In 3Q, SKC posts highest result in post-2015 period∙∙∙723.7 bn won in sales; 55.3 bn won in operating profits

• SK nexilis exceeds the 100 bn mark in quarterly sales for the first time ∙∙∙ SKC’s addition of SK nexilis, as a new growth engine, proves to be the right decision.

• All sectors display improvement in results ∙∙∙ striving for business model innovation phase-2 with a focus on mobility/semiconductor/eco-friendly

SKC (President Lee Wan-jae) posted 723.7 billion won in sales and 55.3 billion won in operating profits in the 3Q of the year. The result reflects a y-o-y increase of 44% and an increase of 20% in operating profits and sales, respectively, and it is the result of the improvement of profitability in all sectors. Its quarterly operating profit is the highest in the post-2015 period, which apparently is the result of innovative efforts in business models, amid unfavorable conditions, like COVID-19.

On December 3, SKC announced the management results of the 3Q of the year 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 it was in the session for the 2Q, in consideration of the COVID-19 situation.

The Company displayed improvement in all sectors in the 3Q. SK nexilis, a business specializing in copper foil for secondary batteries, in which SKC invests, posted 103.1 billion won in sales and 15.2 billion won in operating profits. It exceeded the 100 billion won mark in sales for the first time on the back of the operation of Factory 4, in earnest, and an increase in the sale of EVs in Europe. SK nexilis is expected to see an increase in its sales in the 4Q as well, on the back of favorable environments, like an increase in the demand for EVs.

SK picglobal, a joint venture engaging in chemical business, posted 184.9 billion won in sales and 25.3 billion won in operating profits. There was an increase in the demand for propylene oxide (PO) for industrial purposes, on the back of the bullishness of the automotive sector. The COVID-19 situation led to a high demand for propylene glycol (PG) for hygiene/health goods. It is expected that favorable conditions will continue in the 4Q, including the periodic repair of facilities by PO manufacturers and an increase in demand for industrial materials.

The Company’s Industrial Materials Division, which produces film materials with high added value, continued to record a growth, posting 273.4 billion won in sales and 16.9 billion won in operating profits. Under the pr_ eval_ence of COVID-19, the sales in display film with high added value for TV sets and laptop computers, increased. Its local corporation in China posted a record result on the back of the country’s economic recovery. In the 4Q, the division plans to be prepared for uncertainties, including the trade conflict between the US and China, and plans to increase sales of goods with high added value.

With regard to the Semiconductor Materials Division, it recorded a steady growth, posting 104.3 billion won in sales and 6.3 billion won in operating profits. Ceramic parts and CMP Pad posted an increase, both in sales and operating profits. In the 4Q, the division will continue to ride the growth wave by commercializing new CMP Pad/Wet Chemical goods, and completing the work for Factory 2, whose production capacity has been doubled.

Commenting on the matter, an SKC official said, “In the 3Q of the year, the result of innovation in business models (BM) was felt and we achieved the best result since the 3Q of 2015, despite unfavorable conditions like COVID-19. We will lay the solid groundwork for continued growth through the acceleration of innovation Phase-2, with a focus on mobility/semiconductor/eco-friendly.”