MIRA INFORM REPORT

Report Date :

22.05.2013

IDENTIFICATION DETAILS

Name :	CHEIL INDUSTRIES INC.
Registered Office :	290, Gongdan-Dong, Gumi, 730710
Country :	South Korea
Financials (as on) :	31.12.2012
Date of Incorporation :	15.09.1954
Legal Form :	Public Subsidiary Company
Line of Business :	provision of chemicals, electronic materials and garments
No. of Employees :	5,063

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 31^st 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 & address

Cheil Industries Inc.

290, Gongdan-Dong

Gumi, 730710

Korea, Republic of

Tel: 82-54-4682114

Fax: 82-31-5963088

Web: www.cii.samsung.co.kr

Operating Address:

332-2 Gocheon Dong Euiwang St Gyongki Do 437-711, South Korea

synthesis

Employees: 5,063

Company Type: Public Subsidiary

Corporate Family: 150 Companies

Ultimate Parent: Samsung Group

Traded: Korea Stock Exchange: 001300

Incorporation Date: 15-Sep-1954

Auditor: Deloitte & Touche LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2012

Reporting Currency: South Korean Won

Annual Sales: 5,333.4 1

Net Income: 185.1

Total Assets: 5,081.2 2

Market Value: 4,493.7 (10-May-2013)

Business Description

CHEIL INDUSTRIES INC. is a Korea-based company engaged in the provision of chemicals, electronic materials and garments. Its chemical products include acrylonitrile butadiene styrene (ABS), polystyrene (PS) and functional resins, which are used in electronic devices. Its electronic materials include epoxy molding compounds (EMCs), color resists (CRs) and others, which are used as materials for semiconductor and display panels. Its garments include casual apparels under brand names of Bean Pole and Fubu; men's wear under the brand names of Galaxy and Rogatis; women's clothing under the brand name of KUHO, and suiting fabrics under the brand name of Goldentex. The Company completed the merger with ACEDIGITECH CO., LTD., engaged in the manufacturing and sale of polarized films, on August 1, 2011. For the fiscal year ended 31 December 2012, Cheil Industries Inc. revenues increased 8% to W6.01T. Net income decreased 19% to W208.62B. Revenues reflect Chemical segment increase of 10% to W2.666T, Fashion segment increase of 13% to W1.725T, Electric Equipment segment increase of 2% to W1.569T, Korea segment increase of 7% to W5.819T, Asia(China) segment increase of 44% to W124.03B, Europe segment increase from W3.96B to W37.43B.

Industry

Industry Chemicals - Plastics and Rubber

ANZSIC 2006: 1821 - Synthetic Resin and Synthetic Rubber Manufacturing

NACE 2002: 2416 - Manufacture of plastics in primary forms

NAICS 2002: 325211 - Plastics Material and Resin Manufacturing

UK SIC 2003: 2416 - Manufacture of plastics in primary forms

UK SIC 2007: 2016 - Manufacture of plastics in primary forms

US SIC 1987: 2821 - Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers

Key Executives

Name	Title
Jong Wu Park	President, Co-Chief Executive Officer, Director
Yi Hyeon Baek	Vice President
Baek Hwang	President & CEO
Lee Seoung Ku	Executive Vice President
Ji Yeong Kim	Assistant Managing Director

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	1	Cheil Industries Inc Considering Buying Novaled AG-Reuters	2-Apr-2013
Divestitures	1	HB Technology CO.,LTD. to Acquire Equipments from Cheil Industries Inc.	30-Nov-2012
Officer Changes	1	Cheil Industries Inc. Appoints New Co-CEO	15-Mar-2013
Equity Investments	1	Cheil Industries Inc Announces Changes in Shareholding Structure	19-Apr-2013
Debt Financing / Related	1	Cheil Industries Inc Decides to Issue Short Term Bonds	15-May-2013

* number of significant developments within the last 12 months

news

Title	Date
WIPO PUBLISHES PATENT OF CHEIL INDUSTRIES, DONG HEE KIM, SEH JIN PARK, SA EUN CHO AND IL JIN KIM FOR "EXPANDED POLYSTYRENE HAVING HIGH THERMAL... U.S. Fed News (220 Words)	18-May-2013
WIPO PUBLISHES PATENT OF CHEIL INDUSTRIES FOR "DISPLAY PANEL AND DISPLAY DEVICE HAVING SAME" (SOUTH KOREAN INVENTORS) U.S. Fed News (210 Words)	18-May-2013
WIPO PUBLISHES PATENT OF CHEIL INDUSTRIES FOR "POLYSILOXAZANE HYDROXIDE THIN-FILM RINSE SOLUTION AND POLYSILOXAZANE HYDROXIDE THIN-FILM... U.S. Fed News (190 Words)	17-May-2013
US Patent Issued to Cheil Industries on May 14 for "Methacrylic copolymer, method for preparing the same, and methacrylic resin composition including... U.S. Fed News (240 Words)	14-May-2013
WIPO PUBLISHES PATENT OF CHEIL INDUSTRIES FOR "DOUBLE WALL CARBON NANOTUBES AND METHOD FOR MANUFACTURING SAME" (SOUTH KOREAN INVENTORS) U.S. Fed News (209 Words)	12-May-2013
Korea's Doosan abandons plan to buy German Novaled EquityBites (112 Words)	10-May-2013

Financial Summary

As of 31-Dec-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.83	2.18
Quick Ratio (MRQ)	0.88	1.35
Debt to Equity (MRQ)	0.39	0.82
Sales 5 Year Growth	13.73	6.26
Net Profit Margin (TTM) %	3.47	10.56
Return on Assets (TTM) %	4.03	8.26
Return on Equity (TTM) %	6.45	22.07

Stock Snapshot

Traded: Korea Stock Exchange: 001300

As of 10-May-2013

   Financials in: KRW

Recent Price	93,500.00	EPS	4,112.66
52 Week High	108,500.00	Price/Sales	0.82
52 Week Low	82,100.00	Dividend Rate	750.00
Avg. Volume (mil)	0.29	Price/Earnings	22.84
Market Value (mil)	4,902,921.00	Price/Book	1.45
		Beta	0.64

	Price % Change	Rel S&P 500%
4 Week	2.07%	0.99%
13 Week	6.74%	7.08%
52 Week	-10.53%	-10.52%
Year to Date	-0.74%	1.93%

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

290, Gongdan-Dong

Gumi, 730710

Korea, Republic of

Tel: 82-54-4682114

Fax: 82-31-5963088

Web: www.cii.samsung.co.kr

Quote Symbol - Exchange

001300 - Korea Stock Exchange

Sales KRW(mil): 6,009,889.5

Assets KRW(mil): 5,418,572.0

Employees: 5,063

Fiscal Year End: 31-Dec-2012

Industry: Chemicals - Plastics and Rubber

Incorporation Date: 15-Sep-1954

Company Type: Public Subsidiary

Quoted Status: Quoted

Co-Chief Executive Officer:

Yoon Ju Hwa

Industry Codes

ANZSIC 2006 Codes:

1821 - Synthetic Resin and Synthetic Rubber Manufacturing

1351 - Clothing Manufacturing

2411 - Photographic, Optical and Ophthalmic Equipment Manufacturing

1813 - Basic Inorganic Chemical Manufacturing

NACE 2002 Codes:

2416 - Manufacture of plastics in primary forms

1822 - Manufacture of other outerwear

1824 - Manufacture of other wearing apparel and accessories not elsewhere classified

2413 - Manufacture of other inorganic basic chemicals

3340 - Manufacture of optical instruments and photographic equipment

NAICS 2002 Codes:

325211 - Plastics Material and Resin Manufacturing

325188 - All Other Basic Inorganic Chemical Manufacturing

315239 - Women's and Girls' Cut and Sew Other Outerwear Manufacturing

333315 - Photographic and Photocopying Equipment Manufacturing

315228 - Men's and Boys' Cut and Sew Other Outerwear Manufacturing

US SIC 1987:

2821 - Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers

3861 - Photographic Equipment and Supplies

2819 - Industrial Inorganic Chemicals, Not Elsewhere Classified

2339 - Women's, Misses', and Juniors' Outerwear, Not Elsewhere Classified

2329 - Men's and Boys' Clothing, Not Elsewhere Classified

UK SIC 2003:

2416 - Manufacture of plastics in primary forms

18222 - Manufacture of other women's outerwear

2413 - Manufacture of other inorganic basic chemicals

33403 - Manufacture of photographic and cinematographic equipment

1824 - Manufacture of other wearing apparel and accessories not elsewhere classified

UK SIC 2007:

2016 - Manufacture of plastics in primary forms

2013 - Manufacture of other inorganic basic chemicals

26702 - Manufacture of photographic and cinematographic equipment

14132 - Manufacture of women's outerwear, other than leather clothes and workwear

1419 - Manufacture of other wearing apparel and accessories n.e.c.

Business Description

CHEIL INDUSTRIES INC. is a Korea-based company engaged in the provision of chemicals, electronic materials and garments. Its chemical products include acrylonitrile butadiene styrene (ABS), polystyrene (PS) and functional resins, which are used in electronic devices. Its electronic materials include epoxy molding compounds (EMCs), color resists (CRs) and others, which are used as materials for semiconductor and display panels. Its garments include casual apparels under brand names of Bean Pole and Fubu; men's wear under the brand names of Galaxy and Rogatis; women's clothing under the brand name of KUHO, and suiting fabrics under the brand name of Goldentex. The Company completed the merger with ACEDIGITECH CO., LTD., engaged in the manufacturing and sale of polarized films, on August 1, 2011. For the fiscal year ended 31 December 2012, Cheil Industries Inc. revenues increased 8% to W6.01T. Net income decreased 19% to W208.62B. Revenues reflect Chemical segment increase of 10% to W2.666T, Fashion segment increase of 13% to W1.725T, Electric Equipment segment increase of 2% to W1.569T, Korea segment increase of 7% to W5.819T, Asia(China) segment increase of 44% to W124.03B, Europe segment increase from W3.96B to W37.43B.

More Business Descriptions

Manufacture of chemical resins, petrochemical products and electrical parts, manufacture of ready-to-wear suits and sportswear; production of wool and wool spinning products; manufactor of membrane

Chemical, Textile & Electronic Chemical Material Products Mfr

Cheil Industries Inc.(Cheil) manufactures and distributes chemicals, electronic chemicals and garments. The company operates through three reportable business segments, namely, Chemicals segment, Electronic Chemical Materials segment and Fashion segment. Through the Chemicals segment, the company in engaged in the production and distribution of plastics like acrylonitrile butadiene styrene (ABS) and PS, and functional polymers like SAN, EPS and EP. Its major products include styrene polymers like flame-retardant ABS, flame-retardant HIPS (High Impact PS), sheet ABS, transparent ABS, and heat-resistant ABS; special polymers like polycarbonate (PC), alloy, other EPs and super EP; and artificial marble like STARON. These products are used in developing resins for televisions, monitors, refrigerators, automobiles, mobile phones, laptops, electric, electronic and precision materials and medical equipments. These products are produced at its chemical plant in Yeosu City. The chemicals segment accounted for 43.3% of the total revenue during the fiscal year 2011. The company’s Electronic Chemical Materials segment, the company in engaged in the production and distribution of semiconductor materials, display materials and functional materials. Its semiconductor materials include epoxy molding compounds (EMC), liquid encapsulants (LE), chemical mechanical polishing (CMP) slurries, dicing attach films (DAF) and speciality wet chemicals (SWC). These are used as adhesives and in packaging and polishing applications. Display materials include light diffusion plates (LDP), color resists (CR), light guide plate, diffusion late, polyamides, and anisotropic conductive films (ACF). These are used in electric and electronic applications like LCD technology. Functional materials like paste are used for two functions like insulation and conduction in capacitor electrodes and bus electrodes for display devices. These products are produced at its production facility in Gumi plant. It is also setting up production bases in Americas, China, Europe and India. The Electronic Chemical Materials segment accounted for 27.7% of the total revenue during the fiscal year 2011. Fashion segment provides both formals and casual wear for men, women and kids. These products are offered under its brand names Bean Pole, Lansmere, Goldentex, Fubu and Rapido. It also offers men's ware with brands Galaxy, Rogatis, MVIO and Pal Zileri; and women's ware with bands seven for all mankind, Le Beige, Kuho, Theory, Thee and Nina Ricci. Its Galaxu brand is mainly being supplied to Korean baseball team players. The Fashion segment accounted for 27.3% of the total revenue during the fiscal year 2011. The research and development activities are focused on developing diversified products using cutting edge technologies. It carries its Research and Development (R&D)activities through its three research centers namely Chemical Research Institute; Electronic Chemical Materials Research Institute and Optical Film Research Institute. For the fiscal year ended 2011, the company R&D expenditure was KRW132,046m.The company operates globally through its many subsidiaries including Samsung Chemical USA, Inc., Samsung Chemical Europe GmbH, Samsung Chemical Meterial Trading (Shanghai) Co., Ltd., Cheil America, Inc. and Samsung Fashion srl. Geographically, the company operates in Korea, Australia, China, Germany, Italy, Japan, Mexico, Taiwan, Thailand, United Arab Emirates and the US. In April 2012, the Cheil participated in ChinaPlas held in Shanghai as an intiative to enter china and the world market. It intends to introduce high-value synthetic resin for automobiles, LED, and mobile devices, and provide customized client solutions to international market. In July , the company completed Polycarbonate Plant 2 applied to Galaxy S3 cellular phone skin, expanding Supply of Materials for Automobiles.

Cheil Industries Inc. (Cheil) is a chemicals manufacturing and distribution company. The company along with its subsidiaries offers wide range of chemicals, electronic chemicals and fashion products. Its product portfolio comprises of styrene polymers, special polymers, artificial marble, semiconductor materials, display materials, functional materials as well as a number of fashion products, like, casual wear, men's and women's wear, and sports wear under various brands. The company has its operations in various countries across the world, which include Thailand, China, the US, Germany and Italy amongst others. The company is headquartered in Gyeonggi-Do , South Korea.The company highest priority is on brand value and is strongly positioned in the domestic market. It aims to build its brand in China and other advanced markets like the US. Cheil's manufactured formal suit, under the BEANPOLE brand, would be the uniform for the London Olympics National Team.The company reported revenues of (Won) KRW 5,580,979.50 million during the fiscal year ended December 2011, an increase of 9.15% over 2010. The operating profit of the company was KRW 287,200.28 million during the fiscal year 2011, a decrease of 12.95% from 2010. The net profit of the company was KRW 259,086.04 million during the fiscal year 2011, a decrease of 7.02% from 2010.

Cheil Industries has continued its successful transformation from a producer of fabrics and fashion items to chemicals and electronic materials. Cheil Industries is working toward the goal of becoming a ‘First-class Global Company that Aims to Have the Best Quality and Value'. To achieve this vision, Cheil Industries is expanding its high-value-added businesses based on its powerful human resources. It is also working to improve its profitability through business management focused on quality and through creative advancement side by side with active cultivation of cutting-edge materials businesses that are expected to change the company's future. Cheil Industries will continue to release unique market-based products in order to ensure the global competitiveness of its semiconductor materials, boost the display materials market (such as through the development of next-generation functional optical sheets), expand its global R&D network, The chemicals market is a new one for Cheil Industries. Cheil Industries plans to build a new foundation for growth through new business operations, and to build a global business network by securing global production bases through the localization of its overseas marketing efforts and by leveraging its core capacities. The company's fashion division has plans to improve the profitability of its main brands such as Bean Pole and Galaxy.

Financial Data

Financials in:	KRW(mil)
Revenue:	6,009,889.5
Net Income:	208,623.8
Assets:	5,418,572.0
Long Term Debt:	911,676.8
Total Liabilities:	2,164,268.5
Working Capital:	570.6
Date of Financial Data:	31-Dec-2012

1 Year Growth

7.7%

-19.5%

9.9%

Market Data

Quote Symbol:	001300
Exchange:	Korea Stock Exchange
Currency:	KRW
Stock Price:	93,500.0
Stock Price Date:	05-10-2013
52 Week Price Change %:	-10.5
Market Value (mil):	4,902,921,216.0
SEDOL:	6189538
ISIN:	KR7001300003
Equity and Dept Distribution:
All financials reflect consolidated numbers.

Subsidiaries

Company	Percentage Owned	Country
Samsung Chemical USA Inc	100%	USA
Samsung Chemical (Thailand) Co Ltd	49.33%	THAILAND
Samsung Chemical Hungary LLC	100%	HUNGARY
Samsung Chemical Electronic Materials (SuZhou) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Colombo Korea Co Ltd	100%	SOUTH KOREA
Colombo Via della Spiga Srl	100%	ITALY
Cheil America Inc	100%	USA
Samsung Fashion Trading (Shanghai) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Samsung Fashion Srl	100%	ITALY
Samsung Chemical Europe GmbH	100%	GERMANY
Samsung Chemical Material Trading (Shanghai) Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Starex Compounding America Inc	100%	USA
Starex Mexico SA de CV	100%	MEXICO
Gemi Plus Co Ltd	100%	SOUTH KOREA
Tianjin Samsung Engineering Plastics Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA

Shareholders

Major Shareholders

Samsung Card Co Ltd and affiliates (7.32%)

Key Corporate Relationships

Auditor:	Deloitte & Touche LLP
Auditor:	Deloitte & Touche LLP

Strategic Initiatives

Sales and Distribution

Through the completion of the second plant, Cheil Industries achieved economies of scale, uplifting profitability based on cost competitiveness and expanding the global marketplace for high value engineering plastic. Since polycarbonate demand is continuously increasing, particularly in China, the largest synthetic resin market, entry into high value market through the release of new materials such as the cellular phone and automobile materials is expected to accelerate the reshuffling of the engineering plastic-centered business structure. The engineering plastic sales of Cheil Industries doubled in 2011 compared with sales in 2007 and the company is planning to expand the ratio of engineering plastic products at the sales of the entire chemical division up to 25% as of 2013. Meanwhile, Cheil Industries secured a production base for the Americas in the Tijuana region of Mexico in 2005, established a production corporation in Tianjin, China in 2010, and completed an EP plant in Hungary in 2011 in the course of developing the on-site completion management system in the major regions of the world, along with establishing sales corporations in the US, Germany, and China. Jong Woo Park, president of Cheil Industries, said, "the world's petrochemical market has entered a paradigm shift in the competition system due to the growing influence of the Chinese marketplace and fast growing Middle Eastern companies,� and stressed, “Through the expansion of the plant, we will aggressively expand the high value engineering plastic market, covering cellular phones and automobile materials, with our specialized technological strength and establish our footing as a global player

Strengths/Weaknesses (SWOT)

	Helpful to achieving the objective	Harmful to achieving the objective
Internal Origin (attributes of the organization)	Strengths · Recognized Portfolio of Branded Products · R&D Initiatives · Diversified Business	Weaknesses · Legal Proceedings · Decline in Profitability
External Origin (attributes of the environment)	Opportunities · Business Expansions · Market Consolidation · Growth Potential in Asia-Pacific	Threats · Fluctuation in Raw Material Prices · Stringent Environmental Regulations · Increasing Competition

Overview

Cheil Industries Inc. (Cheil) is a diversified company, which carries out the manufacture and sale of petrochemical products, telecommunication materials, worsted woven fabrics, worsted woolen fabrics, knit wear and clothing. The company is a part of the Samsung Group of companies. Its diversified business includes chemicals, electronic products and garments. Diversified business reduces the risk of demand fluctuations in certain industry segments, where the company operates. However, growing competition threaten the ability of the company to maintain its market share and profitability in the long run.

Strengths

Recognized Portfolio of Branded Products

Cheil has a portfolio of branded products, which enjoy widespread recognition. The company operates around 30 brands in men’s wear, casual wear, women’s wear, accessories, SPAs and outdoor clothing. The company's Bean Pole achieved the No. 1 brand status for nine consecutive years from 2004 through 2012 in the casual wear category, as per Korea’s Brand Power Index (K-BPI). Also, Galaxy was ranked No. 1 brand in the men’s suit category for nine consecutive years from 2004 through 2012 in the K-BPI. In September 2011, it launched MONO+, a contemporary line from the Rogatis Collection. In August 2011, the company's Chemical R&D Center won a major award at the Nano Korea Awards for its CNT polymer composite. In June 2011, the company launched Derercuny, a high-end women’s wear brand for seniors. In May 2011, the company received the ‘IR52 Chang Young-sil Award’ for developing an eco-friendly flame-retardant new platform material. In January 2011, the company received the ‘IR52 Chang Young-sil Award’ for developing a photosensitive paste for PDP electrodes. Recently, the company has also expanded its operations into women’s wear, concept stores, accessories, SPA and outdoor wear. Moreover, it is building its brands in China and advanced markets like the US. Cheil's emphasis on brand value has established a strong position for the company, particularly in the domestic fashion market.

R&D Initiatives

The company’s R&D (research and development) activity focuses on chemical as well as electronic businesses. Its chemical R&D activity engages in the development of value-added and highly functional products. Cheil’s chemical R&D has applied for a total of 1,500 patents in 23 years. During the fiscal year 2011, the company invested KRW161.8 billion in various R&D activities, representing a 6.8% year-on-year growth. In early 2012 , the company established the Corporate Research Institute for the systematic execution of a wide range of development projects, including base technology to the latest in cutting-edge technology. Cheil’s electronic chemical materials R&D center focuses on the development and localization of a string of semiconductors, display materials, materials for lithium secondary batteries, and functional materials. Its chemical R&D center has developed many new products such as environmentally friendly non-halogen flame-retardant ABS, ABS for ultra-thin-film refrigerator sheets, flame-retardant and high-impact HIPS, and PC ABS for mobile phones. Cheil’s electronic chemical materials R&D center has developed many new compounds such as epoxy molding compound (EMC), EMS, and an electrolytic solution that is the active material in secondary batteries. It has localized many electronic materials, which were previously imported by the company. In 2011, in the Chemicals segment, the company developed heat-conducting materials for heat insulating board of LED lighting, materials for LED reflectors, flame-retardant material to replace metal, and optical material for light guide plates. In the Electronic Materials segment, it developed EMC for MUF (Molded Under Fill), green EMC for Sys LSI and D/D2-PAK (an eco-friendly EMC), hybrid-type CR, highly efficient paste electrode for PDP, lenticular light guide plates for LED TVs, high transmission polarizer for IT products and Ag paste for shallow emitters. This has helped the company in widening customer base through introduction of new and innovative products.

Diversified Business

Cheil has diversified its operations in terms of number of businesses. The segmental revenue distribution makes the company less exposed to the risk of excessive dependence on any single segment, industry, or market. The company operates through three reportable businesses segments, namely, Chemicals business, Electronic Materials business and Fashion business. Its chemical business products include styrene polymers such as flame-retardant acrylonitrile butadiene styrene (ABS), flame-retardant high-impact PS (HIPS), sheet ABS, transparent ABS, and heat-resistant ABS, polycarbonate, alloy, other EPs, and super EP, and STARON. The company’s electronic chemical materials products include epoxy molding compound (EMC), polarizer, light guide plates (LGPs), diffuser plates, color resist (CR), and chemical mechanical polishing (CMP) slurries. Cheil fashion business products include includes business suits, casual wear, sports wear, women’s wear, and fashion accessories. For the fiscal year ended 2011, the Chemicals segment accounted for 43.3%, Electronic Materials accounted for 27.7%, and Fashion segment accounted for 27.3% of the total revenue. This diversity across industries enables the company to protect itself against fluctuations in a particular industry.

Weaknesses

Legal Proceedings

Cheil's involvement in legal proceedings, regardless of the outcome, could drain its financial resources. The company is involved in several legal proceedings related to its ordinary course of business. In March 2011, Seoul guarantee insurance company and 14 other financial institutes have filed a lawsuit against the company, to cancel the first court judgement and file the same case to Seoul High Court. In January 2010, Cabot Microelectronics Corporation filed an appeal in Korea of a decision by the Seoul court in its ongoing patent infringement action against Cheil for the manufacture and sale of certain CMP slurries used in Korea for tungsten CMP, which has been ongoing since 2007. The company's involvement in such claims not only black-lists its reputation, but also result in additional costs and valuable time for the company in defending them.

Decline in Profitability

The company’s profitability declined in the fiscal year ended December 2011, which reflects its weak performance. The company recorded low operating income and margins. Its operating profit margin was 5.1% for the fiscal year 2011, as against 6.5% in fiscal year 2010. The company reported an operating income of KRW287.2 billion during the fiscal year ended December 2011, representing a decrease of 12.94% over that in fiscal year 2010. The company's income before tax decreased by 20.11% to KRW275.7 billion in 2011. In 2011, the company's net profit margin and pre-tax profit margin were 4.64% and 4.94%, compared to 5.45% and 6.75%, respectively, in 2010. The net income declined by 5.02% to KRW259.1 billion in 2011. The declines in the operating profit margin, pre-tax profit margin and net profit margin was as a result of decrease in the gross profit margin and an increase in expenses, including selling expenses. In fiscal 2011, the company recorded a fall in its various profitability indicators. The company’s return on equity (ROE) was 8.7% at the end of fiscal year 2011, as compared to 9.9% in 2010. Its return on assets (ROA) was 5.3% in fiscal 2011, as compared to 6.8%, respectively in 2010. The fall was due to an increase in operating expenses, owing to which its bottom line also declined considerably. The company's revenues went up in 2011 but net income fell mainly due to a difficult business environment caused by the global economic downturn. Soaring raw material prices in the second half of 2011 depressed profitability and, consequently the chemical business’ operating income fell more than 50% over the previous year. As the Chemical Division contributes to approximately 43.3% of the company's total business, its overall profitability in 2011 was severely affected.

Opportunities

Business Expansions

Business expansions provide the company an opportunity to further increase its customer base and revenues. The company is continuously focusing on business expansion both through development of existing products and through introduction of new and innovative products in all its businesses. In July 2012, the company completed the construction of polycarbonate plant II, a material applied to galaxy S3 cellular phone skin, expanding supply of materials for automobiles. In April 2012, Cheil participated in ChinaPlas held in Shanghai, to enter China and the world market, with a focus on the three areas of automobile, eco-friendly materials and innovation. It intends to introduce high-value synthetic resin for automobiles, LED, and mobile devices, and provide customized client solutions to international market. The company also aims at increasing its distribution channels, such as the online market, shopping malls and concept stores. In May 2011, Cheil announced that it will invest KRW19.9 billion in electrical material manufacturing facilities for organic light-emitting diode (OLED), during the period of May 2011 to October 2011. In February 2011, the company announced that it will invest KRW161.4 billion to establish more polycarbonate polymerization facilities, during the period of February 2011 to August 2012. The company intends to establish 30 stores operating by 2013, with targeted sales of KRW40 billion. The company completed the construction of a synthetic resin compounding plant in Tianjin, China. All these new facilities and expansions are expected to provide significant opportunities for the organization to enhance its services and revenues.

Market Consolidation

The company could benefit from the growing consolidation in the petrochemical industry in North America and Western Europe. In these regions, the petrochemical producers are facing challenges in enhancing their profitability due to limited supply and high prices of feedstock. The producers in Asia-Pacific and the Middle East have an advantage of low feedstock prices and cheap labor. Due to saturated markets and high competition in North America and Western Europe, the trend of consolidation could be expected in the petrochemical industry in these regions. Relatively smaller companies are expected to be acquired by the bigger ones in the long term. This trend is indicative of an increase in the number of mergers and acquisitions in North America and Western Europe. Off late, large players in the emerging markets have shown an appetite for acquisitions in the matured West European and North American markets.

Growth Potential in Asia-Pacific

Asia-Pacific could offer strong growth opportunities to the company by enabling it to leverage its strong brand and product portfolio. The global economy is in the recovery phase. Mature economies are recording slow growth rate and the global petrochemical industry expects emerging markets, mainly in Asia-Pacific, to absorb the new capacity and production, and avoid a condition of oversupply. Asia-Pacific emerged as the major consumer of petrochemicals, accounting for a share of around 54% in 2010. China alone accounts for nearly 30% of the world’s demand for petrochemicals. India also, with its huge population base and increasing per capita income, has significant demand potential. It is expected that in future China will record a double digit GDP growth and India’s GDP growth is expected to be in the range of 6-8%. Economic growth, combined with huge and young population and low per capita consumption, makes these regions the major growth markets in the future. This is expected to compensate for the low demand in the mature markets. The company could benefit by expanding its presence in the emerging markets of Asia-Pacific.

Threats

Fluctuation in Raw Material Prices

The increasing prices of raw materials could affect the company’s business. Cheil uses various raw materials for the manufacture of its products. However, over the past few years, the prices of these raw materials have been on the rise, increasing the operating costs of the company. Competition limits the option of increasing product prices to compensate for higher production costs. Moreover, the continuous supply of the raw materials could be affected by 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.

Stringent 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 datasets about their chemical products and detail their potential impact and risk on environment. Such regulations could impede the launch of 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 applies directly 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 already began 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 tough environmental regulations are expected to become more stringent in the future, affecting both the existing and new products of the company.

Increasing Competition

Growing competition could adversely affect the ability of Cheil to maintain or raise prices, retain its market position and successfully enter new markets. Cheil operates in the chemical industry, which is highly competitive. Competition also limits the commercial opportunities for the company. The main factors of competition are price, product quality and performance, product deliverability and customer service. The company’s inability to meet its customers’ requirements in terms of the quality and price of its products may result in loss of customers. This would eventually lead to business loss for the company.

Corporate Family	Corporate Structure News:
	Samsung Group Cheil Industries Inc.
Cheil Industries Inc. Total Corporate Family Members: 150

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Samsung Group	Parent	Seoul	Korea, Republic of	Miscellaneous Financial Services		263,000
Asset/product line purchase proposed/announced.See corporate structure news on Samsung Group for details
Samsung Electronics Co., Ltd.	Subsidiary	Suwon	Korea, Republic of	Audio and Video Equipment	178,465.5	90,254
Asset/product line purchase proposed/announced.See corporate structure news on Samsung Group for details
Samsung Display Co Ltd	Subsidiary	Yongin-si, Gyeonggi-do	Korea, Republic of	Electronic Instruments and Controls		39,000
Samsung Display Slovakia, s.r.o.	Subsidiary	Voderady	Slovakia	Communications Equipment	869.2	901
Samsung Electronics Vietnam Co Ltd	Subsidiary	Yen Phong, Bac Ninh Province	Viet Nam	Communications Equipment	1,000.0	7,000
Samsung Electronics Huizhou Co.,Ltd.	Subsidiary	Huizhou, Guangdong	China	Audio and Video Equipment	5,124.3	6,000
Tianjin Samsung Telecom Technology Co.,Ltd.	Subsidiary	Tianjin, Tianjin	China	Communications Equipment	4,397.9	5,800
Samsung Electronics Suzhou Computer Co., Ltd.	Subsidiary	Suzhou, Jiangsu	China	Computer Hardware		3,200
Samsung Electronics Mexico, S.A. de C.V.	Subsidiary	México, D.F.	Mexico	Appliance and Tool	1,723.0	2,960
Living Plaza Co Ltd	Subsidiary	Seongnam-si, Gyeonggi-do	Korea, Republic of	Retail (Specialty)	1,670.4	2,880
Samsung Electronica Da Amazonia Ltda.	Subsidiary	Manaus, AM	Brazil	Audio and Video Equipment	5,351.7	2,800
Suzhou Samsung Electronics Lcd Co.,Ltd.	Subsidiary	Suzhou, Jiangsu	China	Electronic Instruments and Controls	282.7	2,500
Samsung Electronics (Shandong) Digital Printing Co., Ltd.	Subsidiary	Weihai, Shandong	China	Computer Peripherals	1,389.5	2,000
Samsung Electronics Indonesia, PT	Subsidiary	Bekasi	Indonesia	Electronic Instruments and Controls		2,000
SAMSUNG Electronics Slovakia s.r.o.	Subsidiary	Galanta	Slovakia	Audio and Video Equipment	4,383.8	1,682
Samsung Electronics (Suzhou) Semiconductor Co., Ltd.	Subsidiary	Suzhou, Jiangsu	China	Semiconductors		1,600
Samsung Electronics Magyar Zrt	Subsidiary	Jászfényszaru	Hungary	Audio and Video Equipment	3,944.8	1,550
Samsung Electronics Service Co., Ltd.	Subsidiary	Suwon-si, Gyeonggi-do	Korea, Republic of	Business Services	696.0	1,440
Samsung Electronics Display (M) Sdn Bhd	Subsidiary	Seremban, Negeri Sembilan	Malaysia	Computer Hardware	1,480.7	1,200
Samsung Electronics (UK) Ltd.	Subsidiary	Chertsey	United Kingdom	Miscellaneous Capital Goods	3,434.3	917
Samsung Electronics Italia SpA	Subsidiary	Cernusco Sul Naviglio, MI	Italy	Electronic Instruments and Controls	2,621.3	396
Samsung Semiconductor Europe Ltd.	Subsidiary	Weybridge,	United Kingdom	Electronic Instruments and Controls	258.9	19
Shandong Samsung Telecommunication Co., Ltd.	Subsidiary	Weihai, Shandong	China	Computer Peripherals	725.7	900
System Engineering Mega Solution Co., Ltd.	Subsidiary	Cheonan-si, Chungcheongnam-Do	Korea, Republic of	Miscellaneous Capital Goods	659.0	890
Samsung Electronics Polska Sp. z.o.o.	Subsidiary	Warszawa	Poland	Audio and Video Equipment	1,277.9	820
Steco Ltd.	Subsidiary	Chonan, Chungchongnam-Do	Korea, Republic of	Semiconductors	206.6	692
Samsung Electronics Holding GmbH	Subsidiary	Schwalbach Am Taunus, Hessen	Germany	Commercial Banks	10,772.1	600
Samsung Electronics GmbH	Subsidiary	Schwalbach Am Taunus, Hessen	Germany	Appliance and Tool	4,250.8	400
Samsung Electronics Logitech Co Ltd	Subsidiary	Suwon-si, Gyeonggi-do	Korea, Republic of	Miscellaneous Transportation	1,135.7	542
Samsung Medison Co., Ltd.	Subsidiary	Seoul	Korea, Republic of	Medical Equipment and Supplies		422
SONOACE Deutschland GmbH	Subsidiary	Schwalbach Am Taunus, Hessen	Germany	Medical Equipment and Supplies		55
Samsung Medison America, Inc.	Subsidiary	Cypress, CA	United States	Medical Equipment and Supplies	8.0	29
Samsung Medison Shanghai Medical Instrument Co., Ltd.	Subsidiary	Shanghai	China	Medical Equipment and Supplies
Samsung Medison Japan Co., Ltd.	Subsidiary	Tokyo	Japan	Medical Equipment and Supplies
Samsung Medison India Private Ltd.	Subsidiary	Delhi	India	Medical Equipment and Supplies
Samsung Medison Brasil Ltda.	Subsidiary	Sao Paulo	Brazil	Medical Equipment and Supplies
Samsung Medison Italia S.r.l.	Subsidiary	Bresso	Italy	Medical Equipment and Supplies
Secron Co., Ltd.	Subsidiary	Chonan, Chungchongnam-Do	Korea, Republic of	Miscellaneous Capital Goods	55.4	378
Samsung Malaysia Electronics (SME) Sdn Bhd	Subsidiary	Kuala Lumpur	Malaysia	Electronic Instruments and Controls	975.5	300
Seah Precisión México, S.A. De C.V.	Subsidiary	Santa Rosa De Jauregui, Queretaro	Mexico	Miscellaneous Capital Goods		300
Samsung Electronics Iberia Sa	Subsidiary	Alcobendas, Madrid	Spain	Audio and Video Equipment	1,766.1	293
Samsung Electronics (Australia) Pty Ltd	Subsidiary	Homebush Bay, NSW	Australia	Miscellaneous Capital Goods	1,323.7	225
Samsung Electronics France SASU	Subsidiary	Saint-Denis La Plaine	France	Appliance and Tool	4,040.8	224
Samsung Electronics Nordic AB	Subsidiary	Kista	Sweden	Appliance and Tool	1,554.1	211
Samsung Semiconductor Europe GmbH	Subsidiary	Eschborn, Hessen	Germany	Semiconductors	4,691.0	190
Samsung Electronics America, Inc.	Subsidiary	Ridgefield Park, NJ	United States	Appliance and Tool		150
Samsung Semiconductor, Inc.	Subsidiary	San Jose, CA	United States	Electronic Instruments and Controls		1,000
Samsung Austin Semiconductor, LLC	Subsidiary	Austin, TX	United States	Appliance and Tool		1,000
Samsung Semiconductor	Branch	Irvine, CA	United States	Semiconductors	7.4	15
Samsung Semiconductor Inc	Branch	Houston, TX	United States	Electronic Instruments and Controls	9.6	7
Samsung Semiconductor Inc	Branch	Cary, NC	United States	Semiconductors	4.2	7
Samsung Semiconductor Inc	Branch	Pasadena, CA	United States	Semiconductors	3.5	7
Samsung Telecommunications America, LLC	Subsidiary	Richardson, TX	United States	Electronic Instruments and Controls		300
Samsung Telecommunications	Branch	Bridgewater, NJ	United States	Communications Services	18.6	50
Samsung Telecommunications	Branch	Shawnee Mission, KS	United States	Communications Services	3.0	8
Samsung Telecommunications	Branch	Radnor, PA	United States	Electronic Instruments and Controls	14.2	6
Samsung Telecommunications	Branch	Phillipsburg, NJ	United States	Retail (Technology)	1.2	5
Samsung Telecommunications	Branch	North Middletown, NJ	United States	Appliance and Tool	8.3	3
Samsung Telecommunications	Branch	Germantown, MD	United States	Communications Services	1.1	3
Samsung Information Systems	Subsidiary	San Jose, CA	United States	Business Services		200
Samsung Information Systems American	Branch	Irvine, CA	United States	Business Services	1.3	8
Samsung Electronics Canada Inc.	Subsidiary	Mississauga, ON	Canada	Appliance and Tool		180
Samsung Electronics America	Branch	Compton, CA	United States	Advertising	36.8	150
Samsung Electronics America	Branch	San Diego, CA	United States	Retail (Technology)	1.6	70
NeuroLogica Corporation	Subsidiary	Danvers, MA	United States	Medical Equipment and Supplies	12.8	65
Recently acquired (previously owned by Neuro Logica Corp).See corporate structure news on Samsung Group for details
Nexus Dx, Inc.	Subsidiary	San Diego, CA	United States	Medical Equipment and Supplies		25
Samsung Electronics America	Branch	Oak Brook, IL	United States	Electronic Instruments and Controls	14.8	6
Samsung Electronics America	Branch	Roseville, CA	United States	Computer Hardware	10.8	6
Samsung Electronics America	Branch	El Segundo, CA	United States	Retail (Technology)	1.1	5
Samsung Electronics America	Branch	Minneapolis, MN	United States	Retail (Technology)	0.8	4
Samsung Electronics America	Branch	Louisville, KY	United States	Personal Services		4
Samsung Electronics Peru S.A.C.	Subsidiary	Lima, Lima	Peru	Appliance and Tool		142
Samsung Electronics Hellas SA	Subsidiary	Athens	Greece	Electronic Instruments and Controls	345.3	100
Samsung Electronics Argentina S.A.	Subsidiary	Ciudad De Buenos Aires, Ciudad De Buenos Aires	Argentina	Appliance and Tool	23.7	80
mSpot, Inc.	Subsidiary	Palo Alto, CA	United States	Communications Services		57
Samsung Nanoradio Design Center AB	Subsidiary	Kista, Stockholm	Sweden		11.9	52
Samsung Electronics Latino	Subsidiary	Doral, FL	United States	Retail (Technology)	11.3	52
Samsung Electronics Benelux B.V.	Subsidiary	Delft, Zuid-Holland	Netherlands	Computer Hardware	1,337.8	42
Samsung Semiconductor Research & Development Center Ltd.	Subsidiary	Ramat Gan	Israel	Communications Services	24.9	160
Samsung Elektroniks Ukraina Kompani, Tov	Subsidiary	Kyiv	Ukraine	Appliance and Tool	324.9	114
Samsung Electronics Rus Ooo	Subsidiary	Moscow	Russian Federation	Printing and Publishing	13.4
Samsung Electronics, Filial af Samsung Electronics Nordic Ab, Sverige	Subsidiary	København Sv	Denmark	Miscellaneous Capital Goods		35
Samsung Electronics Ltd.	Subsidiary	Chertsey	United Kingdom	Electronic Instruments and Controls		26
Samsung Electronics LTD	Subsidiary	Burnaby, BC	Canada	Retail (Technology)	8.5	20
Samsung Electronics Nordic AB	Subsidiary	Oslo, Oslo	Norway		10.0	19
Grandis, Inc.	Subsidiary	Milpitas, CA	United States	Computer Storage Devices		15
Nvelo Inc	Subsidiary	Santa Clara, CA	United States	Retail (Technology)	2.7	10
MOVL	Subsidiary	Atlanta, GA	United States	Retail (Technology)	1.5	5
Recently acquired (previously owned by MOVL).See corporate structure news on Samsung Group for details
Samsung Corporation (Manila Regional Office)	Subsidiary	Makati	Philippines	Chemical Manufacturing		5
Samsung Electronics Co., Ltd. - Philippine Regional Office	Branch	Taguig	Philippines	Semiconductors		4
Samsung Electronics South Africa (Pty) Ltd	Subsidiary	Johannesburg, Gauteng	South Africa	Appliance and Tool		3
Samsung Electronics Overseas B.V.	Subsidiary	Delft, Zuid-Holland	Netherlands	Electronic Instruments and Controls	551.0	1
Samsung Electronics Taiwan Co Ltd	Subsidiary	Taipei	Taiwan	Electronic Instruments and Controls	10,733.7
Samsung Electronics Europe Logistics B.V.	Subsidiary	Delft, Zuid-Holland	Netherlands	Miscellaneous Transportation	9,898.4
Samsung Japan Corporation	Subsidiary	Minato-Ku, Tokyo	Japan	Electronic Instruments and Controls	7,029.4
Samsung Electronics H.K. Company, Limited	Subsidiary	Wan Chai, Hong Kong	Hong Kong	Electronic Instruments and Controls	6,690.0
Samsung (China) Investment Co., Ltd.	Subsidiary	Beijing, Beijing	China	Miscellaneous Financial Services	6,356.3
Samsung Electronic (China) R&D Center	Subsidiary	Nanjing, Jiangsu	China	Software and Programming	13.7	150
Guangzhou Samsung Communication Technology Co., Ltd.	Subsidiary	Guangzhou, Guangdong	China	Communications Equipment	17.8	100
Samsung India Electronics Private Limited	Subsidiary	Gurgaon, Haryana	India	Audio and Video Equipment	4,078.4
Samsung Electronics México, S.A. De C.V.	Subsidiary	Ciudad De Mexico, Distrito Federal	Mexico	Retail (Technology)	2,221.8
Samsung Electronics Rus Kaluga Ltd	Subsidiary	Borovskiy Rayon, Kaluzhskaya Oblast	Russian Federation	Audio and Video Equipment	1,947.1
Samsung Electronics Logitech Co., Ltd.	Subsidiary	Suwon, Kyonggi-Do	Korea, Republic of	Miscellaneous Transportation	1,135.7
Samsung Electronics Colombia S.A.	Subsidiary	Bogotá DC	Colombia	Appliance and Tool	515.3
Samsung Electronics Philippines Corporation	Subsidiary	Metro Manila	Philippines	Appliance and Tool	301.3
Samsung Medison Co., Ltd.	Subsidiary	Hongchon, Kanon-Do	Korea, Republic of	Medical Equipment and Supplies	215.0
Samsung Medison Co., Ltd. Dubai Branch	Subsidiary	Dubai	United Arab Emirates	Business Services		422
Samsung Medison France S.A.S.	Subsidiary	Clichy	France	Medical Equipment and Supplies	5.0	34
Samsung Medison Europe B.V.	Subsidiary	Hoofddorp, Noord-Holland	Netherlands	Medical Equipment and Supplies		15
Samsung Yokohama Research Institute Co., Ltd.	Subsidiary	Yokohama, Kanagawa	Japan	Business Services	128.5
Samsung Semiconductor China R&D Co., Ltd.	Subsidiary	Suzhou, Jiangsu	China	Semiconductors	14.4
Thai Samsung Electronics	Subsidiary	Bangkok	Thailand	Appliance and Tool
Samsung Vina Electronics Company Ltd	Subsidiary	Ho Chi Minh City	Viet Nam	Audio and Video Equipment
Samsung Electronics Co.	Subsidiary	Cairo	Egypt	Personal and Household Products
Samsung Deutschland Istanbul Office	Subsidiary	Istanbul	Turkey	Semiconductors
Samsung Electronics Istanbul Pazarlama Ve Ticaret Ltd Sti	Subsidiary	Istanbul (Europe)	Turkey	Electronic Instruments and Controls
Samtronics Perú S.A.	Subsidiary	Lima	Peru	Appliance and Tool
Samsung Lcd Netherlands R&D Center B.V.	Subsidiary	Eindhoven, Noord-Brabant	Netherlands	Biotechnology and Drugs
Samsung Gulf Electronics Co Ltd	Subsidiary	Dubai	United Arab Emirates	Appliance and Tool
Samsung Electronics Chile Limitada	Subsidiary	Santiago, Santiago	Chile	Appliance and Tool
Suzhou Samsung Electronics Co., Ltd.	Subsidiary	Suzhou, Jiangsu	China	Appliance and Tool
Suzhou Samsung Electoronic Co.,Ltd Export	Subsidiary	Suzhou, Jiangsu	China	Appliance and Tool	898.7	1,000
Samsung Electronics Hainan Fiberoptics Co., Ltd.	Subsidiary	Haikou, Hainan	China	Personal and Household Products
Samsung Heavy Industries Co.,Ltd	Affiliates	Seoul	Korea, Republic of	Water Transportation	12,858.4	13,886
Samsung Heavy Industries (Ningbo) Co., Ltd.	Subsidiary	Ningbo, Zhejiang	China	Water Transportation	140.3	4,500
Samsung Heavy Industries (Rong Cheng) Co., Ltd.	Subsidiary	Rongcheng, Shandong	China	Water Transportation	97.6	1,300
Hansol SeenTec Co Ltd	Subsidiary	Chanon	Korea, Republic of	Miscellaneous Capital Goods	104.4	336
Samsung Electro-Mechanics Co., Ltd.	Affiliates	Suwon	Korea, Republic of	Semiconductors	7,022.1	11,999
Samsung High Tech Electro-Mechanics (Tianjin) Co.,Ltd.	Subsidiary	Tianjin, Tianjin	China	Electronic Instruments and Controls	470.8	2,400
Kunshan Samsung Electro-Mechanics Co., Ltd.	Subsidiary	Kunshan, Jiangsu	China	Electronic Instruments and Controls	24.4	1,000
Samsung Electro Mechanics GmbH	Subsidiary	Schwalbach Am Taunus, Hessen	Germany	Appliance and Tool	345.2	150
Samsung Electro-Mechanics Pte. Ltd.	Subsidiary	Singapore	Singapore	Miscellaneous Capital Goods	276.7	47
Samsung Electro-Mechanics America, Inc.	Subsidiary	Irvine, CA	United States	Electronic Instruments and Controls		4
Samsung Electromecánico Mexicana, S.A. De C.V.	Subsidiary	Tijuana, Baja California	Mexico	Audio and Video Equipment		130
Samsung Electro Mechanics Philippines Corporation	Subsidiary	Metro Manila, Laguna	Philippines	Electronic Instruments and Controls	301.3
Samsung Electro-Mechanics (H.K.) Limited	Subsidiary	Wan Chai, Hong Kong	Hong Kong	Electronic Instruments and Controls	23.3
Samsung Electro-Mechanics (Thailand) Co Ltd	Subsidiary	Chachoengsao	Thailand	Electronic Instruments and Controls
Samsung Life Insurance co., Ltd	Affiliates	Seoul	Korea, Republic of	Insurance (Life)	19,966.9	6,564
Samsung Life Investment (U.K.) Ltd.	Subsidiary	London	United Kingdom	Commercial Banks		7
Cheil Industries Inc.	Affiliates	Gumi	Korea, Republic of	Chemicals - Plastics and Rubber	5,333.4	5,063
Samsung Techwin Co Ltd	Affiliates	Chanon	Korea, Republic of	Aerospace and Defense	2,604.3	5,046
Samsung Techwin Europe Ltd.	Subsidiary	Chertsey	United Kingdom	Miscellaneous Capital Goods	135.9	70
Samsung Opto-Electronics GmbH	Subsidiary	Schwalbach Am Taunus, Hessen	Germany	Miscellaneous Capital Goods	123.9	30
Samsung Everland Inc	Affiliates	Seoul	Korea, Republic of	Recreational Activities	2,425.5	4,785
Samsung Card Co Ltd	Affiliates	Seoul	Korea, Republic of	Consumer Financial Services	3,387.9	3,202
Samsung Fine Chemicals Co Ltd	Affiliates	Ulsan	Korea, Republic of	Chemical Manufacturing	1,270.1	1,094
Hantok Chemicals Co., Ltd.	Joint Venture	Seoul	Korea, Republic of	Chemical Manufacturing		7
Samsung Petrochemical Co., Ltd.	Affiliates	Seoul	Korea, Republic of	Chemical Manufacturing		300
Samsung BP Chemicals Co., Ltd.	Joint Venture	Seoul, Seocho-Gu	Korea, Republic of	Oil and Gas Operations		200
Samsung Economic Research Institute	Affiliates	Seoul, Seocho-gu	Korea, Republic of	Business Services		195

Competitors Report

Company Name	Location	Employees	Ownership
China XD Plastics Co Ltd	Haerbin, China	537	Public
Hanwha Chemical Corp	Seoul, Korea, Republic of	2,402	Public
Taita Chemical Co Ltd	Taipei, Taiwan	672	Public

EXECUTIVE REPORT

Board of Directors

Name	Title	Function
Churl-Hwan Chun	Executive VP	Director/Board Member
Seok Ju Hong	Non-Executive Independent Director	Director/Board Member
Biography: Hong Seok Ju has been Non-Executive Independent Director of Cheil Industries Inc. since March 19, 2010. Hong also serves as President of Locus Capital Partners. Hong was Chairman of Rainbow Business Networks Group, Cousultant at A.T. Kearney Korea, President of Korea Investment Corporation and THE KOREA SECURITIES FINANCE CORPORATION. Hong was also Head of Bank at Shinhan Bank. Hong holds a Bachelor's degree in Business Administration from Seoul National University, Korea and a Master's degree in Business Administration from Wharton University, the United States. Age: 59 Education: Wharton University, M (Business Administration) Seoul National University, B (Business Administration)
Baek Hwang	President & CEO	Director/Board Member
Hye-Ryun Kang	Board Member	Director/Board Member
Ji Yeong Kim	Assistant Managing Director	Director/Board Member
Age: 40 Education: Harvard University, MBA Yonsei University, B (Journalism and Mass Communications)
Nan Do Kim	Non-Executive Independent Director	Director/Board Member
Biography: Kim Nan Do has been serving as Non-Executive Independent Director of Cheil Industries Inc. since March 16, 2012. Kim is also a professor of Seoul National University, Korea. Kim holds a Doctorate's degree in Public Administration from University of Southern California, the United States. Age: 49 Education: University of Southern California, PHD (Public Administration)
Sung-jin Kim	Board Member	Director/Board Member
Jae Hui Kim	Non-Executive Independent Director	Director/Board Member
Biography: Kim Jae Hui has been Non-Executive Independent Director of CHEIL INDUSTRIES INC since March 15, 2013. Kim is also a Professor of Yonsei University, Korea. Kim is Head of a Korea-based research center. Kim holds a Doctorate's degree in Electronics Engineering from Case Western Reserve University, the United States. Age: 59 Education: Case Western Reserve University, PHD (Electronics Engineering)
Seung Gu Lee	Managing Director, Director	Director/Board Member
Biography: Lee Seung Gu has been Managing Director of Cheil Industries Inc. since March 16, 2012. Lee used to serve as Assistant Managing Director and Managing Director at SAMSUNG ELECTRONICS CO,.LTD. Lee holds a Bachelor's degree in Business Administration from Soongsil University, Korea. Age: 56 Education: Soongsil University, B (Business Administration)
Moon Yong Lee	Executive VP	Director/Board Member
Jang Jae Lee	Vice President, Director	Director/Board Member
Biography: Lee Jang Jae has been Vice President and Director of Cheil Industries Inc. Previously, Lee served as Managing Director of the Company, Managing Director and Assistant Managing Director of Samsung Electronics Co., Ltd. Lee holds a Bachelor's degree in Business Administration from Yonsei University, Korea. Age: 57 Education: Yonsei University, B (Business Administration)
Jong Wu Park	President, Co-Chief Executive Officer, Director	Director/Board Member
Biography: Park Jong Wu has been President, Co-Chief Executive Officer and Director of Cheil Industries Inc since March 15, 2013. Park used to serve as President at SAMSUNG ELECTRONICS CO,.LTD, as well as President and Chief Executive Officer at SAMSUNG ELECTRO-MECHANICS CO.,LTD. Park holds a Bachelor's, a Master's and a Doctorate's degrees in Electrical Engineering from Yonsei University, Korea, as well as a Doctorate's degree in Electrical Engineering from Purdue University, the United States. Age: 60 Education: Purdue University, PHD (Electrical Engineering) Yonsei University, PHD (Electrical Engineering) Yonsei University, M (Electrical Engineering)
Young-dae Yoon	Board Member	Director/Board Member

Executives

Name	Title	Function
Yoon Ju Hwa	Co-Chief Executive Officer	Chief Executive Officer
Biography: Yoon Ju Hwa has been Co-Chief Executive Officer, President-Fashion General Division and Director of CHEIL INDUSTRIES INC since March 15, 2013. Yoon used to be Vice President, President of SAMSUNG ELECTRONICS CO,.LTD. Yoon holds a Bachelor's degree in Statistics from SungKyunKwan University, Korea. Age: 60 Education: Sungkyunkwan University, B (Statistics)
Baek Hwang	President & CEO	Chief Executive Officer
Jong Wu Park	President, Co-Chief Executive Officer, Director	Chief Executive Officer
Biography: Park Jong Wu has been President, Co-Chief Executive Officer and Director of Cheil Industries Inc since March 15, 2013. Park used to serve as President at SAMSUNG ELECTRONICS CO,.LTD, as well as President and Chief Executive Officer at SAMSUNG ELECTRO-MECHANICS CO.,LTD. Park holds a Bachelor's, a Master's and a Doctorate's degrees in Electrical Engineering from Yonsei University, Korea, as well as a Doctorate's degree in Electrical Engineering from Purdue University, the United States. Age: 60 Education: Purdue University, PHD (Electrical Engineering) Yonsei University, PHD (Electrical Engineering) Yonsei University, M (Electrical Engineering)
Park Jong Woo	Chief Executive Officer	Chief Executive Officer
Biography: Mr. Jong Woo is the president and the chief executive officer of Cheil Industries Inc. since 2012. Prior to this Mr. Park was the president and the chief executive officer of SEMCO since 2009. He was also the president and head of the printing division in the Samsung Electronics in 2006 and vice president of Samsung Electronics in 2002.
Jae Hyeon Bae	Assistant Managing Director	Managing Director
Age: 50 Education: Hanyang University, B (Accounting)
Sang on Byun	Managing Director	Managing Director
Age: 54 Education: Yeungnam University, M (Electrical Engineering) Chungbuk National University, B (Electrical Engineering)
Seong Wu Cho	Assistant Managing Director	Managing Director
Age: 51 Education: Hanyang University, B (Chemical Engineering)
Gyu Hwan Cho	Managing Director	Managing Director
Biography: Cho Gyu Hwan has been Managing Director of Cheil Industries Inc. Previously, Cho served as Assistant Managing Director of the Company, President of Southeast Asia Region and President of Korea Branch at GE Plastics. Cho was also a Corporate Audit Staff of GE. Cho also worked for GE Electrical Distribution & Controls. Cho holds a Bachelor's degree in Mechanical Engineering from University of Illinois, the United States. Age: 48 Education: University of Illinois, B (Mechanical Engineering)
Yun Ho Choi	Managing Director	Managing Director
Age: 52 Education: Seoul National University, B (Electrical Engineering)
Yu Hyeon Goh	Assistant Managing Director	Managing Director
Biography: Goh Yu Hyeon has been Assistant Managing Director of Cheil Industries Inc. Goh was previously Assistant Managing Director of TAYLOR MADE KOREA LTD, Director of Marketing at LEVI`S KOREA, and Head of Marketing at Bluebell Korea. Goh holds a Bachelor's degree in English Literature from University of Incheon, Korea, and a Master's degree in Business Administration from Korea University. Age: 49 Education: Korea University, M (Business Administration) University of Incheon, B (English Literature)
Yeong Gi on	Assistant Managing Director	Managing Director
Age: 45 Education: Emory University, M (Business Administration) Seoul National University, M (Business Administration) Seoul National University, B (Business Administration)
Jung Jin on	Assistant Managing Director	Managing Director
Age: 52 Education: Keimyung University, B (Accounting)
Oh Hyang on	Assistant Managing Director	Managing Director
Age: 48 Education: Hongik University, M (Clothing and Textile) Duksung Women's University, B (Clothing and Textile)
Hyeong Jun Ham	Assistant Managing Director	Managing Director
Age: 50 Education: Korea University, M (Business Administration) Dongguk University, B (Economics)
Jin Seon Hwang	Assistant Managing Director	Managing Director
Biography: Hwang Jin Seon has been Assistant Managing Director of Cheil Industries Inc. Previously, Hwang also served as Director of Marketing and Manager at P&G Korea and Global Customer Leader at P&G Japan. Hwang holds a Bachelor's degree in Business Administration from Ewha Womans University, Korea. Age: 45 Education: Ewha Womans University, BBA
Du Won Jang	Managing Director	Managing Director
Biography: Jang Du Won has been Managing Director of Cheil Industries Inc.since 2010. Previously, Lee served as Assistant Managing Director at the Company. Prior to joining the Company, Jang worked for Samsung Electronics. Jang received a Bachelor's degree in Chemistry from Seoul National University, Korea, a Master's degree in Chemistry from Korea Advanced Institute of Science & Technology, and a Doctorate's degree in Applied Chemistry from Princeton University, the United States. Age: 57 Education: Princeton University, DS (Applied Chemistry) Korea Advanced Institute of Science and Technology, M (Chemistry) Seoul National University, B (Chemistry)
Cheol Hwan Jeon	Managing Director	Managing Director
Biography: Jeon Cheol Hwan serves as Managing Director of Cheil Industries Inc. Jeon was previously Assistant Managing Director of the Company. Jeon holds a Bachelor's degree in Business Administration from Chung-Ang University, Korea. Age: 57 Education: Chung-Ang University, B (Business Administration)
Jae Jun Jung	Assistant Managing Director	Managing Director
Biography: Jung Jae Jun has been Assistant Managing Director of Cheil Industries Inc. Previously, Jung served as Assistant Managing Director of Samsung Electronics Co., Ltd. and also worked for Samsung C&T Corporation. Jung holds a Bachelor's degree in Business Administration from Seoul National University, Korea. Age: 48 Education: Seoul National University, B (Business Administration)
Yong Tae Jung	Assistant Managing Director	Managing Director
Age: 48 Education: Yeungnam University, B (Chemical Engineering)
Se Chan Jung	Assistant Managing Director	Managing Director
Age: 47 Education: Seoul National University, MBA Seoul National University, BBA
Gu Ho Jung	Managing Director	Managing Director
Biography: Jung Gu Ho has been Managing Director of Cheil Industries Inc. since 2010. Previously, Jung served as Assistant Managing Director at the Company. Jung holds a Bachelor's degree from Parsons School of Design NY. Age: 47
Hwa Gyeong Jung	Assistant Managing Director	Managing Director
Biography: Jung Hwa Gyeong has been Assistant Managing Director of CHEIL INDUSTRIES INC. Previously, Jung worked for L'Oreal Group. Jung holds a Bachelor's degree in Languages from Seoul National University, Korea, and a Master of Business Administration from ESSEC Business School, France. Age: 45 Education: ESSEC Business School, MBA Seoul National University, B (Languages)
Wuk Jun Jung	Assistant Managing Director	Managing Director
Biography: Jung Wuk Jun has been Assistant Managing Director of Cheil Industries Inc. Prior to joining the Company, Jung served as President of another company and also worked for NIX CO., LTD. Age: 45
Sang Hyeon Jung	Assistant Managing Director	Managing Director
Age: 48 Education: Soongsil University, B (Textile Engineering)
Jong Su Kim	Assistant Managing Director	Managing Director
Biography: Kim Jong Su has been Assistant Managing Director of Cheil Industries Inc. Kim was Chief Executive Officer at ISE Commerce Company Limited. and also worked for SK Global, Hanwha Galleria Co., Ltd. and Samsung Electronics Co., Ltd. Kim received a Bachelor's degree in Economics from Yonsei University, Korea, and a Master of Business Administration from Vanderbilt University, the United States. Age: 46 Education: Vanderbilt University, MBA Yonsei University, B (Economics)
Yun Gu Kim	Assistant Managing Director	Managing Director
Biography: Kim Yun Gu has been Assistant Managing Director of Cheil Industries Inc. Kim used to work for Samsung C&T. Kim holds a Bachelor's degree in International Trade from Sungkyunkwan University, Korea. Age: 52 Education: Sungkyunkwan University, B (International Trade)
Jong Seop Kim	Managing Director	Managing Director
Age: 51 Education: Korea Advanced Institute of Science and Technology, PHD (Chemical Engineering) Soongsil University, B (Chemical Engineering)
Yong Tae Kim	Assistant Managing Director	Managing Director
Age: 50 Education: Korea University, M (Chemical Engineering) Korea University, B (Chemical Engineering)
Jin Myeon Kim	Managing Director	Managing Director
Biography: Kim Jin Myeon has been Managing Director of Cheil Industries Inc. Previously, Kim was Assistant Managing Director at the Company. Prior to joining the Company, Kim worked for Samsung Corporation. Kim holds a Bachelor's degree in Chemical Engineering from Sungkyunkwan University, Korea, and a Master's degree in Fashion Industrial Information from Yonsei University, Korea. Age: 55 Education: Yonsei University, M Sungkyunkwan University, B (Chemical Engineering)
ang Seong Kim	Assistant Managing Director	Managing Director
Age: 47 Education: Seoul National University, M (Textile Engineering) Seoul National University, B (Textile Engineering)
Yil Ju Kim	Assistant Managing Director	Managing Director
Biography: Kim Yil Ju has been Assistant Managing Director of Cheil Industries Inc. Previously, Kim worked for Cheil Worldwide Inc and was a Team Leader at SAMSUNG CARD CO., LTD. Kim holds a Bachelor's degree in Economics from University of Toronto and a Master's degree in Journalism and Mass Communication from Yonsei University, Korea. Kim also completed a Bachelor's course in Sociology from Yonsei University, Korea. Age: 44 Education: Yonsei University, M (Journalism and Mass Communications) University of Toronto, B (Economics)
Gyeong Hun Kim	Assistant Managing Director	Managing Director
Biography: Kim Gyeong Hun has been Assistant Managing Director of CHEIL INDUSTRIES INC since 2010. Previously, Kim worked for Samsung Corning Co., Ltd. Kim holds a Bachelor's and a Master's degrees in Mechanical Engineering from Chonnam National University, Korea. Kim also completed a Doctorate's course from Hanyang University, Korea. Age: 48 Education: Chonnam National University, M (Mechanical Engineering) Chonnam National University, B (Mechanical Engineering)
Jae Heung Kim	Assistant Managing Director	Managing Director
Biography: Kim Jae Heung has been Assistant Managing Director of Cheil Industries Inc. Kim was Assistant Managing Director of Samsung Electronics Co., Ltd. Kim received a Bachelor's degree in Electronics Engineering from Soongsil University, Korea. Age: 53 Education: Soongsil University, B (Electronics Engineering)
Dong Ha Kim	Managing Director	Managing Director
Biography: Kim Dong Ha has been Managing Director of Cheil Industries Inc.since 2010. Previously, Kim also served as Assistant Managing Director and Head of Human Resource Support at the Company. Kim holds a Bachelor's degree in Law from Yeungnam University, Korea and a Master's degree in Business Administration from Korea University. Age: 54 Education: Korea University, M (Business Administration) Yeungnam University, B (Law)
Jeong Min Kim	Assistant Managing Director	Managing Director
Biography: Kim Jeong Min has been Assistant Managing Director of Cheil Industries Inc. Kim worked for Samsung C&T Corporation. Kim received a Bachelor's degree in Business Administration from Seoul National University, Korea. Age: 41 Education: Seoul National University, B (Business Administration)
Seong Yil Kim	Managing Director	Managing Director
Biography: Kim Seong Yil has been Managing Director of Cheil Industries Inc since 2009. Previously, Kim was Manager of Ferro USA Co., and Despatch Solar USA. Kim holds a Bachelor's degree in Materials Engineering from Hanyang University, a Master's and a Doctorate's degrees in Materials Engineering from University of Washington, Seattle. Age: 58 Education: University of Washington, Seattle, PHD (Materials Engineering) University of Washington, Seattle, M (Materials Engineering) Hanyang University, B (Materials Engineering)
Ji Yeong Kim	Assistant Managing Director	Managing Director
Age: 40 Education: Harvard University, MBA Yonsei University, B (Journalism and Mass Communications)
Jun Seo Lee	Assistant Managing Director	Managing Director
Age: 45 Education: Seoul National University, M (Business Administration) Seoul National University, B (Business Administration)
Jae Gyeong Lee	Assistant Managing Director	Managing Director
Biography: Lee Jae Gyeong has been Assistant Managing Director of Cheil Industries Inc. Lee used to work for SAMSUNG SDI CO.,LTD. and another company. Lee holds a Bachelor's degree in Industrial Engineering from Korea University. Age: 47 Education: Korea University, B (Industrial Engineering)
Yong Hui Lee	Assistant Managing Director	Managing Director
Age: 50 Education: Korea University, MBA Konkuk University, B (Textile Engineering)
Gi Yin Lee	Assistant Managing Director	Managing Director
Age: 50 Education: Korea University, MBA University of Seoul, BBA
Sang Seon Lee	Assistant Managing Director	Managing Director
Biography: Lee Sang Seon has been Assistant Managing Director of Cheil Industries Inc. since 2009. Lee previously worked for SAMSUNG HEAVY INDUSTRIES CO.,LTD and samsung commercial vehicles co.CoLtd. Lee holds a Bachelor's degree in Chemical Engineering from Chonnam National University, Korea. Age: 52 Education: Chonnam National University, B (Chemical Engineering)
Gyu Cheol Lee	Managing Director	Managing Director
Age: 50 Education: Yonsei University, B (Chemistry)
Cheon Seok Lee	Assistant Managing Director	Managing Director
Biography: Lee Cheon Seok has been Assistant Managing Director of Cheil Industries Inc. Lee used to work for Samsung Heavy Industries. Lee holds a Bachelor's degree in Chemistry Education from Pusan National University, Korea, and a Doctorate's degree in Chemistry from Korea Advanced Institute of Science & Technology. Age: 47 Education: Korea Advanced Institute of Science and Technology, PHD (Chemistry) Pusan National University, B
Jin Wuk Lee	Assistant Managing Director	Managing Director
Biography: Lee Jin Wuk has been Assistant Managing Director of Cheil Industries Inc. since January 1, 2010. Lee was a Staff Engineer at Intel and Research Assistant at Massachusetts Institute of Technology (MIT). Lee holds a Bachelor's and a Master's degrees in Industrial Chemistry from Seoul National University and a Doctorate's degree in Materials Engineering from Massachusetts Institute of Technology (MIT). Age: 45 Education: Massachusetts Institute of Technology, PHD (Materials Engineering) Seoul National University, M Seoul National University, B
Yeong Jun Lee	Assistant Managing Director	Managing Director
Age: 46 Education: Korea Advanced Institute of Science and Technology, PHD (Polymer Science) Korea Advanced Institute of Science and Technology, M (Polymer Science) Korea University, B (Chemical Engineering)
ang Bok Lee	Assistant Managing Director	Managing Director
Biography: Lee ang Bok has been Assistant Managing Director of Cheil Industries Inc. Lee used to work for SAMSUNG ELECTRONICS CO,.LTD. and another company. Lee holds a Bachelor's degree in Electronics Engineering from Soongsil University, Korea. Age: 49 Education: Soongsil University, B (Electronics Engineering)
Seung Gu Lee	Managing Director, Director	Managing Director
Biography: Lee Seung Gu has been Managing Director of Cheil Industries Inc. since March 16, 2012. Lee used to serve as Assistant Managing Director and Managing Director at SAMSUNG ELECTRONICS CO,.LTD. Lee holds a Bachelor's degree in Business Administration from Soongsil University, Korea. Age: 56 Education: Soongsil University, B (Business Administration)
Jeong Gi Moon	Assistant Managing Director	Managing Director
Biography: Moon Jeong Gi has been Assistant Managing Director of Cheil Industries Inc. since January 1, 2010. Moon also serves as Head of Business in Japan at the Company. Moon holds a Bachelor's degree in Chemical Engineering from Inha University, Korea, and a Master's and a Doctorate's degrees in Chemical Engineering from Korea Advanced Institute of Science and Technology. Age: 49 Education: Korea Advanced Institute of Science and Technology, PHD (Chemical Engineering) Korea Advanced Institute of Science and Technology, M (Chemical Engineering) Inha University, B (Chemical Engineering)
Dong Wuk Moon	Assistant Managing Director	Managing Director
Age: 51 Education: Kyungpook National University, B (Industrial Engineering)
Jin Hyeon Park	Assistant Managing Director	Managing Director
Age: 47 Education: Sungkyunkwan University, B (Chemical Engineering)
Cheol Gyu Park	Assistant Managing Director	Managing Director
Biography: Park Cheol Gyu has been Assistant Managing Director of Cheil Industries Inc. Park also worked for Samsung C&T Corporation. Park holds a Bachelor's degree in International Economics from Seoul National University, Korea. Age: 51 Education: Seoul National University, B (International Economics)
ang Sik Park	Assistant Managing Director	Managing Director
Biography: Park ang Sik has been Assistant Managing Director of Cheil Industries Inc. since January 1, 2010. Park was Division Head of Samsung Electronics Co., Ltd. Park holds a Bachelor's degree in International Trade and a Master's degree in Economics from Hankook University of Foreign Studies, Korea, and a Master's degree in Business Administration from State University of New York at Buffalo, the United States. Age: 49 Education: State University of New York at Buffalo, M (Business Administration) Hankook University of Foreign Studies, M (Economics) Hankook University of Foreign Studies, B (International Trade)
Oh Seop Shim	Assistant Managing Director	Managing Director
Biography: Shim Oh Seop has been Assistant Managing Director of Cheil Industries Inc. Shim was Head of Korea Region at Salvatore Ferragamo, Safilo and Richemont. Shim received a Bachelor's degree in English from Hankook University of Foreign Studies, Korea. Age: 46 Education: Hankook University of Foreign Studies, B (English)
Myeong Eun Shin	Assistant Managing Director	Managing Director
Age: 47 Education: Ewha Womans University, M Duksung Women's University, B
Seong Jae Shin	Assistant Managing Director	Managing Director
Age: 46 Education: Yonsei University, B (Chemical Engineering)
on Sik Shin	Assistant Managing Director	Managing Director
Age: 48 Education: Hankook University of Foreign Studies, B (Journalism and Mass Communications)
Chang Ryong Song	Managing Director	Managing Director
Biography: Song Chang Ryong has been Managing Director of Cheil Industries Inc. Previously Song served as Assistant Managing Director at the Company and Samsung Electronics. Song holds a Bachelor's degree in Electronics Engineering from Korea University. Age: 51 Education: Korea University, B (Electronics Engineering)
Sam Ju Yang	Assistant Managing Director	Managing Director
Age: 46 Education: Korea University, M (Business Administration) Seoul National University, B
Ji Hye Yim	Assistant Managing Director	Managing Director
Age: 43 Education: Kookmin University, B (International Trade)
Yi Hyeon Baek	Vice President	Other
Biography: Baek Yi Hyeon has been Vice President of CHEIL INDUSTRIES INC since 2010.Previously, Baek served as Chief Executive Officer and Vice Chairman of Shipley, Baek also worked for Rohm and Hass. Baek holds a Bachelor's and a Master's degrees in Chemistry from Seoul National University, Korea, and a Doctorate's degree in Chemistry from University of Pittsburgh, the United States. Age: 56 Education: University of Pittsburgh, PHD (Chemistry) Seoul National University, M (Chemistry) Seoul National University, B (Chemistry)
Kim Sung Jin	Director	Other	GMD
Hong Seok Joo	Director	Other	GMD
Lee Seoung Ku	Executive Vice President	Other	GMD
Seo Hyeon Lee	Vice President	Other
Biography: Lee Seo Hyeon has been Vice President of Cheil Industries Inc. Previously, Lee served as Managing Director and Assistant Managing Director of the Company. Lee holds a Bachelor's degree from Parsons School of Design NY. Age: 39
Chang Geun Park	Vice President	Other
Biography: Park Chang Geun has been Vice President of CHEIL INDUSTRIES INC. Previously, Park served as Managing Director of the Company. Park holds a Bachelor's degree in Metallurgical Engineering from University of Ulsan, Korea, and a Master of Business Administration from Southern Oregon University, the United States. Age: 55 Education: Southern Oregon University, MBA University of Ulsan, B (Metallurgical Engineering)

Significant Developments

Cheil Industries Inc Decides to Issue Short Term Bonds May 15, 2013

Cheil Industries Inc announced that it has decided to issue KRW 400 billion worth of short term bonds, to purchase operating funds.

Cheil Industries Inc Announces Changes in Shareholding Structure Apr 19, 2013

Cheil Industries Inc announced that Samsung Investment Trust Management Co., Ltd has acquired 2,641,139 shares of the Company, representing a 5.04% stake.

Cheil Industries Inc Considering Buying Novaled AG-Reuters Apr 02, 2013

reported that Cheil Industries Inc said it is considering buying German high-tech lighting company Novaled AG. South Korean newswire Money reported earlier on the Dresden-based company was expected to fetch around KRW300 billion ($270 million).

Cheil Industries Inc. Appoints New Co-CEO Mar 15, 2013

Cheil Industries Inc. announced that it has appointed Yoon Ju Hwa as its new Co-Chief Executive Officer (Co-CEO), effective March 15, 2013. The current Chief Executive Officer, Park Jong Wu, continues his duty as Co-CEO at the Company.

Cheil Industries Inc. Declares Annual Cash Dividend for FY 2012 Jan 30, 2013

Cheil Industries Inc. announced that it has declared an annual cash dividend of KRW 750 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 0.79% and the total amount of the cash dividend is KRW 37,951,389,750.

HB Technology CO.,LTD. to Acquire Equipments from Cheil Industries Inc. Nov 30, 2012

HB Technology CO.,LTD. announced that it has decided to acquire TFT-LCD light guide plate and diffusion plate related mass production equipments from Cheil Industries Inc., to improve business diversification. The amount of the acquisition is worth KRW 12,500 million, and the proposed settlement date is November 30, 2013.

Annual Income Statement

Financials in: USD (mil)

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

	31-Dec-2012	31-Dc-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	Reclassified Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate (Period Average)	1126.848795	1107.891393	1156.281981	1276.385219	1100.562842
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	5,333.4	5,037.5	4,422.0	3,451.5	3,568.2
Revenue	5,333.4	5,037.5	4,422.0	3,451.5	3,568.2
Total Revenue	5,333.4	5,037.5	4,422.0	3,451.5	3,568.2
Cost of Revenue	3,687.1	3,607.8	3,091.9	2,506.4	2,513.9
Cost of Revenue, Total	3,687.1	3,607.8	3,091.9	2,506.4	2,513.9
Gross Profit	1,646.3	1,429.7	1,330.1	945.2	1,054.3
Selling/General/Administrative Expense	873.5	806.0	671.1	471.4	842.8
Labor & Related Expense	236.7	188.6	155.8	114.4	-
Advertising Expense	67.0	65.4	61.0	57.0	-
Total Selling/General/Administrative Expenses	1,177.2	1,060.0	887.9	642.8	842.8
Research & Development	129.5	119.2	104.2	60.7	-
Depreciation	47.8	44.3	38.2	28.2	-
Amortization of Intangibles	6.3	5.3	6.9	15.3	-
Depreciation/Amortization	54.0	49.6	45.1	43.5	-
Investment Income - Operating	-	-	-0.4	-	-
Interest/Investment Income - Operating	-	-	-0.4	-	-
Interest Expense (Income) - Net Operating Total	-	-	-0.4	-	-
Impairment-Assets Held for Use	-	-	30.9	-	-
Impairment-Assets Held for Sale	-	-	4.6	-	-
Loss (Gain) on Sale of Assets - Operating	-	-	6.1	-	-
Unusual Expense (Income)	-	-	41.6	-	-
Other Operating Expense	-	-	15.4	-	-
Other, Net	-	-	-49.1	-	-
Other Operating Expenses, Total	-	-	-33.6	-	-
Total Operating Expense	5,047.9	4,836.7	4,136.6	3,253.3	3,356.8
Operating Income	285.5	200.8	285.3	198.2	211.5
Interest Expense - Non-Operating	-35.4	-25.7	-23.1	-34.0	-35.5
Interest Expense, Net Non-Operating	-35.4	-25.7	-23.1	-34.0	-35.5
Interest Income - Non-Operating	6.0	4.2	3.6	4.6	5.1
Investment Income - Non-Operating	-24.6	11.1	32.7	-53.0	-3.7
Interest/Investment Income - Non-Operating	-18.7	15.3	36.3	-48.4	1.5
Interest Income (Expense) - Net Non-Operating Total	-54.1	-10.4	13.2	-82.4	-34.0
Gain (Loss) on Sale of Assets	-	-	-	-6.8	-1.0
Other Non-Operating Income (Expense)	28.6	58.4	-	4.5	-0.9
Other, Net	28.6	58.4	-	4.5	-0.9
Income Before Tax	260.0	248.8	298.5	113.6	175.5
Total Income Tax	74.7	14.9	42.0	22.6	31.4
Income After Tax	185.3	233.9	256.5	91.0	144.1
Minority Interest	-0.1	0.0	5.0	2.9	1.7
Equity In Affiliates	-	-	-	0.0	-
Net Income Before Extraord Items	185.1	233.9	261.6	93.9	145.8
Discontinued Operations	-	-	-20.6	-	-
Total Extraord Items	-	-	-20.6	-	-
Net Income	185.1	233.9	241.0	93.9	145.8
Income Available to Common Excl Extraord Items	185.1	233.9	261.6	93.9	145.8
Income Available to Common Incl Extraord Items	185.1	233.9	241.0	93.9	145.8
Basic/Primary Weighted Average Shares	50.6	49.1	48.0	47.8	48.4
Basic EPS Excl Extraord Items	3.66	4.76	5.45	1.96	3.01
Basic/Primary EPS Incl Extraord Items	3.66	4.76	5.03	1.96	3.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	185.1	233.9	241.0	93.9	145.8
Diluted Weighted Average Shares	50.7	49.2	48.2	48.1	48.7
Diluted EPS Excl Extraord Items	3.65	4.75	5.43	1.95	3.00
Diluted EPS Incl Extraord Items	3.65	4.75	5.00	1.95	3.00
Dividends per Share - Common Stock Primary Issue	0.67	0.68	0.65	0.59	0.68
Gross Dividends - Common Stock	33.7	34.2	31.1	28.1	32.6
Interest Expense, Supplemental	35.4	25.7	23.1	34.0	35.5
Interest Capitalized, Supplemental	-7.6	-4.8	-	-	-
Depreciation, Supplemental	177.5	141.0	110.9	92.1	90.5
Total Special Items	-	-	41.6	8.9	3.7
Normalized Income Before Tax	260.0	248.8	340.1	122.4	179.2
Effect of Special Items on Income Taxes	-	-	5.8	1.3	0.2
Inc Tax Ex Impact of Sp Items	74.7	14.9	47.8	23.9	31.6
Normalized Income After Tax	185.3	233.9	292.3	98.5	147.6
Normalized Inc. Avail to Com.	185.1	233.9	297.3	101.4	149.4
Basic Normalized EPS	3.66	4.76	6.20	2.12	3.09
Diluted Normalized EPS	3.65	4.75	6.17	2.11	3.07
Amort of Acquisition Costs, Supplemental	-	-	-	2.1	2.7
Amort of Intangibles, Supplemental	8.3	5.3	6.9	13.3	15.0
Rental Expenses	165.0	149.3	125.6	101.2	107.0
Advertising Expense, Supplemental	67.0	65.4	61.0	57.0	64.1
Research & Development Exp, Supplemental	129.5	119.2	104.2	60.7	44.9
Normalized EBIT	285.5	200.8	326.5	198.2	211.5
Normalized EBITDA	471.2	347.2	444.3	305.6	319.6

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	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	106.4	83.7	29.4	74.1	16.8
Short Term Investments	30.9	0.2	-	10.4	3.7
Cash and Short Term Investments	137.3	83.9	29.4	84.5	20.6
Accounts Receivable - Trade, Gross	588.2	424.2	409.4	395.1	310.4
Provision for Doubtful Accounts	-2.8	-3.1	-4.9	-8.7	-4.9
Trade Accounts Receivable - Net	585.8	421.9	404.6	386.5	305.6
Other Receivables	52.3	39.2	52.9	36.4	45.7
Total Receivables, Net	638.1	461.2	457.5	422.9	351.3
Inventories - Finished Goods	591.2	423.1	352.5	303.8	330.9
Inventories - Work In Progress	98.8	83.7	77.0	66.9	73.9
Inventories - Raw Materials	155.7	134.9	104.1	76.3	75.3
Inventories - Other	50.6	30.8	28.9	24.5	20.6
Total Inventory	896.3	672.5	562.4	471.5	500.7
Prepaid Expenses	29.4	16.6	13.9	8.8	11.9
Deferred Income Tax - Current Asset	-	-	-	44.9	37.9
Discontinued Operations - Current Asset	-	-	5.8	-	-
Other Current Assets	21.4	11.2	18.3	0.1	7.7
Other Current Assets, Total	21.4	11.2	24.1	45.0	45.6
Total Current Assets	1,722.6	1,245.4	1,087.4	1,032.7	930.0
Buildings	669.4	548.6	469.3	460.4	419.9
Land/Improvements	310.0	278.0	231.6	223.9	199.6
Machinery/Equipment	1,412.7	1,155.5	867.3	784.5	660.9
Construction in Progress	220.9	154.6	100.4	17.5	26.1
Leases	22.7	3.8	3.9	2.9	1.4
Other Property/Plant/Equipment	0.0	0.0	0.0	-	-
Property/Plant/Equipment - Gross	2,635.7	2,140.5	1,672.4	1,489.2	1,307.8
Accumulated Depreciation	-1,045.3	-846.3	-684.4	-616.1	-495.8
Property/Plant/Equipment - Net	1,590.4	1,294.2	988.0	873.1	812.0
Goodwill, Net	347.1	321.3	1.1	4.7	6.9
Intangibles, Net	87.0	53.5	38.9	52.3	106.9
LT Investment - Affiliate Companies	92.6	100.8	132.8	98.0	70.3
LT Investments - Other	1,145.1	1,185.3	1,233.5	568.4	243.3
Long Term Investments	1,237.7	1,286.2	1,366.3	666.5	313.6
Note Receivable - Long Term	4.9	4.9	4.5	-	-
Deferred Income Tax - Long Term Asset	3.2	1.4	1.4	-	-
Other Long Term Assets	88.3	73.4	71.1	97.2	92.3
Other Long Term Assets, Total	91.5	74.8	72.5	97.2	92.3
Total Assets	5,081.2	4,280.2	3,558.7	2,726.6	2,261.7
Accounts Payable	225.8	242.8	312.3	262.3	173.9
Accrued Expenses	-	1.3	0.4	19.6	15.1
Notes Payable/Short Term Debt	236.6	137.7	28.6	68.1	193.1
Current Portion - Long Term Debt/Capital Leases	98.9	97.9	168.1	53.6	103.0
Customer Advances	32.6	23.9	23.3	-	-
Security Deposits	-	-	-	14.0	11.9
Income Taxes Payable	43.3	10.5	30.2	19.4	16.1
Other Payables	260.2	179.1	168.0	82.6	69.9
Discontinued Operations - Current Liability	-	-	5.8	-	-
Other Current Liabilities	43.8	56.8	33.6	49.0	43.4
Other Current liabilities, Total	379.9	270.3	261.0	165.0	141.3
Total Current Liabilities	941.2	750.0	770.4	568.7	626.4
Long Term Debt	854.9	504.5	91.7	328.0	276.8
Total Long Term Debt	854.9	504.5	91.7	328.0	276.8
Total Debt	1,190.4	740.2	288.3	449.8	572.9
Deferred Income Tax - LT Liability	182.4	200.1	224.7	113.0	46.8
Deferred Income Tax	182.4	200.1	224.7	113.0	46.8
Minority Interest	2.9	0.5	0.5	7.9	10.6
Pension Benefits - Underfunded	34.8	28.5	30.0	21.2	29.1
Other Long Term Liabilities	13.2	4.7	4.3	3.6	2.1
Other Liabilities, Total	48.0	33.3	34.3	24.8	31.2
Total Liabilities	2,029.5	1,488.4	1,121.6	1,042.4	991.7
Common Stock	245.9	227.6	220.3	214.7	198.5
Common Stock	245.9	227.6	220.3	214.7	198.5
Additional Paid-In Capital	658.7	609.8	371.3	370.7	343.5
Retained Earnings (Accumulated Deficit)	1,481.5	1,223.3	1,045.0	786.7	660.6
Treasury Stock - Common	-45.4	-42.7	-45.8	-48.0	-46.1
Unrealized Gain (Loss)	716.9	775.4	847.6	345.9	102.0
Translation Adjustment	-3.5	0.4	-0.2	14.2	11.5
Other Equity	-2.4	-2.0	-1.1	-	-
Other Comprehensive Income	-	-	-	0.0	-
Other Equity, Total	-5.9	-1.7	-1.3	14.2	11.5
Total Equity	3,051.7	2,791.8	2,437.1	1,684.2	1,270.0
Total Liabilities & Shareholders’ Equity	5,081.2	4,280.2	3,558.7	2,726.6	2,261.7
Shares Outstanding - Common Stock Primary Issue	50.6	50.6	48.0	47.9	47.8
Total Common Shares Outstanding	50.6	50.6	48.0	47.9	47.8
Treasury Shares - Common Stock Primary Issue	1.8	1.9	2.0	2.1	2.2
Employees	-	4,889	3,853	3,257	3,138
Number of Common Shareholders	-	-	51,672	-	26,135
Accumulated Goodwill Amortization Suppl.	-	-	-	10.7	7.8
Accumulated Intangible Amort, Suppl.	289.1	259.6	252.7	115.0	92.9
Deferred Revenue - Current	29.7	23.9	23.3	-	20.4
Total Long Term Debt, Supplemental	-	-	-	382.9	199.0
Long Term Debt Maturing within 1 Year	-	-	-	53.7	39.7
Long Term Debt Maturing in Year 2	-	-	-	187.6	159.3
Long Term Debt Maturing in Year 3	-	-	-	107.6	-
Long Term Debt Maturing in Year 4	-	-	-	21.8	-
Long Term Debt Maturing in Year 5	-	-	-	11.0	-
Long Term Debt Maturing in 2-3 Years	-	-	-	295.1	159.3
Long Term Debt Maturing in 4-5 Years	-	-	-	32.8	-
Long Term Debt Matur. in Year 6 & Beyond	-	-	-	1.3	0.0
Total Capital Leases, Supplemental	7.7	7.8	-	-	-
Capital Lease Payments Due in Year 1	0.3	0.3	-	-	-
Capital Lease Payments Due in Year 2	0.4	0.4	-	-	-
Capital Lease Payments Due in Year 3	0.4	0.4	-	-	-
Capital Lease Payments Due in Year 4	0.4	0.4	-	-	-
Capital Lease Payments Due in Year 5	0.4	0.4	-	-	-
Capital Lease Payments Due in 2-3 Years	0.8	0.7	-	-	-
Capital Lease Payments Due in 4-5 Years	0.8	0.7	-	-	-
Cap. Lease Pymts. Due in Year 6 & Beyond	5.8	6.1	-	-	-

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	Reclassified Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate (Period Average)	1126.848795	1107.891393	1156.281981	1276.385219	1100.562842
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income/Starting Line	185.3	233.9	236.0	91.0	144.1
Depreciation	176.9	140.6	110.9	92.1	90.5
Depreciation/Depletion	176.9	140.6	110.9	92.1	90.5
Amortization of Intangibles	8.3	5.3	6.9	15.3	17.7
Amortization	8.3	5.3	6.9	15.3	17.7
Deferred Taxes	-	-	-	-7.0	-7.1
Discontinued Operations	-	-	20.6	-	-
Unusual Items	5.6	-46.8	41.1	76.5	17.6
Equity in Net Earnings (Loss)	13.4	-11.3	-34.9	-15.7	7.7
Other Non-Cash Items	122.5	50.0	64.4	34.7	34.1
Non-Cash Items	141.5	-8.1	91.2	95.6	59.5
Accounts Receivable	-170.7	-4.5	-37.0	-33.5	19.7
Inventories	-151.8	-62.0	-81.3	62.8	-153.5
Prepaid Expenses	-	-	-	4.0	-3.2
Other Assets	-21.7	-4.3	-4.1	7.8	-0.2
Accounts Payable	48.4	-55.2	92.2	60.5	-44.6
Accrued Expenses	-	-	-	5.7	-12.8
Taxes Payable	-	-	-	0.7	-13.5
Other Liabilities	-51.5	-13.9	-8.5	-31.9	-18.0
Other Operating Cash Flow	-65.0	-56.2	-38.2	-	3.4
Changes in Working Capital	-412.4	-196.1	-76.9	76.3	-222.6
Cash from Operating Activities	99.6	175.7	368.1	363.3	82.0
Purchase of Fixed Assets	-365.9	-295.4	-221.7	-99.7	-141.1
Purchase/Acquisition of Intangibles	-34.6	-20.0	-11.6	-24.1	-40.5
Capital Expenditures	-400.4	-315.4	-233.4	-123.8	-181.6
Acquisition of Business	-	1.3	-	-	-
Sale of Fixed Assets	3.6	1.9	1.6	6.1	0.7
Sale/Maturity of Investment	0.2	17.4	15.1	3.2	8.9
Purchase of Investments	-	-0.1	-0.1	-14.1	-2.0
Sale of Intangible Assets	1.8	1.2	-	-	-
Other Investing Cash Flow	-30.0	-6.8	-4.5	-4.8	-27.2
Other Investing Cash Flow Items, Total	-24.5	14.9	12.0	-9.6	-19.6
Cash from Investing Activities	-424.9	-300.6	-221.4	-133.4	-201.2
Other Financing Cash Flow	2.2	9.6	-	0.3	0.8
Financing Cash Flow Items	2.2	9.6	-	0.3	0.8
Total Cash Dividends Paid	-33.7	-32.5	-31.1	-28.1	-33.6
Sale/Issuance of Common	-	-	0.1	-	-
Repurchase/Retirement of Common	-	-0.3	-	-	-45.4
Common Stock, Net	-	-0.3	0.1	-	-45.4
Options Exercised	0.3	1.2	1.0	0.6	1.3
Issuance (Retirement) of Stock, Net	0.3	0.9	1.1	0.6	-44.1
Short Term Debt Issued	-	-	-	194.7	1,159.8
Short Term Debt Reduction	-	-	-	-323.1	-1,096.1
Short Term Debt, Net	-	-	-	-128.4	63.7
Long Term Debt Issued	386.7	458.2	1.7	80.0	161.5
Long Term Debt Reduction	-	-	-	-102.8	-27.3
Long Term Debt, Net	386.7	458.2	1.7	-22.8	134.2
Total Debt Issued	678.5	558.7	26.5	-	-
Total Debt Reduction	-692.4	-812.8	-195.9	-	-
Issuance (Retirement) of Debt, Net	372.8	204.1	-167.7	-151.2	198.0
Cash from Financing Activities	341.6	182.1	-197.7	-178.4	121.0
Foreign Exchange Effects	-1.2	-0.3	0.0	-0.4	2.2
Net Change in Cash	15.1	56.9	-50.9	51.0	4.0
Net Cash - Beginning Balance	85.6	30.1	79.8	16.6	15.3
Net Cash - Ending Balance	100.7	87.0	28.9	67.6	19.3
Cash Interest Paid	41.7	28.1	24.8	-	-
Cash Taxes Paid	41.3	45.3	27.3	-	-

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	Reclassified Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate (Period Average)	1126.848795	1107.891393	1156.281981	1276.385219	1100.562842
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Domestic Sales	-	-	-	1,256.6	1,319.8
Export Sales	-	-	-	2,195.0	2,248.5
Sales Revenue	5,333.4	5,037.5	4,422.0	-	-
Total Revenue	5,333.4	5,037.5	4,422.0	3,451.5	3,568.2
Costs of Goods & Services Sold	3,687.1	3,607.8	3,091.9	2,506.4	2,513.9
Selling&General Administrative Expense	-	-	-	-	842.8
Salaries & Wages	192.2	147.6	128.4	87.2	-
Retirement & Severance Benefits	12.2	15.0	8.7	11.1	-
Employee Benefits	32.2	26.0	18.8	16.1	-
Depreciation	47.8	44.3	38.2	28.2	-
Amort. of Intangibless	6.3	5.3	6.9	15.3	-
Transportation Equip	-	-	-	52.3	-
Communication Exp.	-	-	-	235.1	-
Shipping & Handling Expense	87.3	72.5	70.4	-	-
Commissions	477.4	445.1	357.9	-	-
Rental Expense	165.0	149.3	125.6	101.2	-
Advertising Expense	28.1	25.6	20.4	15.2	-
Sales Promotional Expense	38.9	39.9	40.5	41.8	-
Sample Test Expense	18.5	21.4	14.7	12.6	-
Packaging Expense	13.3	11.8	10.2	-	-
R & D Expense	129.5	119.2	104.2	60.7	-
Other Sales & Administrative Expense	-	-	-	70.2	-
Adjustment for SGA.	-	-	-	-	-
Other Administrative Expense	112.2	106.0	88.3	-	-
Adjustment for Selling Expense	0.0	0.0	-	-	-
Adj. for Administrative Expense	-	0.0	0.0	-	-
Reversal of Allow. for DA	-	-	-2.6	-	-
Dividend Income	-	-	-10.5	-	-
Commission Income	-	-	-21.0	-	-
Rental Income	-	-	-0.3	-	-
Gain on Disposal of PPT	-	-	-0.7	-	-
Gain-Disposal of FA Avail. for Sale	-	-	-0.9	-	-
Gain-Retirement Pension Operating Fund	-	-	-2.0	-	-
Miscellaneous Income	-	-	-12.6	-	-
Donations Paid	-	-	2.9	-	-
Other Allow. for DA	-	-	0.0	-	-
Loss on Disposal of Trade Receivable	-	-	0.0	-	-
Loss-Disposal of FA Avail. for Sale	-	-	0.5	-	-
Impmt Loss-FA Avail. for Sale	-	-	4.6	-	-
Loss on Disposal of PPT	-	-	5.2	-	-
Loss on Disposal of Intangibless	-	-	1.6	-	-
Impmt Loss on Intangibless	-	-	30.9	-	-
Commissions Paid	-	-	4.0	-	-
Miscellaneous Loss	-	-	12.5	-	-
Adj. for Other Operating Expense	-	-	-	-	-
Adj. for Other Operating Income	-	-	0.0	-	-
Total Operating Expense	5,047.9	4,836.7	4,136.6	3,253.3	3,356.8
Interest Income	6.0	4.2	3.6	4.6	5.1
Dividend Income	-	-	-	7.0	6.9
Gain on Foreign Currency Translation	6.0	6.1	4.2	8.2	15.6
Gain on Foreign Currency Transaction	37.9	61.5	61.9	81.0	121.5
Gain-Valt of Derivatives	-	-	-	-	29.6
Gain Sale of Tangible Assets	-	-	-	0.4	0.2
Rental Income	-	-	-	0.3	1.1
Fees Received	-	-	-	10.5	9.6
Revers-Doubtful Acct	-	-	-	0.1	0.1
Incentives Received	-	-	-	0.3	-
Miscellaneous Non-Operating Income	-	-	-	7.3	8.4
Interest Expense	-35.4	-25.7	-23.1	-34.0	-35.5
Loss on Foreign Currency Transaction	-46.9	-62.5	-64.7	-86.7	-109.2
Loss on Foreign Currency Translation	-8.2	-2.6	-1.6	-4.6	-42.6
Loss-Disposal of Equity Method Sec.	-	-	-	-	-0.1
Loss on Valt of Other Derivatives	-	-	-2.0	-5.6	-1.2
Loss on Derivative Transaction	-	-2.7	-	-	-
L-Dispose ST Securities avail for Sale	-	-	-	0.0	0.0
Reduct of Develp Exp	-	-	-	-68.0	-16.5
Loss Disp Tang. Ast	-	-	-	-7.2	-1.2
Loss-Disposal of Intangible Assets	-	-	-	-	0.0
Donations Paid	-	-	-	-3.0	-5.1
Miscellaneous Non-Operating Expense	-	-	-	-11.0	-15.0
Gain on Valt of Equity Method Sec.	0.6	26.7	35.6	16.3	0.5
Loss on Valt of Equity Method Sec.	-14.0	-15.4	-0.7	-0.6	-8.2
Other Non-Operating Income	49.8	98.3	-	-	-
Other Non-Operating Expense	-21.2	-39.9	-	-	-
Net Income Before Taxes	260.0	248.8	298.5	113.6	175.5
Prov. for Income Taxes	74.7	14.9	42.0	22.6	31.4
Net Income After Taxes	185.3	233.9	256.5	91.0	144.1
Earning Before Acquisition of Subsidiary	-	-	-	0.0	-
Minority Interest	-0.1	0.0	5.0	2.9	1.7
Net Income Before Extra. Items	185.1	233.9	261.6	93.9	145.8
Loss on Discontinued Operations	-	-	-20.6	-	-
Net Income	185.1	233.9	241.0	93.9	145.8
Income Available to Com Excl ExtraOrd	185.1	233.9	261.6	93.9	145.8
Income Available to Com Incl ExtraOrd	185.1	233.9	241.0	93.9	145.8
Basic Weighted Average Shares	50.6	49.1	48.0	47.8	48.4
Basic EPS Excluding ExtraOrdinary Items	3.66	4.76	5.45	1.96	3.01
Basic EPS Including ExtraOrdinary Item	3.66	4.76	5.03	1.96	3.01
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	185.1	233.9	241.0	93.9	145.8
Diluted Weighted Average Shares	50.7	49.2	48.2	48.1	48.7
Diluted EPS Excluding ExtraOrd Items	3.65	4.75	5.43	1.95	3.00
Diluted EPS Including ExtraOrd Items	3.65	4.75	5.00	1.95	3.00
DPS-Common Stock	0.67	0.68	0.65	0.59	0.68
Gross Dividends - Common Stock	33.7	34.2	31.1	28.1	32.6
Normalized Income Before Taxes	260.0	248.8	340.1	122.4	179.2
Inc Tax Ex Impact of Sp Items	74.7	14.9	47.8	23.9	31.6
Normalized Income After Taxes	185.3	233.9	292.3	98.5	147.6
Normalized Inc. Avail to Com.	185.1	233.9	297.3	101.4	149.4
Basic Normalized EPS	3.66	4.76	6.20	2.12	3.09
Diluted Normalized EPS	3.65	4.75	6.17	2.11	3.07
Interest Expense, Supplemental	35.4	25.7	23.1	34.0	35.5
Interest Capitalized, Supplemental	-7.6	-4.8	-	-	-
Rental Expense, Supplemental	165.0	149.3	125.6	101.2	107.0
Advertising Expense, Supplemental	67.0	65.4	61.0	57.0	64.1
R&D Expense, Supplemental	129.5	119.2	104.2	60.7	44.9
Depreciation, Supplemental	177.5	141.0	110.9	92.1	90.5
Amort of Intangibles, Supplemental	8.3	5.3	6.9	13.3	15.0
Amort of Acquisition Costs	-	-	-	2.1	2.7

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	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Cash Equivalents	106.4	83.7	29.4	74.1	16.8
Current Loans	0.7	2.1	1.0	-	-
Current Fincl Instrm	30.9	0.2	-	-	-
ST Invmt Assets	-	-	-	10.4	3.7
Current Derivative Assets	-	-	10.7	0.0	7.6
Current Guarantee Deposits	21.4	11.2	7.6	-	-
Other Current Assets	0.1	0.1	0.1	0.1	0.2
Trade Receivable, Gross	588.2	424.2	409.4	395.1	310.4
Allow. for DA	-2.8	-3.1	-4.9	-8.7	-4.9
Unbilled Constructions	-	0.7	-	-	-
Account Receivable	54.6	39.8	51.9	36.4	45.7
Allow. for DA for Account Receivable	-3.3	-3.1	-0.3	-	-
Receivable of Corporate Tax Refund	0.3	0.5	0.4	-	-
Accrued Income	0.4	0.1	0.0	-	-
Advance Payments	43.7	27.4	22.7	19.3	15.8
Prepaid Expense	18.1	12.0	13.2	8.8	11.9
Prepaid Value Added Taxes	11.4	4.6	0.7	-	-
Dfrd Taxes	-	-	-	44.9	37.9
Merchandises	158.6	110.1	97.2	65.8	65.9
Finished Goods	401.3	306.3	248.5	230.8	247.8
Semi-finished Goods	82.2	66.0	58.6	51.8	60.5
Works in Process	16.6	17.7	18.4	15.1	13.5
Residual Products	0.1	0.1	0.2	0.5	0.4
Raw Materials	130.8	108.9	78.1	55.3	54.8
Supplemental Raw Materials	24.9	26.0	25.9	21.0	20.4
Supplies	6.9	3.4	6.0	5.2	4.9
Goods in Transit	31.1	6.6	6.6	6.6	16.8
Other Inventories	-	-	0.2	-	-
Adj. for Trade Receivable	-	0.0	0.0	-	-
Adj. for Current Loans & Other Recv.	0.0	0.0	0.0	-	-
Adj. for Inventories	-	0.0	0.0	-	-
Adj. for Other Current Assets	0.0	-	-	-	-
Current Assets Held for Sale	-	-	5.8	-	-
Total Current Assets	1,722.6	1,245.4	1,087.4	1,032.7	930.0
Non-Current Securities Available-for-Sal	1,139.8	1,180.3	1,230.7	561.3	240.5
Non-Current Securities Held-to-Maturitie	-	0.1	-	-	-
Derivatives, assets	-	-	-	12.1	16.9
Invmt in Affiliates	92.6	100.8	132.8	98.0	70.3
Non-Current Loans	5.3	4.9	2.8	2.9	2.9
Non-Current Prepaid Expense	9.2	6.3	6.7	0.3	1.1
Non-Current Guarantee Deposits	79.1	67.1	64.4	84.8	74.3
Other Non-Current Assets	0.0	-	-	-	-
Non-Current Deferred Income Taxes Assets	3.2	1.4	1.4	-	-
Non-Current Trade Receivable	5.5	4.4	4.5	-	-
Non-Current Other Receivable	0.2	0.5	-	-	-
Allow. for DA for LT Trade Receivable	-0.8	-	-	-	-
Other Invmt Assets	-	-	-	4.2	-
Lands	310.0	278.0	231.6	223.9	199.6
Buildings	472.1	404.4	341.2	341.5	311.9
Buildings-Depreciation	-110.2	-91.8	-79.4	-75.9	-62.8
Structures	197.3	144.2	128.1	118.9	108.0
Structures-Depreciation	-77.9	-64.3	-57.9	-51.0	-42.1
Machineries & Equipments	980.7	781.8	567.8	532.6	463.7
Machineries & Equipments-Govern. Subsidy	-0.4	-0.4	-0.6	-0.4	-0.5
Machineries & Equipments-Depreciation	-592.6	-468.4	-368.6	-334.8	-271.4
Vehicles	3.0	3.6	4.2	4.4	4.7
Vehicles-Depreciation	-2.3	-2.6	-3.1	-3.3	-3.5
Tools & Equipments	430.2	370.9	296.3	248.0	193.2
Tools & Equipments-Government Subsidy	-0.8	-0.4	-0.3	-0.1	-0.1
Tools & Equipments-Depreciation	-257.3	-217.2	-173.9	-150.4	-115.7
Construction in Progress	212.6	151.1	85.2	15.7	22.2
Lease Improvements	22.7	3.8	3.9	2.9	1.4
Lease Improvements-Depreciation	-5.0	-2.0	-1.5	-0.7	-0.2
Machines in Transit	8.3	3.5	15.2	1.8	3.9
Goodwill	347.1	321.3	1.1	4.7	6.9
Industrial Property Rights	8.0	8.0	7.3	9.4	9.6
Land Use Rights	-	-	-	1.4	1.4
Development Costs	25.4	12.5	18.0	41.1	95.1
Lease Rights	3.2	3.5	0.4	-	-
Other Intangibless	30.2	29.5	13.2	0.4	0.8
Construction in Progress-Intangibles	20.2	-	-	-	-
Adj. for LT Loans & Other Receivable	0.0	0.0	0.0	-	-
Adj. for Property, Plant & Equipment	0.0	0.0	-	-	-
Adj. for Intangibless	0.0	-	0.0	-	-
Adj. for Non-Current Trade Receivable	0.0	-	-	-	-
Adj. for Other Non-Current Assets	-	-	-	-	-
Total Assets	5,081.2	4,280.2	3,558.7	2,726.6	2,261.7
Current Trade Payable	225.8	242.8	312.3	262.3	173.9
Current Borrowings	236.6	137.7	28.6	25.2	193.1
ST Bonds	-	-	-	42.9	-
Derivatives in Liabilities, Current	-	-	-	-	1.0
Accounts Payable	-	-	-	82.6	69.9
Advance from Customers, Current	12.7	8.2	8.2	-	-
Unearned Income	0.0	0.0	0.0	-	-
Gift Certificates, Current Liabilities	2.9	1.8	1.7	-	-
Disc. on Gift Certificates	-0.1	-0.1	-0.1	-	-
Deferred Income	17.1	14.1	13.5	-	-
Security Deposit Withheld	-	-	-	14.0	11.9
Value Added Taxes Withheld	-	1.3	0.4	19.6	15.1
Income Taxes Payable	43.3	10.5	30.2	19.4	16.1
Current Portion of Long-term Liabilities	98.9	97.9	168.1	53.6	103.0
Deposit Withheld	-	-	-	23.7	20.4
Deferred Income	-	-	-	11.2	9.0
Other in Other Current Liabilities	0.0	0.0	1.4	8.8	6.5
Withheld	38.0	50.4	27.4	-	-
Resv for Current Liabilities	4.5	4.1	4.8	-	-
Reserve-Sales Return	-	-	-	5.2	6.5
Overbilled Constructions	1.4	2.3	-	-	-
Other Payable & Other Liabilities	260.2	179.1	168.0	-	-
Held-for-Sale Assets Related Liabilities	-	-	5.8	-	-
Adj. for Other Current Liabilities	0.0	0.0	0.0	-	-
Total Current Liabilities	941.2	750.0	770.4	568.7	626.4
Bonds	841.7	484.5	88.0	250.7	197.4
Non-Current Borrowings	13.2	20.0	3.7	77.3	79.4
Total Long Term Debt	854.9	504.5	91.7	328.0	276.8
Deferred Income Taxes, LT Liabilities	182.4	200.1	224.7	113.0	46.8
Minority Interests	2.9	0.5	0.5	7.9	10.6
Retirement & Severance Benefits, Non-Cur	34.8	28.5	30.0	67.9	29.1
Deposit-Retirement Insurance	-	-	-	-0.8	-
Plan Assets	-	-	-	-45.2	-
Transfer to National Pension Fund	-	-	-	-0.7	-
Other Non-Current Liabilities	0.3	0.3	-	-	-
LT Resv for Production-Based Wages	12.8	4.5	4.3	3.6	2.1
Total Liabilities	2,029.5	1,488.4	1,121.6	1,042.4	991.7
Capital Stock	245.9	227.6	220.3	214.7	198.5
Additional Paid in Capital	441.0	408.2	166.3	162.1	149.9
Resv for Assets ReValt	217.4	201.3	204.3	-	-
Voluntary Reserve	-	927.3	748.2	653.9	448.9
Legal Resvs	45.4	38.7	36.1	33.1	89.7
Other Capital Surplus	0.2	0.2	0.2	207.8	192.8
Resvs for Fincl Structure Improvements	10.4	-	-	-	-
Resv for R&D	77.8	-	-	-	-
Resv for Facilities	1,101.6	-	-	-	-
Retained Earnings Carried Forward	246.2	257.2	260.7	99.7	122.0
Treasury Stock	-45.4	-42.7	-45.8	-48.0	-46.1
Losses on Valt of Derivatives	-	-	-1.0	-1.2	-1.1
Gain on Valuation of Securities Availabl	756.5	795.3	859.4	343.7	104.9
Capital Change, Equity Method (Loss)	-0.2	-0.1	0.0	0.0	-0.3
Capital Change, Equity Method	-	-	0.1	6.5	5.6
Losses on Valuation of Securities Availa	0.0	0.0	0.0	-3.0	-7.1
Stock Options	0.1	0.1	0.5	0.8	0.9
Overseas Bus. Translation Debit/Credit	-3.5	0.4	-0.2	14.2	11.5
Actuarial Gains & Losses	-39.4	-19.8	-10.8	-	-
Gain-Valuation of Derivatives	-	-	-	0.0	-
Other Capital Adj.	-2.4	-2.0	-1.1	-	-
Adj. for Other Paid-in Capital	0.0	0.0	0.0	-	-
Adj. for Other Capital Items	0.0	0.0	0.0	-	-
Adj. for Retained Earnings	0.0	0.0	0.0	-	-
Total Equity	3,051.7	2,791.8	2,437.1	1,684.2	1,270.0
Total Liabilities & Shareholders' Equity	5,081.2	4,280.2	3,558.7	2,726.6	2,261.7
S/O-Common Stock	50.6	50.6	48.0	47.9	47.8
Total Common Shares Outstanding	50.6	50.6	48.0	47.9	47.8
T/S-Common Stock	1.8	1.9	2.0	2.1	2.2
Deferred Revenue, Current	29.7	23.9	23.3	-	20.4
Accumulated Amort Goodwill Supp	-	-	-	10.7	7.8
Accumulated Amort Intangible Supp	289.1	259.6	252.7	115.0	92.9
Full-Time Employees	-	4,889	3,853	3,257	3,138
Number of Common Shareholders	-	-	51,672	-	26,135
LT Debt 1 yr	-	-	-	53.7	39.7
LT Debt 2 yrs	-	-	-	187.6	159.3
LT Debt 3 yrs	-	-	-	107.6	-
LT Debt 4 yrs	-	-	-	21.8	-
LT Debt 5 yrs	-	-	-	11.0	-
Long Term Det - Remaining Maturities	-	-	-	1.3	-
Total Long Term Debt, Supplemental	-	-	-	382.9	199.0
Capital Lease Pymts. Due within 1 Year	0.3	0.3	-	-	-
Capital Lease Payments Due in Year 5	1.5	1.4	-	-	-
Capital Lease - Remaining Maturities	5.8	6.1	-	-	-
Total Capital Leases	7.7	7.8	-	-	-

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	Reclassified Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate (Period Average)	1126.848795	1107.891393	1156.281981	1276.385219	1100.562842
Auditor	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP	Deloitte & Touche LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Income or Loss	185.3	233.9	236.0	91.0	144.1
Depreciation	176.9	140.6	110.9	92.1	90.5
Amort. of Intangibless	8.3	5.3	6.9	15.3	17.7
Expense of Allow. for DA	-0.2	0.1	0.0	3.6	0.8
Expenses of Allow. for Other DA	0.1	3.0	0.0	-	-
Rec. of Allow. for DA	-0.2	-0.7	-2.6	-0.1	-0.1
Payment for Retirement Allow., ONCI	22.7	20.1	16.2	17.2	18.1
Salaries	8.7	5.2	2.4	-	4.0
Marketing Expense	-	-	-	10.6	10.4
Defect Repair Expense	0.1	0.1	-	0.1	-
Bond Credit Amort.	-	-	-	1.6	0.8
Production-Based Wages	-	-	-	-0.3	-
Corporate Taxes Expense	74.7	14.9	42.0	-	-
G-Foreign Exchange Translations	-	-	-	-7.9	-14.0
Finance Expense	43.6	31.0	26.6	-	-
L-Foreign Exchange Translations	-	-	-	4.3	38.1
Loss-Valuation of Derivatives	-	-	-	5.6	1.2
Miscellaneous Loss	-	-	-	0.2	4.8
Recovery-Inventory Valuation Loss	-	-	-	-	-0.3
Loss on Discontinued Operations	-	-	20.6	-	-
L-Tangible Asset Disposal	-	-	-	7.2	1.2
Loss-Disposal of Intangible Assets	-	-	1.6	-	0.0
Loss on Disposal of Property, Plant and	6.0	3.0	5.2	-	-
Loss on Disposal of Financial Assets Ava	-	-	0.5	0.0	0.0
Loss-Disposal of Sec under Equity Method	-	-	-	-	0.1
Impmt Loss-Fincl Asset Avail.-for-Sale	-	-	4.6	-	-
Loss-Dec/Develop Exp	-	-	-	68.0	16.5
Loss under Equity Method	14.0	15.4	0.7	0.6	8.2
Gain on Valt of Invmt in Affiliates	-0.6	-26.7	-35.6	-16.3	-0.5
Dividend Income	-15.0	-13.4	-10.5	-	-
Finance Income	-12.0	-10.4	-7.7	-	-
Gain-Retirement Pension Operating Fund	-	-	-2.0	-	-
Impmt Loss on Intangibless	-	12.5	30.9	-	-
Gain Disp Tang. Ast	-0.3	-0.4	-0.7	-0.4	-0.2
Gain on Disposal of Investment in Affili	-	-40.2	-	-	-
Gain-Disp. of Security Avail-for-Sale	-	-21.7	-0.9	-	-
Gain-Derivatives Valuation	-	-	-	-	-29.6
Dividend Received from Affiliates	-	-	-	1.7	-
Trade Receivables	-144.8	-18.1	-17.4	-41.0	10.9
Non-Current Trade Receivables	-	0.1	-4.3	-	-
Decrease Acct Rcvbl	-	-	-	7.5	8.8
Loans & Other Receivables	-9.2	14.5	-13.8	-	-
Unbilled Constructions	0.7	-0.7	-	-	-
Non-Current Loan&Other Receivables	-17.4	-0.3	-1.4	-	-
Prepaid Expense	-	-	-	4.0	-2.8
Dec Advanced Payment	-	-	-	-1.6	-13.2
Inventory	-151.8	-62.0	-81.3	64.4	-140.2
Current Dfrd Taxes	-	-	-	-3.7	1.6
Deferred Income Tax Debit	-	-	-	-	0.0
Dec Deferred Tax Liab.	-	-	-	-3.4	-8.7
LT Prepaid Expense	-	-	-	-	-0.4
Other Payables & Liabilities	79.6	0.2	42.4	-	-
Trade Payable	-31.3	-55.4	49.8	54.2	-25.6
Account Payables	-	-	-	6.3	-19.0
Inc in Accrued Exp.	-	-	-	5.7	-10.7
LT Accrued Expenses	-	-	-	-	-2.1
Accrued Income Taxes	-	-	-	0.7	-13.5
Deferred Income	1.8	0.8	2.0	-	-
Deposits Withheld	-	-	-	2.0	7.4
Other Current Liabilities	-10.9	24.1	6.5	3.4	-1.6
Security Deposits(L)	-	-	-	1.0	0.9
Prov.s	0.0	-0.7	-0.5	-	-
Non-Current Prov.s	0.1	-2.9	-	-	-
Provision-Returned Goods	-	-	-	-1.6	1.3
Reserve-Point	-	-	-	-9.2	-11.4
Payment for Retirement Allow.	-17.7	-10.3	-9.1	-36.0	-9.1
Reserve-Severance & Retirement Benefit	-	-	-	0.1	0.7
Inc-Dep for Ret Ins	-	-	-	50.3	-6.2
Plan Assets	-25.9	-27.3	-7.4	-41.2	-
Dec in Natl Pension	-	-	-	0.3	0.1
Overbilled Constructions	-1.0	2.4	-	-	-
Derivatives in Liabilities	-	-	-	-1.0	-
Prov. for Fixed Benefit Liabilities	2.2	-	-	-	-
Other Current Assets	-16.0	-1.4	-3.9	0.4	-0.2
Other Non-Current Assets	-5.7	-2.9	-0.2	-	-
Derivatives in Assets	-	-	-	7.5	-
Adj.	-	-	-	-	3.4
Cash-Interest Received	1.1	1.9	1.5	-	-
Cash-Dividend Income	16.9	15.4	12.4	-	-
Cash-Tax Refunded	0.0	0.1	0.5	-	-
Cash-Interest Paid	-41.7	-28.1	-24.8	-	-
Cash-Tax Paid	-41.3	-45.4	-27.9	-	-
Cash from Operating Activities	99.6	175.7	368.1	363.3	82.0
Disposal of Current Financial Instrument	0.2	-	13.1	-	-
Disposal-ST Investment Assets	-	-	-	3.2	1.8
Disposal of Securities Available-for-Sal	-	17.4	2.0	0.0	7.1
Decrease in LT Loans	-	-	-	-	0.2
Decrease-Loan and Other Receivables	3.2	1.1	1.1	-	-
Decrease-LT Loan and Other Receivables	0.2	1.6	0.2	-	-
Dec-Guarantee Dep	-	-	-	3.8	0.1
Purchase of Current Fincl Instruments	-29.3	-0.2	-3.9	-	-
Disposal of Property, Plant and Equipmen	3.6	1.9	1.6	-	-
Disposal of Land	-	-	-	3.7	0.0
Disposal Structure	-	-	-	0.0	0.0
Disposal of Building	-	-	-	0.1	0.1
Disposal Mach./Equip	-	-	-	0.5	0.2
Disposal Trans Equip	-	-	-	0.2	0.1
Disp Tools/Supplies	-	-	-	1.6	0.3
Disposal of Intangible Assets	1.8	1.2	-	-	-
Increase in LT Loans	-	-	-	-0.7	-1.0
Increase-Loans & Other Receivables	-1.8	-1.4	-0.2	-	-
Increase-LT Loans & Other Receivables	-2.3	-7.9	-0.3	-	-
Increase-Government Subsidy	-	-	-	-	1.2
Inc in Guarant Depos	-	-	-	-7.9	-27.7
Change of Liabilities Held for Sale	-	-	-1.4	-	-
Incrased ST Investment Assets	-	-	-	-9.0	-1.8
Purchase of Sec. Available-for-Sale	-	-	-0.1	-	0.0
Acq-Securities under Equity Method	-	-	-	-5.1	-0.1
Purchase of Fincl Asset Held to Maturity	-	-0.1	-	-	-
Purchase of Tangibles	-365.9	-295.4	-221.7	-	-
Acquisition of Land	-	-	-	0.0	-12.6
Acquis. of Building	-	-	-	-0.9	-4.3
Purch. of Structure	-	-	-	-0.5	-0.5
Purch. of Mach/Equip	-	-	-	-2.1	-3.8
Acq. of Trans Equip	-	-	-	-0.4	-0.5
Increase-Lease Asset Discretionary Right	-	-	-	-1.3	-1.2
Acq. in Tools/Suppl.	-	-	-	-29.0	-33.6
Inc. Const. In Prog	-	-	-	-52.9	-76.4
Inc-Equip.in Transit	-	-	-	-12.6	-8.3
Purchase of Intangibless	-34.6	-20.0	-11.6	-	-
Increase-Goodwill	-	-	-	-0.8	-1.9
Inc Industrial Patnt	-	-	-	-1.4	-0.2
Inc. in Develop.Cost	-	-	-	-21.9	-38.4
Inc Other Intangible	-	-	-	0.0	-
Cash Flows from Merger	-	1.3	-	-	-
Cash from Investing Activities	-424.9	-300.6	-221.4	-133.4	-201.2
Inc in ST Borrowings	-	-	-	155.5	1,159.8
Increase-ST Bond	-	-	-	39.2	-
Rights Issue	-	-	0.1	-	-
Increase in Bonds	353.7	449.6	-	78.0	161.5
Increase in Non-Current Borrowings	33.0	8.6	1.7	2.0	-
Exercise of Stocks Options	0.3	1.2	1.0	0.6	1.3
Decrease-ST Borrowings	-	-	-	-323.1	-1,096.1
Acquisition-Treasury Stock	-	-	-	-	-45.4
Increase in Treasury Stocks	-	-0.3	-	-	-
Repay Cur Port Bond	-	-	-	-101.9	-27.3
Decrease-LT Borrowings	-	-	-	-0.9	-
Decrease in Derivative Assets	-	9.6	-	-	-
Dividend Paid	-33.7	-32.5	-31.1	-28.1	-33.6
Consolid Scope Adj	-	-	-	0.3	0.8
Minority Interest	2.2	-	-	-	-
Increase in Borrowings	678.5	558.7	26.5	-	-
Decrease in Borrowings	-692.4	-812.8	-195.9	-	-
Cash from Financing Activities	341.6	182.1	-197.7	-178.4	121.0
Foreign Exchange Effects	-1.2	-0.3	0.0	-0.4	2.2
Incs or Decs in Cash & Cash Equivalents	15.1	56.9	-50.9	51.0	4.0
Cash and Cash Equivalents at Beginning	85.6	30.1	79.8	16.6	15.3
Cash and Cash Equivalents at End	100.7	87.0	28.9	67.6	19.3
Cash Interest Paid	41.7	28.1	24.8	-	-
Cash Taxes Paid	41.3	45.3	27.3	-	-

Financial Health

Financials in: USD (mil)

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

Key Indicators USD (mil)
Â	Quarter Ending 31-Dec-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1	1,449.1	14.26%	5,333.4	7.69%	10.91%	13.73%
Research & Development1	34.2	22.04%	129.5	10.51%	23.51%	40.17%
Operating Income1	37.9	-	285.5	44.59%	8.34%	7.62%
Income Available to Common Excl Extraord Items1	32.7	-12.08%	185.1	-19.48%	20.29%	7.28%
Basic EPS Excl Extraord Items1	0.65	-11.09%	3.66	-21.80%	18.07%	6.41%
Capital Expenditures2	400.4	29.13%	400.4	29.13%	41.86%	10.40%
Cash from Operating Activities2	99.6	-42.32%	99.6	-42.32%	-37.68%	-13.77%
Free Cash Flow	-317.9	-	-317.9	-	-	-
Total Assets3	5,081.2	9.89%	5,081.2	9.89%	19.50%	13.89%
Total Liabilities3	2,029.5	26.22%	2,029.5	26.22%	21.26%	14.22%
Total Long Term Debt3	854.9	56.85%	854.9	56.85%	33.64%	26.71%
Total Common Shares Outstanding3	50.6	0.05%	50.6	0.05%	1.87%	0.80%
1-ExchangeRate: KRW to USD Average for Period	1090.861440	Â	1126.848795	Â	Â	Â
2-ExchangeRate: KRW to USD Average for Period	1126.848795	Â	1126.848795	Â	Â	Â
3-ExchangeRate: KRW to USD Period End Date	1066.400024	Â	1066.400024	Â	Â	Â

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin	30.87%	28.38%	30.08%	27.38%	29.55%
Operating Margin	5.35%	3.99%	6.45%	5.74%	5.93%
Pretax Margin	4.88%	4.94%	6.75%	3.29%	4.92%
Net Profit Margin	3.47%	4.64%	5.92%	2.72%	4.09%
Financial Strength
Current Ratio	1.83	1.66	1.41	1.82	1.48
Long Term Debt/Equity	0.28	0.18	0.04	0.19	0.22
Total Debt/Equity	0.39	0.27	0.12	0.27	0.45
Management Effectiveness
Return on Assets	4.03%	5.78%	8.22%	3.86%	5.59%
Return on Equity	6.45%	8.66%	12.80%	6.73%	9.68%
Efficiency
Receivables Turnover	9.92	10.63	10.11	9.42	8.89
Inventory Turnover	4.80	5.66	6.02	5.42	5.14
Asset Turnover	1.16	1.24	1.42	1.46	1.38

Market Valuation USD (mil)
P/E (TTM)	22.72	.	Enterprise Value2	5,653.6
Price/Sales (TTM)	0.82	.	Enterprise Value/Revenue (TTM)	1.00
Price/Book (MRQ)	1.45	.	Enterprise Value/EBITDA (TTM)	11.35
Market Cap as of 10-May-20131	4,493.7	.
1-ExchangeRate: KRW to USD on 10-May-2013	1091.056999
2-ExchangeRate: KRW to USD on 31-Dec-2012	1066.400024

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	1.83	1.66	1.41	1.82	1.48
Quick/Acid Test Ratio	0.82	0.73	0.63	0.89	0.59
Working Capital1	781.3	495.4	317.0	464.1	303.5
Long Term Debt/Equity	0.28	0.18	0.04	0.19	0.22
Total Debt/Equity	0.39	0.27	0.12	0.27	0.45
Long Term Debt/Total Capital	0.20	0.14	0.03	0.15	0.15
Total Debt/Total Capital	0.28	0.21	0.11	0.21	0.31
Payout Ratio	18.19%	14.22%	11.89%	29.93%	22.61%
Effective Tax Rate	28.75%	6.01%	14.06%	19.86%	17.89%
Total Capital1	4,242.1	3,532.0	2,725.5	2,134.0	1,842.9
Efficiency
Asset Turnover	1.16	1.24	1.42	1.46	1.38
Inventory Turnover	4.80	5.66	6.02	5.42	5.14
Days In Inventory	76.01	64.52	60.61	67.30	70.96
Receivables Turnover	9.92	10.63	10.11	9.42	8.89
Days Receivables Outstanding	36.80	34.35	36.11	38.73	41.05
Revenue/Employee2	-	990,918	1,169,290	1,161,572	993,575
Operating Income/Employee2	-	39,505	75,448	66,700	58,883
EBITDA/Employee2	-	68,296	106,601	102,163	88,245
Profitability
Gross Margin	30.87%	28.38%	30.08%	27.38%	29.55%
Operating Margin	5.35%	3.99%	6.45%	5.74%	5.93%
EBITDA Margin	8.84%	6.89%	9.12%	8.80%	8.88%
EBIT Margin	5.35%	3.99%	6.45%	5.74%	5.93%
Pretax Margin	4.88%	4.94%	6.75%	3.29%	4.92%
Net Profit Margin	3.47%	4.64%	5.92%	2.72%	4.09%
R&D Expense/Revenue	2.43%	2.37%	2.36%	1.76%	-
COGS/Revenue	69.13%	71.62%	69.92%	72.62%	70.45%
SG&A Expense/Revenue	22.07%	21.04%	20.08%	18.62%	23.62%
Management Effectiveness
Return on Assets	4.03%	5.78%	8.22%	3.86%	5.59%
Return on Equity	6.45%	8.66%	12.80%	6.73%	9.68%
Valuation
Free Cash Flow/Share2	-6.28	-2.66	2.86	5.48	-1.82
Operating Cash Flow/Share 2	2.08	3.34	7.81	8.32	1.50
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/Earnings (TTM)	23.54
Market Cap/Equity (MRQ)	1.51
Market Cap/Revenue (TTM)	0.82
Market Cap/EBIT (TTM)	15.24
Market Cap/EBITDA (TTM)	9.23
Enterprise Value/Earnings (TTM)	28.95
Enterprise Value/Equity (MRQ)	1.85
Enterprise Value/Revenue (TTM)	1.00
Enterprise Value/EBIT (TTM)	18.74
Enterprise Value/EBITDA (TTM)	11.35

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.04
UK Pound	1	Rs.83.95
Euro	1	Rs.70.93

INFORMATION DETAILS

Report Prepared by :

MNL

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.