Investor Relations 2020

Disclaimer

1

The financial results of PI Advanced Materials in this presentation have been prepared in accordance with K-IFRS.

This presentation contains forecast information for the future.

The above forecast information is affected by changes in the business environment and inherently contains uncertainties, and

due to this uncertainty, actual future performance may be significantly different from what is stated or implied in the forecast

information.

Also, please note that the future outlook is based on the current market situation and the company's management direction, and

that the data, forms and figures to be provided can be changed without any prior notice due to changes in the market

environment and changes in management strategies. This presentation shall not, under any circumstances, be used as proof of

the legal responsibility of the investor's investment results.

In addition, the management performance and financial performance of PI Advanced Materials included in this material were

prepared early without the completion of external auditors' review for the convenience of investors, some of which may vary

from the final review process of external auditors.

CONTENTS

Section 01

01. PI industry overview

02. Competitive dynamics

03. Revenue breakdown

04. Profitability

Overview

01. Company overview

02. Company history

03. What is PI film?

04. PI film applications

Section 02

01. Business portfolio

02. Product overview

03. FPCB

04. Graphite sheet

05. CoF

06. Flexible display

07. Electric vehicle

2

Appendix

01. Summary financials

Overview

01. Company overview

02. Corporate history

03. What is PI film?

04. PI film applications

3

Company overview

Name PI Advanced Materials Co., Ltd.

Established June 2, 2008

CEO Matt Kim

Total equity KRW272.8bn (As of 3Q 2020)

LocationAnyang Office, Jincheon Plant

and Gumi Plant

CapacityFilm 3,900 Ton/Yr (Design Capa)

Varnish 600 Ton/Yr (Design Capa)

Headcount 290 (As of 3Q 2020)

Homepage www.pimaterials.com

Main products Polyimide film and varnish

Snapshot Shareholding structure

As of 3Q 2020

40.5%

0.2

29,366,322 shares

outstanding

5.2%

4

PI Advanced Materials at a glance

Global no.1 PI film manufacturer

Industry leading profitability (3Q 2020 cumulative EBITDA margin)

Global no.1 market share (as of 2019)30.2%

The largest PI film annual production capacity (as of 2019)3,900ton

30.6%

Consistent double digit growth (2016~2019 revenue CAGR)13.2%

The largest PI film production capacity 1

PI film market share(2)PI film production capacity (1)

The largest PI film market share globally 2

#1 #1

5Source: Yano Research, Company dataNotes: (1) As of December 2019

(2) Based on 2019 sales quantity

3,900 3,600

2,100 1,9101,200 1,000

PIAM K T T-D D U

30.2%

13.9% 12.6%8.1% 7.8% 6.9%

PIAM K D T T-D U

(metric ton)

Corporate history 6

6

2018~20202017~20182012 ~ 20162008 ~ 20112001 ~ 2007

On path to becoming an advanced materials company leveraging 19 years of PI film experience

Oct 2001

Commenced PI film R&D

Aug 2004

Commercial PI Film

Production (Pilot#0)

~Sales Commenced (May

2005)

Jul 2006

SKC J1 production

commenced

Dec 2006

Kolon G1 production

commenced

June 2008

SKCKolonPI established

2010

Reached KRW100bn

in revenue

Dec 2014

Listed on KOSDAQ

Ranked no.1

in global market share(2014 ~ present)

2016

Reached KRW150bn

in revenue

2017

Developed 5.5㎛ Black PI

film

Anode material binder

R&D contract with Korea

Research Institute of

Chemical Technology

Reached KRW200bn

in revenue

2018

Graphitization test facility

completed

IP management system

installed

PI Powder R&D contact

with Yonsei Univ.

Film pilot upgrade

2019

Commercialized Black PI film

Developed 5G MPI

J4 commercial production

commenced

Varnish P1 production

commenced

2020

Semiconductor PI varnish

PI varnish for EV motor coil

High thickness G/S production

Developed 2nd generation 5G

MPI

Developed CoF(First in Korea)

What is PI film?

Heat resistance Does not melt at over 400°C and retains

its original elasticity and strength

Flexibility and dimensional stability Exceptional flexibility and dimensional stability

Restores to its original form and maintains its

original physical and chemical properties

Insulation Superior insulator resistant to high voltage

Reduces electrical loss and provides surge

protection

0

200

400

600

800

051015202530

Heat resistance(℃)

Thin film processability (㎛)

PI(400℃↑)

PEEK(250℃)

LCP(270℃)

“PI has the best heat resistant properties and processability

in its class ”

PEN

PPSPBTPET

Essential across diverse downstream industries using PI film and varnish for core components

FPCB Chip on Film Graphite sheet Flexible display Secondary battery

Foldable phone

8K display

5G

EV battery

A super engineering plastic material with superior thermal, physical and electrical properties

7

A powerful super engineering plastic material Comparison of super engineering plastics

PI film applications

Widely used across products in various industries requiring high heat resistance/electrical insulation for durability and stability

- FPCB (+5G MPI)

- G/S (For Heat sink)

- Display (Foldable+CoF)

- Semiconductor PKG

- Battery insulating tape

- EV battery insulation

- Battery management system

- Semiconductor passivation

- EV FPCB (+Autonomous

driving)

- EV cable coating8

Section 01

01. PI industry overview

02. Competitive dynamics

03. Revenue breakdown

04. Profitability

9

Others

PI industry overview

0.1 0.1 0.1 0.1 0.1 0.1

0.3 0.3 0.3 0.3 0.3 0.3

0.4 0.4 0.40.5 0.5 0.5

0.1 0.10.2

0.2 0.20.3

1.2 1.2

1.3

1.41.5

1.7

2020 2021 2022 2023 2024 2025

Continued growth in PI industry, driven by downstream growth and expanding PI applications

(KRWtrn)

2.1 2.2

2.3

2.52.6

2.9

Film

Varnish

Powder

Foam

10Source: Current Status and Future Prospects of Functional Polymer Films (Fuji Keizai, 2019), Current Status and Future Prospects of Electronics Advanced Materials (Fuji Keizai, 2020), Global Polyimide Tape Market Insights (Stratagem,2020) and Global Polyimide Foam Market Professional (QYResearch, 2019)

CAGR 6.7%

CAGR

7.2%

CAGR

24.6%

CAGR

4.6%

Competitive dynamics

PI film production capacity PI film M/S

(2019)

30.2%

13.9%

12.6%

7.8%

8.1%

6.9%

79.5%

Tie

r II

Tie

r II

I

Source: Yano Research, Company data

FPCB G/S F/D CoF MPIRechargeable

Battery

N/AMainly for

domestic low

spec, low

priced

smartphones

Country

Presence in all applications

Strong in 2L FCCL

Strong in Stiffener

c.60% global M/S

Mainly for Internal useMinimal external sales

Heat curing method –Unable to enter

Attempting entry –little or no M/S

Tie

r I

N

T

S

R

Total (Tier 1 & 2)

U

T

D

T-D

K

PIAM(ton)

Attempting entry –little or no M/S

Global PI industry is dominated by 6 Tier I and Tier II players

3,900

3,600

1,910

1,200

2,100

1,000

1,200

600

350

30011

Product applications

108.2 98.4 96.8 80.1

74.9 93.3 74.9

68.8

33.2 53.8

51.8

42.9

2017 2018 2019 2020 3Q

17.0

28.5 25.2 26.2 24.8 23.6

31.1

7.8

22.6 25.5

19.0 22.2 18.0

28.6

15.4

11.3 13.6

11.6 14.6

14.1

14.8

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

[Quarterly]

Revenue breakdown by product

Diversifying product portfolio and achieving stable growth by penetrating new markets for fast-growing downstream sectors

(42%)

(38%)

(20%)

40.2

62.4

56.7

64.3

55.8

61.6

FPCB

Explosive growth since 2009 after

smartphones became mainstream

Maintaining growth in line with the

smartphone market since 2012

Graphite Sheet

Smartphone makers began to adopt PI

film based graphite sheet for flagship

models since 2010

LCD being replaced by OLED is

raising overheating risk, prompting the

need for more graphite sheet

Advanced Industrials

Demand strengthening for insulation

materials such as PI insulation tapes

Expected to gain strong momentum in

line with downstream growth (EV and

semiconductors)

12

74.5

FPCB G/S Advanced Industrials

245.5

216.4223.7

191.9

[Annual]

(42%)

(36%)

(22%)

*

*2020 3Q cumulative numbers

86.9 84.6 77.8 70.6

129.4 160.9

145.8

121.3

2017 2018 2019 2020 3Q

19.9 17.7 21.8

18.4 21.0 20.4

29.0

20.3

44.7 42.5

38.3 40.6

35.3

45.4

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20

245.5

216.4 223.7

(35%)

(65%)

[Annual]

(39%)

(61%)

40.2

62.4

56.7

64.3

55.8

61.6

[Quarterly]

Domestic Export

Revenue breakdown by region

Balanced and well-diversified customer base both domestic and overseas

FPCB: Main sources of demand include components for mobile, display, auto electronics and semiconductors,

all of which are predominantly based in East Asia

G/S: Most G/S manufacturers have production base in China. While most G/S Revenue is generated by China

based customers, sales in Korea is starting to grow on the back of localization trends.

Advanced Industrials: Mainly insulation tapes supplied to Korea based customers

Cumulative revenues by region as of 3Q 2020: Korea 39%, China 49%, Taiwan 10% and Japan & RoW 2%

13

74.5

191.9

*2020 3Q cumulative numbers

*

12.5%13.7%

15.2%14.3%

7.9%

16.2%

Net margin

17.0

21.0

32.8 35.0

17.7

31.1

15 '16 '17 '18 '19 '20.3Q

NP

2.8%

5.5%

13.7% 13.9%

2.7%

Industry average

28.9 32.3

53.0

60.5

33.6

43.2

15 '16 '17 '18 '19 '20.3Q

OP

1.7%4.3%

11.1% 10.6%

1.0%

Industry average

21.2% 21.1%

24.5% 24.7%

15.0%

22.5%

OP margin

Profitability

Historical OP & OP margins Historical NP & NP margins

(%, KRWbn)(%, KRWbn)

Superior profitability consistently above the industry average

14Source: Bank of Korea “Financial Statement Analysis for 2019 – Semiconductor and Electronic Components”

01. Business portfolio

02. Product overview

03. FPCB

04. Graphite sheet

05. CoF

06. Flexible display

07. Electric vehicle

Section 02

15

Application Description Entry stage

Heat cured PI varnish used as flexible

substrate

Higher flexibility and heat resistance

than glass substrate

Color &

Colorless PI

under

development

/evaluation

Used for insulating magnet wire for EV

motor

Superb heat resistant properties allow

for smaller EV motor size and higher

horsepower

Production

and Sale

starting in

Oct.2020

Durable replacement for synthetic

rubber binders susceptible to cracking

Stabilizes EV batteries with higher

capacity

Under

customer

evaluation

Used for creating passivation /sacrificial

layers protecting the internal

semiconductor devices during

production process

Expanding

domestic

customers

Used for heat resistant industrial

binders and paste for holding pigments

in place

Superior heat resistance, adhesiveness

and electric properties vs. epoxy

polymers and others

Undergoing

a quality test

by customer

Business portfolio

Expanding applications beyond mobile handsets to high-growth industries

PI film

Application Description

Entry

stage

3L FCCL, 2L FCCL laminate, coverlay and

stiffener

Used as substrate, protection and

reinforcement for mobile handsets and

other electrical devices

Diffuses heat away from a hot spot in

mobile and other heat generating devices

Prevents malfunctioning caused by

overheating

Used in batteries, displays and wireless

charging modules

Insulates EV batteries/products exposed to

heat during production process

IC packaging method of attaching DDIC to

a panel substrate by bonding PI film

Allows for larger screen-to-body ratio and

essential for bezel-less displays

Used as protection film under PI substrate

in flexible displays after antistatic treatment

Allows for smaller radius of curvature,

durable and heat resistant

FPCB

Flexible display

All range of

applications

PI varnish

Graphite sheet

c.60% M/Sin China

Industrials

CoF

Flexible substrate

Magnet wire

EV Battery binder

Semiconductorpassivation

Industrial binder

16

Product application overview

Essential for manufacturing FPCBs in mobile and other electronic devices

PI film and copper bonded together using adhesive (Flexible Copper

Clad Laminates or “FCCLs”)

PI film acts as a substrate for copper foils on FCCLs used for FPCBs,

the integral components used in mobile and other electronic devices

Description

FPCB

Application Schematic EV Semi

3L FCCL(2008)

2L FCCL

Laminate

(2010)

Coverlay(2008)

Stiffener(2008)

Other

PI film

Adhesive

PI film

PI film

Adhesive

Copper foil

✓ ✓

✓ ✓

✓ ✓

✓ ✓

✓5G

FPCB

3L FCCL(2019)

2L FCCL Laminate

(2020)

Coverlay(2019)

Stiffener(To come)

5G FPCBs offer similar functionalities as regular FPCBs with the

following key differences:

− Production process: additional ingredients added to lower

moisture absorption

− Function: Low permittivity (Low Dk, Df) for minimizing data loss

− Use: 5G mobile handsets including 5G antenna

See preceding

PI film

Adhesive

Release film/paper

Copper foil

Copper foil

TPI

TPI

PI film

Mobile/Display

Thermoplastic PI resin attached to both sides of PI film, then copper foils

bonded on both sides

PI film is used for removing copper foils from 2L FCCL after etching

process in semiconductor manufacturing

PI film bonded to release film/paper

During FPCB manufacturing process, the release paper is

removed and circuits are formed on multi-layers of FCCLs

Coverlay protects and insulates the exposed surface of the FCCLs

after circuits have been patterned

PI film bonded to another layer of PI film

Used for firming up certain surfaces on the FPCB to support the

areas of FPCB components and connectors requiring firmness

PI

film

17

Product application overview

Essential for mobile and display applications, expanding to EV batteries and semiconductors

DescriptionApplication Schematic

PI

film

IC packaging method of attaching Display Driver IC (“DDIC”) to

a panel substrate by bonding PI film

For use in high resolution displays (4K & 8K)

CoF(2010)

PI film

Copper foil

✓

✓ ✓

✓

✓ ✓

✓

✓ ✓

Artificially graphitized PI film with high thermal conductivity for heat diffusion

Flexible, light and thin(10㎛), graphite sheets are widely used for mobile handset batteries, displays and camera modules

Graphite Sheet (2013)

G/S for mobile

handset insulation

Ad

va

nc

ed

In

du

str

ials

PI film bonded to battery cells

Used for leak-proofing electrolyte in large secondary battery

cells and protecting electrodes

Adhesive tape made of PI film

Consumable insulating tape used for reducing product damage in various industrial manufacturing processes

Mid & large

battery (2015)

Small battery (2015)

Semiconductor

(2017)

Other(2008)

PI film bonded to battery cells

Used for leak-proofing electrolyte in small secondary batter cells

and protecting electrodes

For use in small wireless electronic devices such as wireless

vacuums, electronic bikes, wireless tools and wireless speakers

PI film wrapped on ceramic sheet with vinyl laminate

A variant PI fim used in the metal forming process for manufacturing

Multi-layer Ceramic Capacitors (“MLCCs”)

PI필름

Ceramic sheet

Clean paper

Vinyl

PI film

Battery cell

Adhesive

18

EV Semi OtherMobile/Display

Essential for mobile and display applications, expanding to EV batteries and semiconductors

Coated and heat cured PI varnish attached to TFT and RGB

device

Glass substrate is replaced by PI varnish to employ

curved/flexible display

Flexible display

Enamel wire(2018)

Rechargeable battery binder

Semiconductorpassivation

(2018)

CPI film

PI varnish

PI film

R G B

Binder holding solder mask and heat sink

Used for protective coating on the wafer surface after wiring

integrated circuits in non-memory and memory semiconductors

Solder mask

PI varnish

Cu Cu

Heat sink

Binder holds the active material particles within the negative

electrodes of a lithium-ion battery

Highly heat resistant and adhesive, PI varnish binder can replace

the existing synthetic rubber binder for secondary batteries

When silicon anode materials are charged, overinflated synthetic

rubber binder can crack easily

PI varnish

Active material

External surface of copper magnet wire coated with PI varnish

Used for coating magnet wire to enhance heat resistance and

insulation

A wide range of applications for products with dense wiring

structure including EV motors, inductors and transformers

PI varnish

Copper wire

PI varnish

PI

va

rnis

h

✓

✓

✓ ✓

✓

19

DescriptionApplication Schematic EV Semi OtherMobile/Display

Product application overview

Successfully developed Modified PI (“MPI”) for 5G antenna

substrate used for 5G spectrum and high speed data transmission

Increasing demand for MPI expected, driven by 5G

commercialization

LCP film has a low production yield and is less flexible than MPI

→ Highly likely to be replaced by MPI (MPI is price competitive

at 50-60% of LCP price)

We successfully entered the 5G substrate market in 2019 and

completed development of the 2nd generation MPI

- mmWave MPI under development

FPCB

Secular growth in smart devices driving increasing demand for FPCBs

PI film applications for FPCBs Smartphone market trend

20

2001~2004: Early stage growth of PI film on the back of feature

phone growth

2000~2012: Commercialization of smartphones accelerated the

growth of FPCBs used in smart devices

The number of FPCBs used per device is increasing due to

higher integration and specifications of devices

Black coverlay usage expected to increase for all handsets

globally

14.411.8 10.8 10.5 10.6 11

2

2.6 3.4 4.55.9

7.8

2020 2021 2022 2023 2024 2025

(Hundred million units)

16.4

14.4 14.315.0

16.6

18.7

5G

Non-5G

Graphite sheet

Increasing demand for graphite sheet driven by more heat generating components as smart devices become more compact and complex

• PI film is artificially graphitized by heat treating to 3,000℃. Yields thermal conductivity of 700~1,850W/mk and thickness of

10~100㎛

• Used as a thermal dissipative material in commercial & industrial applications, especially thin and small electronic devices

such as smartphones. Artificial graphite sheet is most commonly used (c.96%) for the purpose of thermal management in

smart devices

• Further growth expected from: 5G smartphone adoption rate ↑ / LCD → OLED ↑ / Maximizing internal space efficiency of

smartphones

Artificial graphite sheet

Production process

Market outlook and business strategy

21

• We currently have a c.60% global market share

• Exploring new markets in response to Chinese supply expansion (Capacity increase and low-end market)

• Focusing on marketing PI film for high thickness graphite sheet to increase sales and maintain market share

• Developing new products and marketing to new customers

8 8 8 8 9 9

13 13 12 12 12 12

20 20 20 2123 25

2020 2021 2022 2023 2024 2025

Chip on Film

Notchless full screen phones and higher resolution TVs expected to drive increasing demand for CoF

CoF structure and applications

Display Driver IC mounting position

CoF market size growth

(KRWbn)

22

Increasing demand for high resolution TVs and full

screen smartphones

Per unit usage of CoF to increase

COF market currently dominated by Japanese

competitors

PI Advanced Materials is the first company to

successfully localize COF production in Korea, and is

expected to benefit from the government’s localization

policy for materials, components and equipmentSource: Current Status and Future Prospects of Functional Polymer Films (Fuji Keizai, 2019)

Display panel source PCB connected to multiple PCBs to trasmit

video signals

Smartphone – CoF is attached to the bottom of TSP (“Touch

Screen Panel”) module

Standardized size and thickness

TV

Laptop

/ Tablet

Smartphone

CoG CoF CoP

scre

en

scre

en

scre

en

scre

en

subst

rate

Gla

sssu

bst

rate

PI

subst

rate

Flexible display

Increasing popularity of flexible display phones to boost demand for PI-based backplate film

Foldable backplate film applications Flexible display market size growth

(KRWbn)

Rigid OLED

Cover glass

Polaroid film

Touch sensor

Encapsulation

R G B

TFT substrate

(Glass)

Curved OLED

Cover glass

Polaroid film

Touch sensor

Encapsulation

R G B

TFT substrate(PI varnish)

Protection film (PET film)

FoldableOLED

CPI or UTG

Polaroid film

Touch sensor

Encapsulation

R G B

TFT substrate(PI varnish)

Protection film (PI film)

Current Status and Future Prospects of Electronics Advanced Materials (Fuji Keizai, 2020)

Protection film = Base film = Cushion film 23

PI quantity per unit to increase due to larger display size

All foldable devices by domestic and global manufacturers have

adopted our PI films

c.90% in the backplate film market achieved by actively

marketing to end customers from the early stage of development

PI film is used for outermost surface protection beneath the TFT

substrate in foldable display

PI film’s insulating capability/flexibility is suitable for foldable

display requring insulation and low radius of curvature

13 1739

67102

157

2020 2021 2022 2023 2024 2025

Electric vehicle

Solid demand for PI film for the purpose of EV battery insulation

PI film applications by EV battery type

24

1. Prismatic 1) Attached to the outer front surface of a battery can (Black

C/T in the market)

2) Used for detection/management of contaminants between

jelly roll and can inside battery (Dark Green C/T in the market

+ New White C/T under development)

2. Pouch- Attached to battery connectors and surface finish

3. Cylindrical 1) Protects the cathode tab

2) Protects electrodes

※ Usage ratio 1) : 2) = 1:10

▶ Prismatic 1) external surface ▶ Prismatic 2) inside jelly roll ▶ Cylindrical

Anode lead

Anode Protect

Film

liner

AnodeCathode

Cathode lead

Teminal Fixed

Tape

Electrode Fixed

and insulation

Tape

Electric vehicle

PI varnish being used for insulating EV motor coil

Application of PI varnish to EV motor coil

25

PI varnish is used for coating magnet wire wrapping EV motor for electrical insulation

Change from round type to rectangular type magnet wire necessitates withstanding higher voltage and stronger insulation

(PAI→PI)

Confirmed to supply PI varnish for EV motor coils starting in early 2021

Varnish production line completed in July 2019 to be utilized for mass production

Provided samples to global OEMs and customer evaluation in progress → Targeting to expand customer base globally to start

generating significant revenue from EV applications

01. Summary financials

Appendix

26

Summary financials

Summary balance sheet Summary profit & loss statement

(KRWmn)(KRWmn)

341,097 372,365 392,965 407,016

Current assets 130,172 105,904 108,516 147,683

Cash & cash equivalents 71,167 11,203 28,541 54,754

92,878 113,651 141,679 133,889

Current liabilities 57,463 58,764 93,696 93,828

Short- & long-term debt 38,920 53,550 71,828 60,198

248,220 258,714 251,286 273,128

Retained earnings 124,128 134,622 127,194 149,036

Current ratio (%) 226.5% 180.2% 115.8% 141.2%

Debt-to-equity ratio(%) 37.4% 43.9% 56.4% 48.0%

Debt-to-assets ratio (%) 11.4% 14.4% 18.3% 14.9%

0.56x 0.83x 0.26x

27

245,473 223,682 64,364 74,492

Cost of goods sold 165,322 166,404 44,332 51,676

Gross profit 80,151 57,278 20,032 22,816

Gross margin (%) 32.7% 25.6% 31.1% 30.6%

76,370 52,074 19,606 21,142

EBITDA margin (%) 31.1% 23.3% 30.5% 28.4%

60,533 33,602 14,468 15,929

Operating margin (%) 24.7% 15.0% 22.5% 21.4%

Financial incomes 1,149 242 51 46

Financial expenses 1,548 2,298 847 288

Other gains/losses -16,242 -10,383 -2,372 -1,040

43,892 21,164 11,301 14,648

34,984 17,718 8,745 11,718