Page 31 - investor presentation

2 North Asia - Japan

Macro Trend Target Sector

Small to Mid-sized companies with dominant market Semiconductor and EV battery materials, given global
position or advanced technologies in Semiconductor market growth potential and Japanese companies’
and EV battery materials competitiveness
· Competitive strengths in niche market with dominant market share Industry Description

Industry M/S Japanese Co. Power semiconductor, EUV/CIS Photo resist,
Semiconductor
EUV PR/ Color 100% JSR社, FFEM, ToyoVisual Materials Advanced packaging, CMP pad components
and parts
Blank Mask 100% Shin Etsu, Hoya
Materials
CF系 etching gas 80% Showa Denko Anode, cathode, electrolyte materials,
EV Battery Materials
conductive, separator for lithium ion batteries
CMP Slurry/materials 85% Fujimi社, Denka
Photo/Ionization 85% TEL社, Nissin Ion
Equip- Bio-degradable materials and plastic,
ment Eco-friendly Materials
Testing equipment 80% Hitachi, Rion battery recycling
Pouch 100% DNP, SDK
Battery
Titanium Drum 100% Newlong, NSSK
Environ- Bio plastic 90% Mitsubishi Chem, Kaneka Investment Strategy
ment
Investment in leading TechCo and value up through
Undervalued companies with significant upside business collaboration or JV
companies, and potential synergy creation
· Leveraging SK affiliates’ industry expertise to identify high growth
potential companies in early stage
Valuation Metrix Comparison
Population 126 million · Value up through SK affiliates for market/customer expansion and
Metrics Japanese Co Global Peer Differences synergy creation
GDP 5.4 trillion (3 rd )
ROE
GDP Growth 1.7% (‘21e), 2.9% (‘22f) 10.8% 13.8% 3.0% Flexible investment structure to mitigate investment
Credit Rating A+ / Stable (S&P) constraints in local markets
EV/EBITDA
M&A Value U$70 Bn (1.2% of total) 9.8x 18.2x 8.4x · e.g., Minority investment and JV set-up or license-in for value-up
PE Deal value U$26 Bn (1.2% of total) · Co-investments with Japanese FIs to mitigate political constraints

31
30
30 31