Samsung SDI Introduction

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Samsung SDI Automotive & ESS Battery Business | Marketing Group | Marketing Communications | September 2016 | Confidential

Energy Storage Solutions

September 2016

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About Samsung With its unrivalled manufacturing expertise, R&D and speed, Samsung has become a global leader in a wide range of businesses.

* Source: Samsung Profile 2015, Company Data

Over 600 Offices/Subsidiaries located in 91 Countries

No.1 Patents Holder in the World over 60,000 Patents Registered in USA (As of 2015)

6th in Brand Value among InterBrand’s Best Brand 2015

512,000 Employees

Worldwide approx. 300,000 working outside Korea

No.1 Global Market Share across 17 Categories

23 Affiliated Companies in Electronics, Heavy Industry/Construction,

Finance Services and Other Services

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Samsung – Affiliates

Samsung affiliates are commercially and legally independent, but unified by sharing one single philosophy under

Samsung. ELECTRONICS HEAVY INDUSTRIES FINANCIAL SERVICES

OTHER AFFILIATED COMPANIES

Samsung Electronics

Samsung SDI Samsung Electro-Mechanics

Samsung SDS

Samsung Display

Samsung Corning Advanced Glass

Samsung C&T

Engineering & Construction Group

Samsung Heavy Industries

Samsung Engineering

Samsung Life Insurance

Samsung Fire & Marine

Insurance

Samsung Card

Samsung Securities

Samsung Asset Management

Samsung Venture Investment

Samsung C&T

Trading & Investment Group

Samsung C&T Fashion Group

Samsung C&T Resort &

Construction Group

Hotel Shilla

Cheil Worldwide

S-1 Corporation

Samsung Medical Center

Samsung Economic Research

Institute

Samsung Biologics

Samsung Bioepis

Samsung Welstory

Samsung affiliates are commercially and legally independent, but unified by sharing one single philosophy under Samsung.

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About Samsung SDI Samsung SDI is an energy and materials solution provider specializing in lithium-ion batteries and electronic materials.

[ Business Area ]

Energy Storage Systems (ESS)

Battery for Electromobility

Battery for Mobile Devices

Electronic Materials for Semiconductor / Displays

3.1

5.2

6.7

2013

2014

2015

10.0

14.5

13.8

2013

2014

2015

16,449

20,222

20,938

2013

2014

2015

* Source: Samsung SDI Sustainability Report 2015; Figures include Chemical Business before spin-off

[ Revenue ] (US$ in billions)

[ Assets ] (US$ in billions)

[ Employees ] (Headcount)

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Samsung SDI – Global Presence We operate a global network that includes 16 production sites and 14 sales offices in 11 countries worldwide.

Automotive Batteries Batteries for Mobile Devices Electronic Material Sales ESS

Japan Tokyo

Taiwan Taipei

Vietnam Hanoi

Malaysia Seremban

India New Delhi

Germany Munich

Dresden

Braunschweig

Hungary Goed

Auburn Hills, MI

San Jose, CA

USA

R&D

11 Countries

Worldwide

16 Production

Sites

14 Sales

Offices

Suzhou

Tianjin

Hefei

Wuxi

China

Shanghai

Beijing

Shenzhen

Xi‘an

Changchun

Giheung

Suwon

Ulsan

Gumi

Cheonan

Cheongju

Korea Austria

Premstaetten

Graz

(Under Construction)

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ESS Solutions SDI produces ESS solutions from kWh-scale to MWh-scale for stable, energy efficient, operation

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ESS Market Forecast The LIB ESS market is forecast to grow to 17.3GWh by 2020 driven by utility scale applications in Europe, N. America, and East Asia

World LIB Market by Regions

0.9 1.5 2.7

4.3 1.2

2.2

3.6

1.0

1.7

2.4

0.5

0.7

1.0

1.1

1.5

2.1

0.5

0.8

1.2

1.1

1.9

2.9

2015 2016 2017 2018 2019 2020

Others

India

China

Korea

Japan

Europe

N.America

CAGR Capacity : 64% Revenue : 42%

1.5GWh $ 0.6bn

17.3GWh $ 3.3bn

2.5GWh $ 0.8bn

0.8 1.4 2.5

4.4

7.0 0.8

1.4

2.3

0.7

1.4

2.2

3.4

0.6

1.2

1.7

0.8

1.4

1.7

2.3

2.8

2015 2016 2017 2018 2019 2020

Telecom

UPS

Residential

Commercial

Utilities

17.3GWh $ 3.3bn

CAGR Capacity : 64% Revenue : 42%

2.5GWh $ 0.8bn 1.5GWh

$ 0.6bn

World LIB Market by Applications

Source: B3, Navigant, Frost&Sullivan

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Global track record To date SDI has delivered over 650MWh of ESS systems to the world

Notes: 1. B3 report 2014 ~ 2015, 2. Frost & Sullivan 2014

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Utility scale solutions Three different platforms covering the full spectrum of ESS applications from Energy to Power

Energy Medium Power

Mega-E2 94Ah/0.2C Mega-M2 94Ah/1.0C Mega-P2 68Ah/3.0C

22 cells in one module

12 modules in one rack

45 racks in a container

~12000 cells in 1 container1

delivering 4.15 MWh over ~2 hrs




~12000 cells in 1 container

delivering 4.15 MWh in ~1hr




~12000 cells in 1 container

delivering 2.95 MWh in ~20 minutes

Notes: 1. 40ft ISO Container (Overhead Air-conditioner, 2 BCP)

Peakshift Renewable

Integration Microgrid /

C&I Grid stabilization

Solar Integration Frequency

regulation

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Yang-san wind project Installation Site

KEPCO

Gyeongsangnam-do, Korea (Peak shifting / Wind integration)

Korean Peak Shifting project Using SDI Energy cells to create the first wind power peak shifting project for a Korean private corporation

Project outline

COD : Dec 2015

Location : Gyeongsangnam-do Province, Korea

Capacity : 4MW/14MWh

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UK Power networks’ substation Installation Site

S&C

UK PN

Leighton Buzzard, UK (Grid Stabilization)

UK Grid stabilization Using SDI Medium cells to create Europe’s largest ESS demonstration for Grid stabilization with UK Power Networks and S&C

Project outline

+ COD : 2014

Location : Leighton Buzzard, UK

Capacity : 10MWh

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Tokunoshima island microgrid Installation Site

2MW of PV installed

Nissin

Kyushu Electric

Tokunoshima Island, Japan (Microgrid, PV-integrated)

Japanese microgrid project Using SDI power cells to support the microgrid of Tokunoshima island

Project outline

+ COD : Dec 2014

Location : Tokunoshima, Japan

Capacity : 2MW/781kWh

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Eastern German primary response support Installation Site

TBA

Eastern Germany (Frequency response)

German frequency response Using SDI Medium cells to create the largest regional ESS project in Eastern Germany

Project outline

+ COD : 2017

Location : Eastern Germany

Capacity : 16MWh

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Additional material

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Product Design with Advanced Safety Features We have the Industry’s most advanced built-in safety devices for the maximum safety of high energy density automotive

batteries.

Safety Fuse

Vent Overcharge

Safety Device

Positive Polarity

of Cell Housing

Aluminum Can

Insulation Paper

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Dedicated Process for Product Safety Product safety has the highest priority in Samsung SDI, so it is controlled meticulously in a process based on four core pillars.

Safety position management (50 characteristics)

Automatic alert system with real-time mailing,

interlock suspicious lot by MES

(Manufacturing Execution System)

Safety Board Index Activity

Particle control manuals in every position

Particle audit throughout the entire process

Strict standard for control dust count

Inductively Coupled Plasma Analysis

Particle Control Process

Humidity Control Less than -32℃, dew point

Humidity Control

Fully automatic assembly and formation

100% in-line inspection

Full Automation

https://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiYhMyT68fOAhVIG5QKHb5hApUQjRwIBw&url=https://thenounproject.com/term/safety/8353/&bvm=bv.129759880,d.dGo&psig=AFQjCNGgcxJgaURcLLcYhwEPcmxv_SJeRA&ust=1471502228221761

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100% Traceability via Production Control We have installed advanced manufacturing processes to guarantee the highest quality and 100% traceability of our batteries.

Incoming

Quality Control Electrode Assembly Formation Module

Foreign Substances and Material Specification

Control

Material Accuracy and Reliability Control

Safety Component Control Cell Abnormality test Safety Device Activation Test, Insulation, Strength

Spec Control

ID (Barcode) based Tracking System

2,000 Factors of Real-Time

Testing & Monitoring

Quality Tracking

From Materials to Final Products

Precise

Process Control

535 Factors 714 Factors 248 Factors 503 Factors

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Safety and Reliability Test Capability The diversity of instruments available allow for the ability to perform a complete failure or root cause analysis.

With the deep knowledge of

international safety standards, our

battery safety and reliability test

capability covers international standards

such as IEC, ISO, UN transportation,

USABC, SAE, UL, JIS and KS.

Energy Efficiency

Cycle Life & Calendar Life

Thermal Performance

Peak Power

Cold Cranking

Self Discharge

Pulse Power Characterization

Capacity Determination

SOx Algorithm Tests

OCV Characterization

Max. Current

Customer Load Cycle

Environmental Testing Lab Capabilities

Constant & Variable Power Discharge

Hybrid Pulse Power Characterization

Static Capacity

Operating Set Point Stability

Stand

Sustained Hill Climb

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Certifications We have continuously built our quality management systems to meet the requirements of our automotive customers.

Quality (ISO TS 16949)

Functional Safety (ISO 26262)

Software Development (Automotive Spice Level 3)

Environmental Management System (ISO 14001)

Work Safety (OHSAS 18001)

Information Security Management Systems (ISO TS 27001)

Energy Management Systems (ISO 50001)

QC/T 743

GB/T 31484~6

http://ict.eu/markets/automotive-mobility/functional-safety-iso-26262/

http://www.google.co.kr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjLzavgv8rOAhULjJQKHeAKAz8QjRwIBw&url=http://www.sinhankook.co.kr/bbs/board.php?bo_table=0202&wr_id=34&psig=AFQjCNFqluYoVLmEwfRI7nDAqW9XI9rMVA&ust=1471593659793805

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Documents

Samsung SDI Introduction