SKC posts 65.2% QOQ rise in 2Q operating profit ∙∙∙ announced live on YouTube

• 1,313.4 billion won in sales; 80.1 billion won in operating profit in the first half of the year∙∙∙ displaying improvement in profitability in 2Q in all sectors

• Announcing result of social value creation in the last year ∙∙∙ to be disclosed in the annual sustainable management report

• Making more positive shareholder-friendly attempts, through the disclosure of a video of CEO’s introduction of SKC Deep Change, in addition to livestreaming on YouTube

SKC (President Lee Wan-jae) posted 1,313.4 billion won in sales and 80.1 billion won in operating profits in the first half of the year. As for the 2Q in particular, the Company posted 49.9 billion won in operating profits, a 65.2% QOQ rise. With the improvement in profitability throughout all business sectors, the result exceeded the market consensus. Looking at the Company’s result of social value creation in 2019, it posted 394 billion won, a 13.4 billion won increase over the preceding year.

On August 7, SKC announced the management results of the first half of the year, and the result of its social value creation in 2019, at its headquarters building in Jongno-gu, Seoul, with the following top managers in attendance: Lee Yong-seon, the officer in charge of general operations; Oh Jun-rok, the head of the Semiconductor/Communications Materials Division; Representative Won Ki-don, of SK picglobal; Representative Kim Young-tae, of SK nexilis; and Lee Jae-hong, the officer in charge of management support in general. The session was livestreamed on YouTube.

As in the announcement of the 1Q result, the Company announced the result of 2Q, using an intact conference call method, in consideration of the COVID-19 situation, and had the session livestreamed on YouTube, in a bid to make it open to all shareholders.

A video, introducing SKC Deep Change, was also disclosed on YouTube. The video had been introduced in mySUNI, a learning platform designed to help SK employees enhance their capabilities on their own, for learning about deep change. In the video, SKC President, Lee Wan-jae, introduces the Company’s attempts at innovation of business models, including the strengthening of mobility material business through the launch of SK nexilis, and the establishment of SK picglobal, a joint global venture, etc.

The Company displayed improvement in all business sectors in 2Q. SK nexilis, in which SKC invests, posted the following are the results for the mobility copper foil business: 76.3 billion won in sales, and 13.1 billion won in operating profits. It recorded a QOQ increase, both in sales and operating profits, through the normalization of production lines, despite the unfavorable situation caused by COVID-19. It is expected to continue the growth in business, even in the second quarter, making the use of pr_ eval_ent situations, like the invigoration of the EV market in Europe, etc. SK nexilis proactively copes with an increase in demand through the expansion of its factories.

As for SK picglobal, it posted 163.1 billion won in sales and 22.4 billion won in operating profits. Its sales decreased compared to the preceding quarter due to COVID-19, but its operating profits increased by 4.9 billion won, due to factors like a drop in raw material prices. In the second half of the year, it plans to make a positive foray into the market, changed due to COVID-19, by striving to increase new customers for propylene glycol (PG), related to hygiene/health goods.

The Company’s Industrial Materials Division, which produces film materials with high added value, posted 229.9 billion won in sales and 13.8 billion won in operating profits. It enhanced profitability by expanding the lineup of products with high added value, and striving to enhance the competitiveness of its divisions, including the stoppage of the solar EVA business. In the second half of the year, it plans to improve profitability by concentrating on the expansion of eco-friendly materials, which are judged to be promising sectors, and increasing sales in products with high added value.

Looking at the Semiconductor Materials Division, it recorded a growth, posting 100.8 billion won in sales and 3.9 billion won in operating profits. Both sales and operating profits recorded a QOQ increase, with an increase in the sales of ceramic parts and CMP Pads, amid improvement in the overall situation of the semiconductor business. In the second half of the year, it strives to build growth momentum by securing new customers for ceramic parts and obtaining new CMP Pad-related certifications.

At the session, SKC also announced the result of social value creation in 2019. The Company _ create_d social values worth 394 billion won in 2019. This amount reflects a 13.4 billion won increase over the preceding year, through an increase of 17.4 billion won in business-related social results, including the expansion of the use of eco-friendly materials. SKC intends to continue to get a grasp of areas with social values that stakeholders place value on, and have them reflected in its business activities. The Company will disclose the annual result in its sustainable management report, starting this year.

Commenting on the matter, an SKC official said, “We at SKC are pushing forward with Deep Change through tenacity, speed, and unity among employees. We will strive for growth, with a focus on materials with high added value, and we will expand communication with diverse stakeholders serving as members of the financial circles.”

[SKC livestreamed its session for announcing the results of operations in 2Q on YouTube (http://youtube.com/c/SKCtown), along with a video of its President Lee Wan-jae introducing its Deep Changes.]