Sales Surpass 20 Trillion Won for the First Time, Operating Profit 1.808 Trillion Won
All-Solid-State Battery Sample Cell Production in Second Half
'46-Pai' Battery Line to Operate in First Half
[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. Operating profit during the same period rose by 69.4% to 1.808 trillion KRW, and net profit increased by 63.1% to 2.0393 trillion KRW.
By division, energy segment sales reached 5.3416 trillion KRW, up 71.9% year-on-year, and operating profit was 359.1 billion KRW, up 198.8% year-on-year.
Despite concerns about demand slowdown, sales of medium and large 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, down 9.5% year-on-year.
Samsung SDI expects sales expansion centered on medium and large batteries P5 to continue in the first quarter of this year. Both automotive batteries and ESS batteries are expected to show 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.
Samsung SDI stated that the Hungary Plant 2, completed last year, is stably mass-producing batteries, and that a solid-state battery pilot line will be completed in the first half of this year.
Son Michael, Vice President of Samsung SDI, said during the earnings conference call, "The new line at Hungary Plant 2, expanded last year, is also stably mass-producing, and by significantly increasing P5 supply according to customer demand, sales growth and profitability improvement will be possible (this year as well)." He added, "We plan to complete the pilot line in the first half of this year and produce sample cells in the second half to conduct material and process tests."
He also mentioned accelerating the development speed of the next-generation 46-pie (46mm diameter cylindrical battery). Vice President Son said, "The 46-pie line currently being invested in at the Cheonan plant is expected to complete equipment setup and start operation in the first half of the year," and "We are discussing cooperation plans with multiple customers."
ESG (Environmental, Social, and Governance) management will also be actively promoted. 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 occurring throughout the company's value chain, and set reduction targets.
Choi Yoon-ho, CEO of Samsung SDI, said, "All business divisions achieved management goals and recorded the highest-ever performance," adding, "We will do our best to flawlessly execute the strategies prepared this year to accelerate qualitative growth with superior profitability based on ultra-competitive technology and the highest quality."
Meanwhile, 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 annual free cash flow, totaling 69 billion KRW in dividends.
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