• KRW 1.12 trillion in sales and KRW 133.0
  billion in operating income for Q1 2022 ... 50.5% and 57.6% year-on-year
  increase, respectively

• Expanded ESG management ... increased efforts to build a green ecosystem
  by launching a game-_ base_d
  information platform for separate plastic disposal

SKC (President: Woncheol Park) achieved KRW 1.12
trillion in sales and KRW 133.0 billion in operating income for Q1 2022. It is
the first time for SKC’s quarterly sales to exceed KRW 1 trillion. The sales and
operating income increased year-on-year by 50.5% and 57.6%, respectively.

On May 10, SKC announced the above Q1 earnings
report at the Jongno-gu SKC head office in the presence of key executives including
Yongsun Lee (Head of Industry Materials Division), Duhwan Choi (Head of Management
Support Division), Gabryong Choi (Head of ESG Promotion Support Division), President
Jaehong Lee of SK nexilis, President Kidon Won of SK picglobal, President Euijoon
Lim of MCNS and President Jongwoo Kim of SKC solmics. SKC’s earnings report
announcement was also livestreamed on YouTube.

SKC showed growth in all of its business categories
in Q1. SK nexilis, an investment company in copper foil business for
rechargeable batteries recorded KRW 212.5 billion in sales and KRW 24.5 billion
in operating income. In particular, quarterly sales of more than 10,000 tons of
copper was achieved for the first time through customer diversification. SK nexilis
is speeding up to establish a global manufacturing system as construction
started July last year for its factory in Malaysia with an annual production
capacity of 50,000 tons, followed by the construction of its factory in Poland
with the same production capacity which will start in Q2.

The chemical business centered
around SK picglobal recorded KRW 434.8 billion in sales and KRW 86.1 billion in
operating income. Despite bear spread of propylene oxide (PO) products, the
sales increased year-on-year by 86% through efforts to continuously expand the
sales of high value-added propylene glycol (PG) products and effects gained
from business connectivity with MCNS. SK picglobal is further planning to
maintain solid profitability in Q2 by expanding the sales coverage into high
value-added regions including North America and Europe.

The industry materials
business recorded KRW 335.4 billion in sales and KRW 28.0 billion in operating
income. The operating income almost doubled on a year-on-year basis as the
sales of high value-added products for advanced IT and display increased while
at the same time eco-friendly materials such as Eco-Label, thermo-shrinkable
packaging material, were sold more than the previous year. It is planned for Q2
to further focus on eco-friendly and high value-added products so as to be
responsive to market volatility including soaring prices of raw materials.

The
semiconductor materials business driven by SKC solmics recorded KRW 132.9
billion in sales and KRW 4.9 billion in operating income. In particular,
improved profitability was attributed to increased CMP pad sales. A
certification accreditation is planned for Q2 through maintaining the solid
growth of CPM pads and expanding its client _ base_. Following the process advancement
of an SKC solmics client, high value-added products are expected to account for
a greater portion in the ceramic parts.

SKC is also going extra miles to strengthen the ESG
management in addition to sales expansion and profitability improvement. SK nexilis
has successfully secured an investment of KRW 500 billion for business
expansion in Europe _ base_d on the financial agreement concluded between SKC and
Korea Development Bank last year. SKC copper foil business was recognized for its
eco-friendly business management as this transaction received the highest
rating (GL1) in debt-related ESG certification from the Korea Investors
Service.

On April 22, in celebration of Earth Day, SKC
released a game-type smartphone application called My Green Place which is the
first of its kind in South Korea. My Green Place offers information for users as
to how they can properly separate plastic waste in day-to-day life. In addition,
an extended operation will be sought for the new materials technology-_ base_d open
platform that has been running since 2017 in collaboration with various special
agencies with an aim to facilitate commercialization of startups, venture companies
and SMEs.

Efforts have been made for corporate governance as well.
While ESG Committee and Related Party Transactions Committee were newly established
last year for the Board of Directors to assume expanded roles, SKC appointed an
outside director as the Board of Directors Chair for the first time in March this
year which would further contribute to increased independence of the Board. Furthermore,
the diversity of the Board was also enhanced by having a female outside
director appointed as the Head Commissioner of the Related Party Transactions
Committee.

An SKC executive said, “The first quarter this year
has been successful across all business areas with the all-time high quarterly
sales over 1 trillion Korean won. This was added with expanded ESG management outcomes
by building a platform which invites the end customers to be engaged in an eco-friendly
plastic ecosystem,” and added, “The Company will continue its business model
innovations oriented towards a ‘Global ESG materials solution’ provider.” [End]