1. Status of SK Materials in SK

Financial Results for 3Q2020 Investor Relations │ Oct 28, 2020 Disclaimer

The financial information of this report is the sales performance based on the consolidated financial statement of K-IFRS.

The following earnings statement and the financial, business and other information contained herein are current only of the date hereof and readers are advised that changes in general macroeconomic, business, financial and other conditions may have occurred since such a date and our financial state and results of operations may have been substantially impacted as a result of such occurrences.

Certain information contained herein may be considered forward-looking in nature, which are based on certain conjectures and expectations of future events that are subject to risks and uncertainties, including comments on trends in the global economy and the duration of such trends, future development and investment plans including market strategies and business plans. We disclaim any responsibility or obligation to update or disseminate any revisions to any forward-looking statements contained in this document to reflect any changes in conjectures or circumstances.

The financial information contained herein has not been audited. Readers are advised that the actual results may differ as a result of the audit of our financial results for the quarter ended September 30th, 2020.

1 1. Status of SK Materials in SK

Expanded the business range as well as the successful establishment of the semi- conductor material platform after incorporating it into SK Group in 2016

’16 • Incorporated into SK Group (Change of the Company Name : SK Materials) 【SK materials Biz As-Is】 - Specialty Gases of NF3, WF6, SiH4, Si2H6, etc. • Acquired SK Airgas (80%)

KRX/KOSDAQ Unlisted - Industry gas supply to industry complex in Ulsan and semi- Listed conductor fab on site • Established SK Trichem JV (Japan’s Tri-Chemical) - Precursor: Zr·Si·Ti·Hf type products … ’17 • Established the SK Showa Denko JV (Japan’s Showadenko) 49.1% 100% - CF-type Etching Gases of CH3F, C4F6 , etc.

65% ’18 • Acquired the remaining stocks (20%) of SK Airgas

• Entered into the high-performance Wet Chemical biz 51%

- Jointly developed HSP (High Selectivity Phosphoric Acid) with LTCAM 100%

’19 • Acquired Hanyu Chemical (80%) 80% - Supply of High-purity CO2 for Semiconductor 100% ’20 • Acquired PR business of Kumho Petrochemical and established SK Materials Performace (100%)

- Photoresist material and its subsidiary materials 2 2. Key Clients and Network

Key Customers Global Network

Revenue share by | SK Materials HQ & Plant : Yeongju regions(’20. Sep) Samsung Electronics, Sales Office : Seoul LG Display, SK Hynix R&D Center : Sejong Japan/Others (6%) | SK Airgas HQ & Plant : Ulsan Plant : Icheon/Chungju China/Taiwan Korea | SK Trichem HQ & Plant : Sejong (24%) (70%) Kioxia, Micron, | SK Showa Denko HQ & Plant : Yeongju Sony, Sharp, JDI | Hanyu Chemical HQ & Plant : Ulsan | SK Materials Performance HQ : Sejong Plant : Asan

TSMC, Micron, UMC, Revenue share by AUO, Innolux | SK Materials business (’20.Sep) Sales Office & Warehouse : Yokkaichi Others (14%)

Display Samsung, SK Hynix | SK Materials (16%) LGD, Intel, BOE, CSOT Semiconductors Sales Office & Warehouse : Taichung (70%)

| SK Materials Global Foundries, Micron Plant : Zhenjiang (Jiangsu) Sales Office & Warehouse : Shanghai Warehouse : Xian (Shaanxi) * Cons. results based on K-IFRS

3 3. Product Portfolio

“ Global Gas & IT Material Total Solution Provider ”

Wet HSP … Chem. ArF Photo Photo KrF Lithography -resist I-Line Industrial Specialty N2 Gas Gas BARC

2 O2 LCO NF3 Ar Precursor WF6 CDA SiH4

SiH2Cl2 (DCS)

SiH3Cl (MCS)

Si2H6 (DS, Disilane)

Zr-type Si-type Mixture & C4F6 other High Purity Gases Ti-type CH3F

Hf -type C4F8 … CH2F2

4 4. Key Production Facilities Status

Products Production Capacity (ton/year) Comments

’16.12 ’20.09

SK Materials . Obtain the technology to increase the production through the improvement NF3 8,600 12,100 of the manufacturing process (applied to some production lines)

. Increase the capacity through the debottlenecking of the WF6 600 1,500 manufacturing process

SiH4 2,000 2,000 . Operate 50% or more of SiH4 manufacturing Si-type DCS 150 800 . Increase the sales of high-value added items as DCS, Si2H6 etc. Si2H6 8 14

SK Airgas Industrial 64,000* 231,500* . Start a new supply to semi. from Sep. ’20 Gas * N2 gas (Nm3/h) . Additional supply to semi. is planned from Q4 ’21

SK Trichem Zr-type, Si-type, Precursor . Increase the product line-up (from 5 kinds in 2019 to 10 kinds in 2020) Ti-type, Hf-type

SK Showa Denko Etching . The only production facilities for CH3F in Korea CF-type Gas . Continuously increasing NAND demand

Hanyu Chemical LCO2/ 400* Dry Ice . Increasing demand of CO2 for semiconductor and the dry-ice for fresh-food * LCO2(ton/day)

SK Materials Photo ArF, KrF, . Performance Acquired the photo business Resist I-Line, BARC

5 5. 3Q2020 Earning Results

For the first time in history quarterly operating profit has reached more than 60bn. Won due to increased sales of special gases, increased supply of Precursors, and new supply of industrial gas for semiconductors.

[Consolidated Income Statement ] (unit: KRW bn)

‘20. 3Q (E)

’20. 3Q ’20.2Q QoQ ’19.3Q YoY

Sales 246.7 227.5 +19.2 202.0 +44.7

Gross Profit 90.5 84.1 +6.4 78.2 +12.3

Gross margin (%) 37% 37% - 39% △2%p

Operating Income 62.5 56.6 +5.9 56.1 +6.4

OP margin (%) 25% 25% - 28% △3%p

Income before Tax 48.9 47.3 +1.6 49.7 △8

EBITDA 92.8 87.7 +5.1 84.5 +8.3

EBITDA (%) 38% 39% △1%p 42% △4%p

Net Income 36.9 39.1 △2.2 39.6 △2.7

Note 1) Cons. results based on K-IFRS 2) Not externally audited yet 6 6. Financial Highlight

[ Sales Rev. by Business ] [ Financial Performance ] *Jan. ~ Sep. accumulation (unit: KRW bn) (unit: KRW bn)

Title 2017 2018 2019 2020.09 686.5 Total 1,118.0 1,398.4 1,615.8 1,959.6 16% Precursor Assets 569.2 Cash and 18.7 16.1 39.8 93.5 485.8 12% Cash Equivalents 20% Industrial Gas* 7% 21% Accounts Receivable 82.6 123.4 102.3 137.4 372.1 17% 21% Si-type/ 18% Etchng Gas, etc. Inventories 17% 17% 86.2 111.8 150.1 155.8 15% 12% 11% 13% WF6 Tangible 9% Assets 885.1 1,106.1 1,231.8 1,429.6

Total Liabilities 709.9 995.1 1,095.5 1,491.4 58% 47% 39% 30% NF3

Loans Payable 531.3 846.4 895.9 1,280.0

’17. Sep ’18. Sep ’19.Sep ’20.Sep Total Shareholders' 408.1 403.3 520.3 468.2 Equity OP 111.1 125.8 165.7 172.2 Net Debt 512.6 830.3 856.1 1,186.5 EBITDA 166.9 194.0 248.5 264.7

Note 1) Cons. results based on K-IFRS * Hanyu Chemical Included 2) Purchase of Treasury Stocks : KRW 1.4bn(’16), 94.8bn(’17), 93.8bn(’18), 128.9bn(’20)

7 [Ref.] Increase in Shareholder Value

Considering shareholder value as top priority, efficient enforcement of investment and national highest level return policy on shareholders will be continued

Yearly Dividend scale

3,550 3,550 3,750 3,850 2,560 Dividends Per Share (KRW) 500 1,000

37.4 35.6 35.6 36.5 Total Dividends Paid (KRW bn) 27.0 5.3 10.5 '13 '14 '15 '16 '17 '18 '19

Share Buy-backs (KRW bn) 96.2* 93.8 128.9 (5%) (5%) (5%)

'13 '14 '15 '16 '17 '18 '19 '20

Cash Dividends Rate (%) Maintaining of 40% dividend payout ratio for 2013~2019 (Separated)

* ’16 Treasury Stocks Inculded 8