█ First TECH DAY since the company’s establishment… Providing customized technologies by product applications such as high-value AI circuit foil and ESS copper foil.
█ Responding to growing demand for high-value AI circuit foil through the Iksan plant, Korea’s only circuit-foil production base… Unveiling five ultra-low-profile AI-network copper foil product lineups enabling maximized power efficiency and ultra-low-latency transimission.
█ Showcasing differentiated technologies of the high-end battery copper foil ‘HiSTEP’… A product that simultaneously delivers high strength and high elongation, enabling early mass production and product specialization aligned with customers’ product roadmaps.
█ Securing next-generation battery materials such as LFP cathode materials, sulfide-based solid electrolytes, and next-generation anode current collectors for all-solid-state batteries to strengthen future core competitiveness.

█ On a consolidated basis, sales recorded KRW 143.7 billion with an operating loss of KRW 34.3 billion… sales declined compared to the previous quarter due to delayed utilization recovery following reduced electric vehicle (EV) sales from major customers.
█ Gradual performance improvement expected through diversification of product applications such as high-value circuit copper foil for AI and battery foil for energy storage systems (ESS)… expansion of AI-related high-value circuit foil business through strategic collaboration with domestic customers and proactive capacity (CAPA) expansion.
█ Expanding high-value circuit foil production capacity for AI by converting the Iksan plant’s battery foil line to circuit foil line for AI… strengthening the competitiveness of the Iksan plant, Korea’s only circuit foil manufacturing base, to meet global big tech companies’ demand for non-China materials and ensure stable supply for customers.
█ Targeting increased sales through differentiated products for various ESS applications… reinforcing collaboration with existing customers centered on the North American region and actively exploring new customers.
█ CEO Kim Yeon-seop stated, “We will swiftly respond to market uncertainties and secure future growth opportunities by transforming our product portfolio to include high-value circuit foils for AI and battery foils for ESS applications.”

█ On a consolidated basis, revenue recorded KRW 204.9 billion with an operating loss of KRW 31.1 billion… The loss narrowed compared to the previous quarter due to increased sales volume from key customers and improved utilization rates driven by higher sales.
█ The company is focusing its full capabilities on securing profitability in the second half of the year through technological and marketing innovation… LOTTE Energy Materials has filed a domestic trademark application for ‘HiSTEP’, Korea’s first hybrid high-end copper foil product brand, featuring the ‘ST5H’ and ‘ST6H’ series.
█ The copper foil market for renewable energy ESS (Energy Storage Systems) is experiencing rapid growth, and the company is concentrating on improving performance through an expanded lineup of high-value-added products and supplying new customers…
█ The Malaysian plant is scheduled to begin production of high-end copper foil for EVs in 2026 to meet increasing demand from customers… The company is establishing a tailored production and supply system that includes existing Korean battery makers as well as clients in North America, Europe, and Greater China.
█ CEO Kim Yeon-Seop stated, “Through the launch of the ‘HiSTEP’ product brand, we plan to strengthen technology-driven sales and marketing targeted at global cell makers and OEMs, aiming to dominate the high-quality copper foil market.”

■ Consolidated sales recorded at 158 billion KRW, with an operating loss of 46 billion KRW due to a decline in sales volume and revenue, primarily driven by continued battery inventory adjustments by key customers.
■ Profitability expected to improve in Q2 as a result of proactive inventory reduction efforts and a gradual recovery in utilization rates following inventory depletion by customers…Turnaround anticipated in the second half with increased sales from new supply of products to North American OEMs and customer joint ventures (JVs).
■ The Company is focused on strengthening profitability and securing leadership in the high-end copper foil market for next-generation batteries… Stable supply through the Malaysian plant is expected to support this, with 2026 sales volume projected to increase 2.5 times compared to this year.

■ Pursuing ‘Copper Mark’ Certification, the responsible sourcing program from the International Copper Association (ICA)… Strengthening credibility as a battery materials supplier and establishing strong business relationships with global clients.
■ Malaysia Plant utilizes renewable hydropower, creating a positive impact for global clients emphasizing ESG (Environmental, Social, and Governance) management.
■ CEO Kim Yeon-Seop states, “To enhance the global competitiveness of our company and clients, we are committed to achieving sustainable management with a responsible supply chain and transition to eco-friendly energy.” He added, “All employees will strive for a higher level of management than global standards to achieve a sustainable business and solidify our position as a leading battery materials supplier.”