major Korean and overseas smartphone OEMs, we will focus on timely qualification of next-generation product lines and wider design onto new models. Next, the Package Solution Division. Q2 revenue was KRW 564.6 billion, a roughly 13% QoQ and 13% YoY increase. For FCBGA, in addition to the increased revenue from server and PC substrates, we also ramped up supply of substrates for AI accelerators. For BGA, revenue increased QoQ, driven by increased supply of substrates for ARM processors and memory. Q3, flip to BGA market, is expected to see continued demand growth for servers and AI accelerator substrates. We will focus on timely supply of new products targeting servers in the second half and break it into new ASIC customers. For BGA, demand is expected to increase with the launch of new flagship smartphones, and we will focus on increasing supply around demand-growing products such as mobile memory substrates and SIP for communication modules. Lastly, the Optics Solution Division. The division's Q2 revenue was KRW 939.3 billion, a roughly 8% decrease QoQ but 3% increase YoY. While IT camera module revenue decreased QoQ due to seasonality, we increased mass production of differentiated products for overseas customers' flagship phone, including 200-megapixel power prism folded zoom and 50-megapixel large angle OIS. For automotive, we increased supply of specialty products such as all-weather camera modules and in-cabin camera with hybrid lens. In Q3, the IT camera module market is expected to see continued demand for higher-performance cameras to differentiate the flagship, such as Ultra Slim and Ultra Close-Up. We will focus on increasing revenue with on-time supply of high-spec camera modules, such as the 200-megapixel Slim OIS and Ultra Close-Up folded zoom. For automotive cameras, we will expand design in and mass production scale of the specialty products and strengthen development of differentiated technology to capture opportunities offered by advances in autonomous driving and new applications. That completes the presentation on our Q2 results, and Taegon Lee, Head of Strategic Marketing, will talk about market trends and outlook by key product. Good morning. This is Taegon Lee, Head of Strategic Marketing. I will share the current market situation and outlook for MLCC, substrates, and camera modules, respectively. First, for MLCC, Q2 MLCC demand increased QoQ, especially around industrial and automotive applications. By application, despite the soft demand from smartphones due to the slow set demand, including the strategic customer, IT MLCC demand overall increased slightly QoQ, thanks to stronger MLCC demand from PC and semiconductors. Industrial MLCC demand continued to grow, driven by AI server demand, as well as network demand, such as routers and switches. Automotive MLCC demand also increased QoQ, with greater XEV demand and wider adoption of Level 2 and above ADAS. For the Q3 outlook, with major applications entering peak seasonality, the MLCC market is expected to keep its growth momentum going. That said, uncertainty around the U.S. tariffs is a cause of demand fluctuation. IT MLCC market demand in Q3 is expected to grow QoQ, supported by factors such as new smartphone launches by global OEMs. Industrial demand is also expected to remain strong, tied to servers, power equipment, and network equipment, as big tech increases AI server-related capex and the next-generation GPU is released. For automotive, MLCC demand is expected to maintain its growth trend, driven by increasing electronic content tied with enhanced autonomous driving features. Accordingly, for IT applications, Samsung Electro-Mechanics will focus on qualification of our high-capacitance, high-end MLCC for smartphones, expand our high-effective capacitance products, and newly enter high-voltage MLCCs for wireless charging to increase high-end MLCC revenue. We will also focus on design in of ultra-high-capacitance, high-end solution MLCCs that reduce acoustic noise in laptop computers to improve our product mix. For industrial, we will focus on winning the ultra-high-capacitance MLCC needs of the major customer's next AI server model and on increasing ultra-high-capacitance MLCC for the growing high-speed network equipment segment. We will also focus on increasing our business with cloud companies that are actively developing their proprietary AI servers and prepare next-generation small-size, ultra-high-capacitance, cutting-edge MLCC early on to actively capture growing markets. For automotive, we will focus on timely capture of growing ultra-high-capacitance MLCC product needs tied to wide penetration and sophistication of ADAS and increase design in and supply of high-voltage MLCC for EV powertrain to improve product mix and expand market share. Now, for substrates, in Q2, flip to BGA, demand increased QoQ, driven by strong accelerator and GPU demand from AI server growth. BGA demand also increased QoQ, driven by substrate demand tied to the new ARM CPU and memory. Q3 flip to BGA, demand is expected to grow QoQ, supported by continued strong demand from AI accelerators and the gradual recovery of substrate demand from PCs. BGA demand in Q3 is expected to slightly increase around mobile memory and communication modules, driven by the new flagship smartphone launches scheduled in the second half. Therefore, for flip to BGA, based on our leading technology, such as embedded components and warpage control needed for the high-multilayer, large body size, we have secured the design award for the new product for US big tech server CPU and AI accelerator. Currently, we are participating on next model projects to keep the high growth momentum going for flip to BGA. For BGA, we will focus on successful supply of the pilot mass production volume for the new flagship AP, increasing our supply to memory customers and expanding sales from new applications, such as satellite communication. We will also focus on timely qualification of high-end products and new opportunities, such as the new ARM CPU scheduled for launch in the second half. Last, the camera modules. In Q2, IT camera module demand decreased QoQ, with seasonal decrease in sales of flagship smartphones that had been released in Q1. For automotive cameras, demand somewhat increased QoQ, supported by the launch and mass production of a new vehicle model by a major global EV OEM. In Q3, IT cameras, the strategic customer's foldable smartphone launch is a positive driver, but the Chinese OEMs are growing mainly around the mass segment, limiting demand growth potential for our camera modules. For automotive cameras, while tariffs are a cause of demand uncertainty, market demand in China and Europe is expected to gradually recover. Accordingly, for IT cameras, we will focus on increasing high-end product revenue by supplying small, thin, light specialty cameras to meet the needs of continuous zoom, variable aperture, and slim smartphones. For automotive, we will continue to strengthen our global technology leadership by expanding the market for all-weather sensing heater cameras and autonomous driving cameras. For robotic cameras, based on our track record in IT and automotive camera business, we are already designed in on a project for a global leading humanoid robot company and will focus on gaining an early lead in this new application market by securing additional camera-related component technology for robotic cameras, such as 3D sensing, to supplement our existing internal proprietary technology for high-precision, high-reliability actuators and lens. Thank you. [Foreign language] Now Q&A session will begin. Please press star one, that is star 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 two on your phone. [Foreign language] The first question will be provided by SK Kim from Daiwa Securities. Please go ahead with your question. [Foreign language] I have two questions regarding MLCC. First, can you share with us your second quarter MLCC shipment inventory ASP results, and also share your outlook for third quarter? Second question is specific to the automotive MLCC. I think there is a bit of concern over second half uncertainty and automotive set demand given the impact of the tariffs, the ongoing EV CACIM, and also some considerable concerns about the Chinese OEM situation. Can you give us your touch on the current MLCC demand and how you plan to respond? [Foreign language] To answer your first question about second quarter MLCC shipment inventory ASP results and Q3 outlook, first, in Q2, across all applications, our MLCC shipment increased on a QoQ basis. The shipment increases for IT was mainly around the PC application. For automotive, it was driven by the growth of XEV and also increased penetration of Level 2 plus ADAS. For industrial, the shipment increase was driven by demand growth for AI servers and the high-speed network equipment. Inventory days in Q2 decreased as a result of our increased shipments, and blended ASP also increased, with increased revenue share of high ASP industrial and automotive MLCC. Regarding Q3 outlook, we expect a QoQ revenue increase again, given the new smartphone launches scheduled by Korean and overseas OEMs and also the AI-related industrial demand and solid automotive demand. [Foreign language] To answer your second question of the automotive MLCC, as you mentioned, there are factors of market uncertainty, including tariffs, trade issues, and concerns of overheating in Chinese EV sector. We believe automotive MLCC market growth would continue due to increased demand for small-size, high-capacitance MLCCs driven by ADAS enhancements and also continued penetration of EV. Accordingly, we are focused on claiming an early lead in the market by launching high-capacitance, cutting-edge MLCCs for ADAS and on expanding our position in the high-voltage MLCC for powertrain. We are also focusing on strengthening the stability of revenue and supply capabilities through adding new customers and diversifying our production base. Our target is revenue growth that is faster than the market and also on strengthening our position in the overall automotive sector. [Foreign language] [Foreign language] The following question will be presented by Cho Hyun-Ji from DB Securities. Please go ahead with your question. [Foreign language] My first question is about the substrates. You've started the supply of the substrates for AI accelerators starting in full scale from the second quarter, and it appears that your substrate revenue from servers, including AI servers, has been continuing to increase. Can you give us your current status of a server-related substrate business and your outlook for the second half? My second question is related with a component of the MLCC business. In the second quarter, the GB200 mass production has started, and it seems the AI server demand is continuing to remain solid, and we expect this to have a positive impact on your MLCC business. Can you give us the impact that you felt in Q2 and your forward-looking outlook? [Foreign language] To answer your first question about server substrate business and second half outlook, we have been continuously increasing our server substrate revenue with the big tech customer. For AI accelerators, we started meaningful supply from Q2, which has contributed to increased revenue share of the high-end server substrates and also contributed to driving our overall revenue growth. The demand from the customer in question is expected to remain solid in the second half, and we will aim to deliver on a year-over-year basis, double-digit flip to BGA revenue growth by increasing our large body size, high-multilayer, high-end substrates for applications including AI. [Foreign language] [Foreign language] I'll answer the question about the AI server MLCC. With the advances in AI processor performance, there was market demand for MLCCs with cutting-edge specifications, such as 100μF ultra-high capacitance and 125°C high temperature. Leveraging our high-capacitance technology built from our IT MLCC business and the high-reliability technology we've acquired from our automotive MLCC business, we were able to meaningfully increase our MLCC AI server and high-speed network MLCC business in Q2, both on a quarter-on-quarter and a year-on-year basis. Major market sources are expecting big tech's investments in AI servers to continue to expand, and the market for MLCC for servers is also expected to see solid growth, considering how MLCC content in AI servers is more than 10 times regular servers due to increased power consumption tied to the higher-performance processor. We plan to further strengthen our high-capacitance, high-reliability lineup, which is in demand in the growing AI server MLCC market, and preemptively launch frontier products to accelerate new qualifications and new cloud customer acquisitions, as well as strengthen our customer design-in activity. With the increasing substrate density, AI server customers have started to ask for components embedded in the substrate, and we have started to propose various passive component solutions, such as embedded capacitors, leveraging the technology synergies that we have with our Package Solution Division. We will do this to actively capture this newly emerging demand and to keep the AI server MLCC revenue growth momentum strong. [Foreign language] [Foreign language] The following question will be presented by Kim Ji-San from Kiwoom Securities. Please go ahead with your question. [Foreign language] My first question regards the camera module business. There are many OEMs, global automotive OEMs, that are planning to launch autonomous driving vehicles, and also there's a lot of development on the robot side, specifically the humanoid robots. It's probably likely that we will see actual market launches of humanoid robots from next year. I do believe that this would have a positive implication on camera modules. With that, can you give us your strategy as well as outlook related with these new applications? My second question is about your CapEx. Can you share with us your CapEx execution in the first half and also what you plan in the remainder of the year? [Foreign language] To answer your first question about our camera module strategy and outlook regarding new applications such as automotive and humanoid robots, first, for the automotive camera modules, the automotive camera modules are expected to expand to various applications driven by the new services such as robotaxis or the unmanned autonomous driving services. In addition to the increasing supply of our existing automotive specialized solutions, we are using differentiated technologies such as high-resolution cameras and water repellent coating to preempt the technology expansion of autonomous driving platforms being developed by the global EV customers. On the robot market side, we are already participating in camera development projects, including humanoid and quadruped robots, through strategic design cooperation with multiple global top-tier customers. With our internalized core component technology, such as lens and actuators, and our track record of globally supplying high-reliability automotive products, we aim to strengthen our technology leadership in the new robot markets and continue cooperation with a wide variety of customers using our differentiated solutions, such as the ultra-small, long-life, low-power, and high-speed autofocus cameras. [Foreign language] To answer your second question about our CapEx, year to date, Q2, we executed investments in revenue-contributing areas, such as equipment dedicated to the high-end MLCC, such as industrial and automotive MLCCs, and also investments in actively removing bottlenecks within our production process and improving the overall productivity. As we mentioned last year, this year we expect our CapEx to increase on a YoY basis, driven by investments aligned with customer demand, such as increasing overseas automotive MLCC capacity and supplemental investments for next-generation products. We will execute investments around high-growth, high-value-add areas, such as industrial and automotive applications, while considering market movement and customer demand to enhance our overall investment efficiency. [Foreign language] [Foreign language] The last question will be presented by Kang-Ho Park from Daishin Securities. Please go ahead with your question. [Foreign language] I have two questions. The first question regards the AI-related flip to BGA business. This morning, we've just heard that Microsoft and Meta are saying that there will be increasing AI-related investments and that overall they see strong demand related with AI. There are increasing outlooks being posted regarding positive market situation, supply-demand dynamics for flip to BGA going forward tied to this increasing AI demand. In that context, I would like to hear your views about the future of flip to BGA supply dynamics. Could you share your view about how you expect that market to unfold? Second question is overall third quarter outlook, your guidance. This morning, we heard news that the U.S. and Korean governments have agreed to a reciprocal tariff rate of 15%. That said, there are still details that need to be worked out, as well as different tariff rates for items and also fluctuation of the exchange rate. All of this is making uncertainty remain in IT-related business performance outlook. With all of that, what is your outlook for the third quarter? [Foreign language] To answer your first question about outlook on flip to BGA supply and demand, advances in AI technology significantly increase data processing, leading to higher chip performance and greater demand for the large body size, high-multilayer substrates, supporting the forecast that going forward, flip to BGA supply may become tighter. We started meaningful supply of substrates for the U.S. big tech AI accelerator from Q2 and have been awarded designs for projects to be commercialized from the 2026 and 2027 timeframe by multiple global customers. We have been strengthening our customer engagement, and we expect the flip to BGA visibility to further increase going forward. Also, using our differentiated technology, such as the embedded technology and capacity in our Vietnam new plant, we will focus on continuously expanding our high-end flip to BGA supply. [Foreign language] [Foreign language] To answer your question about our Q3 outlook, first to recap Q2. Q2 business results improved on a quarter-on-quarter basis, driven by increase in sales of high-end products, such as the increased industrial and automotive MLCC revenue, the full mass production of AI accelerator substrates, and increased server substrate revenue overall. Q3 demand visibility of major applications is limited due to external uncertainty, as you mentioned, including the tariffs increase and also the fluctuation in the FX rates. In Q3, the flagship smartphone launches of major customers and demand from applications such as AI servers, network equipment, and ADAS is expected to keep demand solid for industrial and automotive products, which places us in a strong position for another QoQ growth. For the MLCC, industrial MLCC market, such as the AI server and network, is expected to continue growth with the launch of next-generation GPUs for AI servers, and automotive MLCC demand is also expected to be solid with enhancements in autonomous driving. For package substrates, we look forward to stronger demand for the large body size, high-multilayer substrates with differentiated technology, such as embedding passive components for AI servers. Accordingly, we will drive our business performance by increasing share of high-growth, high-value-add products, including high-capacitance, high-voltage MLCC for AI servers, network equipment, and ADAS, and powertrain, and the high-multilayer, high-body size substrates for big tech server CPUs and AI accelerators. At the same time, we will also focus on expanding our business fundamentals and foundation with silicon capacitor design ins and securing the core technologies related with glass substrates. Lastly, we will also do our best to maintain sustainable business performance by strengthening our internal competitiveness, such as yield, productivity improvements, and customer quality improvements, and also continuously monitoring and promptly responding to external environmental factors, such as tariffs, and to also shifts in customer demand. Thank you. [Foreign language] On that note, we will end our earnings conference call for Q2 2025. Thank you very much for attending, and if you have any further questions, please forward them to our IR.