Annual Sales Surpass 20 Trillion for the First Time
Common Stock Dividend Set at 1,030 Won
[Asia Economy Reporter Oh Hyung-gil] Samsung SDI recorded its highest-ever sales and operating profit last year.
Samsung SDI announced on the 30th that its sales last year increased by 48.5% compared to the previous year, reaching 20.1241 trillion KRW. This is the first time sales have exceeded 20 trillion KRW. During the same period, operating profit rose 69.4% to 1.808 trillion KRW, and net profit increased by 63.1% to 2.0393 trillion KRW.
By segment, energy division sales reached 5.3416 trillion KRW, up 71.9% year-on-year, and operating profit was 359.1 billion KRW, a 198.8% increase compared to the same period last year.
Despite concerns over demand slowdown, sales of medium and large-sized batteries expanded. Automotive batteries centered on P5 (Gen.5) continuously increased sales, and energy storage system (ESS) batteries supplied to power projects saw significant sales growth.
Cylindrical batteries experienced a decline in demand for power tools, but sales impact was minimized through long-term supply contracts with major customers, and sales for electric vehicles maintained the previous quarter’s level.
Sales in the electronic materials division were 624.3 billion KRW, down 11.9% year-on-year, and operating profit was 131.7 billion KRW, a 9.5% decrease compared to the same period last year.
Samsung SDI expects sales expansion centered on medium and large-sized batteries P5 to continue in the first quarter of this year. Both automotive batteries and ESS batteries are expected to see significant growth compared to the same period last year. In particular, automotive battery sales of P5 are expected to increase significantly as the new line in Hungary expands operations and supply to customers’ new models increases.
Among cylindrical batteries, sales of power tool batteries are expected to decline due to the off-season effect, but electric vehicle batteries are expected to show strong growth. Additionally, demand for power tool batteries is expected to recover from the second quarter, leading to increased sales. Pouch-type battery sales are expected to increase due to the launch effect of new flagship smartphones.
Sales of electronic materials are expected to decline due to seasonal off-season effects. However, sales decline will be minimized through new product supply of polarizing films and semiconductor process materials.
Furthermore, Samsung SDI decided on a dividend for 2022 of 1,030 KRW per common share (1,080 KRW per preferred share). This includes a basic dividend of 1,000 KRW (1,050 KRW for preferred shares) plus an additional 5% of the annual free cash flow, totaling 69 billion KRW in dividends.
Also, this year, Samsung SDI will actively promote ESG (Environmental, Social, and Governance) management. ESG dedicated organizations will be newly established and reinforced in business divisions and overseas subsidiaries to accelerate the global ESG management system. The company plans to calculate Scope 3, which refers to indirect greenhouse gas emissions generated throughout the company’s value chain, and set reduction targets.
Choi Yoon-ho, CEO of Samsung SDI, said, "All business divisions achieved their management goals and recorded the best-ever performance. We will do our best to flawlessly execute the strategies prepared this year to accelerate qualitative growth with profitability superiority based on ultra-competitive technology and the highest quality."
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