Samsung SDI Sustainability Report 2023

SAMSUNG SDI SUSTAINABILITY REPORT 2023 09 □ CE CEO's Message OVERVIEW SUSTAINABILITY MANAGEMENT SUSTAINABILITY MAIN THEMES APPENDIX Business Overview Company Overview 2030 Company Vision Business Overview ESS Energy Storage System Business Summary Samsung SDI applies our technology and manufacturing process tested and proven in our EV battery business to ESS battery to secure high market shares and deliver reliable product quality. This ensures that we leverage our best-in-industry battery design compe- tency and standardized modules to create a diverse product portfolio across the utility, commercial & industrial, residential, UPS and telecom sectors and deliver end-to-end ESS solutions that cater to varying customer needs. Application 7 .00 Utility Installation Solar/Wind generation plants, substations, etc. We contribute to ensuring the stability of power grids in the power supply system spanning from power generation to transmission and distribution, and to standardizing renewable energy power generation. Commercial & Industrial (C&I) Installation Buildings, factories, etc. We improve the stability of power operation and the availability of self-con- sumption by lowering day-time maximum loads in commercial buildings including office spaces, public institutions, schools and hospitals. Residential Installation Detached and row houses We ensure 24/7 supply of eco-friendly energy through alignment with photovoltaic (PV) power systems. This in turn increases residential energy self-consumption rates while reducing electric bills. UPS Installation Factories, financial institutions, IT companies (servers), etc. We help protect data centers from unexpected operational disruptions by ensuring reliable power quality and continuity while minimizing total power consumption and reducing facility investments. Market Outlook Countries around the world are increasing investments in green infrastructure to stimu- late the economy slowing down amid the continued pandemic, and the Russo-Ukraine war heightened interest in energy security to accelerate the global transition to renewable energy. This resulted in sustained demand growth in ESS installations that are essential for energy supply/demand management, and the global LiB ESS market is expected to achieve a CAGR of 15%, expanding from 103 GWh in 2023 to 210 GWh in 2028. Notably, sizable market growth is expected in the US, China and Europe where large-scale, govern- ment-led green policy initiatives are being undertaken. The US signed the IRA into law to significantly increase investment support for ESS projects, and China set a national goal for ESS installation and is raising the proportion of renewable energy generation. Europe is also formulating its own plan to support renewable energy through the Green Deal Industrial Plan. Meanwhile, Korea and Taiwan are planning for government-driven initia- tives to distribute utility ESSS, and these emerging markets are also expected to boost in line with expanding datacenter construction and the resulting growth in UPS demand. Global LiB-ESS Demand Outlook Total ESS demand outlook (GWh) 210 176 155 137 119 103 ☑ ☑ Telecom Installation Base stations, repeaters We deliver lifetime performance as well as reduced weight, smaller volume and higher energy density, and bring a dramatic reduction in maintenance expenses through the use of Li-ion batteries. 2023E 2024E 2025E 2026E 2027E 2028E * Source: Samsung SDI forecast (as of May 2023)

View entire presentation