SKIET "Securing Leading Position in Global Separator Market with Successful IPO"

Holding a Press Conference in Yeouido to Explain Business Vision and Strategy
"Plan to Solidify Firm No.1 Position in Premium Separator Market"
Also Preparing for Solid-State Battery Material Sector

[Asia Economy Reporter Hwang Yoon-joo] No Jae-seok, CEO of SK IE Technology (SKIET), stated on the 22nd, "We will continuously increase the company's market share in the explosively growing premium separator market and firmly establish our position as the market leader," revealing the vision and business strategy after the company's listing.

On the same day at the Conrad Hotel in Yeouido, Seoul, CEO No said, "We will successfully complete the initial public offering and enhance our business competitiveness to contribute to the electric vehicle industry ecosystem."

SK Innovation's materials business subsidiary SKIET is a company that produces premium separators and is currently preparing for an initial public offering (IPO). Last year, its sales reached 469.3 billion KRW, a remarkable 78.4% increase compared to the previous year (based on the split period from Q2 to Q4 of 2019). Profitability is also excellent. Operating profit and net income recorded 125.2 billion KRW and 88.2 billion KRW, respectively, representing increases of 55.4% and 38.4% year-over-year. The EBITDA margin was an impressive 41.9%.

According to SNE Research, SKIET ranked first globally in the 'Tier 1' wet separator market last year with a 26.5% market share. The Tier 1 separator market supplies premium separators to electric vehicles produced by leading companies such as Tesla, Volkswagen, Renault-Nissan, Ford, and Hyundai-Kia Motors. Only a few companies capable of producing high-quality separators, including SKIET, Japan's Asahi Kasei, and Toray, have entered this market, which is expected to experience high growth and maintain high margins.

The future outlook for SKIET's business is also bright. The Tier 1 market's share of the total wet separator market for electric vehicles is expected to increase from 44% in 2018 to 69% in 2025. Due to rising demand, supply shortages are anticipated starting in 2023. The delivery price is also high in this market; the average price gap between separators supplied to Tier 1 and other companies was about 60% last year but is expected to widen to 97%, nearly double, by 2025.

SKIET has achieved rapid growth in the electric vehicle separator market. Last year, sales volume of wet separators for electric vehicles grew by 490% compared to 2018. Compared to the market growth of about 19% during the same period, SKIET is rapidly capturing the market.

SKIET is strengthening its market dominance by proactively expanding production facilities, including plans to build the 3rd and 4th plants in Europe, a core EV market, establishing large-scale overseas production bases. The current production capacity secured by SKIET reaches 1.04 billion cubic meters, enough to supply separators for 1 million electric vehicles annually. Production capacity is expected to increase to 2.73 billion cubic meters in 2024.

Through active research and development (R&D) investment, SKIET introduced the world's first sequential stretching technology in 2007. In 2013, it developed the world's first 5-micrometer-thick separator, securing differentiated technological competitiveness and product quality. Continuous facility investment and process technology improvements, including equipment upgrades and operational know-how acquisition, have enhanced productivity and profitability.

The company is also accelerating efforts to secure new growth engines. It is preparing to develop materials for all-solid-state batteries in the future. Additionally, by developing FCW technology, an essential material for flexible displays, SKIET is expanding its business portfolio with product competitiveness aimed at leading the future display market, including multi-folding, rollable, e-mobility, and transparent displays.