MIRA INFORM REPORT

 

 

Report Date :

08.08.2013

 

IDENTIFICATION DETAILS

 

Name :

ISU CHEMICAL CO., LTD.

 

 

Registered Office :

Isu Chem Co. 112-4, Banpo-Dong, Seocho-Gu Seoul, 137714

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

17.01.1969

 

 

Legal Form :

Public Parent

 

 

Line of Business :

Manufacture of basic chemicals

 

 

No. of Employees :

378

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA


Company name and address Top of Form

Bottom of Form

Top of Form

Isu Chemical Co., Ltd.

                                                                                                                                                  

 

Isu Chem Co.

112-4, Banpo-Dong, Seocho-Gu

 

Seoul, 137714

Korea, Republic of

 

 

Tel:

82-2-5906600

Fax:

82-2-5906666

 

www.isuchemical.co.kr

 

Employees:

378

Company Type:

Public Parent

Corporate Family:

4 Companies

Traded:

Korea Stock Exchange:

005950

Incorporation Date:

17-Jan-1969

Auditor:

Sunjin Accounting Corp.

Financials in

 USD (mil)

Fiscal Year End:

31-Dec-2012

Reporting Currency:

South Korean Won

Annual Sales:

1,980.2  1

Net Income:

20.6

Total Assets:

1,208.1  2

Market Value:

216.0

 

(19-Jul-2013)

                                      

Business Description       

 

ISU Chemical Co., Ltd is a Korea-based company engaged in the manufacture of petrochemicals. The Company and its subsidiaries operates in three business divisions: petrochemical division, construction division and fiber division. Its petrochemical division produces two categories of products: petrochemicals and specialized chemicals, including linear alkyl benzene (LAB), branched alkyl benzene (BAB), normal paraffin (NP), kerosene, parasol, heavy LAB, heavy BAB, tertiary alkyl benzene (TAB), linear alkylbenzene sulfonate (LAS), de-aromatized solvents, tertiary dodecyl mercaptan (TDM) and others. It construction division constructs apartment, public buildings, office buildings, residential, roads, bridges, railways, plants and others. Its fiber division produces knit fabrics and exports yarns. For the three months ended 31 March 2013, Isu Chemical Co., Ltd. revenues decreased 10% to W510.05B. Net loss totaled W221.1M vs. income of W14.45B. Revenues reflect Petrochemistry segment decrease of 9% to W447.34B, Fiber segment decrease of 54% to W5.14B, Construction segment decrease of 7% to W56.49B, South Korea segment decrease of 8% to W423.86B, Asia segment decrease of 22% to W56.43B, Europe segment decrease of 39% to W10.64B.

          

Industry                                                                                                                                      

 

Industry

Basic Chemical Manufacturing

ANZSIC 2006:

1812 - Basic Organic Chemical Manufacturing

ISIC Rev 4:

2011 - Manufacture of basic chemicals

NACE Rev 2:

2014 - Manufacture of other organic basic chemicals

NAICS 2012:

32511 - Petrochemical Manufacturing

UK SIC 2007:

2014 - Manufacture of other organic basic chemicals

US SIC 1987:

2869 - Industrial Organic Chemicals, Not Elsewhere Classified

  Key Executives         

   

 

Name

Title

Sang Beom Kim

Chairman of the Board, Co-Chief Executive Officer

Gwang Gyu Park

Internal Auditor

Seok Ju Lee

Managing Director

In Koo Kang

Chief Executive Officer

Dae Sung Kim

Chief Financial Officer

 

Significant Developments                                                                            

 

Topic

#*

Most Recent Headline

Date

Dividends

1

Isu Chemical Co., Ltd. Declares Annual Cash Dividend for FY 2012

28-Feb-2013

     

Financial Summary                                                                                                              

 

As of 31-Mar-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.28

2.18

Quick Ratio (MRQ)

1.02

1.35

Debt to Equity (MRQ)

1.51

0.82

Sales 5 Year Growth

18.89

6.26

 

 

 

  Stock Snapshot                                 

 

Traded: Korea Stock Exchange: 005950

 

As of 19-Jul-2013

   Financials in: KRW

Recent Price

15,900.00

 

EPS

1,456.48

52 Week High

24,150.00

 

Price/Sales

0.11

52 Week Low

14,500.00

 

Dividend Rate

450.00

Avg. Volume (mil)

0.10

 

Price/Book

0.51

Market Value (mil)

242,920.20

 

Beta

1.22

 

Price % Change

Rel S&P 500%

4 Week

0.95%

-1.68%

13 Week

-16.10%

-14.52%

52 Week

-25.87%

-27.79%

Year to Date

-27.23%

-22.35%

 

 

1 - Profit & Loss Item Exchange Rate: USD 1 = KRW 1126.849
2 - Balance Sheet Item Exchange Rate: USD 1 = KRW 1066.4

 

 

 

 

 

Corporate Overview

 

Location
Isu Chem Co.
112-4, Banpo-Dong, Seocho-Gu
Seoul, 137714
Korea, Republic of

 

Tel:

82-2-5906600

Fax:

82-2-5906666

 

www.isuchemical.co.kr

Quote Symbol - Exchange

005950 - Korea Stock Exchange

Sales KRW(mil):

2,231,441.8

Assets KRW(mil):

1,288,290.6

Employees:

378

Fiscal Year End:

31-Dec-2012

 

Industry:

Chemical Manufacturing

Incorporation Date:

17-Jan-1969

Company Type:

Public Parent

Quoted Status:

Quoted

 

Chairman of the Board, Co-Chief Executive Officer:

Sang Beom Kim

 

Industry Codes

 

ANZSIC 2006 Codes:

1812

-

Basic Organic Chemical Manufacturing

3739

-

Other Goods Wholesaling Not Elsewhere Classified

3019

-

Other Residential Building Construction

3101

-

Road and Bridge Construction

3011

-

House Construction

3020

-

Non-Residential Building Construction

1340

-

Knitted Product Manufacturing

3109

-

Other Heavy and Civil Engineering Construction

1813

-

Basic Inorganic Chemical Manufacturing

 

ISIC Rev 4 Codes:

2011

-

Manufacture of basic chemicals

4690

-

Non-specialized wholesale trade

4220

-

Construction of utility projects

1399

-

Manufacture of other textiles n.e.c.

4210

-

Construction of roads and railways

4100

-

Construction of buildings

 

NACE Rev 2 Codes:

2014

-

Manufacture of other organic basic chemicals

4221

-

Construction of utility projects for fluids

4211

-

Construction of roads and motorways

4120

-

Construction of buildings

2013

-

Manufacture of other inorganic basic chemicals

4690

-

Non-specialised wholesale trade

1399

-

Manufacture of other textiles n.e.c.

 

NAICS 2012 Codes:

32511

-

Petrochemical Manufacturing

236220

-

Commercial and Institutional Building Construction

237990

-

Other Heavy and Civil Engineering Construction

236116

-

New Multifamily Housing Construction (except For-Sale Builders)

424990

-

Other Miscellaneous Nondurable Goods Merchant Wholesalers

236115

-

New Single-Family Housing Construction (except For-Sale Builders)

325180

-

Other Basic Inorganic Chemical Manufacturing

237310

-

Highway, Street, and Bridge Construction

313240

-

Knit Fabric Mills

 

US SIC 1987:

2869

-

Industrial Organic Chemicals, Not Elsewhere Classified

1542

-

General Contractors-Nonresidential Buildings, Other than Industrial Buildings and Warehouses

1629

-

Heavy Construction, Not Elsewhere Classified

1521

-

General Contractors-Single-Family Houses

2258

-

Lace and Warp Knit Fabric Mills

1611

-

Highway and Street Construction, Except Elevated Highways

2819

-

Industrial Inorganic Chemicals, Not Elsewhere Classified

1522

-

General Contractors-Residential Buildings, Other Than Single-Family

5199

-

Nondurable Goods, Not Elsewhere Classified

1622

-

Bridge, Tunnel, and Elevated Highway Construction

 

UK SIC 2007:

2014

-

Manufacture of other organic basic chemicals

4221

-

Construction of utility projects for fluids

4211

-

Construction of roads and motorways

41202

-

Construction of domestic buildings

2013

-

Manufacture of other inorganic basic chemicals

4690

-

Non-specialised wholesale trade

1399

-

Manufacture of other textiles n.e.c.

 

Business Description

ISU Chemical Co., Ltd is a Korea-based company engaged in the manufacture of petrochemicals. The Company and its subsidiaries operates in three business divisions: petrochemical division, construction division and fiber division. Its petrochemical division produces two categories of products: petrochemicals and specialized chemicals, including linear alkyl benzene (LAB), branched alkyl benzene (BAB), normal paraffin (NP), kerosene, parasol, heavy LAB, heavy BAB, tertiary alkyl benzene (TAB), linear alkylbenzene sulfonate (LAS), de-aromatized solvents, tertiary dodecyl mercaptan (TDM) and others. It construction division constructs apartment, public buildings, office buildings, residential, roads, bridges, railways, plants and others. Its fiber division produces knit fabrics and exports yarns. For the three months ended 31 March 2013, Isu Chemical Co., Ltd. revenues decreased 10% to W510.05B. Net loss totaled W221.1M vs. income of W14.45B. Revenues reflect Petrochemistry segment decrease of 9% to W447.34B, Fiber segment decrease of 54% to W5.14B, Construction segment decrease of 7% to W56.49B, South Korea segment decrease of 8% to W423.86B, Asia segment decrease of 22% to W56.43B, Europe segment decrease of 39% to W10.64B.

 

More Business Descriptions

Production of petrochemical products including alkyl benzene, lubricants and kerosene

 

ISU Chemical Co., Ltd. (ISU), a subsidiary of ISU Group, produces and distributes petrochemicals and a wide range of chemical related products. It offers raw material for detergents, alkyl benzene, and normal paraffin; and additives for polymers and solvents. The company operates through two business divisions, namely, Petrochemicals and Speciality chemicals business division. The company also provides lubricants and biotechnology products.ISU’s petrochemical products are categorized into LAB (linear alkyl benzene) line, BAB (branched alkyl benzene) line, NP (normal paraffin) and LAS (linear alkylbenzene sulfonate). The LAB line includes LAB and Heavy LAB. LAB is used as a powder and liquid laundry detergent. The company’s major overseas customers for LAB include Unilever, P&G and Colgate. The products domestic customers include LG H&H, AK Chemtech and CJ Lion. Its two LAB plants have a production capacity of 90,000 MTA (metric tons annually) each. The company’s heavy LAB is employed as base oil and additive for industrial, automotive lubricant production. It is used as industrial base oil for heat transfer oil, insulating oil, cutting fluid, and process oil. The total annual capacity of LAB is 180,000 metric tons. The company’s LAB and heavy LAB plants are located in Ulsan, Korea.Through its BAB line, the company provides BAB, heavy BAB and TAB (Tertiary Alkyl Benzene). BAB is used as the key element of DBSA (Dodecyl Benzene Sulfonic Acid), which is an industrial cleanser and emulsifier. BAB is employed as secondary plasticizer and pesticides emulsifier. The plant’s capacity of BAB is 17,800 MTA. Heavy BAB has production capacity of 1,500 MTA and is used as an additive for refrigerant oil and lubricant. TAB, produced by the company, is used as a catalyst for key ingredients. This pigment is widely used in printing ink, fiber, paint, plastic and rubber. The company’s NP plant has a capacity of 220,000 MTA. NP is used as metal cleaner, fumigator, softanol, drilling oil, cutting oil, rolling oil and candle oil. The company produces LAS at its plant, ISU Chemical Germany Gmbh, Germany, and processes it in China and Korea.ISU’s Specialized chemical product base includes IPA (Iso Propyl Alcohol), D-SOL (de-aromatized solvent), PARASOL and TDM (tertiary docecyl mercapton). ISU provides two kinds of IPA; Industrial IPA and Electronic IPA. Industrial IPA is used in printing ink, paint, pharmaceutical and reagent ingredient, NC (Nitro Cellulose) ingredient, aircraft cryoprotectant, antifreezing solution for radiator coolant, brake fluid additive, preservative, and antifreezing fluid for automotives. Electronic IPA is used as cleaner in semiconductor and LCD manufacturing process. IPA’s plant has a capacity of 30,000 MTA. D-SOL has a production capacity of 46,000 MTA. ISU’s PARASOL is used in printing ink. It is also used as aerosol and metal cleaner. The production capacity of its plant is 46,000 MTA. TDM is used to control molecular mass of ABS (acrylonitrile butadiene styrene), SBR (styrene-butadiene rubber) and SB (styrene-butadiene)-Latex. It is used as extreme pressure additive for grease, gear oil, and metal processing and anticorrosive additive for lubricants. TDM’s plant has a production capacity of 13,000 MTA.ISU produces lubricants for automobiles, general industrial oil and special industrial oil. The lubricants are classified into automobile lubricants used in gasoline engine oil, diesel engine oil, automobile transmission oil and care air-conditioner oil; general industrial oil and special industrial oil.The company’s research and development (R&D) activities are carried out at its ISU Chemical Technology Research Centre. At this center, the company develops self reliant technology, which enables product development and growth of the company. The research center is situated in the premises of its Onsan plant. ISU’s quality development department is responsible for midterm quality management, pilot product analysis and new product analysis.ISU owns two production factories located in Uslan, Korea. The company operates two foreign production and sales subsidiaries, one foreign communication office and one foreign representative. The company’s subsidiary, ISU ABXIS Co., Ltd., is a biopharmaceutical company, which develops and manufactures therapeutic proteins such as monoclonal antibodies.

 

ISU Chemical Co., Ltd. (ISU) is a chemical producer. The company manufactures petrochemicals, lubricants and fine chemicals. The company operates through two business divisions, namely, Petrochemicals division and Specialty Chemicals division. ISU offers petrochemicals, which include LAB (Linear Alkyl Benzene), NP (Normal Paraffin) and BAB (Branched Alkyl Benzene). The specialty chemicals division offers D-Sol, Parasol and Tertiary Dodecyl Mercaptan. The company provides a wide range of lubricants and products related to biotechnology. It also provides medical diagnostic services to its customers through its subsidiary. The company has offices in Germany, China and Mexico. ISU is headquartered in Seoul, Republic of Korea.The company reported revenues of (Won) KRW 2,231,441.79 million during the fiscal year ended December 2012, an increase of 8.54% over 2011. The operating profit of the company was KRW 69,592.77 million during the fiscal year 2012, a decrease of 18.58% from 2011. The net profit of the company was KRW 23,178.42 million during the fiscal year 2012, an increase of 20.11% over 2011.

 

Petrochemical Manufacturing

 

 

 

 

 

 

Financial Data

Financials in:

KRW(mil)

 

Revenue:

2,231,441.8

Net Income:

23,178.4

Assets:

1,288,290.6

Long Term Debt:

223,547.6

 

Total Liabilities:

823,786.8

 

Working Capital:

129.8

 

 

 

Date of Financial Data:

31-Dec-2012

 

1 Year Growth

8.5%

20.1%

8.2%

 

Market Data

Quote Symbol:

005950

Exchange:

Korea Stock Exchange

Currency:

KRW

Stock Price:

15,900.0

Stock Price Date:

07-19-2013

52 Week Price Change %:

-25.9

Market Value (mil):

242,920,192.0

 

SEDOL:

6467568

ISIN:

KR7005950001

 

Equity and Dept Distribution:

All financials are consolidated.

 

 

Key Corporate Relationships

Auditor:

Sunjin Accounting Corp.

 

Auditor:

Sunjin Accounting Corp.

 

 

 

 

 

 

 

 

 

 

Strengths/Weaknesses (SWOT)

 

 

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

·        Research and Development

·        Increased Efficiency

·        Wide Product Portfolio

Weaknesses

·        Debt Obligation

External Origin
(attributes of the environment)

Opportunities

·        Eco-friendly Materials Offer Opportunities

·        Strategic Joint Venture

·        Positive Outlook for Petrochemical Industry

Threats

·        M&A Holds Risk of Inefficient Integration

·        Increased Raw Material Cost

·        Environmental Regulations

 

 

Overview

 

ISU Chemical Co., Ltd. (ISU) manufactures various petrochemicals and chemical related products. ISU operates two business divisions such as petrochemicals and Speciality chemicals. The company’s broad product range insulates it from fall in demand for any particular product line, giving it a balanced revenue platform. Its joint venture and positive outlook for the petrochemical industry enable the company to expand into new markets thereby contributing to increased revenue. However, the company’s increased debt could affect its future expansion opportunities.

 

 

Strengths

 

Research and Development

The strong focus on the R&D activities helps the company in the development of new products and molecules, and also in sustaining and maintaining the existing market share. The company is one of the the world’s largest companies to develop and commercialize TDM, while carrying the production of Aceton based IPA. Through its sturdy R&D activities, the company persists to attain the production of self developing electronic chemicals such as NMP (N-methyl-2-Pyrrolidone) and EEP (Ethyl 3-Ethoxipropionate). ISU has world’s leading production processes. ISU’s R&D activities are carried out at its ISU Chemical Technology Research Centre. Through this center, the company engages in the development of self reliant technology, which enabled product development and growth of the company. The research center is present in the site of its Onsan plant. Its R&D activities are carried out through 40 researchers including 25 in the quality development department. The company’s quality development department is accountable for midterm quality management, pilot product analysis and new product analysis. Focused R&D enables the company to nurture its new growth platforms helping ISU to deliver sustainable growth for the future years. For the fiscal year ended December 2012, the company spent around KRW3848.43m towards the research and development activities.

 

Increased Efficiency

The company improved its efficiency in 2012 when compared with previous year. This is justified with efficiency ratios, namely, asset turnover, inventory turnover and capital employed turnover. All these ratios state how effectively the resources are being put to use and a higher ratio suggests that the firm is effectively using its assets, fixed assets, working capital, current assets, and capital employed. It reported an asset turnover ratio of 1.73 times in 2012 as compared to 1.72 times in 2011, followed by fixed asset turnover of 12.45 times in 2012 as compared to 10.38 times in 2011. Its current asset turnover ratio for 2012 is 3.47 times as compared to 3.37 times in 2011, inventory turnover is 14.91 times (12.66 times in 2011), and capital employed turnover ratio is 4.8 times in 2012 as compared to 4.5 times in 2011.

 

Wide Product Portfolio

ISU provides petrochemicals and chemical related products. The company carries out its operations through two business divisions, namely, Petrochemicals and Specialty chemicals. The company’s petrochemical products are categorized into LAB (linear alkyl benzene) line, BAB (branched alkyl benzene) line, NP (normal paraffin) and LAS (linear alkylbenzene sulfonate). LAB is used as a powder and liquid laundry detergent and Heavy LAB is used as a base oil and additive for the production of industrial and automotive lubricants. BAB is used as a key element of DBSA (Dodecyl Benzene Sulfonic Acid), which is an industrial cleanser and emulsifier. The company also produces Heavy BAB, used as an additive for refrigerant oil and lubricants. ISU produces TAB (Tertiary Alkyl Benzene) used as a solvent in manufacturing of blue pigment. This pigment is used in printing ink, pain, plastic, fiber, and rubber. NP is used as a metal cleaner, fumigator, softanol, drilling oil and cutting oil and LAS is used as an ingredient in powder and liquid laundry detergent. The company’s Specialty chemicals include IPA (Iso Propyl Alcohol), D-SOL (de-aromatized solvent), PARASOL and TDM (tertiary docecyl mercapton). ISU produces two types of IPA’s namely, industrial and electronic. Electronic IPA is used as cleaner in semiconductor and LCD manufacturing process and industrial IPA is pharmaceutical and reagent ingredient, printing ink, ant freezing fluid for automotives and preservatives.

 

 

Weaknesses

 

Debt Obligation

High debt burden could have a major impact on the operational performance of the company as a major portion of the company's earnings would be diverted towards servicing its debt obligations. The company reported an increase in the debt to equity ratio of 123.17% in 2012 over the previous year's figure of 102.59%. The increase in the debt to equity ratio of the company signifies that the company's debt increased substantially, which means that the company would incur more interest expenditure and it would have a negative effect on the overall profitability. Moreover, the company's total debt increased to KRW572132.87m in 2012 from KRW460484.88m in 2011. With such high levels of debt, the company would have to dedicate a significant portion of its cash flow from operations to service interest and principal payments which could have been used for other expansion activities.

 

 

Opportunities

 

Eco-friendly Materials Offer Opportunities

ISU could focus on the use of diverse eco-friendly raw materials for manufacturing chemicals. Increasing awareness of energy conservation and burdening the environment with toxic chemicals have led to a change in the method of chemical production, which is substantially different from the conventional way of producing chemicals from fossil fuels. This method employs biotechnology for the production of basic, fine and specialty chemicals and functional polymers derived from biological and agricultural sources. This fast emerging sector, with its growth further accentuated by the search for oil substitutes, has broadened opportunities for the chemical industry. White biotechnology, in particular, has influenced the chemical industry in large measure. These products reduce the dependence of chemical producers on volatile oil prices, which is the major source of feedstock and primary determinant of pricing for most of the products in the chemical industry. This environmentally friendly technology is set to offer opportunities of growth to the company.

 

Strategic Joint Venture

ISU augments its growth of existing businesses with complementary alliances and strategic acquisitions. The company has a joint venture with Indonesia’s Salim Group, a diversified multinational conglomerate with interests in Agriculture, Food, Real Estate, Communications, Infrastructure Construction, Chemicals and other fields. The joint venture has been named Great Orient Chemical (GOC). This joint venture entered into an investment agreement with China's Taichang City to establish a production factory that manufactures synthetic detergent. The factory is established with a preliminary production capacity of almost 100,000 tons per year. The company, along with Salim Group, aims to raise the production capacity up to 200,000 tons per year, depending on the market conditions. Presently, the annual production capacity of the factory is around 180,000 tons. ISU Chemical is among the top five producers in LAB industry worldwide and renowned for its LAB quality. The company's ability to forge innovative alliances and strategic outsourcing partnerships captures cost-efficiencies, and speeds-up its product development activities.

 

Positive Outlook for Petrochemical Industry

The company could be benefited from the potential global petrochemicals market. According to the in-house research reports, the global petrochemicals industry was valued at $1,164 billion, and it is expected to grow at a rate of 5.8% to reach $1,823 billion by 2020. Global market for polyethylene is expected to reach $132 billion in 2020. In addition, total world market for polypropylene is expected to grow at a rate of 5.3% during 2012-2020 to reach $99.37 billion. Such growth in petrochemical sector is expected to be driven by Asia Pacific, and Middle East and Africa regions. Petrochemicals demand in Middle East and Africa is expected to grow at a rate of 14.79% from 2012 to 2014. Asia Pacific’s petrochemicals market is expected to register CAGR of 7% during 2012-2020 to reach $1,086 billion. Such a strong outlook of the petrochemical industry could help the company to expand its geographic operations and explore untapped markets to bolster top-line growth.

 

 

Threats

 

M&A Holds Risk of Inefficient Integration

ISU faces a potential threat from the M&A (merger and acquisition) activities in the chemical industry. The industry has witnessed a spree of aggressive M&A activities in the recent past. Producers seeking growth through M&As have made some significant transactions in the last two years. However, these aggressive M&As pose risks to the company. Any M&A brings the desired growth only when the newly acquired business integrates seamlessly with the company’s existing line of business. If the company attempts to venture into new businesses through M&As, it places itself at a risk, as it requires technical and marketing expertise in the new field of business. Lack of such expertise could make the acquisition a risk to the company.

 

Increased Raw Material Cost

The increasing prices of raw materials could affect the ISU’s business. ISU uses various raw materials such as crude oil, natural gas, electricity and other energy related products for the manufacture of its products such as petrochemical products and fine ingredients. However, over the past few years, the prices of these raw materials have been on a rise, increasing the operating costs of the company. Competition limits the options of increasing product prices to compensate for the higher production costs. Moreover, the continuous supply of the raw materials could be affected by the weather conditions, national emergencies, strikes, governmental controls, natural disasters, supply shortages or other events. Thus, price fluctuations and non-availability of raw materials may have a material adverse effect on product costs and the operations of the company.

 

Environmental Regulations

The company could be affected by the environmental regulations governing the global chemical industry. REACH (Registration Evaluation and Authorization of Chemicals), in Europe, is an example of the stringent environmental regulations that impact chemical producers. REACH regulates the products manufactured and marketed in Europe. Phased over a period of 11 years, the regulation mandates all companies to develop and submit dossiers containing data sets about their chemical products and detail their potential impact and risk on environment. This could be a challenge while launching new products as the process is time-consuming and expensive. It may also result in phasing out many existing chemicals from the market, which are regarded as toxic and hazardous. REACH directly applies to over 30,000 different chemical substances that are produced or sold in Europe and its implementation is expected to cost European chemical industry about $3 billion. Other countries too are expected to model their regulations on the principles of REACH. The US has already begun implementing similar regulations with the reform of Toxic Substances Control Act. China has its own version: RoHS (Restriction of Hazardous Substances), which restricts the use of certain chemicals in the market. Such stringent environmental regulations are set to tighten in the coming years, affecting both existing and new products for the company.

 

 

Corporate Structure News:

                                                       

Isu Chemical Co., Ltd.
Total Corporate Family Members: 4

                                                       

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

Isu Chemical Co., Ltd.

Parent

Seoul

Korea, Republic of

Basic Chemical Manufacturing

1,980.3

378

Isu Engineering & Construction Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Residential and Commercial Building Construction

301.1

295

Isu Oil & Chemical Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Petroleum Wholesale

40.6

17

ISU Chemical Germany GmbH

Subsidiary

Mannheim, Baden-Württemberg

Germany

Miscellaneous Chemical Manufacturing

 

17

 



Isu Chemical Co., Ltd.

 

Competitors Report



CompanyName

Location

Employees

Ownership

KP Chemical Corp

Ulsan, Korea, Republic of

610

Public

Sasol Limited

Johannesburg, South Africa

34,857

Public

Taekwang Industrial Co., Ltd.

Seoul, Korea, Republic of

1,674

Public

 

 

 

 

Executives Report

 

Board of Directors

 

Name

Title

Function

Sang Beom Kim

 

Chairman of the Board, Co-Chief Executive Officer

Chairman

Biography:

Kim Sang Beom is Chairman of the Board and Co-Chief Executive Officer of Isu Chemical Co., Ltd. Kim is also Chief Executive Officer of ISU CORPORATION, ISUPETASYS CO.,LTD, and EXACHEM CO., LTD, as well as Director of another Korea-based company. Previously, Kim worked for DAEWOO. Kim holds a Bachelor's degree in Business Administration from Seoul National University, Korea and a Master of Business Administration along with a Master's degree in Law from University of Michigan, the United States.

 

Age: 52

 

Education:

University of Michigan, M (Business Administration)
University of Michigan, M (Law)
Seoul National University, B (Business Administration)

 

Bong Wu Ha

 

Non-Executive Independent Director

Director/Board Member

 

 

Biography:

Ha Bong Wu has been Non-Executive Independent Director of ISU CHEMICAL CO.,LTD since March 25, 2011. Ha was Non-Executive Independent Director of Maeil Dairy Industry Company. Ha holds a Bachelor's degree and a Master's degree in Economics from Seoul National University, Korea, and completed a Doctorate's course from Cornell University, the United States.

 

Age: 53

 

Education:

Cornell University, PHD
Seoul National University, M (Economics)
Seoul National University, B (Economics)

 

Seok Ju Lee

 

Managing Director

Director/Board Member

 

 

Biography:

Lee Seok Ju has been Managing Director of ISU CHEMICAL CO.,LTD since March 22, 2013. Lee currently also serves as Head of Management Division in the Company. Lee used to work for ISUPETASYS CO.,LTD. Lee holds a Bachelor's degree in Mathematics from Yonsei University, Korea.

 

Age: 47

 

Education:

Yonsei University, B (Mathematics)

 

 

Executives

 

Name

Title

Function

In Koo Kang

 

Chief Executive Officer

Chief Executive Officer

Sang Beom Kim

 

Chairman of the Board, Co-Chief Executive Officer

Chief Executive Officer

 

Biography:

Kim Sang Beom is Chairman of the Board and Co-Chief Executive Officer of Isu Chemical Co., Ltd. Kim is also Chief Executive Officer of ISU CORPORATION, ISUPETASYS CO.,LTD, and EXACHEM CO., LTD, as well as Director of another Korea-based company. Previously, Kim worked for DAEWOO. Kim holds a Bachelor's degree in Business Administration from Seoul National University, Korea and a Master of Business Administration along with a Master's degree in Law from University of Michigan, the United States.

 

Age: 52

 

Education:

University of Michigan, M (Business Administration)
University of Michigan, M (Law)
Seoul National University, B (Business Administration)

 

Yong Wi Byun

 

Managing Director

Managing Director

 

 

Biography:

Byun Yong Wi is Managing Director of ISU CHEMICAL CO.,LTD. Byun is also Head of Factory in the Company. Byun holds a Bachelor's degree in Industrial Chemistry from University of Ulsan, Korea.

 

Age: 52

 

Education:

University of Ulsan, B (Industrial Hygiene/Chemistry)

 

Seong Ro Cheon

 

Assistant Managing Director

Managing Director

 

 

Age: 54

 

Se Deok Jang

 

Assistant Managing Director

Managing Director

 

 

Age: 54

 

Education:

University of Ulsan, B (Chemical Engineering)

 

Seok Ju Lee

 

Managing Director

Managing Director

 

 

Biography:

Lee Seok Ju has been Managing Director of ISU CHEMICAL CO.,LTD since March 22, 2013. Lee currently also serves as Head of Management Division in the Company. Lee used to work for ISUPETASYS CO.,LTD. Lee holds a Bachelor's degree in Mathematics from Yonsei University, Korea.

 

Age: 47

 

Education:

Yonsei University, B (Mathematics)

 

Yin Cheol Oh

 

Assistant Managing Director

Managing Director

 

 

Age: 47

 

Education:

Ajou University, PHD (Chemistry)
Korea University, B (Chemistry)

 

Man Seok Oh

 

Managing Director

Managing Director

 

 

Age: 55

 

Education:

University of Ulsan, B (Chemical Engineering)

 

Jong Yik Park

 

Assistant Managing Director

Managing Director

 

 

Age: 50

 

Education:

Hanyang University, B (Mechanical Engineering)

 

Dae Sung Kim

 

Chief Financial Officer

Finance Executive

 

 

Age: 48

 

Gwang Gyu Park

 

Internal Auditor

Accounting Executive

 

 

Biography:

Park Gwang Gyu has been Internal Auditor of ISU CHEMICAL CO.,LTD since March 22, 2013. Park used to work for KDB. Park holds a Bachelor's degree in Economics from Dongkuk University, Korea.

 

Age: 57

 

Education:

Dongkuk University, B (Economics)

 

Se Hee Hong

 

External Director

Other

 

 

 

Significant Developments

 

 

 

 

Isu Chemical Co., Ltd. Declares Annual Cash Dividend for FY 2012

Feb 28, 2013


Isu Chemical Co., Ltd. announced that it has declared an annual cash dividend of KRW 450 per share of common stock to shareholders of record on December 31, 2012 for the fiscal year 2012. The dividend rate of market price is 2.2% and the total amount of the cash dividend is KRW 6,708,465,000. The Company's annual cash dividend for the fiscal year 2011 was KRW 600 per share.

 

 

 Annual Income Statement

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 

  Financial Glossary

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Reclassified Normal
31-Dec-2012

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

1,980.2

1,853.9

1,488.1

1,179.4

1,323.4

Revenue

1,980.2

1,853.9

1,488.1

1,179.4

1,323.4

    Other Revenue

-

1.8

8.1

-

-

Other Revenue, Total

-

1.8

8.1

-

-

Total Revenue

1,980.2

1,855.7

1,496.2

1,179.4

1,323.4

 

 

 

 

 

 

    Cost of Revenue

1,863.3

1,720.7

1,364.3

1,071.1

1,235.8

Cost of Revenue, Total

1,863.3

1,720.7

1,364.3

1,071.1

1,235.8

Gross Profit

116.9

133.1

123.9

108.3

87.6

 

 

 

 

 

 

    Selling/General/Administrative Expense

30.0

33.4

29.8

35.5

31.8

    Labor & Related Expense

19.3

17.8

16.1

19.0

11.6

    Advertising Expense

0.1

0.4

0.2

0.3

0.2

Total Selling/General/Administrative Expenses

49.4

51.5

46.1

54.9

43.5

Research & Development

3.4

3.4

3.1

3.6

2.7

    Depreciation

1.5

2.1

2.0

2.6

3.0

    Amortization of Intangibles

0.9

0.8

0.7

0.5

0.6

Depreciation/Amortization

2.4

2.9

2.7

3.1

3.6

    Loss (Gain) on Sale of Assets - Operating

-

-

0.2

-

-

    Other Unusual Expense (Income)

-

-

0.8

-

-

Unusual Expense (Income)

-

-

1.0

-

-

    Other Operating Expense

-

0.0

14.5

-

-

    Other, Net

-

-

-3.6

-

-

Other Operating Expenses, Total

-

0.0

10.9

-

-

Total Operating Expense

1,918.5

1,778.5

1,428.0

1,132.7

1,285.7

 

 

 

 

 

 

Operating Income

61.8

77.1

68.2

46.7

37.8

 

 

 

 

 

 

        Interest Expense - Non-Operating

-28.2

-26.1

-22.3

-24.2

-19.4

    Interest Expense, Net Non-Operating

-28.2

-26.1

-22.3

-24.2

-19.4

        Interest Income - Non-Operating

5.1

4.2

6.0

5.6

12.6

        Investment Income - Non-Operating

3.0

-2.2

-3.1

-0.7

17.8

    Interest/Investment Income - Non-Operating

8.1

2.1

3.0

4.9

30.3

    Interest Income (Expense) - Net Non-Operating

0.0

0.0

0.0

-

-

Interest Income (Expense) - Net Non-Operating Total

-20.0

-24.1

-19.3

-19.4

10.9

Gain (Loss) on Sale of Assets

2.2

-0.8

-

0.2

-0.2

    Other Non-Operating Income (Expense)

-16.8

-9.1

0.2

5.7

-6.3

Other, Net

-16.8

-9.1

0.2

5.7

-6.3

Income Before Tax

27.1

43.2

49.0

33.3

42.2

 

 

 

 

 

 

Total Income Tax

9.6

25.8

12.0

7.1

14.8

Income After Tax

17.4

17.4

37.0

26.2

27.5

 

 

 

 

 

 

    Minority Interest

3.2

0.0

-0.2

2.1

1.0

    Equity In Affiliates

-

-

-

-0.5

-

Net Income Before Extraord Items

20.6

17.4

36.9

27.8

28.5

Net Income

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Income Available to Common Excl Extraord Items

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

14.7

13.4

12.9

10.1

9.2

Basic EPS Excl Extraord Items

1.40

1.30

2.85

2.75

3.08

Basic/Primary EPS Incl Extraord Items

1.40

1.30

2.85

2.75

3.08

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

20.6

17.4

36.9

27.8

28.5

Diluted Weighted Average Shares

14.8

14.5

13.7

11.1

9.2

Diluted EPS Excl Extraord Items

1.39

1.20

2.69

2.51

3.08

Diluted EPS Incl Extraord Items

1.39

1.20

2.69

2.51

3.08

Dividends per Share - Common Stock Primary Issue

0.40

0.54

0.52

0.39

0.41

Gross Dividends - Common Stock

6.0

7.2

6.9

4.6

3.7

Interest Expense, Supplemental

28.2

26.1

22.3

24.2

19.4

Depreciation, Supplemental

13.3

14.7

9.4

8.6

9.2

Total Special Items

-2.2

0.8

1.0

-0.2

0.3

Normalized Income Before Tax

24.9

44.0

50.0

33.1

42.5

 

 

 

 

 

 

Effect of Special Items on Income Taxes

-0.8

0.5

0.2

0.0

0.1

Inc Tax Ex Impact of Sp Items

8.9

26.2

12.2

7.1

14.8

Normalized Income After Tax

16.0

17.7

37.8

26.0

27.7

 

 

 

 

 

 

Normalized Inc. Avail to Com.

19.2

17.7

37.6

27.7

28.6

 

 

 

 

 

 

Basic Normalized EPS

1.30

1.33

2.91

2.74

3.10

Diluted Normalized EPS

1.29

1.23

2.74

2.50

3.10

Amort of Acquisition Costs, Supplemental

-

-

-

0.0

0.0

Amort of Intangibles, Supplemental

0.9

0.8

0.3

0.9

1.0

Rental Expenses

0.5

0.3

0.4

0.9

0.2

Advertising Expense, Supplemental

0.1

0.4

0.2

0.3

0.2

Research & Development Exp, Supplemental

3.4

3.4

3.1

3.6

2.7

Normalized EBIT

61.8

77.1

69.2

46.7

37.8

Normalized EBITDA

76.0

92.7

78.8

56.3

48.0

 




 

Annual Balance Sheet

Financials in: USD (mil)

 

  Financial Glossary

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

112.5

68.5

33.3

37.4

29.2

    Short Term Investments

11.0

11.3

13.3

32.3

13.5

Cash and Short Term Investments

123.5

79.8

46.6

69.7

42.7

        Accounts Receivable - Trade, Gross

211.3

214.9

106.4

234.7

94.3

        Provision for Doubtful Accounts

-7.2

-11.4

-8.3

-3.4

-3.2

    Trade Accounts Receivable - Net

315.0

286.3

274.6

234.0

95.3

    Other Receivables

28.9

30.1

74.8

65.4

93.9

Total Receivables, Net

343.9

316.4

349.4

299.5

189.2

    Inventories - Finished Goods

72.4

73.6

49.9

48.0

44.9

    Inventories - Work In Progress

9.9

2.3

2.5

2.2

2.0

    Inventories - Raw Materials

18.6

28.0

31.0

27.8

31.5

    Inventories - Other

31.2

26.8

24.6

40.2

19.8

Total Inventory

132.0

130.7

108.2

118.2

98.2

Prepaid Expenses

3.3

1.6

1.2

4.0

0.8

    Deferred Income Tax - Current Asset

-

-

-

-

0.3

    Other Current Assets

0.0

0.0

0.0

0.8

5.5

Other Current Assets, Total

0.0

0.0

0.0

0.8

5.9

Total Current Assets

602.8

528.5

505.4

492.1

336.8

 

 

 

 

 

 

        Buildings

38.3

40.3

39.6

86.4

74.7

        Land/Improvements

93.2

99.9

101.4

149.0

107.4

        Machinery/Equipment

204.2

192.4

176.1

158.1

142.3

        Construction in Progress

16.5

0.8

5.8

3.3

2.5

        Other Property/Plant/Equipment

8.5

10.4

9.9

21.7

17.2

    Property/Plant/Equipment - Gross

360.7

343.9

332.9

418.5

344.1

    Accumulated Depreciation

-192.6

-171.9

-159.6

-159.9

-138.6

Property/Plant/Equipment - Net

168.1

172.0

173.2

258.5

205.5

Goodwill, Net

-

-

-

0.0

0.0

Intangibles, Net

6.7

7.3

6.3

11.3

10.3

    LT Investment - Affiliate Companies

29.6

26.0

19.0

1.1

2.3

    LT Investments - Other

211.1

179.0

111.8

23.9

4.7

Long Term Investments

240.7

205.0

130.8

25.1

7.0

Note Receivable - Long Term

150.1

95.1

93.1

96.6

0.4

    Other Long Term Assets

39.7

25.2

22.5

21.2

2.3

Other Long Term Assets, Total

39.7

25.2

22.5

21.2

2.3

Total Assets

1,208.1

1,033.1

931.4

904.8

562.3

 

 

 

 

 

 

Accounts Payable

90.9

89.7

78.4

101.9

6.6

Accrued Expenses

38.8

41.0

34.7

22.2

13.3

Notes Payable/Short Term Debt

211.9

124.2

143.0

180.7

132.9

Current Portion - Long Term Debt/Capital Leases

115.0

97.4

74.9

63.4

67.4

    Customer Advances

3.4

11.9

12.2

23.1

0.2

    Security Deposits

0.2

0.1

0.0

0.0

-

    Income Taxes Payable

4.7

10.7

12.6

3.4

11.0

    Other Payables

37.2

24.0

26.9

23.0

10.4

    Deferred Income Tax - Current Liability

-

-

-

0.5

0.4

    Other Current Liabilities

9.1

16.0

1.5

2.0

2.9

Other Current liabilities, Total

54.6

62.8

53.2

52.0

24.8

Total Current Liabilities

511.1

415.1

384.2

420.2

245.1

 

 

 

 

 

 

    Long Term Debt

209.6

178.2

110.1

59.1

38.1

Total Long Term Debt

209.6

178.2

110.1

59.1

38.1

Total Debt

536.5

399.7

328.0

303.2

238.5

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

13.3

17.1

17.8

16.1

8.4

Deferred Income Tax

13.3

17.1

17.8

16.1

8.4

Minority Interest

3.5

6.4

6.5

23.7

11.2

    Reserves

8.6

7.3

7.8

6.1

-

    Pension Benefits - Underfunded

13.9

9.6

8.9

10.0

4.6

    Other Long Term Liabilities

12.5

9.7

11.1

12.0

9.5

Other Liabilities, Total

34.9

26.6

27.8

28.1

14.1

Total Liabilities

772.5

643.4

546.3

547.3

316.9

 

 

 

 

 

 

    Common Stock

71.6

58.6

59.5

50.8

38.0

Common Stock

71.6

58.6

59.5

50.8

38.0

Additional Paid-In Capital

86.2

50.8

51.5

122.6

81.5

Retained Earnings (Accumulated Deficit)

237.2

211.2

204.1

125.9

90.6

Treasury Stock - Common

-9.3

-2.2

-2.2

-

-2.3

Unrealized Gain (Loss)

53.7

69.3

70.3

55.6

35.1

    Translation Adjustment

-8.4

-0.7

-1.2

2.3

3.7

    Other Equity

2.0

1.9

1.9

-

-1.1

    Other Comprehensive Income

2.5

0.7

1.1

0.4

-

Other Equity, Total

-3.9

1.9

1.8

2.7

2.6

Total Equity

435.6

389.6

385.0

357.5

245.4

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

1,208.1

1,033.1

931.4

904.8

562.3

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

14.8

13.4

13.4

11.8

9.3

Total Common Shares Outstanding

14.8

13.4

13.4

11.8

9.3

Treasury Shares - Common Stock Primary Issue

0.5

0.1

0.1

0.0

0.2

Employees

-

346

336

329

327

Number of Common Shareholders

-

-

-

7,286

6,316

Deferred Revenue - Current

3.4

11.9

12.2

23.1

0.2

Total Long Term Debt, Supplemental

324.6

275.5

-

132.3

118.7

Long Term Debt Maturing within 1 Year

115.0

97.4

-

71.4

80.2

Long Term Debt Maturing in Year 2

143.6

177.0

-

25.4

22.2

Long Term Debt Maturing in Year 3

-

0.4

-

-

-

Long Term Debt Maturing in Year 4

-

0.4

-

-

-

Long Term Debt Maturing in Year 5

-

0.4

-

-

-

Long Term Debt Maturing in 2-3 Years

143.6

177.4

-

25.4

22.2

Long Term Debt Maturing in 4-5 Years

-

0.8

-

-

-

Long Term Debt Matur. in Year 6 & Beyond

66.0

-

-

35.5

16.2

 




 

Annual Cash Flows

Financials in: USD (mil)

 

  Financial Glossary

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

17.4

17.4

37.0

25.7

27.5

    Depreciation

14.2

15.6

9.4

8.6

9.2

Depreciation/Depletion

14.2

15.6

9.4

8.6

9.2

    Amortization of Intangibles

0.9

0.8

0.3

1.0

1.0

Amortization

0.9

0.8

0.3

1.0

1.0

Deferred Taxes

-

-

-

-2.4

6.3

    Unusual Items

-8.3

0.7

0.2

4.4

-12.5

    Equity in Net Earnings (Loss)

5.6

2.0

3.3

-0.4

-0.1

    Other Non-Cash Items

49.0

65.2

49.7

-1.1

11.1

Non-Cash Items

46.3

67.9

53.2

3.0

-1.5

    Accounts Receivable

-28.2

-14.8

-29.3

-28.1

-18.1

    Inventories

7.9

-21.2

-2.6

15.4

-25.2

    Prepaid Expenses

-6.2

-4.1

-4.1

2.4

-0.6

    Other Assets

-2.0

0.1

0.2

5.5

1.0

    Accounts Payable

-2.0

6.1

-18.9

1.0

10.0

    Accrued Expenses

-4.5

-0.1

11.9

-1.8

0.3

    Taxes Payable

0.1

6.0

-0.3

-11.9

20.9

    Other Liabilities

-16.7

7.5

-13.2

3.1

-4.1

    Other Assets & Liabilities, Net

0.0

-1.6

1.0

-

-

    Other Operating Cash Flow

-39.9

-45.7

-24.3

-

-

Changes in Working Capital

-91.5

-67.8

-79.5

-14.5

-15.9

Cash from Operating Activities

-12.7

33.9

20.4

21.3

26.7

 

 

 

 

 

 

    Purchase of Fixed Assets

-20.6

-24.8

-24.0

-12.1

-13.3

    Purchase/Acquisition of Intangibles

-0.9

-2.0

-0.1

-2.8

-5.0

Capital Expenditures

-21.4

-26.8

-24.1

-14.9

-18.3

    Sale of Fixed Assets

23.1

8.8

8.2

1.9

4.1

    Sale/Maturity of Investment

14.8

8.4

42.3

43.8

40.8

    Purchase of Investments

-46.9

-44.0

-54.8

-57.8

-23.2

    Sale of Intangible Assets

-

0.0

-

-

-

    Other Investing Cash Flow

-23.1

-14.0

-16.7

-6.7

-82.9

Other Investing Cash Flow Items, Total

-32.1

-40.7

-21.1

-18.8

-61.2

Cash from Investing Activities

-53.5

-67.5

-45.1

-33.7

-79.4

 

 

 

 

 

 

    Other Financing Cash Flow

0.2

-1.0

0.5

3.5

0.2

Financing Cash Flow Items

0.2

-1.0

0.5

3.5

0.2

    Cash Dividends Paid - Common

-7.1

-7.2

-5.1

-3.5

-2.1

Total Cash Dividends Paid

-7.1

-7.2

-5.1

-3.5

-2.1

        Sale/Issuance of Common

1.2

-

16.4

50.3

7.0

        Repurchase/Retirement of Common

-6.6

-

-2.2

-

-3.5

    Common Stock, Net

-5.4

-

14.2

50.3

3.5

    Warrants Converted

17.7

-

-

-

-

Issuance (Retirement) of Stock, Net

12.3

-

14.2

50.3

3.5

        Short Term Debt Issued

59.9

248.8

194.0

248.9

134.6

        Short Term Debt Reduction

-114.7

-259.0

-210.7

-267.6

-47.7

    Short Term Debt, Net

-54.7

-10.2

-16.7

-18.7

86.9

        Long Term Debt Issued

208.7

189.5

113.2

81.6

25.2

        Long Term Debt Reduction

-56.1

-100.5

-80.2

-94.8

-49.6

    Long Term Debt, Net

152.6

89.0

33.0

-13.2

-24.4

Issuance (Retirement) of Debt, Net

97.9

78.8

16.3

-31.9

62.5

Cash from Financing Activities

103.3

70.6

25.9

18.3

64.1

 

 

 

 

 

 

Foreign Exchange Effects

-0.7

0.2

-0.1

-

-

Net Change in Cash

36.4

37.1

1.1

5.9

11.3

 

 

 

 

 

 

Net Cash - Beginning Balance

70.1

34.1

31.6

29.4

22.8

Net Cash - Ending Balance

106.5

71.3

32.7

35.3

34.1

Cash Interest Paid

28.7

23.6

17.1

-

-

Cash Taxes Paid

18.8

27.9

11.5

-

-

 

 

Annual Income Statement

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 

 

 

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Reclassified Normal
31-Dec-2012

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Finished Goods Revenue

-

1,533.8

1,170.8

-

-

    Merchandise Revenue

-

32.0

20.9

-

-

    Construction Revenue

-

284.1

292.9

-

-

    Rent Income

-

3.9

3.5

-

-

    Other Revenues

-

1.8

8.1

-

-

    Sales Revenue Adjustment

-

0.0

0.0

-

-

    Sales Revenue

1,980.2

-

-

1,179.4

1,323.4

Total Revenue

1,980.2

1,855.7

1,496.2

1,179.4

1,323.4

 

 

 

 

 

 

    Costs of Goods & Services Sold

1,863.3

1,720.7

1,364.3

1,071.1

1,235.8

    Salaries & Wages

16.2

13.7

13.1

14.5

9.1

    Retirement & Severance Benefits

1.3

2.3

1.4

2.0

1.3

    Employee Benefits

1.8

1.8

1.5

1.4

1.2

    Stock-Based Compensation

-

-

0.0

1.1

0.0

    Commissions

18.0

17.5

14.3

12.4

7.4

    Travel Expense

0.4

0.5

0.6

0.5

0.3

    Utility Expense

0.5

0.5

0.4

0.4

0.4

    Taxes & Dues

1.5

1.9

1.5

1.6

1.1

    Electricity Expense

0.2

0.2

0.1

0.1

0.2

    Communication Expense

0.2

0.2

0.2

0.2

0.2

    Insurance Expenses

0.5

0.5

1.0

0.6

0.2

    Entertainment Expense

0.8

0.8

0.6

0.7

0.5

    Pollution Prevention Expense

-

-

-

0.0

0.1

    Overseas Market Development Cost

1.2

1.0

0.9

0.7

0.8

    Office Supplies Expense

0.0

0.0

0.0

-

-

    Sample Expense

0.0

0.0

0.0

0.1

0.1

    Association Due

0.1

0.1

0.1

0.1

0.1

    Packaging Expense

-

-

-

0.0

-

    Shipping & Storage Expense

3.1

2.2

2.4

-

-

    Shipping & Handling Expense

0.7

0.7

0.6

13.2

16.8

    Consumable Expense

0.2

0.2

0.2

0.2

0.1

    Repair Expense

0.3

0.5

0.5

0.5

0.6

    Defective Repair Expense

0.3

0.4

-

0.4

-

    Order Receipt Expense

0.0

0.0

0.0

0.0

-

    Service Expense

0.3

1.2

0.1

0.6

-

    Publication Expense

0.1

0.1

0.1

0.1

0.1

    Vehicle Maintenance Expense

0.4

0.3

0.3

0.3

0.3

    Education & Training Expense

0.3

0.2

0.2

0.3

0.4

    Conference Expense

0.0

0.0

0.0

0.0

0.0

    Maintenance Expense

0.0

-

-

0.1

0.2

    Rental Expense

0.5

0.3

0.4

0.9

0.2

    Advertising Expense

0.1

0.4

0.2

0.3

0.2

    R & D Expense

3.4

3.4

3.1

3.6

2.7

    Depreciation

1.5

2.1

2.0

2.6

3.0

    Amort. of Intangibless

0.9

0.8

0.7

0.5

0.6

    Expense of Allow. for DA

0.4

3.9

5.0

1.6

0.8

    Miscellaneous Expense

0.2

0.1

0.0

0.1

0.9

    Administrative Expense

0.0

-

0.1

-

-

    Damage Compensation Expense

-

0.2

-

-

-

    Home Maintenanc Expense

0.0

0.0

0.0

-

-

    Adj. for Other Selling & Admin. Expense

-

-

0.0

-

-

    Commission Income

-

-

-1.7

-

-

    Reversal of Allow. for DA

-

-

-0.2

-

-

    Gain on Disposal of PPT

-

-

-0.4

-

-

    Miscellaneous Income

-

-

-1.5

-

-

    Rec. of Prov. for Defect Repai

-

-

-0.2

-

-

    Adj. for Other Operating Income

-

-

0.0

-

-

    Loss on Disposal of PPT

-

-

0.0

-

-

    Loss on Disposal of Trade Receivable

-

-

0.5

-

-

    Damage Compensation Expense

-

-

0.8

-

-

    Commissions

-

-

1.8

-

-

    Other Allow. for DA

-

-

12.1

-

-

    Donations Paid

-

-

0.2

-

-

    Miscellaneous Loss

-

-

0.4

-

-

    Adj. for Other Operating Expense

-

0.0

0.0

-

-

Total Operating Expense

1,918.5

1,778.5

1,428.0

1,132.7

1,285.7

 

 

 

 

 

 

    Interest Income

5.1

4.2

6.0

5.6

12.6

    Dividend Income

0.2

0.2

0.1

0.0

0.0

    Rental Income

-

-

-

-

0.0

    Recovery-Defect Repair Reserve

-

6.6

-

3.0

-

    Recovery-Negative Goodwill Amortization

-

-

-

0.0

0.0

    Recapture Doubt Acct

-

-

-

11.2

-

    Recovery-Guarantee Loss Reserve

-

-

-

-

9.4

    Recovery-Loss on Revaluation of Assets

-

-

-

0.0

-

    Recovery-Loss on Redc. Invest Assets

0.2

-

-

-

-

    Fees Received

0.7

1.6

-

0.4

1.4

    Miscellaneous Non-Operating Income

1.2

0.5

-

1.0

0.1

    Recovery of Impairment Losses on Availab

-

0.2

-

-

-

    Gain Redemption Bond

-

-

-

7.1

-

    Gain on Foreign Currency Transaction

9.8

17.5

15.9

17.7

41.0

    Gain on Foreign Currency Translation

1.0

1.8

0.6

0.3

8.1

    Gain on Derivatives Transaction

4.7

3.5

0.5

2.2

0.9

    Gain on Valt of Derivatives

3.5

0.1

0.1

0.2

6.4

    Gain-Disposal of F.A. Avail. for Sale

-

-

0.0

0.0

19.1

    Gain Disposal Investment Assets

7.2

-

-

-

-

    Gain Disposa Tangible Assets

7.5

0.0

-

-

-

    Gain Disposa Other Receivable

-

-

-

0.6

0.1

    Gain-Disposal of Trade Receivable

-

-

-

0.9

-

    Fincl Guarantee Income

-

0.7

0.5

-

-

    Interest Expense

-28.2

-26.1

-22.3

-24.2

-19.4

    Fee & Commission Paid

-2.8

-0.7

-

-0.7

-

    Donations Paid

0.0

-0.1

-

-0.1

-0.3

    Miscellaneous Non-Operating Expense

-0.2

-0.3

-

-0.9

-4.1

    Compensation Expense

-1.5

-3.5

-

-1.8

-

    Expense-Defect Repair

-

-

-

0.0

-

    Other Allow. for DA

-7.7

-13.7

-

-4.1

-12.8

    Loss on Foreign Currency Transaction

-14.0

-17.5

-15.6

-18.8

-36.6

    Loss on Foreign Currency Translation

-2.2

-0.7

-0.7

-2.7

-11.3

    Loss on Derivative Transaction

-0.3

-

0.0

-1.4

-1.5

    Loss on Valt of Derivatives

0.0

-2.5

-0.1

-0.1

-2.1

    Loss on Redemption of Bonds

-

-0.3

-0.5

-1.9

-2.9

    Loss-Reduction of Intangible Assets

-1.1

-

-

-0.6

-1.6

    Loss-Reduction of Investment Securities

-0.2

-2.4

-

-3.1

-

    Reduction Loss on Damage Expense

-6.4

-

-

-

-

    Disp of Inv. Assets

-

-0.1

-

-

-0.1

    Loss-Revaluation

-

-

-

-0.1

-1.7

    Loss Disp Tang. Ast

-5.2

-0.2

-

0.0

-0.2

    Loss-Disposal of Trade Receivable

-0.2

-0.7

-

-

-

    Loss-Disposal of Accounts Receivable

-

0.0

-

-0.6

-0.1

    Loss-Disposal of inventory

-

-

-

-0.3

-

    Loss-Scrap of Inventory

-

-

-

-0.4

-

    Loss on Asset

-

-

-

-2.5

-

    Fincl Guarantee Expense

-

-0.2

-0.4

-

-

    Gain under Equity Method

-

-

-

0.5

0.4

    Loss under Equity Method

-

-

-

-0.1

-0.4

    Other Finance Expense

-0.1

-

-

-

-

    Adj. for Finance Income

0.0

0.0

0.0

-

-

    Adj. for Finance Expense

0.0

0.0

0.0

-

-

    Gain/Loss under Equity Method

-5.6

-2.0

-3.3

-

-

    Adj.-Other Non-Operating Income

0.0

0.0

-

-

-

    Adj.-Other Non-Operating Expense

-

0.0

-

-

-

Net Income Before Taxes

27.1

43.2

49.0

33.3

42.2

 

 

 

 

 

 

Prov. for Income Taxes

9.6

25.8

12.0

7.1

14.8

Net Income After Taxes

17.4

17.4

37.0

26.2

27.5

 

 

 

 

 

 

    Earning Before Acquisition of Subsidiary

-

-

-

-0.5

-

    Minority Interest

3.2

0.0

-0.2

2.1

1.0

Net Income Before Extra. Items

20.6

17.4

36.9

27.8

28.5

Net Income

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Income Available to Com Excl ExtraOrd

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

20.6

17.4

36.9

27.8

28.5

 

 

 

 

 

 

Basic Weighted Average Shares

14.7

13.4

12.9

10.1

9.2

Basic EPS Excluding ExtraOrdinary Items

1.40

1.30

2.85

2.75

3.08

Basic EPS Including ExtraOrdinary Items

1.40

1.30

2.85

2.75

3.08

Dilution Adjustment

0.0

0.0

0.0

0.0

0.0

Diluted Net Income

20.6

17.4

36.9

27.8

28.5

Diluted Weighted Average Shares

14.8

14.5

13.7

11.1

9.2

Diluted EPS Excluding ExtraOrd Items

1.39

1.20

2.69

2.51

3.08

Diluted EPS Including ExtraOrd Items

1.39

1.20

2.69

2.51

3.08

DPS-Common Stock

0.40

0.54

0.52

0.39

0.41

Gross Dividends - Common Stock

6.0

7.2

6.9

4.6

3.7

Normalized Income Before Taxes

24.9

44.0

50.0

33.1

42.5

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

8.9

26.2

12.2

7.1

14.8

Normalized Income After Taxes

16.0

17.7

37.8

26.0

27.7

 

 

 

 

 

 

Normalized Inc. Avail to Com.

19.2

17.7

37.6

27.7

28.6

 

 

 

 

 

 

Basic Normalized EPS

1.30

1.33

2.91

2.74

3.10

Diluted Normalized EPS

1.29

1.23

2.74

2.50

3.10

R&D Expense, Supplemental

3.4

3.4

3.1

3.6

2.7

Advertising Expense, Supplemental

0.1

0.4

0.2

0.3

0.2

Interest Expense, Supplemental

28.2

26.1

22.3

24.2

19.4

Rental Expense, Supplemental

0.5

0.3

0.4

0.9

0.2

Depreciation, Supplemental

13.3

14.7

9.4

8.6

9.2

Amort of Intangibles, Supplemental

0.9

0.8

0.3

0.9

1.0

Amortization of Acquisition Costs

-

-

-

0.1

0.1

Negative Goodwill Costs

-

-

-

0.0

0.0

 



 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Cash Equivalents

112.5

68.5

33.3

37.4

29.2

    Current Fincl Assets

11.0

11.1

12.9

32.3

13.5

    Current Derivative Assets

-

0.2

0.4

-

-

    Current Loans

23.5

17.7

64.7

52.8

87.2

    Allow. for DA for Current Loans

-2.5

-

-

-

-

    Trade Rcvb Gross

123.9

109.8

102.3

111.2

94.3

    Allow. for DA

-0.5

-3.4

-3.5

-3.4

-3.2

    Account Receivable

8.1

12.5

10.2

12.4

6.7

    Allow. for DA for Account Receivable

-0.2

-

-

-

-

    Other Receivable from Constructions

87.1

105.0

4.0

123.2

-

    Allow. for DA for Construction Recv.

-6.7

-8.0

-4.9

-

-

    Other Receivable from Real Estate Sale

0.3

0.1

0.1

0.3

-

    Allow. for DA-Recv. fr Real-estate Sales

-0.1

-0.1

-0.1

-

-

    Unbilled Constructions

107.1

79.0

173.3

-

-

    Receivable-Recovery of Taxes

-

-

-

0.2

0.1

    Advance Payments

7.9

6.7

10.6

16.7

8.8

    Allow. for DA for Advance Payments

0.0

-

-

-

-

    Prepaid Expense

2.3

1.5

1.0

3.9

0.8

    Prepaid Expense from Constructions

11.9

7.6

4.0

11.2

-

    Prepaid VAT

-

-

-

0.1

0.0

    Current Tax Assets

1.1

0.1

0.2

-

-

    Derivatives

-

-

-

0.8

5.5

    Accrued Income

4.1

3.9

3.2

2.8

4.2

    Allow. for DA for Accrued Income

-0.4

-

-

-

-

    Deferred Income Tax

-

-

-

-

0.3

    Merchandises

0.2

0.4

-

1.6

0.8

    Finished Goods

68.0

66.8

46.4

39.6

32.6

    Lots

6.9

4.2

4.3

6.9

-

    Works in Process

4.2

2.3

2.5

2.2

2.0

    Unfinished Constructions, Current

5.6

-

-

-

-

    Raw Materials

11.7

23.8

26.7

20.9

31.5

    Supplemental Raw Materials

-

-

-

0.1

-

    Supplies

2.2

2.5

2.7

2.6

1.4

    Finished Residential Units, Current

0.3

0.3

0.3

0.3

-

    Goods in Transit

3.9

6.1

3.3

6.4

11.6

    Catalyst

6.7

6.1

5.4

5.5

9.6

    Sample House

2.6

4.0

2.0

4.1

-

    Adj. for Current Fincl Assets

-

0.0

0.0

-

-

    Adj. for Trade Receivable

0.0

0.0

0.0

-

-

    Adjustment for Other Receivable

0.0

0.0

-

-

-

    Adj. for Inventories

0.0

0.0

-

-

-

    Adj. for Other Current Assets

0.0

0.0

0.0

-

-

Total Current Assets

602.8

528.5

505.4

492.1

336.8

 

 

 

 

 

 

    Non-Current Fincl Instrm

1.1

0.3

0.2

0.9

0.0

    Non-Current Securities Available-for-Sal

-

37.4

29.5

-

-

    Non-Current Securities Held-to-Maturitie

-

0.3

0.3

-

-

    Non-Current Invmt Sec.

58.5

-

-

22.8

4.5

    Other Non-Current Invmt Assets

0.0

61.3

-

0.2

0.2

    Invmt in Properties

151.5

79.8

81.8

-

-

    Invmt in Affiliates

7.7

8.7

8.9

1.1

2.3

    Invmt in Associates

21.9

17.3

10.1

-

-

    Non-Current Loans

178.1

89.9

84.4

82.9

0.4

    Allow. for DA for LT Loans

-49.6

-

-

-

-

    Allow. for DA for LT Trade Receivable

-0.2

-

-

-

-

    LT Other Receivable from Constructions

53.4

5.1

8.7

13.7

-

    Allow. for DA-LT Recv. for Constructions

-31.7

-

-

-

-

    Guarantee Deposits, Non-Current Assets

10.7

6.4

3.3

2.6

-

    Non-Current Prepaid Expense

4.1

0.0

0.2

-

-

    Non-Current Prepaid Construction Expense

24.8

19.0

19.3

15.8

-

    Allowance for Doubtful Accounts for Non-

-

-0.2

-0.2

-

-

    Lands

93.2

99.9

101.4

149.0

107.4

    Buildings

23.3

25.4

24.7

73.4

65.3

    Buildings-Depreciation

-7.0

-7.2

-6.6

-10.9

-8.5

    Structures

15.0

14.9

14.9

13.0

9.4

    Structures-Depreciation

-9.5

-8.4

-6.5

-4.5

-3.1

    Machineries & Equipments

183.4

170.2

157.3

143.0

128.1

    Machineries & Equipments-Depreciation

-157.4

-137.8

-131.7

-122.7

-110.0

    Vehicles

7.3

7.0

6.1

2.5

0.5

    Vehicles-Depreciation

-6.4

-4.3

-2.1

-0.9

-0.3

    Other Property Plant & Equipment

8.5

10.4

9.9

21.7

17.2

    Other Tangible Assets-Depreciation

-6.8

-8.5

-7.7

-16.8

-12.5

    Chemical Tanks

13.5

15.2

12.7

12.6

13.7

    Chemical Tanks-Depreciation

-5.4

-5.7

-5.0

-4.2

-4.2

    Construction in Progress

16.5

0.8

5.8

3.3

2.5

    Membership Rights

5.2

5.7

3.9

-

-

    Development Cost

-

-

-

9.5

7.3

    Other Intangibless

1.5

1.6

2.4

1.8

3.0

    Goodwill

-

-

-

-

0.1

    Negative Goodwill

-

-

-

0.0

0.0

    Other Non-Current Assets

-

-

-

2.8

2.3

    Adj. for Non-Current Fincl Instrm

-

-

0.0

-

-

    Adj.-Non-Current Loans & Receivables

0.0

0.0

0.0

-

-

    Adj. for Property, Plant & Equipment

0.0

0.0

0.0

-

-

    Adj. for Intangibless

0.0

0.0

0.0

-

-

    Adj. for Other Non-Current Assets

0.0

0.0

0.0

-

-

Total Assets

1,208.1

1,033.1

931.4

904.8

562.3

 

 

 

 

 

 

    Current Trade Payable

90.9

89.7

78.4

101.9

6.6

    Other Payable

37.2

24.0

26.9

23.0

10.4

    Current Tax Liabilities

4.7

10.7

12.6

3.4

11.0

    Accrued Expense

24.2

26.7

26.0

12.8

1.2

    Value Added Taxes Withheld

14.7

14.3

8.7

9.4

12.1

    Advance from Customers, Current

2.6

1.9

1.8

1.2

0.1

    Unearned Income

0.8

1.0

0.7

0.2

0.1

    Advance from Constructions

-

9.0

9.8

21.7

-

    Rental Guarantee Deposit

-

-

0.0

-

-

    Guarantee Deposit Withheld

0.2

0.1

0.0

0.0

-

    Bonds, Current Liabilities

46.9

26.0

33.5

55.7

12.5

    Current Borrowings

165.0

98.2

109.5

125.0

120.4

    Current Borrowings Adjustment

0.0

-

0.0

-

-

    Deferred Income Tax Credits

-

-

-

0.5

0.4

    Current Portion of Long-term Liabilities

115.0

97.4

74.9

63.4

64.4

    Bonds with Warrant, Current

-

-

-

-

3.0

    Current Derivatives Liabilities

0.1

2.9

0.1

0.1

1.8

    Withheld

1.9

1.4

1.4

1.5

0.7

    Other Current Liabilities

0.1

-

-

0.4

0.5

    Adj. for Other Current Fincl Liabilities

0.0

0.0

0.0

-

-

    Overbilled Constructions

7.0

11.7

-

-

-

    Adj. for Other Current Liabilities

0.0

0.0

-

-

-

Total Current Liabilities

511.1

415.1

384.2

420.2

245.1

 

 

 

 

 

 

    Bonds with Warrant

-

-

-

16.1

-

    Bonds

-

-

-

33.9

16.3

    Non-Current Borrowings

209.6

178.2

110.1

9.1

21.9

Total Long Term Debt

209.6

178.2

110.1

59.1

38.1

 

 

 

 

 

 

    LT Accounts Pay

-

-

-

3.0

1.9

    Rental Guarantee Deposit, LT Liabilities

9.1

7.1

7.7

7.8

7.6

    PV Disc.

-0.9

-

-

-

-

    Deferred Income Taxes, LT Liabilities

13.3

17.1

17.8

16.1

8.4

    Retirement & Severance Benefits, Non-Cur

13.9

9.6

8.9

18.5

4.6

    Minority Interest

3.5

6.4

6.5

23.7

11.2

    LT Accrued Expense

-

-

-

1.2

-

    Deposit-Retirement Insurance

-

-

-

-8.4

-

    Transfer to National Pension Fund

-

-

-

-0.1

-

    Reserve-Loss on Compensation for Damage

-

-

-

0.1

-

    Reserve-Construction Loss

0.4

0.3

-

0.3

-

    Reserve-Defective Guarantee

8.2

7.0

7.8

5.7

-

    Other Non-Current Liabilities

-

0.0

-

-

-

    Non-Current Fincl Deposits Liabilities

4.3

2.6

3.3

-

-

    Adj. for Other LT Fincl Liabilities

0.0

0.0

0.0

-

-

Total Liabilities

772.5

643.4

546.3

547.3

316.9

 

 

 

 

 

 

    Capital Stock

71.6

58.6

59.5

50.8

38.0

    Additional Paid in Capital

63.9

48.4

49.2

-

-

    Gains on Disposal of Treasury Stock

2.2

2.0

2.0

-

-

    Other Capital Surplus

1.3

1.2

1.2

-

-

    Consideration for Stock Warrants

-

1.1

1.1

122.5

81.5

    Stock Options

0.0

0.0

0.0

0.1

0.0

    Equity Method Capital Surplus

20.9

-

-

-

-

    Legal Resvs

-

8.3

7.7

-

-

    Retained Earnings Carried Forward

-

194.9

188.3

125.9

90.6

    Other Capital Adj.

-0.1

-0.1

-0.1

-

-1.1

    Voluntary Reserve

-

8.0

8.1

-

-

    Gain/Loss-Valt of Sec. Avail.-for-Sale

0.4

0.8

0.5

-

-

    Losses on Valuation of Securities Availa

-

-0.2

-

0.3

-0.3

    Capital Change, Equity Method (Loss)

-

-

-

0.0

-2.5

    Capital Change, Equity Method

-

19.4

19.7

-

-

    Overseas Bus. Translation Debit/Credit

-8.4

-0.7

-1.2

2.3

3.7

    Resv for Assets ReValt

53.3

49.3

50.1

55.3

37.8

    Gain/Losses on Valt of Derivatives

0.1

-0.3

0.2

0.4

-

    Associated Companies-Accumulated Other C

2.4

1.1

0.9

-

-

    Treasury Stock

-9.3

-2.2

-2.2

-

-2.3

    Adj. for Capital Surplus

0.0

0.0

0.0

-

-

    Adj. for Other Capital Items

0.0

0.0

0.0

-

-

    Adj.-Accum. Other Comprehensive Income

0.0

0.0

0.0

-

-

    Adj. for Retained Earnings

-

0.0

-

-

-

    Retained Earnings

237.2

-

-

-

-

Total Equity

435.6

389.6

385.0

357.5

245.4

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

1,208.1

1,033.1

931.4

904.8

562.3

 

 

 

 

 

 

    S/O-Common Stock

14.8

13.4

13.4

11.8

9.3

Total Common Shares Outstanding

14.8

13.4

13.4

11.8

9.3

T/S-Common Stock

0.5

0.1

0.1

0.0

0.2

Deferred Revenue, Current

3.4

11.9

12.2

23.1

0.2

Full-Time Employees

-

346

336

329

327

Number of Common Shareholders

-

-

-

7,286

6,316

Long Term Debt Matuirng wtihin 1 Year

115.0

97.4

-

71.4

80.2

Long Term Debt Matuirng wtihin 2 Years

143.6

177.0

-

25.4

22.2

Long Term Debt Matuirng wtihin 5 Years

-

1.2

-

-

-

Long Term Debt Remaining Maturities

66.0

-

-

35.5

16.2

Total Long Term Debt, Supplemental

324.6

275.5

-

132.3

118.7

 




 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Updated Normal
31-Dec-2008

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Sunjin Accounting Corp.

Yeil Accounting

Yeil Accounting

Yeil Accounting

KPMG LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income or Loss

17.4

17.4

37.0

25.7

27.5

    Depreciation

14.2

15.6

9.4

8.6

9.2

    Amort. of Intangibles

0.9

0.8

0.3

1.0

1.0

    Stock-Based Compensation

-

-

0.0

1.1

0.0

    Expense of Allow. for DA

-

3.9

5.0

1.6

0.8

    Expenses of Allow. for Other DA

7.7

13.7

12.1

4.1

12.8

    Accrued Interest Expense

-

-

-

4.1

1.6

    Retirement and Severance Benefits

3.8

4.0

3.6

4.8

3.4

    Development Cost

-

-

-

0.0

0.5

    Interest Expenses

28.2

26.1

22.3

-

-

    Losses on Foreign Currency Translation

2.2

0.6

0.6

2.6

9.8

    Prov. for Defect Repair

0.6

0.9

0.8

1.3

-

    Rrovisions for Construction Loss

-

0.3

-

-

-

    Miscellaneous Loss

-

-

-

0.0

-

    Corporate Taxes Expense

9.6

25.8

12.0

-

-

    Overseas Market Expense

-

0.2

-

-

-

    Repair Expenses

-

-

-

0.4

2.5

    Reserve-Loss on Compensation for Damage

-

-

-

0.1

-

    Impmt Loss on Damage

6.4

-

-

-

-

    Loss-Redemption of Bond

-

-

-

-

2.9

    Loss on Redemption of Bonds

-

0.3

0.5

1.9

-

    Loss on Valt of Derivative Fincl Assets

0.0

2.5

0.1

0.1

2.1

    Loss-Revaluation

-

-

-

0.1

1.7

    Impmt Losses on Invmt Sec.

0.2

-

-

3.1

-

    Impmt Loss on Intangibles

1.1

-

-

0.6

1.6

    Loss on Disposal of Financial Assets Ava

-

0.1

-

-

-

    Losses on Sale of Invmt Assets

-

-

-

-

0.1

    Loss-Scrap of Inventory

-

-

-

0.4

-

    Loss-Disposal of Inventory

-

-

-

0.3

-

    Loss on Sale of Tangibles

5.2

0.2

0.0

0.0

0.2

    Loss on Sale of Trade Receivables

0.2

0.7

0.5

0.6

0.1

    Loss on Disposal of Other Receviable

-

0.0

-

-

-

    Loss under Equity Method

6.1

2.6

3.6

0.1

0.4

    Fincl Guarantee Expense

-

0.2

0.4

-

-

    Earning Before Acquisition of Subsidiary

-

-

-

0.5

-

    Rec. of Allow. for DA

-

-6.6

-0.2

-11.2

-

    Rec. of Prov.for Construction Warranties

-

-

-0.2

-0.9

-

    Recovery-Defect Repair Reserve

-

-

-

-3.0

-

    Recovery-Negative Goodwill Amortization

-

-

-

0.0

0.0

    Adjustment-Government Subsidy

-

-

-

-0.2

-

    Gains on Foreign Currency Translation

-1.0

-1.6

-0.6

0.0

-6.5

    Interest Income

-5.1

-4.2

-6.0

-

-

    Gain on Fincl Guarantees

-

-0.7

-0.5

-

-

    Recovery-Guarantee Deposit Loss Reserve

-

-

-

-

-9.4

    Gain-Debt Adjustment

-

-

-

-7.1

-

    Dividend Income

-

-0.2

-0.1

-

-

    Gain-Disposal of Trade Receivable

-

-

-

-0.9

-

    Recovery of Loss on Revaluation

-

-

-

0.0

-

    Gains on Valts of Derivatives Assets

-3.5

-0.1

-0.1

-0.2

-6.4

    Gain on Sale of Invmt Assets

-7.2

-

-

0.0

-19.1

    Gain on Sale of Tangibles

-7.5

0.0

-0.4

-0.6

-0.1

    Revc. Of Reduction of Invmt Assets

-0.2

-0.2

-

-

-

    Gain under Equity Method

-0.4

-0.6

-0.2

-0.5

-0.4

    Inventory

6.5

-25.2

-4.1

18.0

-18.3

    LT Recv. from Construction Contract

-19.7

-104.5

45.5

-42.9

-

    Trade Receivables

-15.7

-6.5

10.8

11.2

-12.4

    Corporate Tax Refundable

-

-

-

0.0

0.5

    Other Receivables from Real Estate Sales

-0.1

-

0.2

0.8

-

    Account Receivables

4.3

-1.9

-1.2

0.9

-2.9

    Unbilled Constructions

-20.7

95.5

-86.4

-

-

    Accrued Income

-

-0.7

0.9

1.9

-3.3

    Other Recv. from Construction Contracts

25.0

3.3

1.0

-

-

    Other Receivables

-1.4

-

-

-

-

    Other Current Assets

-0.5

-

-

-

0.4

    Other Non-Current Assets

-1.5

-

-

-

-

    Decrease in Derivative Assets

-

0.1

0.2

5.5

0.6

    Prepaid Expenses

-0.4

-1.4

-0.1

1.2

-0.6

    Prepaid Income Taxes

-

-

-

0.0

-

    Prepaid Value Added Taxes

-

-

-

0.0

-0.1

    Prepaid Construction Expense

-3.6

-2.7

-1.1

1.2

-

    Non-Current Prepaid Expenses

-2.2

0.0

-2.8

-

-

    Advance Payments

1.4

4.0

1.4

-2.6

-6.9

    Trade Payable

-5.6

11.3

-23.3

11.7

4.8

    Account Payable

3.6

-5.3

4.5

-10.7

5.3

    Accrued Expenses

-4.5

-0.1

11.9

-1.8

0.3

    Increase or Decrease in Long-term Accrue

-

-

-

0.0

-

    Value Added Tax Withheld

0.1

6.0

-0.3

-3.4

8.5

    Accrued Income Taxes

-

-

-

-8.5

12.4

    LT Account Payable

-

-

-

-

-0.1

    Deferred Taxes-Asset

-

-

-

-

7.3

    Deferred Taxes-Asset, Current

-

-

-

0.3

0.2

    Deferred Income Tax Credit, Current, A/L

-

-

-

-

0.4

    Deferred Income Tax Credit, A/L

-

-

-

-2.7

-1.7

    Unearned Income

-0.3

0.4

-0.4

0.1

0.1

    Advance from Customers

1.4

0.1

-0.1

0.2

0.0

    Withholdings

0.1

0.0

-0.1

0.3

0.2

    Guarantee Deposit Withholdings

0.0

0.1

0.0

0.0

-

    Fincl Guarantee Liabilities

-2.3

-

-

-

-

    Other Current Liability

-1.8

-

-

-0.2

-0.2

    Other Non-Current Liability

9.4

-

-

-

-

    Advances from Construction

-

-0.6

9.6

13.4

-

    Overbilled Constructions

-14.3

12.1

-17.7

-

-

    National Pension Fund

0.0

-

-

0.0

0.0

    Derivative Liabilities

-

-0.1

-0.1

-1.7

-1.9

    Payment for Defect Repair Expense

-

-1.7

-1.3

-0.5

-

    Retirement Pension Operating Fund

-6.6

-

-

-2.0

-

    Reserve for Damage Compensation Expense

-

-

-0.1

-2.3

-

    Payment for Retirement Allow.

-2.0

-2.3

-2.3

-5.3

-2.2

    Deposit for Retirement Insurance

-

-0.6

-0.6

1.3

-0.1

    Prov. for Retirement Allow.

-0.2

-

-

-

-

    Assets&Liabilities

-

-1.6

1.0

-

-

    Cash-Tax Paid

-18.8

-27.9

-11.5

-

-

    Cash-Interest Paid

-28.7

-23.6

-17.1

-

-

    Cash-Interest Received

7.4

5.6

4.2

-

-

    Cash-Dividend Income

0.1

0.2

0.1

-

-

    Adj.-Added Expense

0.0

-

-

-

-

    Adj.-Deducted Incomes

0.0

-

-

-

-

    Adj,-Operating Assets & Liabilities

0.0

-

-

-

-

Cash from Operating Activities

-12.7

33.9

20.4

21.3

26.7

 

 

 

 

 

 

    Disposal of Current Financial Instrument

-

7.9

41.3

42.1

0.8

    Dec-LT Finl Assets

-

0.0

0.9

1.7

-

    Decrease in Invmt in Susidiary&Associate

8.7

-

-

-

39.8

    Sale of Other Fincl Instruments

6.1

-

-

-

-

    Disp of Invest Secs.

0.0

0.5

0.1

0.0

0.1

    Decrease in Other Receivables

0.9

-

-

-

-

    Dec in ST Loans

-

3.8

12.2

23.1

23.1

    Decrease in Non-Current Loans

-

0.8

1.0

4.9

0.0

    Decs in Non-Current Loans & Receivable

3.1

-

-

-

-

    Decrease in Guarantee Deposit

-

0.9

4.3

0.6

-

    Increase-Government Subsidy

-

-

-

-

2.3

    Disposal-Land

-

-

-

0.2

0.2

    Disposal-Buildings

-

-

-

0.2

2.6

    Disposal-Structure

-

-

-

-

0.2

    Disposal-Machinery & Equipments

-

-

-

-

0.1

    Disposal Trans Equip

-

-

-

0.1

0.0

    Disposal Other Tang.

-

-

-

0.1

0.2

    Disp. Chemical Tanks

-

-

-

1.3

0.7

    Disposal of Property, Plant and Equipmen

23.1

8.8

8.2

-

-

    Disposal of Intangible Assets

-

0.0

-

-

-

    Purchase of Current Fincl Instruments

-

-6.2

-41.0

-49.8

-15.5

    Purchase of Non-Current Fincl Instrm

-

-0.3

-0.2

-0.1

-

    Purchase of Sec. Available-for-Sale

-8.0

-8.8

-6.2

-7.0

-0.1

    Purchase of Other Invmt Assets

-

-19.4

-

-1.0

-0.7

    Acq-Affiliates Stocks

-

-

-

-

-6.9

    Purchase Invmt in Associates

-7.3

-8.0

-7.4

-

-

    Purchase of Invmt in Affiliates

-

-1.4

-

-

-

    Purchase of Invmt in Subsidiaries

-

-

-0.1

-

-

    Purchase of Other Fincl Instruments

-31.6

-

-

-

-

    Increase in Current Loans

-

-0.3

-21.8

-19.7

-108.3

    Increase in Non-Current Loans

-

-15.0

-7.1

-14.9

-

    Incs in Non-Current Loans & Receivable

-27.2

-

-

-

-

    Increase in Guarantee Deposit

-

-4.3

-5.3

-0.6

-

    Acquisition of Land

-

-

-

-0.2

-0.3

    Acquis. of Building

-

-

-

-0.8

-1.7

    Purch. of Structure

-

-

-

-2.4

-

    Purch. of Mach/Equip

-

-

-

-3.0

-1.3

    Increase-Tools & Supplies

-

-

-

0.0

-

    Acq. of Trans Equip

-

-

-

-1.8

-0.1

    Inc. Const. In Prog

-

-

-

-3.1

-9.2

    Acq. Other Tangible

-

-

-

-0.8

-0.6

    Increase-Chemical Tanks

-

-

-

-

-0.1

    Purchase of Tangibles

-20.6

-24.8

-24.0

-

-

    Purchase of Intangibless

-0.9

-2.0

-0.1

-0.1

0.0

    Increase-Development Cost

-

-

-

-2.7

-5.0

Cash from Investing Activities

-53.5

-67.5

-45.1

-33.7

-79.4

 

 

 

 

 

 

    Increase in Current Borrowings

59.9

248.8

194.0

248.9

134.6

    Increase in Non-Current Borrowings

171.1

135.4

56.1

-

5.9

    Issuance-Bond with Warrant

-

-

-

15.7

3.6

    Increase in Bonds

37.6

54.2

57.1

65.9

15.7

    Increase in Rental Guarantee Deposit

0.2

0.8

0.6

0.6

0.7

    Rights Issue

1.2

-

16.4

47.3

-

    Disposal-Treasury Stock

-

-

-

3.0

7.0

    Increase-Subsidy from Government

-

-

-

2.9

-

    Decrease in Bonds

-29.0

-34.3

-55.6

-28.7

-

    Decrease in Bonds with Warrant

-

-9.0

-8.6

-3.1

-36.3

    Decrease in Current Borrowings

-114.7

-259.0

-210.7

-267.6

-47.7

    Decrease-LT Borrowings

-

-

-

-0.5

-

    Decs in Current Portion of LT Liability

-27.1

-57.3

-16.0

-62.5

-13.2

    Decrease-LT Accrued Payment

-

-

-

-0.2

-

    Decrease in Rental Guarantee Deposit

-

-1.8

-0.1

-1.2

-0.5

    Increase in Treasury Stocks

-6.6

-

-2.2

-

-3.5

    Dividend Paid

-7.1

-7.2

-5.1

-3.5

-2.1

    Cash Inflow-Consol. Scope Change, FN

-

-

-

1.4

-

    Exercise of Stock Warrants

17.7

-

-

-

-

Cash from Financing Activities

103.3

70.6

25.9

18.3

64.1

 

 

 

 

 

 

Foreign Exchange Effects

-0.7

0.2

-0.1

-

-

Incs or Decs in Cash & Cash Equivalents

36.4

37.1

1.1

5.9

11.3

 

 

 

 

 

 

Cash and Cash Equivalents at Beginning

70.1

34.1

31.6

29.4

22.8

Cash and Cash Equivalents at End

106.5

71.3

32.7

35.3

34.1

    Cash Interest Paid

28.7

23.6

17.1

-

-

    Cash Taxes Paid

18.8

27.9

11.5

-

-

 

 

Financial Health

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

Key Indicators USD (mil)

 

Quarter
Ending
31-Mar-2013

Quarter
Ending
Yr Ago

Annual
Year End
31-Dec-2012

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 (?)

470.3

-9.70%

1,980.2

8.54%

14.02%

18.89%

Research & Development1 (?)

-

-

3.4

1.71%

-5.54%

28.30%

Operating Income1 (?)

9.5

-44.77%

61.8

-18.58%

5.29%

75.90%

Income Available to Common Excl Extraord Items1 (?)

-0.2

-

20.6

20.11%

-13.26%

-

Basic EPS Excl Extraord Items1 (?)

-0.01

-

1.40

9.13%

-23.43%

-

Capital Expenditures2 (?)

7.0

42.55%

21.4

-18.60%

8.30%

-23.55%

Cash from Operating Activities2 (?)

-44.4

-

-12.7

-

-

-

Free Cash Flow (?)

-50.2

-

-36.1

-

-

-

Total Assets3 (?)

1,236.0

-

1,208.1

8.25%

6.93%

19.85%

Total Liabilities3 (?)

852.2

-

772.5

11.13%

8.93%

22.66%

Total Long Term Debt3 (?)

256.4

-

209.6

8.92%

48.10%

12.99%

Employees3 (?)

-

-

-

-

-

-

Total Common Shares Outstanding3 (?)

14.8

-

14.8

10.64%

7.73%

10.22%

1-ExchangeRate: KRW to USD Average for Period

1084.553644

 

1126.848795

 

 

 

2-ExchangeRate: KRW to USD Average for Period

1084.553644

 

1126.848795

 

 

 

3-ExchangeRate: KRW to USD Period End Date

1112.840072

 

1066.400024

 

 

 

Key Ratios

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Profitability

Gross Margin (?)

5.90%

7.18%

8.32%

9.18%

6.62%

Operating Margin (?)

3.12%

4.16%

4.56%

3.96%

2.85%

Pretax Margin (?)

1.37%

2.33%

3.27%

2.82%

3.19%

Net Profit Margin (?)

1.04%

0.94%

2.46%

2.36%

2.15%

Financial Strength

Current Ratio (?)

1.18

1.27

1.32

1.17

1.37

Long Term Debt/Equity (?)

0.48

0.46

0.29

0.17

0.16

Total Debt/Equity (?)

1.23

1.03

0.85

0.85

0.97

Interest Coverage (?)

124,272,810.88

185,805,756.02

-

-

-

Management Effectiveness

Return on Assets (?)

1.58%

1.72%

4.06%

3.79%

4.92%

Return on Equity (?)

5.08%

4.36%

9.99%

9.79%

11.74%

Efficiency

Receivables Turnover (?)

6.10

5.40

4.64

5.13

7.51

Inventory Turnover (?)

14.41

13.95

12.12

10.46

12.39

Asset Turnover (?)

1.80

1.83

1.64

1.71

2.37

Market Valuation USD (mil)

Enterprise Value2 (?)

704.7

.

Enterprise Value/Revenue (TTM) (?)

0.31

Price/Book (MRQ) (?)

0.55

.

Enterprise Value/EBITDA (TTM) (?)

8.02

Market Cap as of 19-Jul-20131 (?)

216.0

.

 

 

1-ExchangeRate: KRW to USD on 19-Jul-2013

1124.558404

 

 

 

2-ExchangeRate: KRW to USD on 31-Mar-2013

1112.840072

 

 

 

 

 

Annual Ratios

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 



 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Financial Strength

Current Ratio (?)

1.18

1.27

1.32

1.17

1.37

Quick/Acid Test Ratio (?)

0.91

0.95

1.03

0.88

0.95

Working Capital1 (?)

91.6

113.3

121.2

71.9

91.7

Long Term Debt/Equity (?)

0.48

0.46

0.29

0.17

0.16

Total Debt/Equity (?)

1.23

1.03

0.85

0.85

0.97

Long Term Debt/Total Capital (?)

0.22

0.23

0.15

0.09

0.08

Total Debt/Total Capital (?)

0.55

0.51

0.46

0.46

0.49

Interest Coverage (?)

124,272,810.88

185,805,756.02

-

-

-

Payout Ratio (?)

28.55%

41.55%

18.20%

14.24%

13.26%

Effective Tax Rate (?)

35.64%

59.68%

24.41%

21.35%

34.94%

Total Capital1 (?)

972.1

789.4

713.1

660.7

483.9

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

1.80

1.83

1.64

1.71

2.37

Inventory Turnover (?)

14.41

13.95

12.12

10.46

12.39

Days In Inventory (?)

25.32

26.16

30.13

34.88

29.47

Receivables Turnover (?)

6.10

5.40

4.64

5.13

7.51

Days Receivables Outstanding (?)

59.80

67.56

78.62

71.16

48.62

Revenue/Employee2 (?)

-

5,157,864

4,536,901

3,929,219

3,536,278

Operating Income/Employee2 (?)

-

214,431

206,698

155,609

100,873

EBITDA/Employee2 (?)

-

257,563

236,018

187,285

128,142

 

 

 

 

 

 

Profitability

Gross Margin (?)

5.90%

7.18%

8.32%

9.18%

6.62%

Operating Margin (?)

3.12%

4.16%

4.56%

3.96%

2.85%

EBITDA Margin (?)

3.84%

4.99%

5.20%

4.77%

3.62%

EBIT Margin (?)

3.12%

4.16%

4.56%

3.96%

2.85%

Pretax Margin (?)

1.37%

2.33%

3.27%

2.82%

3.19%

Net Profit Margin (?)

1.04%

0.94%

2.46%

2.36%

2.15%

R&D Expense/Revenue (?)

0.17%

0.18%

0.20%

0.30%

0.20%

COGS/Revenue (?)

94.10%

92.73%

91.18%

90.82%

93.38%

SG&A Expense/Revenue (?)

2.49%

2.78%

3.08%

4.65%

3.29%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

1.58%

1.72%

4.06%

3.79%

4.92%

Return on Equity (?)

5.08%

4.36%

9.99%

9.79%

11.74%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

-2.44

0.51

-0.28

0.59

0.79

Operating Cash Flow/Share 2 (?)

-0.91

2.44

1.56

1.97

2.50

1-ExchangeRate: KRW to USD Period End Date

1066.400024

1152

1134.9

1164.475

1259.55

2-ExchangeRate: KRW to USD Average for Period

1066.400024

1152

1134.9

1164.475

1259.55

 

Current Market Multiples

Market Cap/Equity (MRQ) (?)

0.57

Enterprise Value/Equity (MRQ) (?)

1.84

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.39

UK Pound

1

Rs.94.17

Euro

1

Rs.81.70

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.