• Sales
  of KRW 3.39 trillion and operating profit of KRW 464.5 billion in 2021, increasing
  38% and 130%, respectively, compared to the previous year; the highest in
  history

• Leaping
  forward as a global ESG materials solution company...operating profit of KRW
  450-500 billion targeted for 2022

SKC
recorded an all-time high performance in 2021 with sales of KRW 3.39 trillion
and operating profit of KRW 464.5 billion. Compared to the previous year, sales
and operating profit increased 38% and 130%, respectively. For 2022, the
company targets KRW 3.8 trillion to 4 trillion in sales and KRW 450 to 500
billion in operating profit by continuing the upward trend in performance.

SKC
announced on February 8 its 2021 business results in the presence of key
executives at the SKC head office in Jongro-gu, Seoul. Just like last year, the
performance announcement was conducted live on YouTube.

SKC
showed growth in all business areas last year by continuously reinventing its
business model. It rapidly implemented the domestic and overseas expansion of its
copper foil business, the world’s largest—for rechargeable battery. It also
started a high value-added, eco-friendly new material business such as
semiconductor glass substrates for high-performance computing, silicon anode
materials for rechargeable batteries, and eco-friendly biodegradable plastics.
Moreover, it secured investment resources such as signing a KRW 1.5 trillion financial
agreement with Korea Development Bank.

SK
Nexilis, an investment company in the copper foil business, recorded sales of
KRW 663.2 billion and operating profit of KRW 79.5 billion last year. Compared
to 2020 as the first year it became part of SKC, sales and operating profit increased
79% and 50%, respectively. Amid the rapid growth of the rechargeable battery
market, the increase in production with the commercialization of Jeongeup
Factory #5 was the key factor. Its performance is expected to increase further
when Factory #6 starts commercial operation this year. The company also plans
to commercialize a Malaysian factory in 2023 and a Polish factory in 2024.

SK
Picglobal, a global joint venture in the chemical business, saw its sales and
operating profit increase 57% and 277%, respectively, compared to the previous
year to KRW 1.102 trillion and KRW 332.2 billion, respectively. Profitability
has significantly improved thanks to a portfolio strengthening strategy
centered on high value-added PG (propylene glycol) in addition to favorable
business conditions. SK Picglobal plans to continue increasing the number of
major customers for high value-added PGs this year.

In
2021, SKC’s industry materials business division recorded sales of KRW 1.13
trillion and operating profit of KRW 69 billion. Despite the rising raw
material prices and one-off expenses, both sales and operating profit increased
compared to the previous year. Amid continued solid demand such as the trend of
larger displays this year, it will spur the reinforcement of the eco-friendly
materials sector by launching the new biodegradable LIMEX material business in full
scale and expanding the use of biodegradable PLA packaging materials.

The
semiconductor materials business, centered on SKC Solmics, recorded sales of
KRW 484.6 billion and operating profit of KRW 22.1 billion, achieving
additional growth after turnaround to profit last year. In particular, the
company has posted record-breaking sales every quarter since the second quarter
of last year thanks to the start of commercial operation of the CMP pad factory
in Cheonan, securing growth momentum and solid demand for ceramic parts. The
company plans to increase the number of CMP pad customers and continue growing
through the commercialization of blank masks this year.

SKC
recorded good results in ESG management and financial performance last year.
The MSCI ESG grade was upgraded from B in the previous year to BB last year,
and the KCGS overall grade was upgraded from B+ to A during the same period. Moreover,
SK Nexilis received UL's “Zero Waste To Landfill (ZWTL)” Gold grade, with SK Picglobal
acquiring the Gold grade in EcoVadis’ “ESG Management Assessment” as
certification by trusted global organizations.

SKC
will reinvent its corporate identity as a “Global ESG materials solution
company” this year. Moreover, it will complete the main commercialization of
ESG business models such as rechargeable batteries, semiconductors, and
eco-friendly materials. To this end, the company plans to accelerate
large-scale investment and global expansion and continue its efforts to secure
capabilities, organizations, and talents befitting a global ESG company.

"Thanks
to the 'deep change' over the past five years, we recorded all-time high sales
and operating profit last year,” an SKC official said. According to this
official, this year will be the first year of implementing ‘Leap & Reap,’
meaning leaping forward to become a global ESG materials solution company and reaping
the results.

Dividend
for 2021 is 1,100 won per share, up 10% from the previous year. “Despite the
difficult external environment, we increased the dividend compared to the
previous year to maintain the basic policy of active return to shareholders,” the
SKC official added.