Hello, I am the chief editor of MNS, Lee Young-jin. First of all, I would like to thank everyone for attending our company's presentation. Now, I will start my presentation on MS. First, I will talk about the application and history of the company's mixing technology. The company's mixing technology started with the food and pharmaceutical industries, then expanded to applications in display materials, electronic materials, and beyond. As the industry continued to evolve and products became more sophisticated, it was applied to industries such as chemical and display industries. With the growth of forward-looking industries and the advancement of mixing technology, it is now widely used as a core equipment in secondary batteries, and is also being applied to defense, aerospace, and space industries where the highest level of mixing technology is required. In this way, it has adapted to the changes in forward-looking industries.

The advanced development of mixing technology has led to its expansion. I can say that the market has been expanding. Next, I would like to address the recent slowdown in the secondary battery market due to the sluggish sales of electric vehicles. This issue has been covered in the media, but this is just a matter of speed. It seems that no one can deny the continued growth of the secondary battery market. While various research institutions may have different opinions on the growth rate, it is widely believed that the trend is upward. Looking at the market that plays a significant role in the secondary battery market, it is forecasted to grow approximately five times in the next ten years, from 5.7 million units in 2024 to 74.12 million units in 2035. Accordingly, it is expected that about 4.7 million tons of lithium will be needed, which is about eight times more than the current amount. In this way, the secondary battery market is part of the global green energy policy aimed at reducing CO2 emissions.

I can say that it is an industry that requires continued investment along with steady growth. Looking at the investment plans of battery companies, it is evident. When you examine the left graph, you can see the initial scale of equipment orders from major cell makers such as LG, Samsung, SK, and Northvolt domestically and internationally. It shows that the scale of orders is at the same level as last year in 2024, with additional orders expected in the remaining period. Furthermore, when you add the orders for secondary battery equipment from finished car OEM companies, the scale of orders is expected to increase even more. In addition, the proportion of mixing process in our secondary plant equipment is increasing. Currently, it accounts for about 11% per 1 GW-hour of packs. Of course, factors such as the three major makers and mixing companies in North America are contributing to this increase.

Due to the increase in installation costs caused by market entry, it is considered the most significant factor. As such, we believe that the continuous expansion of secondary battery capacity will lead to the ongoing growth of equipment suppliers. In this environment, let me briefly introduce our company, Jest. We are recognized as a top-tier partner with great growth potential. We are a unique mixing company in the defense, aerospace, and aviation industries, applying top-notch mixing technology. As the first company in Korea to start a secondary battery mixing business, we have over 40 years of experience and expertise. We are the best in each field and possess domestic and international customers. With a recent 73.2% CAGR over the past four years, we are a company with substantial growth potential, holding over 300 billion KRW in assets by 2023.

I will now talk briefly about our company. The company is operated by the founder and CEO, Lee Ho-won, and myself, CEO Lee Young-jin, each as representatives. Currently, the number of employees is around 280. The company was founded in 1981 and officially registered as a corporation in 1986. Considering this period, you can think of us as a domestic pioneer in the mixing industry with a history of over 40 years. From the 1980s to the 1990s, the company operated in the pharmaceutical and food industries, based on the display, brown, and paste mixing businesses. Subsequently, the company entered the display industry, including PDP and LCD, and successfully installed the first secondary local mixing line in Korea. After that, we achieved success in the localization and commercialization of large mixers of over 1,000 liters for the first time in Korea, based on which we supplied products to domestic companies.

The company was the first to develop this domestically, and based on various achievements, it is expanding its business by securing Nordvolt, the largest battery manufacturer in Europe, as a customer. The company holds a patent for the only pre-filled syringe sterilizer in the pharmaceutical and food industries in Korea, based on the ability to process materials for various customers. They also possess powder mixing devices, dryers, etc. In the secondary field, they supply raw material supply devices, PD mixers, pre-dispersion mixers, and storage and supply systems. Furthermore, in the defense and aerospace sectors, they have a diverse product lineup including mixers for manufacturing explosives for the first time in Korea, large propulsion system supply systems, etc. In addition, they have various portfolios in various fields of chemistry, such as water purifier carbon filter production lines, cosmetics production lines, etc.

I can say that it is a company, especially the company is in charge of the mixing process in the secondary battery process, which currently accounts for the largest share. As you can see, the company is providing a turnkey solution for the engineering part from product input through about four steps to supplying the slurry to post-processing. Next is the company's financial performance. Due to the rapid growth in the battery market, the company has recorded an average CAGR of about 73.2% for the past four years and achieved sales of approximately 13.1 billion KRW and operating profit of about 1.7 billion KRW in 2023. Although sales decreased in 2022, this was due to delayed revenue in 2023 due to customer support for construction sites. In 2023, there were some operational issues due to the Hamas war, so we delayed some orders to recognize revenue in 2024 based on Indian standards.

Next, I will talk about the company's core competitiveness. When compared to major competitors in the industry, I would like to mention three strengths. The three strengths are the best, the first, and the most. The company was the first in Korea to localize secondary paper mixing equipment and put it into commercial use. Based on this, we received orders and delivered the first secondary mixing line domestically. Additionally, we were the first to enter China and Europe as a cell maker. In terms of being the best, we have the technology to mix materials with a high solid content and viscosity compared to our competitors. The viscosity of around 12 million CPS shown in the table is a mixture of solid materials in a state that competitors have never experienced. This can be seen as unique in Korea. Furthermore, unlike competitors who are limited to liquid, powder, slurry, and gas materials, we have a variety of material mixtures that are not limited to the form of materials.

The company has the best possible technical expertise. The company has processing technology for various materials, such as mixing powder into slurry and vice versa, mixing powder after powder coating, etc. Based on this technology, the company has a lineup suitable for the relevant industry and field. The company has the largest mixer lineup in Korea, regardless of dry or wet processes, and has delivered equipment to more than eight countries, which are the largest among secondary paper mixing companies in Korea, on a turnkey basis. In particular, the company has the technology to design blades for mixing equipment according to the material, based on experience and data in handling various materials for a long time. For example, depending on the material properties, you can consider that the blade design may vary.

It is possible to engineer various methods to create the desired outcome with the same material. This can prove our technical capabilities as we have commercialized mixing equipment for the first time in Korea and localized mixing equipment used in defense industries worldwide. Since the second relocation, our company has aimed for customer-tailored customization for customers in various industries with different needs. We have also benefited customers by modularizing equipment and customizing standardization work according to national regulations. Recently, we have been providing customers with automated solutions for some manually processed parts. Especially, we have developed many advanced concepts in the one-to-one process compared to our competitors. Based on these various advantages, we provide comprehensive engineering solutions in the advanced secondary battery mixing process. In particular, in the mixing process.

We have strengths in consulting abilities, focusing on overall consulting. From 2018 to 2020, we competed with representative mixer brands from four countries: China, Japan, Switzerland, and Germany, targeting the overlooked client Northvolt. We achieved overwhelming results in the test. Despite being the latest entrant at the time, we overcame various disadvantages with our technological capabilities and are currently being evaluated as the best among all equipment suppliers for Northvolt 4's entire production process. In this test, various mixer brands competed in terms of mixing time and quality. Next, we consider infrastructure as one of the core elements in this industry. Engineering in this field is quite rare and even in the plant sector, our work has many unique aspects. Therefore, we are very enthusiastic about infrastructure development.

The company has various locations in Korea, with its headquarters based on 2,000 in Seoul Yangjae Engineering Office Factory, etc. It also has subsidiaries in Europe, including Sweden and Hungary, and in North America, including Canada and the United States. In particular, in Sweden and Hungary, they currently employ around 25 to 30 employees to handle the increasing demand for gigafactories in Europe. They are maintaining real-time responses to gigafactories, providing services of quantitative and qualitative quality that cannot be compared with competitors. This is in addition to the 280 employees mentioned at the conference, working under the European subsidiaries. In summary, the company has successfully passed the tests from actual raw material transfer tests to integrated slurry production tests, meeting the high-quality demands not only in Korea but also for overseas companies. They have obtained certifications for each continent and comply with local regulations and laws in each country.

I have presented a service that is linked to consulting to find legal regulations. Based on these results, we deliver to various customers in each field. On the right side of this document is a list of major delivery destinations over the past five years. In reality, the customer list based on communication within the industry is much larger than this. For example, Ewonji, there are about ten more places than currently listed. For materials, there are around 15 to 20 places, and for defense, what you see is all we have, no additional ones. In the pharmaceutical and food sector, based on what we have been doing for about 30 to 40 years, we maintain and supply consumables, dealing with around 60 to 80 companies. The future that the company is looking at is quite promising, especially.

I believe that the fact that our products are distributed without being biased towards a particular company proves the stability of revenue diversification. For reference, the production capacity of JMS written on the left side, including cold and status, is based on a monthly basis. When converted to an annual basis, it can be said that we secure more than 1 trillion won. However, this is a theoretical figure based on area, and the actual operating revenue is secured at a level of 600 billion to 700 billion won, which is 60% to 70% annually. In particular, in processes like mixing, each cell maker has different engineering frameworks and equipment numbers for each process, so it is somewhat difficult to calculate this accurately. Please understand this point, and when you look at the sales distribution by customer on the right side, it is based on our company's standards. Most of the major global companies in our industry, such as lithium, are [TRANSLATION ENDS HERE]

You should look at battery companies. Next, I will talk about the company's growth strategy. Our company is currently aiming to expand into three growth factors: acquiring new customers, developing next-generation processes, and expanding into new business areas. Recently, we have conducted test projects with two or more of the carmakers shown on the left in relation to cell making internalization, and have actually delivered development mixers and pilot mixers. Furthermore, we are currently undergoing mass production bidding projects with the majority of these companies. In particular, based on past experience with Northvolt, providing attractive consulting services to vehicle manufacturers with insufficient battery production capacity can be considered my strength. Additionally, we recently set a target of 150g of nickel in our main customer, Northvolt.

We are currently proceeding with additional strategies targeting the future potential markets in Europe, including the announcement of an expanded expansion plan. In particular, companies like Northport have recently announced certifications in Canada and Germany, which we believe are acting as very positive factors for us. Next, I will talk about the company's efforts in research and development of mixing automation processes. While working on projects with Northport in the past, the company has been improving and developing production processes tailored to the needs of overseas companies that prioritize people and the environment, rather than the production methods of Asian companies such as China and Korea. The company is researching and developing to apply these improvements. The first step is automating the input of materials to improve the exposure of workers to harmful substances, especially cathode materials, anode materials, and electrolytes.

Most of the harmful substances in the powder have been reduced, so you can consider that to some extent, the issue of the powder being scattered to the workers when the powder was input in the past has been resolved. The company minimizes these harmful substances in the process of inputting them, so that workers are not exposed to them. In a way, we are trying to minimize discomfort for the operators when using the product and to minimize exposure to hazardous working environments. Our goal is to develop this. Ultimately, you can consider unmanned automation as the goal. Secondly, the quality automation system of improved slurry sample traceability management has been partially implemented by some customers. This is a system for automatically checking the quality of slurry samples. Workers used to manually take slurry samples for traceability per batch in the past.

I would like to automate the process of storing the data that has been checked. In particular, these two systems are not limited to domestic use now but are viewed globally, compared to most competitors, especially in terms of researching powder input automation, there are actually no mixer companies doing this research. Therefore, I believe that these two systems are highly differentiated from all competitors worldwide, and I consider it as one of our strengths. Next, regarding the next-generation mixing revolution, we are approaching with two key points. For continuous mixing processes, there are already technologies that have been used in the past in industries such as food and pharmaceuticals. There are already companies applying continuous or batch mixers to twin-screw mixers, and the concept design to improve and apply these aspects to the secondary battery production process has already been completed.

However, currently, in terms of battery mixing, the part regarding the raw materials is not definitive, and there may be some changes to be continued in the future. If these aspects are not definitive and continue to change, there may be uncertainties about whether the application of continuous mixers will bring about improvement and cost savings. Yes, it is also true that there are some issues in this regard. Furthermore, especially depending on the factory, there are many cases where a variety of models are produced on a single line. For example, each battery company has different production methods, such as mass production of a few types or small-scale production of various types. Because of these differences among companies, it is actually quite challenging in terms of making changes in this area. Making changes involves cleaning all the equipment, which is why currently, the feedback on using batch mixers is not very positive. Finally, the battery.

From the pack to the module, then the cell. Now, most people have a battery cell-mounted module in the pack, for example. Let me explain this. For example, if there is a problem with the battery, the module in the pack, if there is no module, well, from the module to the cell, in this way, traceability for the battery must be ensured. Especially in the process of making cells, from the cell to the electrode assembly, the cause must be traced. And at the end of this traceability, it should be linked to the material process. In fact, these are the parts that need to be resolved, such as lot management. Of course, depending on how the standards are organized, such measures may be applied. If these challenges are overcome, the company is preparing to focus on the following improvement effects when applying continuous mixing. Next,

Now, based on our technology of high-viscosity mixing that can handle dry mixing from the past dry mixing powder to semi-spherical mixing, we are already prepared to apply this process effectively. We believe that we can respond to a certain extent with existing technologies. For example, in handling materials similar to conventional batteries, such as carbon filters for water purifiers, or conductive carbon hydrates used in batteries, we are now applying them in our processes. By combining our experiences from different fields, such as the chemical industry, we are currently reviewing and applying these technologies. Yes, our company, equipped with various technologies, is considering applying these technologies to various industries in the future.

We are planning to expand our business. Some of them are currently in progress, and customer satisfaction has progressed quite a bit. In the mid to long term, we plan to expand according to the trends in the industry more broadly than now. Currently, apart from the three main products, we supply materials for challenges, mixing, and membrane mixing. We plan to expand this into the production process of cathode materials and other material processes. Especially, in the aerospace industry, we have strengthened our position. We mainly supply mixers, but besides mixers, there are quite a few auxiliary devices. Therefore, in addition to mixers, we need to develop equipment that is interconnected in these processes. We are considering expanding our business in these areas. If I talk about the sales forecast based on this, for this year, 2024...

I am expecting 3,487 won. I think it is a realistic goal based on the order of 33.3 billion won in 2023, and I expect further growth in 2025, taking into account the projects currently being discussed. Finally, depending on various environmental variables, the speed may vary, but for companies based on various industries and customers, rapid growth is expected. In conclusion, to summarize what I have explained so far, our company, Jede, is the first mixing specialist company in Korea, possessing over 40 years of accumulated mixing technology expertise. This includes the best technology that enables ultra-high viscosity, developing and commercializing blades applicable in dry process and all-solid-state battery markets. This ultra-high viscosity technology is currently being applied in the defense industry as the only domestic company.

Based on our leading technology and key global battery makers, we maintain close partnerships to secure stable growth based on orders. Our capability certificate will soon expand orders, leading to revenue growth. Moreover, leveraging top-notch technology allows us to enter various fields including material processes, securing opportunities for sustainable growth. We believe we can discuss our investment points. This concludes the explanation about MNS, a leading company in mixing technology. Thank you. Regarding Jess's previous question about last year's orders and this year's performance outlook, as of the end of last year, our order backlog for 23 years amounted to approximately 333 billion won. It is expected to be reflected in this year's revenue. Considering new orders, this year's performance is anticipated to exceed last year's.

Our sales have grown by about 144% to 3487 won, and our operating profit margin is internally targeted at around 99%. Regarding the second question about Jess's competitiveness and future sales prospects in the defense industry, you mentioned that we are one of three companies globally capable of mixing in the defense industry. In Korea, we are the next after another company in North America and one in Europe. As far as I know, these are the three entities. Domestically, we are the only ones capable of it. I cannot provide details on sales due to non-disclosure agreements with customers. However, considering the recent positive atmosphere, I cautiously predict that there might be a significant increase.

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