Q3 2024 Samsung SDI Co Ltd Earnings Call Transcript
Key Points
- Samsung SDI Co Ltd (FRA:XSDG) has solidified its foundation for medium to long-term growth by finalizing a joint venture contract with GM and winning new orders from major OEMs in Europe and Asia.
- The electronic materials segment showed significant improvement with a 24% quarterly increase in revenue, driven by OLED materials, and a 102% increase in operating profit.
- The company received the highest ESG rating of A+ by KCGS, reflecting its strong commitment to environmental and social governance.
- Samsung SDI Co Ltd (FRA:XSDG) is expanding its ESS business, with increased utility sales in the US and plans to drive earnings growth by expanding EU sales.
- The company is preparing for the mass production of the 46 pipe battery early next year, with significant demand growth expected in the coming years.
- Q3 revenue decreased by 4% quarter-over-quarter and 30% year-over-year, with operating profit declining 46% QoQ and 72% YoY.
- The battery business faced a 31% YoY revenue decline due to slowing market demand for small batteries and a base effect from one-off profit in the previous quarter.
- The EV battery segment experienced weakened profitability due to slower EU demand and foreign exchange effects.
- The small battery segment continued to face challenges with slow market recovery and inventory adjustments, impacting results.
- The cylindrical battery business is experiencing a slowdown due to sluggish demand for power tools and e-bikes, with a full recovery not expected until the second half of 2025.
(Operator Instructions) Now we will begin 2024 third quarter earnings results.
Good morning. I am Yoontae Kim, VP of the Business Management Office of Samsung SDI. Thank you for joining the earnings call for the third quarter of 2024. The First, I would like to introduce the management team joining today's call. We are joined by CFO, Jong-sung Kim; EVP Michael Son for Automotive and ESS Battery; EVP Hanjae Cho representing Small Battery; and EVP [Heonjoon Kim] for Electronic Materials.
Before we begin, I would like to mention that Samsung SDI decided discontinue the polarizer [column] business on September 10, as disclosed on [DART]. Please note that from Q3 results, the profit and loss from discontinued operations is separately stated. And we also separately categorized it as assets held for sale and liabilities held for sale in the financial statements.
Let me enumerate our Q3 results and financial highlights. Under the effect of slowed market demand Q3 revenue was KRW3.9
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