• KRW
  886.8 billion in sales and KRW 145.8 billion in operating profit, up 32.8% and
  139.1%, respectively, YoY in 3Q 2021

• Record-high
  operating profit for two consecutive quarters, with the 2^nd Deep
  Change starting out strong

• Reinforcing
  ESG management, including the establishment of a virtuous cycle of ecosystem
  for plastics, with its ESG rating by Korea Corporate Governance Service rising
  to grade A (comprehensive)

SKC (CEO Lee
Wan-jae) earned KRW 886.8 billion in sales and KRW 145.8 billion in operating
profit during the third quarter, recording the highest quarterly operating
profit during the quarter as it did for the second quarter of the year.
Compared to the same period last year, sales increased 32.8% and operating
profit increased by 139.1%.

On November 1st,
SKC announced its 3Q performance results in the presence of key executives
including Lee Yong-sun, head of industry materials division, Won Ki-don, CEO of
SK picglobal; Kim Young-tae, CEO of SK nexilis; and Oh Jun-rok, CEO of SKC
solmics at the SKC headquarters in Jongno-gu, Seoul. SKC broadcast the
performance announcement live on YouTube.

In the third
quarter, SKC saw even earnings growth in all its business divisions: SK nexilis,
a subsidiary in the copper foil business for rechargeable batteries, recorded
sales of KRW 175.3 billion and operating profit of KRW 23.5 billion as a result
of significant growth both in sales and operating profit compared to the
previous year despite some sales delays due to global logistics issues. SK
nexilis plans to secure an annual production system of 520,000 tons by
completing the 6th factory in the fourth quarter following the completion of
the 5th factory which has been operating in full since June.

SK picglobal, a
subsidiary in the chemical business, achieved sales of KRW 286.4 billion and
operating profit of KRW 93.8 billion, continuing quite an impressive
performance for two consecutive quarters, thanks to the increase in the
proportion of high value-added PGs in its product portfolio that the company
has steadily promoted since 2020. In the fourth quarter, we will continue to
increase earnings by promoting customer diversification centered on large
customers who place importance on supply stability while optimizing our global
logistics _ base_s.

The industry
materials business division recorded sales of KRW 303.4 billion and operating
profit of KRW 31 billion by achieving sales expansion and profitability
improvement at the same time through not only overall demand growth but also a
portfolio improvement focused on high value-added products. Most notably, the
company started to _ create_ a global ecosystem for eco-friendly materials by
promoting the biodegradable LIMEX business, a new material made by mixing stone
powder (limestone) and biodegradable materials. In the fourth quarter, it plans
to focus on high value-added products to maintain profitability.

The semiconductor
materials business, centered on SKC solmics, continued its growth, recording
KRW 120.1 billion in sales and KRW 7.6 billion in operating profit: A robust
demand for process ceramic parts continued; The CMP pad Cheonan plant started
commercial operation, enabling the company to secure new growth momentum. In
the fourth quarter, the company plans to start expanding production facilities
for ceramic parts and to certify new CMP pad customers in line with the growing
demand.

Following such
trends of earnings improvement, SKC is accelerating improvements in its ESG
management. Declaring 2021 as the first year of ESG management, we started to
build a virtuous cycle ecosystem for plastics through the full-force promotion
of the waste plastic pyrolysis oil business and the new eco-friendly
biodegradable material business. We also continued acquiring ESG management
certifications, such as the highest grade of ESG financial certification (SKC,
SK nexilis) and zero waste landfill certification (SK nexilis). Most notably,
the Korea Governance Research Institute (KCGS) raised SKC’s ESG rating for 2021
to Grade A (comprehensive) last week.

An SKC official
said, “SKC’s 2nd deep change is accelerating as the economic value of the
largest quarterly operating profit in history is added to the company’s
foundation of intense ESG management efforts,” adding “We will spur more
efforts to become a global top-tier mobility materials and parts company that
dreams of a sustainable society.”