Samsung SDI, Announces First Quarter 2022 Results

Revenue surpassing 4 trillion KRW for the first time

​□ [1Q] Recorded quarterly revenue of 4.494 trillion KRW, operating profit at 322.3 billion KRW
□ [2Q] All Business performance to grow in general including EV battery, ESS, small-sized batteries
 - All business performance improved, such as energy and electronic material
□ [2Q] All Business performance to grow in general including EV battery, ESS, small-sized batteries​

□ 1Q Business Performance Overview

- Samsung SDI's 1Q 2022 Business Performance (Unit: 100million KRW) -

Revenue was increased by 1 trillion 86.2 billion KRW (36.7%) year-on-year and operating profit was increased by 189.1billion KRW (142%) year-on-year. Also, revenue was increased by 233.4 billion KRW (6.1%) quarter-on-quarter and operating profit was increased by 56.6 billion KRW (21.3%) quarter-on-quarter.

□ 1Q 2022 Business Performance by division

Energy business other business division's revenue recorded 3 trillion 319 billion KRW, up 39% YoY and 6.8% QoQ. Operating profit recorded 165 billion KRW, 251.8% YoY and 37.3% QoQ.

Compared to the previous quarter, large-sized battery's revenue and profitability both improved. EV battery sales increased mainly due to Gen.5 batteries, with minimal impact from raw materials price increase by pass-through contracts with the OEMs, leading to the performance improvement. ESS revenue decreased due to seasonality, but we increased the sales portion of high-value products such as residential and UPS.

Despite the slow season, both revenue and operation profit increased QoQ. Cylindrical battery’s revenue increased mainly due to the revenue of EV batteries and high-power batteries for power tolls.

Pouch battery sales went up with the launch of flagship smartphones.

Electronic materials business revenue recorded 730.4 billion KRW, up 26.8% YoY and 3.1 QoQ. Operating profit recorded 157.3 billion KRW, 82.3% YoY and 8.1 QoQ.
 
Compared to the previous quarter, electronic materials revenue increased mainly due to high-value products like polarizer. Polarizer saw decreased demand for LCD TVs, but increased sales portion of premium products brought up both revenue and profitability. Semiconductor revenue maintained QoQ. And, OLED sales decreased due to seasonality.

□ 2Q 2022 Business Outlook

In the second quarter, we expect sales growth in large-sized batteries.

EV battery sales are expected to grow, especially the sales of Gen. 5 will be increased with increased allocation of production for EV models of automakers. At the same time, we will continue to take additional contracts for future generations such as Gen.6. Also, we will closely manage the possible risk of prolonged Russia-Ukraine war and supply chain to minimize the impacts.

ESS sales is expected to grow with increased supply for utility projects in the US compared to the previous quarter.

In the second quarter, for small-sized batteries, continued expansion of sales is expected, mainly due to the cylindrical battery sales. Adoption of high-power batteries on various applications such as sit-on lawn-mowers, and increased demand for EV and micro mobility are expected to drive the increase of cylindrical battery sales.

In order to meet the increasing demand for cylindrical batteries, additional cylindrical production lines are being installed in domestic and overseas sites.

In the second quarter, we will promote increase in sales mainly from LED and semiconductor materials. The sales of OLED is expected to grow by providing new platform to major customers and the sales of semiconductor is also expected to grow by expanding the market share.

□ Samsung SDI's sustainable management activities

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In line with strengthening sustainable management activities, Samsung SDI decided to update activities on quarterly basis.

At the beginning of this year, Samsung SDI organized ‘Sustainability Management Committee’ and ‘Sustainability Management Executive Office’ led by CFO.

Also, through ‘Sustainability Management Conference’ led by CEO, Samsung SDI is enforcing execution of sustainable management.

In the previous quarter, Samsung SDI set vision, strategies, key focus areas, and mid-to-long term strategies of sustainability management
Samsung SDI organized environment management task force to choose and promote key measures related to environment management, such as 100% transition to renewable energy, greenhouse gas reduction, conversion of all business cars to non-polluting cars, and expansion of recycling.
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