Samsung SDI Sustainability Report 2023

SAMSUNG SDI SUSTAINABILITY REPORT 2023 10 □ CE SUSTAINABILITY MANAGEMENT SUSTAINABILITY MAIN THEMES APPENDIX Business Overview OVERVIEW CEO's Message Company Overview 2030 Company Vision Business Overview Small-Sized Li-ion Battery Business Summary Samsung SDI engages in the development and sales of small-sized Li-ion batteries that are categorized into cylindrical and pouch forms. These batteries are expanding their ap- plication into broader areas, powering such mobile devices as smartphones, laptops, and power tools in line with the growing market needs for portability, ranging from wearables and micro mobility. On the back of our quality-first management philosophy and stead- fast commitment to technology innovation, we maintain solid market dominance in the global small-sized Li-ion battery market. Application Small-sized Li-ion batteries are categorized into batteries that power the three major IT devices of mobile phones, laptops and tablets as well as wireless earbuds and to batteries that supply power to power tools, e-bikes, e-scooters, electric vehicle(EV) Market Outlook As the lifting of COVID-19 lockdowns and the resulting global economic downturn add to uncertainties across the market, the small-sized Li-ion battery demand for 2023 is fore- cast to rise by 20% year-on-year to 16 billion cells¹). While the 2022 growth was negative in the IT sector due to sluggish demand for the three primary devices of smartphones, laptops, and tablets, the total demand is set to grow continuously in line with 5G-enabled digital transformation progressing at full scale, the growth potential of IoT, metaverse, and other new market segments, and increases in demand for wireless earbuds and other wearables. In the power application market, we will witness lackluster demand for power tools that are driven by the US. Still, mobility electrification will accelerate with the policy support provided by governments worldwide. EV startups and car OEMS will boost their EV manufacturing, and demand for micro mobility including e-bikes and e-scooters will rise mainly in Europe, leading the growth of the cylindrical battery market. SAMSUNG SDI 18650 PRIMX SAMSUNG SDI 21700 PRIMX SAMSUNG SDI 046 Cylindrical Power tools, gardening tools, vacuum cleaners, e-bikes, e-scooters, electric vehicle(EV) Pouch Smartphones, tablets, wearables, wireless earbuds PRIMX Global Small-sized Li-ion Battery Demand Outlook Small-sized Li-ion battery demand outlook (unit: million) 24,295 25,309 22,888 20,964 18,623 15,965 2023E 2024E 2025E 2026E 2027E 2028E 1) Based on demand in our 2023 business plan * Source: Samsung SDI forecast (as of May 2023)

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