Good afternoon. This is Ik-hyeon Kim, Vice President of the Management Support Office at Samsung SDI. Before we begin, I would like to introduce the management team present on today's conference call. We have our CFO, Young-no Kwon, Head of Battery Strategic Marketing team, Michael Son, and Head of Electronic Material Strategic Marketing team, Kyoung-hun Kim. We will now start the 2018 first quarter earnings presentation. First, regarding the first quarter results. Q1 revenue was KRW 1,908.9 billion, which is a 3.1% quarter-over-quarter increase. By business division, battery division revenue was KRW 1,417.1 billion, a 7.5% increase quarter-over-quarter, mainly driven by significant increase of small-sized battery and ESS sales. Electronic materials revenue was KRW 489.9 billion, which is an 8.1% quarter-over-quarter decline due to decreased sales of products including PV paste.
Operating profit at company level was KRW 72 billion, while profitability of small-sized battery improved quarter-over-quarter due to increased sales to new product of a major customer. Profitability of electronic materials decreased slightly due to sluggish demand in some products. Also, loss from large-sized battery increased compared to Q4, mainly due to one-off provisioning expenses related with early automotive battery supply contracts. Pre-tax profit was KRW 197.5 billion, including KRW 48.8 billion of equity method gains, including Samsung Display. Net income in Q1 was KRW 160.3 billion after corporate tax expenses of KRW 37.2 billion. Next is our financial standings on the right-hand side.
Assets as of end of Q1 were KRW 16,343.3 billion, and as shown in the table below, while cash and cash equivalents decreased by KRW 345.8 billion, accounts receivables and inventory assets increased by about KRW 400 billion as a result of increased sales. Also, tangible assets increased as a result of facility investments, resulting in assets increasing by KRW 601.6 billion on a quarter-over-quarter basis. Liabilities was KRW 4,697.1 billion, increasing by KRW 407.4 billion due to factors including open account trade term negotiations. Shareholders' equity was KRW 11,646.2 billion, an increase of KRW 194.2 billion, mainly due to retained earnings. Next is the Q1 performance of each business division and Q2 outlook. In Q1, large-sized battery revenue continued to show rapid growth in both year-over-year and quarter-over-quarter.
Automotive battery business, EV and PHEV shipments to European customers remained steady, while ESS aggressively responding to domestic, commercial, and utility demand helped to lift revenue significantly. We are expecting automotive batteries to greatly contribute to our revenue in Q2 as demand increases for PHEV models, as well as demand for low-voltage system vehicles increases. In addition, ESS is expected to grow significant revenue growth again as domestic, commercial, and utility demand is projected to remain rock solid. Next is small-sized batteries. Q1 small-sized battery revenue grew quarter-over-quarter with our main customer's new product launch. Cylindrical battery sales grew extensively with power tool companies expanding LIB adoption. Polymer batteries revenue and margin improved as we began shipments to our main customer's new product at full scale.
In Q2, cylindrical battery demand is expected to grow around non-IT applications, and we also expect strong sales in power tools and gardening tools. We also expect polymer battery sales to grow in Q2 as we get positive impact by our customer's new product launch. Next is electronic materials division. In Q1, electronic materials, semiconductor material revenue grew as customer began operating a new fab. However, OLED and photovoltaic paste revenue declined in QoQ as sector demand declined. However, in Q2, we are forecasting quarterly performance improvement as display industry recovers. Semiconductor materials is likely to show revenue growth with bull market conditions, and in the case of display materials, for polarizer film will operate with high value-added products, where OLED will increase sales by actively engaging in new demand coming from the China region.
In addition, even though PV paste competition is getting tougher, we will try to expand market share by offering highly efficient products. This ends the earnings presentation, and now our CFO, Young-no Kwon, will make additional remarks.
Good afternoon. This is CFO Young-no Kwon. Although it was mentioned in the presentation previously, I would like to elaborate in more detail regarding the one-off provisions in the Q1 earnings. The one-off expenses related to automotive batteries reflect the losses from contracts signed in the early stage of business. Expenses regarding these early automotive battery projects were reflected before in 2016. For the very same projects, additional expenses were provisioned according to accounting standards in Q1 and needed to be reflected again as it involves risks, including raw materials cost increase. These expense provisioning are an issue only with the supply contract signed in the early days of business, and the supply agreement or contract signed from last year include raw material price, pass-through price.
In addition, we will minimize P&L-related risks by passing the raw material cost to the sales price and reducing FX risk and ensure that supply contracts are entered into under profitable conditions. We will only pursue projects that meet such principles. Due to effects by early supply volume for under our early projects, our automotive battery business may have difficulties in improving profits for the time being. However, through renegotiation of the earlier terms with customers and continuous cost-cutting efforts, we will work hard to bring the break-even point forward as quickly as possible. We do expect profitability to improve when new supply projects start to contribute significant portion of the future revenue. Thank you. Now we will begin the Q&A session.
From this quarter, we will also conduct conference call in English, so the questions and answers will be asked and answered in Korean first and followed by English interpretations. Please follow the operator's instructions for your questions.
Now, Q&A session will begin. Please press star one, that is star and 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 and two on your phone. The first questions will be presented by Mr. Wonsuk Chung from HI Investment & Securities. Please go ahead, sir.
I have two questions. The first question is that there were recent articles of you newly supplying automotive batteries as well as supplying towards the MEB Volkswagen. Regarding these new supply opportunities, what is the volume that you're expecting to supply, as well as the size you think this would ultimately become? In that context, can you also share the size of your order backlog? Are you seeing more of an upside on the amounts of contracts that you are winning versus what you expected to win last year this time? Second question is about the Chinese business. The bilateral relations between Korea and China have been improving recently. Still Korean battery makers are being excluded from the Chinese market due to the subsidy regulation. Do you see any possibility of this easing in the future?
를 설계하고 있고, 그 해당 프로젝트들의 관련된 모델들이 굉장히 많이 늘어나고 있습니다. 이러다 보니까 저희한테도 중장기 시장 전망을 볼 때 그 양이 계속 증가할 수 있고, 저희가 유리한 위치에 있기 때문에 수주 기회도 지속적으로 확대되는 추세입니다.
Answering your first question, we are not able to disclose details regarding specific customers or projects. Also, regarding our order backlog, we cannot disclose the detailed amounts of it, but I think we can describe our order backlog as being one of the largest in terms of long-term volumes that we have agreed with major automotive customers. We have one of the largest long-term supply volumes agreed in the industry. Regarding the future order opportunities, you would have noticed that most of the OEMs have been either announcing or planning to launch more EVs in the mid to long term. We're noticing that not only the number of projects are increasing, but also the number of models that are covered by these projects are also increasing. Based on that, we expect the mid to long-term market forecast to actually move upwards in the future.
Given the fact that we have an advantage in automotive battery supply, we believe this also implies that we would have more order winning opportunities in the future.
다음은 중국 전기차 시장 재진입 관련해서 질문 주셨는데, 사실 저희가 중국을 언제 재진입할지 이런 부분을 단정하기는 참 어렵습니다. 또 보조금 지급 관련해서도 아직까지 뚜렷한 변화를 저희가 느끼는 것은 없는 상황입니다. 하지만 아시다시피 양국 정부 간에 경색되었던 관계가 계속 개선되고 있고, 또 여러 산업 분야에서 교류 협업이 재개되는 그런 조짐들이 있기 때문에, 저희 자동차 전지 분야도 차차 상황이 개선될 것으로 기대를 하고 있습니다. 또한 전기차 사업을 진행하는 중국 OEM들이 굉장히 많고 활발한데, 사실상 중국 내에서 규모와 기술을 갖춘 업체는 매우 한정돼 있기 때문에 다수의 중국 local 고객들이 한국 업체, 저희를 포함한 한국 업체들하고 협업을 희망을 하고 있습니다. 실제로 보조금 지급이 사실 2020년 이후에 없어지는데, 그런 시점을 대비해서 미리 당사하고 협의하고, 제품과 제품군이라든지 이런 부분들이 사실 늘어나고 있는 상황입니다. 감사합니다.
Regarding your second question of when we will be able to reenter the Chinese EV market, it's difficult to say at this point when that would be. Right now, we aren't seeing any major changes in terms of Chinese regulations regarding subsidies. However, as you know, overall Korea-Chinese relationship has been improving, there is resuming of exchange in many industries and sectors, and we hope that situation in the automotive battery area would gradually improve in the future. Regarding the Chinese EV market, there are many Chinese OEMs that are active in pursuing EV development. Relative to that, there is a limited number of Chinese battery companies that can meet that demand. Actually, Chinese OEMs want to see Korean companies, including us, to work with them.
Given the fact that the subsidy will be ending in year 2020, many of these Chinese customers have been inquiring to us about collaboration opportunities as well as inquiring about products preemptively in preparation of post 2020.
네, 다음 질문 받겠습니다.
다음으로 질문해 주실 분은 JP Morgan의 권재현 님입니다.
The next question will be presented by Mr. Jae Kwon from JP Morgan. Please go ahead, sir.
네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저는 두 가지가 있는데 하나는 ESS 쪽이고 두 번째는 저희 전체적인 자본, 캐피탈 관련인데, 첫 번째 우선 ESS 시장 수요가 최근에 작년 4분기부터 1분기까지 계속 많이 성장하고 있는데, 이런 성장에 대해서 일부에서는 일시적인 붐이라는 것도 있고, 특히나 국내 수요는 하반기부터 REC 변화에 따라서 감소할 수도 있다는 우려가 있어서 혹시 하반기나 내년도로 가면서도 현재 ESS 수요가 계속 증가할 수 있다고 보시는지 회사의 견해를 알려주시면 감사하겠고, 두 번째는 앞으로 계속 자동차 전지, ESS 전지 시장 성장과 저희의 계속된 목표를 봤을 때 투자 규모가 꾸준히 증가할 것 같은데, 현재 현금도 지난 분기 대비 조금 감소한 게 있고, 관련해서 자본 조달 계획은 혹시 어떻게 되시는지 공유해 주시면 감사하겠습니다.
I have two questions. The first question is your outlook on the ESS market. The ESS market demand has been quite strong over fourth quarter last year and continuing on to the first quarter. Some are saying that this strong demand in ESS is temporary, especially in Korea, with a change in REC, that from the second half, ESS demand may become weaker. Can you give us your view on what you expect ESS demand would be in the second half and next year? Do you think it would remain strong? Second question regards your funding and capital needs. Given the growth opportunity in ESS as well as automotive batteries, I am assuming that the company would have to go through quite significant investments. Given the fact that your cash and cash equivalents have decreased Q on Q, what are your plans in funding these investment needs?
네, 손미카엘 전무입니다. 제가 ESS 수요 관련 질문을 먼저 답변을 드리겠습니다. 사실 말씀하신 대로 작년 하반기부터 금년까지 국내를 중심으로 해서 정부 정책에 따라서 국내 수요가 매출 증가에 크게 기여하고 있는 건 사실입니다. 내년에는 이런 촉진 정책의 효과가 좀 감소되고 있어서 국내 수요도 다소 둔화될 여지는 있어 보입니다. 하지만 미국, 유럽, 일본, 호주 등 주요 선진국 시장에서의 수요 증가가 아주 크게 지속되고 있고, 내년에도 글로벌 ESS 시장, 그래서 저희 시장 확대에 따라서 저희 매출도 지속 성장할 것으로 전망하고 있습니다. 중장기적으로는 국내 시장도 정부의 대규모 태양광 풍력 발전 도입 계획이 있어서 이와 연계된 ESS 수요는 계속해서 증가할 것으로 그렇게 보고 있습니다. 사실 ESS는 상대적으로 적은 투자로 전력망의 효율과 안전성을 개선할 수 있어서 전력망이 노후화되고 신재생 발전의 비중이 높아지고 있는 주요 선진국에서 특히 ESS에 대한 수요가 필연적으로 증가할 수밖에 없다고 생각이 됩니다. 또한 리튬 전지가 최근 지속적으로 가격 하락이 되고 있어서 이러한 ESS 시장 성장을 가속화할 것으로 기대를 하고 있습니다.
To answer your first question about the ESS demand. Yes, as you mentioned, ESS demand has been strong, especially in Korea since second half of last year, thanks to government policy. This strong demand in ESS in Korea has helped significantly in improving our revenue. Due to the decrease of this policy promotion of policy effect, some are expecting that in next year, domestic ESS demand may be weaker. If you look at the global ESS demand, there is continuous demand for ESS growing in the developed markets such as the U.S., Europe, Japan, and Australia. That is why we think that ESS demand globally will continue to grow in 2019, and we are expecting our ESS revenue to continue to grow as well.
Even if you look at the domestic Korean market in the mid to long term, because of the government policy to promote the adoption of more solar as well as wind power generation, this will inevitably lead to greater ESS demand in Korea in the mid to long term as well. ESS as a technology is a way of enhancing the stability and efficiency of the power grid with a relatively small investment. That is why there has to be demand for ESS, especially around developed markets, where the power grids are getting older and more renewable energy is being adopted. The fact that the lithium battery prices are continuously decreasing would also drive acceleration of ESS demand.
네, 재경팀장 김익현 상무입니다. 두 번째 질문하신 것에 대해서 제가 답변을 드리도록 하겠습니다. 현재 전지 시장의 수요가 저희가 예상했던 것보다 빨리 성장하고 있기 때문에 당사의 매출도 중대형을 중심으로 급격하게 증가할 것으로 예상하고 있습니다. 이에 따라서 현재 무엇보다도 Capex 확보가 매우 중요하기 때문에 향후 수년간 Capex 투자하고 또 운전 자금 관련 자금 수요가 아주 크게 증가할 것으로 전망을 하고 있습니다. 저희가 이에 대비해서 지난달에 삼성물산의 지분을 통해서 이미 한 약 5,500억 이상의 자금을 확보를 했고, 또 올해부터는 영업 부분에서 본격적인 순익 개선이 전망되고 있기 때문에 양호한 영업 현금 흐름이 예상되고 있습니다. 이에 따라서 이러한 내부 현금 흐름으로 일단 필요한 자금 우선 충당하고, 부족한 부분에 대해서는 회사채 발행 등 외부 조달을 통해 투자 재원을 확보할 예정입니다. 현재로 봐서는 자금 확보에는 전혀 문제가 없는 것으로 예상을 하고 있습니다. 감사합니다.
To answer your second question about our funding plans. Yes, because the demand for batteries are increasing faster than anticipated. Our revenue, especially around the mid to large size battery, is expected to rapidly increase in the future. Therefore, it is critical that we gain capacity on time, and that is why we are expecting our funding demands for CapEx as well as operational funds would increase significantly in the future. We have already secured more than KRW 550 billion through the sales of our holdings of Samsung C&T last month. Because our profit is improving, operational profits are improving. Overall, our operational cash flow remains very strong. Therefore, in terms of funding our CapEx as well as operational funds, our initial source will be internal cash flow generated through our operation.
If we need additional, we will be funding that outside through, for example, issuing corporate bonds. As of now, what we see is we do not expect any issues in terms of funding our needs.
네, 다음 질문 받겠습니다.
다음으로 질문해 주실 분은 HSBC 증권의 조우형 님입니다.
The next question will be presented by Mr. 조우형 from HSBC Securities. Please go ahead, sir.
네, 질문 기회 주셔서 감사합니다. 저는 소형 전지 관련해서 두 가지 질문이 있습니다. 첫 번째는 폴리머 전지인데요. 최근 스마트폰 시장 성장 정체와 그다음에 주요 고객사 판매량 둔화 우려가 있는데요. 이와 관련해서 폴리머 전지 사업에 미치는 영향을 알고 싶고요. 추가적으로 최근 활발하게 논의되고 있는 5G 통신 관련해서 폴리머 전지에 대한 영향을 알고 싶습니다. 두 번째는 소형 전지 가격인데요. 폴리머 그리고 원형 전지 같은 경우는 최근에 이슈가 되고 있는 원자재 가격 상승분이 판가에 전가가 가능한지를 알고 싶습니다. 감사합니다.
I have two questions regarding the small batteries. With the stagnation of the growth of the smartphone market, especially the high-end smartphone market, also with the sluggish sales of your major customer, what is the impact you're seeing, especially on the polymer side of your small batteries? Also, what do you think will be the implications of adoption and penetration of 5G technology in your polymer business? Second question is, there has been increase of raw material prices for both polymer and cylindrical batteries. Are you capable, or can you pass on this raw material price increase to the customers through an increase of sales price? To answer your first question, regarding the implications of the sluggish handset market on our polymer battery business. As you mentioned, yes, there is a sluggishness or slowing down of sales, especially the higher segment, the premium segment of handsets.
This is explained by increased or saturation of penetration in developed markets, as well as extension of the replacement cycle. Also, the set makers have become more conscious about their profitability and reducing their marketing spend, which is having a negative impact on sales of high-end smartphones. However, from our perspective, because more and more mass segment smartphones are now adopting polymer batteries, overall our polymer battery business is expected to continue growth. The second part of your first question was the impact, the implication of 5G technology. In addition to 5G, for example, the wider adoption of other new technologies such as IoT, is expected to increase the adoption of various new applications such as AR, VR, as well as headsets to enjoy these new applications. We are expecting that these new applications will demand a greater battery content on the devices.
That would be a positive upside to battery demand. Also, these new devices need to implement new features, therefore require more components. We're seeing less space being available for batteries. That's why we are anticipating that there will be a greater demand from customers for greater energy density. In anticipation of such demand, we are preparing in advance. Regarding the increasing raw material prices and whether that can be passed on to our sales price, reflected on our sales price. Regarding the increase of raw material prices, we do talk to customers. We are getting positive results through these discussions. We hope to do that in the future as well. In addition to discussing the price increases with customers internally, we focus on additional cost cutting as well as productivity improvement efforts to maintain solid margins.
Also, we try to respond by being adopted into new products as well as new applications to improve the product mix.
The next questions will be presented by Mr. Go Jung Ho from NH Investment & Securities. Please go ahead, sir.
저희도 중국에서 편광필름 사업을 하고 계시는데, 편광필름 사업 내 중국 고객 비중은 어느 수준인지 공유 가능하시면 말씀 부탁드립니다. 두 번째 질문은 최근 삼성 디스플레이 실적이 OLED 생산 시설 가동률 하락으로 악화되었다고 판단하는데요. 저희 OLED 소재 실적에도 영향이 있었는지 궁금합니다. 그리고 향후 전망이나 전략에 대해서도 공유 가능하시면 말씀 부탁드립니다. 감사합니다.
I have two questions on the electronics materials side of the business. First question is about the polarizer film business. The industry indicators that are coming out for the LCD industry, the sector, are becoming less favorable. Is that having an impact any way negatively on your polarizer business? Second, it appears that the Chinese LCD makers are going to invest and produce LCD panels quite aggressively. As a company that's also doing polarizer business in China, can you share, for example, the portion of Chinese customers within your polarizer business, how much your Chinese customers account in your polarizer business? Second question is about the OLED side of the business. Recently, Samsung Display's results became weaker. We're assuming that that is because of the decrease in Samsung Display's OLED utilization. Does that by any chance have a negative impact on your OLED materials business?
What is your outlook as well as strategy in your OLED materials business?
전자재료사업부 전략마케팅팀의 김경훈 전무입니다. 두 가지 질문을 나누어서 답변을 드리도록 하겠습니다. 먼저 LCD 패널 가격이 계속 인하되는 데 따른 저희 사업 전략에 대해서는, Hua Xing과 같이 중화권 업체들이 8세대를 계속해서 증설함으로 인해서 공급 과잉인 상황에, 세트 업체 판매 부진이 지속됨으로 인해서 작년 하반기부터 판가가 계속해서 하락세를 보이고 있습니다. 그럼에도 불구하고 저희는 작년 하반기부터 경쟁력 있는 무석 공장을 지금 풀 가동을 기반으로 해서 TV의 경우에는 55인치 이상 고부가 제품 판매를 지속적으로 확대를 하고 있고, IT용 편광필름의 경우에는 곡면, 커브드 모니터의 진입을 통해서 손익 구조를 개선을 하고 있고, 이를 기반으로 해서 지난 4분기 대비 실적이 호전 중일 뿐만이 아니고, 2분기에는 더욱 경쟁력을 확보할 것으로 전망을 하고 있습니다. 중화권 업체들에 대해서는 지금 굉장히 LCD 공급이 공격적인 상황이지만, 저희가 지금 8.5G의 대면적 진입을 기반으로 해서 2018년도에 중화권 매출 비중은 아마 한 60% 이상 상회할 것으로 전망이 되고 있습니다.
To answer your first question regarding the LCD polarizer business. Yes, LCD prices have been decreasing since last year's second half. This is driven by, number 1, the increase of 8G capacity by the Chinese makers, which is bringing on an oversupply situation and the sluggish sales by the set makers. So the sales price of LCDs have been declining since the second half of last year. However, we have been operating our new Wuxi plant from the second half last year at a full operational level. We have been focusing on the 55-inch-plus TV polarizer films, which is the higher value end of the segment, expanding our sales there in the TV size, 55-inch-plus. For IT applications, we have been selling into the curved monitor applications, and that has actually helped us improve our profitability.
Not only has our profits, our results improved on a quarter-on-quarter basis versus fourth quarter of last year, we're expecting this to even pick up further as we finish the second quarter. Regarding the Chinese companies, they are supplying LCDs quite aggressively into the market. Since we have been supplying to the 8.5 G large panels, we are expecting that in full year 2018 of our total revenue, about Chinese revenue would account for 60% plus of our total revenue.
두 번째 질문으로 주신 OLED 소재 관련해서는 말씀하신 것처럼 Samsung Display의 1분기 주요 고객의 수요 둔화로 인해서 저희 재료도 약 20% 이상 매출이 감소된 것은 사실입니다만, Samsung Display가 4월부터는 가동률이 점진적으로 회복이 되면서 특히 미주 및 중화권 고객의 신규 모델의 출시를 준비하고 있습니다. 더불어서 저희도 중화권의 BOE라든가 Tianma, GVO 등의 신규 수요의 승인을 통해서 매출 확대가 꾸준히 일어나고 있기 때문에, 저희가 금년 초에 계획한 금년도 매출 목표는 달성할 수 있을 것으로 전망하고 있습니다. 감사합니다.
Regarding our OLED materials business, yes, in the first quarter, due to decreased demand from a major customer, our OLED materials revenue did decrease by about 20%. However, even at Samsung Display, they're expecting their utilization to gradually improve from April as they prepare to supply towards the new models that are being prepared and to be launched by not only U.S., but also Chinese customers. On our end, we are also increasing revenue through sales to customers such as BOE, Tianma, and GVO, we are confident that we will be able to meet our revenue targets for full year.
네, 마지막으로 한 분만 더 질문을 받도록 하겠습니다.
We'll take one last question.
네, 마지막으로 질문해 주실 분은 삼성증권의 장정훈 님입니다.
The last questions will be presented by Mr. 장정훈 from Samsung Securities. Please go ahead, sir.
안녕하세요. 삼성증권 장정훈입니다. 질문 기회 주셔서 감사하고요. 저도 두 가지 질문 드릴게요. 하나는 전지 부분, 또 하나는 전자재료 부분에서 각각 질문을 드리고 싶습니다. 첫 번째로 전지 부분에서 수형 전지를 보면 원형 전지 성장이 계속적으로 잘 되고 있는 것 같은데요. 그동안에 driver 역할을 해준 전동공구 이외에도 non-IT 쪽의 확장 가능성에 대한 관심이 많습니다. 특히나 수형 원형 전지에서 EV용으로 수주의 가능성들은 어떠한지 설명을 부탁드리겠고요. 두 번째로는 전자재료 부분에서 OLED 관련된 소재 부분들의 재료 스펙들이 M9 관련된 승인 시기에 대해서 고민들을 하게 될 것 같고요. 다만 그렇게 재료 구조가 가더라도 저희가 대항할 수 있는 아이템들이 어떤 것들이 있는지를 조금 더 구체적으로 설명을 주셨으면 감사하겠습니다. 이상입니다.
I have two questions. The first question is about your cylindrical batteries on the small battery business, which has been doing very well. In addition to the traditional, the machine tools, the power tool applications that have been driving a large part of your sales of the cylindrical batteries, what do you see as the possibility of these cylindrical batteries expanding to other applications, especially the EV adoption? Second question is about the electronics material of the OLEDs. It's time to be specced into M9, the new platform. I think the market is wondering when that would be in terms of timing of the approval. If you do get included in M9, what kind of items would Samsung SDI be supplying?
네, 첫 번째 원형 전지의 확장성, 성장성에 대한 질문에는 제가 답변드리겠습니다. 손미카엘입니다. 우선 전동공구용 원형 전지가 견조한 건설경기하고 또 메이저 업체의 정원 공구로의 라인업 확대에 맞춰서 매우 크게 성장을 하고 있습니다. 기존 엔진하고 코일 툴에서 리튬이온 배터리로 전환이 지속이 되고 있어서 이 성장세는 계속될 것으로 보고 있고요. 그 밖에 e-bike라든지 또 전자담배, 그다음에 또 일부 가정용 ESS에도 채용되는 등 다양한 어플리케이션에서 원형 전지는 지속적으로 수요 증가가 예상이 됩니다. 특히 관심 가지신 EV 시장도 마찬가지로 테슬라하고 또 중국 EV, 그다음에 또 다른 서방의 스타트업 OEM들이 지속적으로 출연하고 성장해 가고 있고, 또 일부 전통 OEM에서도 그런 관심을 보이는 데도 있기 때문에 21700을 중심으로 해서 원형의 수요는 계속 확대될 것으로 예상을 합니다. 당사는 이런 전동공구 이외에 non-IT용 원형에서 제품력, 그다음에 또 양산 측면에서 경쟁 우위를 지니고 있기 때문에 이런 원형, 또 특히 고출력 제품 비중을 지속적으로 확대를 하고 있습니다.
따라서 전동공구뿐만 아니라 말씀드린 대로 EV용에서도 계속해서 잘 해나갈 것으로 그렇게 생각하고 있습니다. 감사합니다.
To answer your first question of the cylindrical batteries. Yes, cylindrical batteries in addition to power tools, which was the main source of demand, we're seeing it spreading to other applications such as power gardening tools. It was adopted by a major supplier of gardening tools, and that has been expanding the lineup as well as the demand for our cylindrical batteries. A lot of the gardening tools are being the engine driven or cord tools are being replaced with those based on LIB. That is a strong source of future demand for our cylindrical batteries. In addition to power tools or gardening tools, there's also e-bikes, e-cigarettes, as well as residential ESS systems. These are all driving additional demand for cylindrical batteries.
In addition, regarding the EV market that you mentioned, in addition to Tesla, there are Chinese EV companies as well as new startups in Europe that are actually launching EVs based on cylindrical batteries and actually growing. Also, even traditional OEMs are showing interest in adopting cylindrical EVs on cylindrical batteries to their EV platform. So we do think that this will continuously drive additional demand for especially the 21700 cylindrical batteries that have a higher power. Given the fact that we have the advantage, the edge in terms of not only the product, but also mass production capabilities when it comes to non-IT cylindrical batteries, we think that we will be able to do very well in these new applications that are demanding cylindrical batteries, especially the high power ones, not only power tools, but also EV opportunities going forward.
네, 두 번째 질문, 전자재료의 OLED M9에 대한 질문은 제가 답변드리도록 하겠습니다. 김경훈 전무입니다. 당초 M9 승인은 1분기에 결정될 것으로 전망이 됐으나, 고객사의 승인 지연으로 인해서 올해 3분기 정도 최종 확정이 될 것으로 예상을 하고 있습니다. 저희 SDI가 승인을 지금 받고 있는 아이템으로는 Green Host, ETL, p-dopant 세 개 아이템을 지금 평가 중에 있어서 승인을 통해서 진입을 할 것으로 전망을 하고 있습니다. 이상입니다.
Regarding the M9 on the OLED material side. Originally, we were expecting a decision to be delivered in first quarter. The customer is taking a bit more time, so as we see it, we may have a decision around third quarter this year. What we are currently being evaluated for is the Green Host, ETL, and p-dopant, and we hope to be adopted into M9.
네, 이것으로 1분기 실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 추가 문의 사항이 있으신 분들께서는 당사 IR팀에 별도로 문의하여 주십시오. 감사합니다.
This completes the conference call. If you have any additional questions, please forward them to the Samsung SDI IR team. Thank you.