Sample Production Aimed at Expanding Adoption Across Models

「The company is preparing for mass-market sales of high-end automotive batteries and ESS projects for new customers.」

「Add new customers for separators and IEM, respectively, and include them in the budget by the fiscal year ending January 2029.」

「For products from existing deposition lines modified to improve productivity, the company continues to submit mass-production samples to multiple customers, with evaluations progressing smoothly, and is proceeding with deployment to larger lines.」

「For products from existing deposition lines modified to improve productivity, the company submitted mass-production samples to multiple customers, and evaluations are progressing smoothly.」

「Regarding manufacturing operations, W-SCOPE KOREA CO., LTD. (WSK) completed renovation work to improve the productivity of its existing deposition lines, submitted mass-production samples to multiple customers, and continued evaluations.」

「Shipment-quality evaluation of samples from the film-forming lines where improvements have already been completed is finished, and evaluation of mass-production samples is under way.」

「Regarding manufacturing, improvement work on existing lines at W-SCOPE KOREA CO., LTD. (WSK) has progressed smoothly, and samples are being shipped from film-forming lines where the improvements have already been completed.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), the 4 existing production lines continued to operate smoothly in mass production, while preparations for mass-production shipments from 2 new production lines were also completed.」

「At WSK, trials continued on mass-production lines for automotive-use models and other products scheduled to enter mass production in the second half of 2023, and production volume during the period declined from the initial plan.」

「At WSK, the company is conducting mass-production tests on separators for new automotive battery models scheduled to begin mass-market sales from the fourth quarter of the current fiscal year on some mass-production lines.」

「Although costs are expected to arise from manufacturing samples for new EV models scheduled to enter mass production from 2023 onward, the company expects to maintain a high operating rate throughout the year and for costs to increase in line with higher revenue, unless the COVID-19 pandemic has a further adverse impact.」

「Although some production lines underwent production adjustments due to weak orders for consumer applications, the company used those lines to conduct trial mass production of new automotive products.」

「The company had largely completed by around the middle of 2019 the product development and establishment of a mass-production system for high-end automotive batteries, which it had systematically pursued since 2017,」

「WSK's nine production lines have generally been operating smoothly, although some lines have undergone production adjustments due to weak orders for consumer applications and have been used for trial mass production of new products for automotive applications and sample production for new projects. WCP has continued mass-market sales on its cumulative Nos. 10 and 11 lines, while customer approval has already been obtained for Line No. 12, whose installation was completed at the end of June this year, and preparations for mass production have been completed.」

「On W-SCOPE CHUNGJU PLANT CO., LTD.'s cumulative Nos. 10 and 11 lines, whose installation was completed in the second half of last year, the company began mass production for sale and continued to manufacture samples for technical approval by major customers in parallel.」

「Regarding manufacturing operations, at W-SCOPE CHUNGJU PLANT CO., LTD. (hereinafter, WCP), which completed installation in the second half of last year, production has begun for mass-production sales on the cumulative No. 10 and No. 11 coating lines while the plant works on manufacturing samples for technical approval by major customers.」

「Research and development expenses increased substantially, by approximately ¥2 billion year on year, because the Company focused on product development and sample prototyping in anticipation of rapidly launching new EV-related projects.」

「At the Company's manufacturing subsidiaries, W-SCOPE KOREA CO., LTD. and W-SCOPE CHUNGJU PLANT CO., LTD., which has begun operations (hereinafter, WCP), shipments of samples for technical evaluation and specification approval for projects targeting mass-production sales from next year onward have increased, resulting in higher expenses.」

「The Company continues sample production for line approval by major customers.」

「The Company continues sample production for line approval by major customers in parallel with ongoing mass-production shipments to certain customers on Lines 8 and 9.」

「Large-volume sample shipments of batteries for EV and PHEV applications, for which mass production is expected to accelerate from the second half of 2018」

「Operating profit fell substantially year on year due to higher costs including (1) innovation expenses for production lines and the plant, (2) increased sample shipments for new customers, (3) upfront hiring associated with the ramp-up of mass production at the new manufacturing subsidiary WCP from the first half of fiscal 2018, and (4) variable costs and other expenses associated with preparations for the start of mass production on the No. 8 line, in addition to the factors that affected the second quarter.」

「The increase in sample shipments to new customers resulted in a substantial decline from the same quarter of the previous year.」

「Increased sample production to expand the range of vehicle models adopted from the next fiscal year onward」