SKC Achieves Record High with 3.4 Trillion KRW in Sales and 460 Billion KRW Operating Profit Last Year

Operating Profit Target of 450 Billion to 500 Billion KRW This Year

"Leap to a Global ESG Material Solutions Company"

[Asia Economy Reporter Moon Chaeseok] SKC achieved record-high sales and operating profit last year alongside the expansion of its secondary battery copper foil business.

On the 8th, SKC announced its management performance for the previous year at its headquarters in Jongno-gu, Seoul, with key executives in attendance. SKC reported sales of 3.3961 trillion KRW and operating profit of 464.5 billion KRW last year, both record highs. Compared to the previous year, sales increased by 38% and operating profit by 130%.

SKC stated that it achieved growth in all business sectors last year. It rapidly advanced domestic and overseas expansions of its world No.1 secondary battery copper foil business. It also launched new high value-added and eco-friendly material businesses such as high-performance computing semiconductor glass substrates, silicon anode materials for secondary batteries, and eco-friendly biodegradable plastics. The company secured investment funds by signing a financial agreement worth 1.5 trillion KRW with KDB Industrial Bank.

SK Nexilis, the copper foil business investment company, recorded sales of 663.2 billion KRW and operating profit of 79.5 billion KRW last year. Compared to 2020, the first year under SKC’s consolidation, sales increased by 79% and operating profit by 50%. The rapid growth of the secondary battery market and increased production due to the commercialization of the Jeongeup Plant 5 were key factors. With the start of commercial operations at Plant 6 this year, performance is expected to further improve. The Malaysian plant is scheduled for commercialization next year, followed by the Polish plant in 2024.

SK PIC Global, the global joint venture in the chemical business, achieved sales of 1.1021 trillion KRW and operating profit of 332.2 billion KRW. Sales grew 57% and operating profit surged 277% compared to the previous year. Favorable market conditions and a portfolio strengthening strategy focused on high value-added PG (propylene glycol) significantly enhanced profitability. SK PIC Global plans to continuously expand its large customers centered on high value-added PG this year as well.

The Industrial Materials Business Division recorded sales of 1.1319 trillion KRW and operating profit of 69 billion KRW last year. Despite rising raw material prices and increased one-time costs, both sales and operating profit increased compared to the previous year. This year, amid steady demand driven by trends such as larger displays, the company will accelerate efforts to strengthen eco-friendly materials by fully launching the new biodegradable LimeX business and expanding applications for biodegradable PLA packaging materials.

The semiconductor materials business, centered on SK Solmics, achieved sales of 484.6 billion KRW and operating profit of 22.1 billion KRW, marking additional growth following a return to profitability the previous year. Notably, from the second quarter of last year, quarterly sales reached record highs. The start of commercial operations at the CMP pad plant in Cheonan secured growth momentum, and demand for ceramic components remained robust. This year, the company plans to increase CMP pad customers and continue growth through the commercialization of blank masks.

SKC not only delivered strong financial results last year but also achieved good outcomes in ESG (Environmental, Social, and Governance) management. The MSCI ESG rating improved from B the previous year to BB last year, and the KCGS comprehensive rating rose from B+ to A during the same period. SK Nexilis obtained UL’s Zero Waste to Landfill (ZWTL) Gold rating, and SK PIC Global earned the EcoVadis Gold rating for ESG management, receiving certifications from reputable global institutions.

Meanwhile, SKC has set targets of 3.8 to 4 trillion KRW in sales and 450 to 500 billion KRW in operating profit for this year. The company plans to innovate its corporate identity as a "Global ESG Materials Solution Company" this year. It will complete the commercialization of ESG business models focused on secondary batteries, semiconductors, and eco-friendly materials. To this end, SKC will accelerate large-scale investments and global expansion and strive to secure capabilities, organizations, and talent befitting a global ESG company. An SKC official said, "As a result of a five-year 'deep change,' we recorded record-high sales and operating profit last year," adding, "This year will be a year to execute 'Leap & Reap,' meaning to leap forward and reap results, by advancing as a global ESG materials solution company."

Last year’s dividend increased by 10% from the previous year to 1,100 KRW per share. An SKC official explained, "Despite difficult external conditions, we expanded dividends compared to the previous year to maintain an active shareholder return policy."