MIRA INFORM REPORT

Report Date :

28.11.2013

IDENTIFICATION DETAILS

Name :	KT&G CORP
Formerly Known as:	Korea Tobacco & Ginseng Corporation
Registered Office :	100, Pyeongchon-dong, Daedeok-gu, Daejeon, Korea, Zip Code 306-712
Country :	South Korea
Financials (as on) :	31.12.2012
Date of Incorporation :	01.04.1987
Legal Form :	Public Parent Company
Line of Business :	Manufacturer and sale of cigarettes and tobacco products
No. of Employees :	4,313

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 – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
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

KT&G Corp

KT&G, 71, Beotkkot-Gil, Daedeok-Gu

Daejeon, 306712

Korea, Republic of

Tel: 82-42-9395000

Fax: 82-2-34044515

Web: www.ktng.com

Registered Address

100, Pyeongchon-dong, Daedeok-gu, Daejeon, Korea, Zip Code 306-712

company summary

Employees: 4,313

Company Type: Public Parent

Corporate Family: 11 Companies

Traded: Korea Stock Exchange: 033780

Incorporation Date: 01-Apr-1987

Auditor: PricewaterhouseCoopers LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2012

Reporting Currency: South Korean Won

Annual Sales: 3,536.1 1

Net Income: 655.0

Total Assets: 6,372.8 2

Market Value: 9,946.0 (08-Nov-2013)

Business Description

KT&G Corporation is a Korea-based company mainly engaged in the production and sale of cigarettes. The Company, along with its subsidiaries, is operates in four business divisions: cigarette division, which manufactures and marketing of cigarettes under the brand names of ESS, PINE, ZEST, CIMA, CARNNIVAL, RAISON, BOHEM and others; real estate division, which engages in the development of residential buildings and rental of office buildings; Ginseng business, as well as other business division, which engages in the manufacture and sale of pharmaceuticals and cosmetics. The Company exports cigarettes to the Middle East, Central Asia, the Americas, Southeast Asia and China. For the six months ended 30 June 2013, KT&G Corp sales decreased 8% to W1.811T. Net income decreased 2% to W398.23B. Sales reflect Cigarette Segment decrease of 7% to W633.72B, Ginseng Segment decrease of 19% to W181.35B, Other segment decrease of 13% to W81.54B. Net income also reflects Cigarette Segment income decrease of 14% to W216.35B, Ginseng Segment income decrease of 11% to W27.71B.

Industry

Industry Tobacco Production

ANZSIC 2006: 1220 - Cigarette and Tobacco Product Manufacturing

ISIC Rev 4: 1200 - Manufacture of tobacco products

NACE Rev 2: 1200 - Manufacture of tobacco products

NAICS 2012: 312230 - Tobacco Manufacturing

UK SIC 2007: 1200 - Manufacture of tobacco products

US SIC 1987: 2111 - Cigarettes

Key Executives

Name	Title
Yeong Jin Min	President, Chief Executive Officer, Director
Gi Du Hahm	Senior Vice President
Seon Wu Kim	IR Contact Officer
Seung Rim Chi	Non-Executive Independent Director
Yong Chan An	Board Member

Financial Summary

As of 30-Jun-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	3.15	1.14
Quick Ratio (MRQ)	1.82	0.52
Debt to Equity (MRQ)	0.04	3.05
Sales 5 Year Growth	5.52	1.71
Net Profit Margin (TTM) %	18.79	12.94
Return on Assets (TTM) %	10.46	17.41
Return on Equity (TTM) %	14.80	65.19

Stock Snapshot

Traded: Korea Stock Exchange: 033780

As of 8-Nov-2013

   Financials in: KRW

Recent Price	77,000.00	EPS	5,738.06
52 Week High	88,000.00	Price/Sales	2.65
52 Week Low	71,000.00	Dividend Rate	3,200.00
Avg. Volume (mil)	0.21	Price/Earnings	12.77
Market Value (mil)	10,571,520.00	Price/Book	1.90
		Beta	-0.16

	Price % Change	Rel S&P 500%
4 Week	-0.13%	1.89%
13 Week	2.26%	-3.11%
52 Week	-7.34%	-10.63%
Year to Date	-4.70%	-4.12%

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

KT&G, 71, Beotkkot-Gil, Daedeok-Gu

Daejeon, 306712

Korea, Republic of

Tel: 82-42-9395000

Fax: 82-2-34044515

Web: www.ktng.com

Quote Symbol - Exchange

033780 - Korea Stock Exchange

Sales KRW(mil): 3,984,662.3

Assets KRW(mil): 6,795,961.5

Employees: 4,313

Fiscal Year End: 31-Dec-2012

Industry: Tobacco

Incorporation Date: 01-Apr-1987

Company Type: Public Parent

Quoted Status: Quoted

Previous Name: Korea Tobacco & Ginseng Corporation

President, Chief Executive Officer, Director:

Yeong Jin Min

Industry Codes

ANZSIC 2006 Codes:

1220 - Cigarette and Tobacco Product Manufacturing

6712 - Non-Residential Property Operators

1199 - Other Food Product Manufacturing Not Elsewhere Classified

1852 - Cosmetic and Toiletry Preparation Manufacturing

301 - Residential Building Construction

1841 - Human Pharmaceutical and Medicinal Product Manufacturing

ISIC Rev 4 Codes:

1200 - Manufacture of tobacco products

2023 - Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations

2100 - Manufacture of pharmaceuticals, medicinal chemical and botanical products

41 - Construction of buildings

1079 - Manufacture of other food products n.e.c.

6810 - Real estate activities with own or leased property

NACE Rev 2 Codes:

1200 - Manufacture of tobacco products

2042 - Manufacture of perfumes and toilet preparations

41 - Construction of buildings

1089 - Manufacture of other food products n.e.c.

6820 - Renting and operating of own or leased real estate

2120 - Manufacture of pharmaceutical preparations

NAICS 2012 Codes:

312230 - Tobacco Manufacturing

311999 - All Other Miscellaneous Food Manufacturing

325412 - Pharmaceutical Preparation Manufacturing

531120 - Lessors of Nonresidential Buildings (except Miniwarehouses)

325620 - Toilet Preparation Manufacturing

236117 - New Housing For-Sale Builders

US SIC 1987:

2111 - Cigarettes

2844 - Perfumes, Cosmetics, and Other Toilet Preparations

2834 - Pharmaceutical Preparations

6512 - Operators of Nonresidential Buildings

2099 - Food Preparations, Not Elsewhere Classified

1531 - Operative Builders

UK SIC 2007:

1200 - Manufacture of tobacco products

2042 - Manufacture of perfumes and toilet preparations

41 - Construction of buildings

1089 - Manufacture of other food products n.e.c.

68209 - Letting and operating of own or leased real estate (other than Housing Association real estate and conference and exhibition services) n.e.c.

2120 - Manufacture of pharmaceutical preparations

Business Description

KT&G Corporation is a Korea-based company mainly engaged in the production and sale of cigarettes. The Company, along with its subsidiaries, is operates in four business divisions: cigarette division, which manufactures and marketing of cigarettes under the brand names of ESS, PINE, ZEST, CIMA, CARNNIVAL, RAISON, BOHEM and others; real estate division, which engages in the development of residential buildings and rental of office buildings; Ginseng business, as well as other business division, which engages in the manufacture and sale of pharmaceuticals and cosmetics. The Company exports cigarettes to the Middle East, Central Asia, the Americas, Southeast Asia and China. For the six months ended 30 June 2013, KT&G Corp sales decreased 8% to W1.811T. Net income decreased 2% to W398.23B. Sales reflect Cigarette Segment decrease of 7% to W633.72B, Ginseng Segment decrease of 19% to W181.35B, Other segment decrease of 13% to W81.54B. Net income also reflects Cigarette Segment income decrease of 14% to W216.35B, Ginseng Segment income decrease of 11% to W27.71B.

More Business Descriptions

Manufacture and sale of cigarettes and tobacco products

Cigarette Mfr & Sales

Tobacco Product Manufacturing

Brand/Trade Names

· Bohem

Esse

Financial Data

Financials in:	KRW(mil)
Sale:	3,984,662.3
Net Income:	738,037.3
Assets:	6,795,961.5
Long Term Debt:	109,599.0
Total Liabilities:	1,705,066.8
Working Capital:	2,436.6
Date of Financial Data:	31-Dec-2012

1 Year Growth

7.0%

-9.6%

8.3%

Market Data

Quote Symbol:	033780
Exchange:	Korea Stock Exchange
Currency:	KRW
Stock Price:	77,000.0
Stock Price Date:	11-08-2013
52 Week Price Change %:	-7.3
Market Value (mil):	10,571,520,000.0
SEDOL:	6175076
ISIN:	KR7033780008
Equity and Dept Distribution:
All financials reflect consolidated results. FY'08 RES as of 12/31/09. 03/31/10 is CLA.

Key Corporate Relationships

Auditor:	PricewaterhouseCoopers LLP
Auditor:	Samjong Accounting Corporation, PricewaterhouseCoopers LLP

Corporate Family	Corporate Structure News:
	KT&G Corp
KT&G Corp Total Corporate Family Members: 11

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
KT&G Corp	Parent	Daejeon	Korea, Republic of	Tobacco Production	3,536.1	4,313
Korea Ginseng Corp	Subsidiary	Daejeon	Korea, Republic of	Food Manufacturing	728.9	1,085
Yungjin Pharm Ind. Co., Ltd.	Subsidiary	Seoul	Korea, Republic of	Pharmaceutical Manufacturing	122.2	575
Tae-A Industrial Co., Ltd.	Subsidiary	Taejon, Taejon	Korea, Republic of	Tobacco Production	9.8	83
KT&G Tutun Mamulleri Sanayi ve Ticaret A.S.	Subsidiary	Izmir	Turkey	Tobacco Production		50
Cheong Kwan Jang Taiwan Corporation	Subsidiary	Taipei	Taiwan	Machinery and Equipment Manufacturing		17
Somang Cosmetics Co., Ltd.	Subsidiary	Inchon, Inchon	Korea, Republic of	Miscellaneous Chemical Manufacturing	105.5
Rosee Cosmetics Co., Ltd.	Subsidiary	Inchon, Inchon	Korea, Republic of	Miscellaneous Chemical Manufacturing		164
Korea Red Ginseng Corporation	Subsidiary	Jinan, North Jeolla	Korea, Republic of	Crop and Animal Production
Tae-A Industry Co., Ltd.	Subsidiary	Yongseong, Chungcheongbuk	Korea, Republic of	Tobacco Production
Korea Ginseng (China) Corp.	Subsidiary	Shanghai	China	Crop and Animal Production

Executive report

Board of Directors

Name	Title	Function
Yong Chan An	Board Member	Director/Board Member
Seung Rim Chi	Non-Executive Independent Director	Director/Board Member
Biography: Chi Seung Rim has been Non-Executive Independent Director of KT&G Corporation since February 26, 2010. Chi was Vice Chairman and Chief Executive Officer of Alticast Corp. Previously, Chi served as Vice President at SAMSUNG HEAVY INDUSTRIES CO.,LTD. Chi holds a Bachelor's degree in Mechanical Engineering from Yeungnam University, Korea. Age: 64 Education: Yeungnam University, B (Mechanical Engineering)
Gyu Ha Cho	Non-Executive Independent Director	Director/Board Member
Biography: Cho Gyu Ha has been Non-Executive Independent Director of KT&G Corporation since February 26, 2010. Cho was President of Yeouido-based hotel and President for Korea Branch at CSK HOLDINGS CORP's branch in Korea, as well as Managing Director of Hanwha Securities Co., Ltd and Internal Auditor of a Korea-based company. Cho holds a Bachelor's degree in Horticulture from Korea University. Age: 62 Education: Korea University, B (Horticulture)
Seung Lim Jee	Board Member	Director/Board Member
Kyu Ha Jo	Board Member	Director/Board Member
Yeong Gi Jung	Non-Executive Independent Director	Director/Board Member
Biography: Jung Yeong Gi has been Non-Executive Independent Director of KT&G Corporation since March 4, 2011. Jung used to be a Professor at Hongik University, Korea. Jung holds a Bachelor's degree from Sungkyunkwan University, Korea. Age: 54 Education: Sungkyunkwan University, B
Won Yong Kim	Non-Executive Independent Director	Director/Board Member
Biography: Kim Won Yong has been Non-Executive Independent Director of KT&G Corporation since March 13, 2009. Kim was an Associate Professor of Ewha Womans University, Korea and Director of a Korea-based company. Previously, Kim was President of Alticast Inc. Kim holds a Bachelor's degree in Broadcasting from Sungkyunkwan University, Korea, and a Doctorate's degree in Communications from Texas State University, the United States. Age: 59 Education: Texas State University, PHD (Communications) Sungkyunkwan University, B (Broadcasting)
Young Kee Kim	Board Member	Director/Board Member
Deuk Hwi Kim	Non-Executive Independent Director	Director/Board Member
Biography: Kim Deuk Hwi has been Non-Executive Independent Director of KT&G Corporation since February 26, 2010. Previously, Kim was Branch Manager of Standard Chartered First Bank Korea Ltd. Kim holds a Bachelor's degree in Economics from Konkuk University, Korea. Age: 65 Education: Konkuk University, B (Economics)
Yin Ho Kim	Non-Executive Independent Director	Director/Board Member
Age: 70 Education: Syracuse University, M (Economics) Syracuse University, M (Public Administration) Seoul National University, LLB
Jeong Sik Kim	Non-Executive Independent Director	Director/Board Member
Biography: Kim Jeong Sik has been Non-Executive Independent Director of KT&G Corporation since March 4, 2011. Kim used to be College Dean at Soon Chun Hyang University, Korea. Previously, Kim served as President of Korea National Police University. Kim holds a Bachelor's degree from Korea Aerospace University. Age: 57 Education: Korea Aerospace University, B
Yoon Jae Lee	Board Member	Director/Board Member
Wang Jae Lee	Non-Executive Independent Director	Director/Board Member
Biography: Lee Wang Jae has been Non-Executive Independent Director of KT&G Corporation since March 4, 2011. Lee used to be a Professor of Medicine at Seoul National University, Korea. Lee holds a Bachelor's degree from Seoul National University, Korea. Age: 58 Education: Seoul National University, B
Won Yik Son	Non-Executive Independent Director	Director/Board Member
Age: 53 Education: University of Wisconsin, PHD (Economics)

Executives

Name	Title	Function
Yeong Jin Min	President, Chief Executive Officer, Director	Chief Executive Officer
Biography: Min Yeong Jin has been President, Chief Executive Officer and Director of KT&G Corporation since February 26, 2010. Previously, Min served the Company as Managing Director, Head of Marketing Unit and Overseas Unit. Min holds a Master's degree in Agriculture from Konkuk University, Korea. Age: 54 Education: Konkuk University, M (Agriculture)
Bok Yin Baek	Managing Director	Managing Director
Age: 47
Pil Hong Bong	Assistant Managing Director	Managing Director
Age: 55
Yeong Eon Cha	Managing Director	Managing Director
Age: 55
Jong Cheol Cho	Assistant Managing Director	Managing Director
Age: 54
Seong Yin Cho	Assistant Managing Director	Managing Director
Age: 50
Myeong Yeol Choi	Managing Director	Managing Director
Age: 55
Gyeong Chan Goh	Assistant Managing Director	Managing Director
Age: 53
Jae Jin Gwak	Managing Director	Managing Director
Age: 58 Education: Konkuk University, M (Chemical Engineering)
Sun Cheol Gwon	Managing Director	Managing Director
Age: 55
Eop Huh	Managing Director	Managing Director
Age: 51
Nam Deuk Huh	Assistant Managing Director	Managing Director
Age: 53
Jeong Sik Jang	Assistant Managing Director	Managing Director
Age: 52
Jun Yeong Jeon	Assistant Managing Director	Managing Director
Age: 55
Cheol Ho Kang	Managing Director	Managing Director
Age: 51
Dong Ho Kang	Assistant Managing Director	Managing Director
Age: 41
Gyeong Bo Kang	Assistant Managing Director	Managing Director
Age: 46
Hyeon Jin Kim	Assistant Managing Director	Managing Director
Age: 52
Yeong Gi Kim	Assistant Managing Director	Managing Director
Age: 52
Gye Su Kim	Assistant Managing Director	Managing Director
Age: 55
Tae Seop Kim	Assistant Managing Director	Managing Director
Age: 48
Jae Su Kim	Assistant Managing Director	Managing Director
Age: 49
Heung Ryeol Kim	Assistant Managing Director	Managing Director
Age: 52
Sam Su Kim	Assistant Managing Director	Managing Director
Age: 46
Dae Seong Kim	Managing Director	Managing Director
Age: 55
Jeong Ho Kim	Assistant Managing Director	Managing Director
Age: 48
Hyo Seong Kim	Assistant Managing Director	Managing Director
Age: 49
Yong Deok Kim	Assistant Managing Director	Managing Director
Age: 52
Sun Hyeong Lee	Assistant Managing Director	Managing Director
Age: 47
Yeong Taek Lee	Assistant Managing Director	Managing Director
Age: 56
Ha Hyeong Lee	Assistant Managing Director	Managing Director
Age: 56
Jin Hui Lee	Assistant Managing Director	Managing Director
Age: 54
Gwang Hun Lee	Assistant Managing Director	Managing Director
Age: 55
Dong Geun Lee	Assistant Managing Director	Managing Director
Age: 52
Sang Gi Lee	Managing Director	Managing Director
Age: 55
Byeong Hwan Min	Assistant Managing Director	Managing Director
Age: 57
Do Yeong Nah	Assistant Managing Director	Managing Director
Age: 52
Jung Beom Nam	Assistant Managing Director	Managing Director
Age: 54
Chi Beom Oh	Assistant Managing Director	Managing Director
Age: 44
Yi Rak Park	Assistant Managing Director	Managing Director
Age: 56
Jeong Wuk Park	Managing Director	Managing Director
Age: 49
Jong Seon Park	Assistant Managing Director	Managing Director
Age: 57
Seong Hun Park	Managing Director	Managing Director
Age: 55
Jae Min Park	Assistant Managing Director	Managing Director
Age: 51
Chang Hyeon Park	Assistant Managing Director	Managing Director
Age: 49
Seong Sik Shin	Assistant Managing Director	Managing Director
Age: 51
Gi Hyeon Sung	Assistant Managing Director	Managing Director
Age: 55
Je Se Woo	Assistant Managing Director	Managing Director
Age: 57
Jun Su Yoo	Managing Director	Managing Director
Age: 52
Gi Du Hahm	Senior Vice President	Senior Management (General)
Biography: Hahm Gi Du has been Senior Vice President of KT&G Corporation. Hahm used to be Assistant Managing Director and Managing Director of the Company. Age: 55
Jae Sik Jang	Vice President	Senior Management (General)
Age: 57
Jun Gi Kim	Vice President	Senior Management (General)
Biography: Kim Jun Gi has been Vice President of KT&G Corporation. Kim used to be Assistant Managing Director and Managing Director of the Company. Age: 56
Jae Heon Lee	Vice President	Senior Management (General)
Age: 58
Seon Wu Kim	IR Contact Officer	Investor Relations Executive

Significant Developments

KT&G Corporation Announces Changes in Shareholding Structure Mar 28, 2013

KT&G Corporation announced that First Eagle Investment Management, LLC and one related party have acquired 6,916,679 shares of the Company, representing a 5.04% stake.

KT&G Corporation Declares Annual Cash Dividend for FY 2012 Jan 17, 2013

KT&G Corporation announced that it has declared an annual cash dividend of KRW 3,200 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 3.83% and the total amount of the cash dividend is KRW 402,876,160,000.

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	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated 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	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified	Unqualified
Net Sales	3,536.1	3,360.4	2,993.6	2,841.1	3,009.7
Sale	3,536.1	3,360.4	2,993.6	2,841.1	3,009.7
Total Sale	3,536.1	3,360.4	2,993.6	2,841.1	3,009.7
Cost of Sale	1,544.8	1,451.0	1,251.2	1,216.9	1,192.6
Cost of Sale, Total	1,544.8	1,451.0	1,251.2	1,216.9	1,192.6
Gross Profit	1,991.3	1,909.4	1,742.4	1,624.2	1,817.1
Selling/General/Administrative Expense	357.7	293.9	241.7	199.1	735.7
Labor & Related Expense	351.2	320.4	289.7	248.5	19.1
Advertising Expense	276.0	240.2	212.6	171.8	-
Total Selling/General/Administrative Expenses	984.9	854.4	744.0	619.5	754.8
Research & Development	32.9	26.5	18.6	15.9	-
Depreciation	42.8	40.4	41.3	41.6	-
Amortization of Intangibles	11.4	3.9	1.1	1.1	-
Depreciation/Amortization	54.1	44.3	42.3	42.7	-
Investment Income - Operating	-	-	8.4	22.2	-
Interest/Investment Income - Operating	-	-	8.4	22.2	-
Interest Expense (Income) - Net Operating Total	-	-	8.4	22.2	-
Impairment-Assets Held for Use	-	-	1.2	0.0	-
Loss (Gain) on Sale of Assets - Operating	-	-	-80.5	-4.2	-
Other Unusual Expense (Income)	-	-	2.4	1.3	-
Unusual Expense (Income)	-	-	-76.9	-2.9	-
Other Operating Expense	-	-	32.1	31.5	45.5
Other, Net	-	-	-12.2	-10.2	-108.0
Other Operating Expenses, Total	-	-	19.9	21.3	-62.5
Total Operating Expense	2,616.8	2,376.2	2,007.6	1,935.6	1,884.9
Operating Income	919.3	984.2	986.0	905.5	1,124.8
Interest Expense - Non-Operating	-9.1	-3.8	-2.8	-3.8	-12.5
Interest Expense, Net Non-Operating	-9.1	-3.8	-2.8	-3.8	-12.5
Interest Income - Non-Operating	32.5	31.4	20.4	9.4	-
Investment Income - Non-Operating	-47.8	8.9	212.1	-0.9	-0.3
Interest/Investment Income - Non-Operating	-15.3	40.3	232.5	8.6	-0.3
Interest Income (Expense) - Net Non-Operating	-	-	-	-	19.3
Interest Income (Expense) - Net Non-Operating Total	-24.4	36.5	229.7	4.8	6.6
Gain (Loss) on Sale of Assets	20.6	37.4	-	-	-
Other Non-Operating Income (Expense)	-8.2	-10.1	-	0.0	-
Other, Net	-8.2	-10.1	-	0.0	-
Income Before Tax	907.3	1,048.0	1,215.7	910.3	1,131.4
Total Income Tax	263.8	310.6	324.2	244.3	318.0
Income After Tax	643.5	737.4	891.5	666.0	813.3
Minority Interest	11.5	-0.8	0.9	0.8	2.4
Net Income Before Extraord Items	655.0	736.6	892.4	666.8	815.7
Net Income	655.0	736.6	892.4	666.8	815.7
Income Available to Common Excl Extraord Items	655.0	736.6	892.4	666.8	815.7
Income Available to Common Incl Extraord Items	655.0	736.6	892.4	666.8	815.7
Basic/Primary Weighted Average Shares	125.8	126.5	127.3	128.4	130.1
Basic EPS Excl Extraord Items	5.21	5.82	7.01	5.19	6.27
Basic/Primary EPS Incl Extraord Items	5.21	5.82	7.01	5.19	6.27
Dilution Adjustment	0.0	0.0	-	-	-
Diluted Net Income	655.0	736.6	892.4	666.8	815.7
Diluted Weighted Average Shares	125.8	126.5	127.3	128.4	130.1
Diluted EPS Excl Extraord Items	5.21	5.82	7.01	5.19	6.27
Diluted EPS Incl Extraord Items	5.21	5.82	7.01	5.19	6.27
Dividends per Share - Common Stock Primary Issue	2.84	2.89	2.59	2.19	2.54
Gross Dividends - Common Stock	357.5	363.2	331.2	279.0	327.4
Interest Expense, Supplemental	9.1	3.8	3.9	3.8	4.3
Depreciation, Supplemental	141.4	133.5	127.7	119.0	137.3
Total Special Items	-20.6	-37.4	-76.9	-2.9	-
Normalized Income Before Tax	886.7	1,010.6	1,138.8	907.4	1,131.4
Effect of Special Items on Income Taxes	-6.0	-11.1	-20.5	-0.8	-
Inc Tax Ex Impact of Sp Items	257.8	299.5	303.7	243.5	318.0
Normalized Income After Tax	628.9	711.0	835.1	663.9	813.3
Normalized Inc. Avail to Com.	640.4	710.3	836.0	664.7	815.7
Basic Normalized EPS	5.09	5.61	6.57	5.18	6.27
Diluted Normalized EPS	5.09	5.61	6.57	5.18	6.27
Amort of Intangibles, Supplemental	11.4	4.1	1.1	1.2	1.8
Rental Expenses	27.2	25.1	18.2	14.1	12.6
Advertising Expense, Supplemental	276.0	240.2	212.6	171.8	180.7
Research & Development Exp, Supplemental	33.9	27.8	19.3	15.9	19.9
Normalized EBIT	919.3	984.2	917.5	924.8	1,124.8
Normalized EBITDA	1,072.0	1,121.7	1,046.4	1,044.9	1,264.0

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate	1066.400024	1152	1134.9	1164.475	1259.55
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified	Unqualified
Cash & Equivalents	349.1	701.2	864.7	271.9	87.5
Short Term Investments	609.7	10.5	14.3	42.1	21.3
Cash and Short Term Investments	958.8	711.7	879.0	314.1	108.8
Accounts Receivable - Trade, Gross	760.1	665.8	479.2	454.7	443.5
Provision for Doubtful Accounts	-24.6	-12.1	-6.1	-6.9	-6.2
Trade Accounts Receivable - Net	742.1	655.4	475.0	448.3	437.5
Other Receivables	86.7	67.9	76.9	67.6	65.5
Total Receivables, Net	828.7	723.4	552.0	515.9	503.1
Inventories - Finished Goods	338.1	275.2	223.3	231.3	149.0
Inventories - Work In Progress	421.8	281.6	276.1	273.8	379.6
Inventories - Raw Materials	774.0	756.4	774.1	754.3	682.6
Inventories - Other	128.8	107.4	82.2	74.0	51.0
Total Inventory	1,662.7	1,420.7	1,355.7	1,333.4	1,262.3
Prepaid Expenses	260.4	193.1	175.7	155.6	163.1
Other Current Assets	-	-	-	0.0	0.0
Other Current Assets, Total	-	-	-	0.0	0.0
Total Current Assets	3,710.7	3,048.8	2,962.4	2,319.0	2,037.2
Buildings	833.7	772.9	727.5	651.8	582.3
Land/Improvements	485.8	399.7	385.0	375.4	346.6
Machinery/Equipment	1,361.8	1,174.7	1,094.3	1,075.2	965.0
Construction in Progress	99.6	100.5	78.8	59.5	45.3
Other Property/Plant/Equipment	1.2	1.1	0.7	0.6	0.6
Property/Plant/Equipment - Gross	2,782.1	2,448.9	2,286.3	2,162.6	1,939.8
Accumulated Depreciation	-1,252.2	-1,073.6	-955.0	-898.9	-745.8
Property/Plant/Equipment - Net	1,529.9	1,375.3	1,331.3	1,263.7	1,194.1
Intangibles, Net	231.4	224.5	55.6	47.8	41.2
LT Investment - Affiliate Companies	52.3	30.7	1.4	1.4	1.0
LT Investments - Other	418.4	379.5	384.4	469.3	325.1
Long Term Investments	470.7	410.1	385.9	470.7	326.1
Note Receivable - Long Term	53.4	54.9	100.9	111.7	109.9
Deferred Income Tax - Long Term Asset	16.4	13.4	9.8	7.0	5.6
Discontinued Operations - Long Term Asset	0.7	2.8	-	-	-
Other Long Term Assets	359.7	318.4	244.6	221.5	186.4
Other Long Term Assets, Total	376.8	334.6	254.3	228.5	192.0
Total Assets	6,372.8	5,448.3	5,090.4	4,441.4	3,900.5
Accounts Payable	45.2	71.1	265.4	280.5	361.5
Accrued Expenses	523.1	386.4	286.2	300.6	293.9
Notes Payable/Short Term Debt	86.1	71.9	58.6	81.2	82.7
Current Portion - Long Term Debt/Capital Leases	2.7	2.7	0.4	0.4	0.2
Customer Advances	29.0	11.0	8.2	20.2	56.9
Security Deposits	-	0.1	-	-	-
Income Taxes Payable	139.7	142.9	196.4	110.3	148.9
Other Payables	75.3	62.1	-	-	-
Other Current Liabilities	128.3	119.2	-	-	2.1
Other Current liabilities, Total	372.2	335.3	204.7	130.5	208.0
Total Current Liabilities	1,029.4	867.4	815.4	793.1	946.3
Long Term Debt	102.8	32.9	1.4	1.7	2.0
Total Long Term Debt	102.8	32.9	1.4	1.7	2.0
Total Debt	191.7	107.5	60.4	83.3	84.8
Deferred Income Tax - LT Liability	222.8	197.6	147.6	143.7	84.8
Deferred Income Tax	222.8	197.6	147.6	143.7	84.8
Minority Interest	97.1	84.2	37.1	23.3	21.9
Reserves	3.1	3.0	2.0	1.9	1.6
Other Long Term Liabilities	143.7	106.9	72.4	59.0	84.1
Other Liabilities, Total	146.9	110.0	74.3	60.9	85.7
Total Liabilities	1,598.9	1,291.9	1,075.8	1,022.8	1,140.6
Common Stock	895.5	829.0	841.4	820.1	758.2
Common Stock	895.5	829.0	841.4	820.1	758.2
Additional Paid-In Capital	-4.3	4.6	4.7	4.6	2.3
Retained Earnings (Accumulated Deficit)	3,739.2	3,199.2	2,934.7	2,386.7	1,807.9
Treasury Stock - Common	-317.9	-298.2	-191.1	-194.9	-180.2
Other Equity	461.4	421.8	424.8	402.1	371.8
Other Equity, Total	461.4	421.8	424.8	402.1	371.8
Total Equity	4,773.9	4,156.4	4,014.6	3,418.6	2,759.9
Total Liabilities & Shareholders’ Equity	6,372.8	5,448.3	5,090.4	4,441.4	3,900.5
Shares Outstanding - Common Stock Primary Issue	125.9	125.7	127.6	127.2	128.7
Total Common Shares Outstanding	125.9	125.7	127.6	127.2	128.7
Treasury Shares - Common Stock Primary Issue	11.4	11.5	9.6	10.1	10.1
Employees	4,313	4,313	4,214	4,653	4,750
Number of Common Shareholders	-	-	104,382	132,863	105,512
Accumulated Intangible Amort, Suppl.	27.0	36.6	17.7	13.1	-
Deferred Sale - Current	29.0	11.0	8.2	20.2	56.9
Deferred Sale - Long Term	19.0	12.2	-	-	-
Total Long Term Debt, Supplemental	-	-	0.4	0.4	2.2
Long Term Debt Maturing within 1 Year	-	-	0.4	0.4	0.2
Long Term Debt Maturing in Year 2	-	-	-	-	0.4
Long Term Debt Maturing in Year 3	-	-	-	-	0.4
Long Term Debt Maturing in Year 4	-	-	-	-	0.4
Long Term Debt Maturing in 2-3 Years	-	-	-	-	0.8
Long Term Debt Maturing in 4-5 Years	-	-	-	-	0.4
Long Term Debt Matur. in Year 6 & Beyond	-	-	0.0	0.0	0.8

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	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated 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	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified	Unqualified
Net Income/Starting Line	643.5	737.4	891.5	666.0	966.2
Depreciation	146.9	138.0	127.7	119.0	-
Depreciation/Depletion	146.9	138.0	127.7	119.0	-
Amortization of Intangibles	11.4	4.1	1.1	1.2	-
Amortization	11.4	4.1	1.1	1.2	-
Unusual Items	-8.2	-27.5	-81.2	-5.9	-
Equity in Net Earnings (Loss)	-1.8	-1.2	0.2	0.1	-
Other Non-Cash Items	314.2	306.6	179.0	285.0	-
Non-Cash Items	304.3	277.9	98.1	279.2	-
Accounts Receivable	-130.8	-121.6	-44.7	13.9	-
Inventories	-151.7	-9.6	9.1	15.7	-
Prepaid Expenses	-47.1	-21.5	-8.4	22.5	-
Accounts Payable	66.7	36.8	-20.7	-95.6	-
Accrued Expenses	-	-10.1	-21.8	-15.8	-
Taxes Payable	81.6	-	-	-	-
Other Liabilities	-13.5	-28.0	-81.7	-78.5	-
Other Operating Cash Flow	-269.8	-320.2	-219.3	-276.4	-332.2
Changes in Working Capital	-464.6	-474.2	-387.5	-414.3	-332.2
Cash from Operating Activities	641.5	683.1	730.9	651.1	634.0
Purchase of Fixed Assets	-233.8	-260.4	-183.0	-119.3	-186.9
Purchase/Acquisition of Intangibles	-5.5	-16.4	-11.8	-4.6	-5.8
Capital Expenditures	-239.3	-276.9	-194.8	-123.9	-192.7
Sale of Fixed Assets	31.8	30.4	118.1	14.6	21.0
Sale/Maturity of Investment	3.7	9.6	229.8	1.8	0.3
Investment, Net	-565.1	-	-	-	-
Purchase of Investments	-33.3	-213.8	-34.5	-10.0	-18.0
Sale of Intangible Assets	0.7	23.0	0.9	0.1	0.0
Other Investing Cash Flow	4.6	40.8	14.1	1.2	-3.0
Other Investing Cash Flow Items, Total	-557.6	-110.0	328.3	7.6	0.4
Cash from Investing Activities	-796.9	-386.9	133.5	-116.3	-192.3
Other Financing Cash Flow	-9.7	0.0	-3.5	-4.4	-5.2
Financing Cash Flow Items	-9.7	0.0	-3.5	-4.4	-5.2
Total Cash Dividends Paid	-357.1	-345.7	-308.0	-282.3	-309.3
Sale/Issuance of Common	11.1	7.2	39.0	-	-
Repurchase/Retirement of Common	-	-117.0	-	-81.5	-176.4
Common Stock, Net	11.1	-109.8	39.0	-81.5	-176.4
Issuance (Retirement) of Stock, Net	11.1	-109.8	39.0	-81.5	-176.4
Short Term Debt Issued	-	51.3	39.6	59.0	73.5
Short Term Debt Reduction	-	-	-54.4	-65.2	-58.8
Short Term Debt, Net	-	51.3	-14.8	-6.2	14.7
Long Term Debt Issued	-	-	-	-	0.0
Long Term Debt Reduction	-	-	-0.4	-0.2	-0.2
Long Term Debt, Net	-	-	-0.4	-0.2	-0.2
Total Debt Issued	256.5	-	-	-	-
Total Debt Reduction	-129.9	-47.6	-	-	-
Issuance (Retirement) of Debt, Net	126.5	3.7	-15.2	-6.5	14.5
Cash from Financing Activities	-229.1	-451.8	-287.7	-374.7	-476.5
Foreign Exchange Effects	-1.9	-1.2	-1.9	1.5	2.0
Net Change in Cash	-386.5	-156.7	574.8	161.7	-32.7
Net Cash - Beginning Balance	716.8	885.7	273.9	86.4	132.9
Net Cash - Ending Balance	330.4	729.1	848.7	248.1	100.2
Cash Interest Paid	10.3	3.2	2.3	3.9	3.9
Cash Taxes Paid	269.8	320.2	219.3	276.3	332.2

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	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated 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	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Sales Sale	3,536.1	3,360.4	2,993.6	2,841.1	3,009.7
Total Sale	3,536.1	3,360.4	2,993.6	2,841.1	3,009.7
Cost-Sale	-	-	-	-	-108.0
Costs of Goods & Services Sold	1,544.8	1,451.0	1,251.2	1,216.9	1,192.6
Interal Employee Benefits Fund	-	-	10.8	15.3	19.1
Selling & Administrative Expense	-	-	-	-	735.7
Salaries & Wages	288.6	265.4	206.6	190.7	-
Retirement and Severance Benefits	25.5	22.9	48.0	21.0	-
Employee Benefits	37.2	32.2	24.4	21.5	-
Commissions	192.2	153.2	125.9	103.4	-
Travel Expenses	11.9	11.1	9.4	7.3	-
Utility Expense	8.1	6.8	6.1	5.2	-
Taxes & Dues	16.4	14.5	15.1	13.7	-
Communication Expense	5.2	4.8	4.5	4.0	-
Rental Expense	27.2	25.1	18.2	14.1	-
Insurance Premiums	2.0	1.9	1.1	1.0	-
Shipping & Storage Expense	41.3	39.3	31.9	25.1	-
Consumable Expense	3.5	3.7	3.1	4.0	-
Repair & Maintenance Expense	10.2	8.0	7.0	4.1	-
Vehicle Expense	10.8	9.5	7.7	7.1	-
Education & Training Expense	7.1	7.2	8.8	5.9	-
Conference Expense	4.3	2.7	3.0	4.3	-
Awards Expense	2.4	3.4	-	-	-
Miscellaneous Expense	-	-	-	-	45.5
Damage Compensation Expense	-	-	2.4	1.3	-
Cooperating Expense	1.3	1.3	-	-	-
Advertising Expense	276.0	240.2	212.6	171.8	-
R & D Expense	32.9	26.5	18.6	15.9	-
Depreciation	42.8	40.4	41.3	41.6	-
Amort. of Intangibless	11.4	3.9	1.1	1.1	-
Expenses of Allowance for Doubtful Accou	14.0	1.4	-	-	-
Adjustment for Selling and Administrativ	0.0	0.0	0.0	0.0	-
Gain on Foreign Currency Transaction	-	-	-18.7	-23.7	-
Gain on Foreign Currency Translation	-	-	-1.5	-0.9	-
Gain on Sale of Equity Method Securities	-	-	-0.3	0.0	-
Gain on Sale of Tangible Asset	-	-	-88.1	-13.3	-
Gain on Sale of Intangible Assets	-	-	0.0	0.0	-
Recovery-Impair.oss on Trade Recei&	-	-	-0.2	0.0	-
Other Operating Income	-	-	-12.0	-10.2	-
Adj. for Other Operating Income	-	-	0.0	0.0	-
Loss on Foreign Currency Transaction	-	-	20.7	31.9	-
Loss on Foreign Currency Translation	-	-	5.0	13.9	-
Loss Reduction of Trade Recei.&Other Rec	-	-	-	0.6	-
Impmt Loss on Trade Receivable	-	-	0.4	-	-
Loss-Reduction of Other Receivables	-	-	0.1	-	-
Donation Paid	-	-	26.8	25.6	-
Loss on Sale of Tangible Assets	-	-	2.1	5.9	-
Loss Reduction of Tangible Assets	-	-	0.0	0.5	-
Loss on Sale of Intangible Assets	-	-	0.1	0.0	-
Loss Reduction of Intangible Assets	-	-	3.2	0.5	-
Loss Reduction of Investment Properties	-	-	1.2	0.0	-
Loss-Scrapping of Inventory	-	-	5.4	3.3	-
Other Expense	-	-	4.9	5.4	-
Adj. for Other Operating Expense	-	-	0.0	0.0	-
Total Operating Expense	2,616.8	2,376.2	2,007.6	1,935.6	1,884.9
Financial Income	-	-	-	-	19.3
Interest Income	32.5	31.4	20.4	9.4	-
Dividend Income	5.6	4.7	1.8	0.2	-
Gain-Investment on LT Deposit	0.0	6.0	4.0	0.0	-
Gain on Sale of Available for Sale Finan	-	0.6	207.7	0.4	-
Rental Income	-	-	-	0.0	-
Adjustment for Finance Income	0.0	0.0	0.0	-	-
Gain on Disposal of Property, Plant and	30.5	41.4	-	-	-
Gain on Disposal of Intangible Assets	0.3	6.3	-	-	-
Gain on Foreign Currency Transactions	14.7	32.3	-	-	-
Gain on Foreign Currency Translations	5.0	16.2	-	-	-
Miscellaneous Income	16.2	10.1	-	-	-
Interest Expenses	-9.1	-3.8	-2.8	-3.8	-12.5
Loss on Sale of Available for Sale Finan	-0.3	0.0	-1.0	0.0	-
Loss on Derivative Transaction	-	-	0.0	-1.3	-
Adjustment for Finance Expense	0.0	0.0	0.0	0.0	-
Reduction Loss of Financial Assets Avail	-	-3.6	-	-	-
Other Allowance for Doubtful Accounts	-0.1	-0.2	-	-	-
Loss on Disposal of Intangible Assets	-0.4	-0.6	-	-	-
Loss on Disposal of Property, Plant and	-6.9	-3.2	-	-	-
Impairment Loss on Property, Plant and E	-0.2	-	-	-	-
Impairment Loss on Intangible Assets	-0.1	-14.4	-	-	-
Loss on Foreign Currency Transactions	-29.5	-29.1	-	-	-
Loss on Foreign Currency Translations	-44.9	-6.1	-	-	-
Loss on Scrapping of Inventory	-2.9	-6.6	-	-	-
Donations Paid	-20.6	-16.7	-	-	-
Miscellaneous Loss	-3.7	-3.3	-	-	-
Gain on Disposal of Investment in Subsid	-	1.0	-	-	-
Share of Profit of Associates Accounted	2.0	1.2	0.0	0.0	0.0
Dec-Net Income/Loss in Affiliates, EM	-0.2	0.0	-0.2	-0.1	-0.3
Adjustment for Other Non-Operating Incom	0.0	0.0	-	-	-
Adjustment for Other Non-Operating Expen	0.0	0.0	-	-	-
Net Income Before Taxes	907.3	1,048.0	1,215.7	910.3	1,131.4
Prov. for Income Taxes	263.8	310.6	324.2	244.3	318.0
Net Income After Taxes	643.5	737.4	891.5	666.0	813.3
Minority Interest	11.5	-0.8	0.9	0.8	2.4
Net Income Before Extra. Items	655.0	736.6	892.4	666.8	815.7
Net Income	655.0	736.6	892.4	666.8	815.7
Income Available to Com Excl ExtraOrd	655.0	736.6	892.4	666.8	815.7
Income Available to Com Incl ExtraOrd	655.0	736.6	892.4	666.8	815.7
Basic Weighted Average Shares	125.8	126.5	127.3	128.4	130.1
Basic EPS Excluding ExtraOrdinary Items	5.21	5.82	7.01	5.19	6.27
Basic EPS Including ExtraOrdinary Items	5.21	5.82	7.01	5.19	6.27
Dilution Adjustment	0.0	0.0	-	-	-
Diluted Net Income	655.0	736.6	892.4	666.8	815.7
Diluted Weighted Average Shares	125.8	126.5	127.3	128.4	130.1
Diluted EPS Excluding ExtraOrd Items	5.21	5.82	7.01	5.19	6.27
Diluted EPS Including ExtraOrd Items	5.21	5.82	7.01	5.19	6.27
DPS-Ordinary Shares	2.84	2.89	2.59	2.19	2.54
Gross Dividends - Common Stock	357.5	363.2	331.2	279.0	327.4
Normalized Income Before Taxes	886.7	1,010.6	1,138.8	907.4	1,131.4
Inc Tax Ex Impact of Sp Items	257.8	299.5	303.7	243.5	318.0
Normalized Income After Taxes	628.9	711.0	835.1	663.9	813.3
Normalized Inc. Avail to Com.	640.4	710.3	836.0	664.7	815.7
Basic Normalized EPS	5.09	5.61	6.57	5.18	6.27
Diluted Normalized EPS	5.09	5.61	6.57	5.18	6.27
Interest Expense, Supplemental	9.1	3.8	3.9	3.8	4.3
Rental Expense, Supplemental	27.2	25.1	18.2	14.1	12.6
R&D Expense, Supplemental	33.9	27.8	19.3	15.9	19.9
Advertising Expense, Supplemental	276.0	240.2	212.6	171.8	180.7
Depreciation, Supplemental	141.4	133.5	127.7	119.0	137.3
Amort of Intangibles	11.4	4.1	1.1	1.2	1.8

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	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	KRW	KRW	KRW	KRW	KRW
Exchange Rate	1066.400024	1152	1134.9	1164.475	1259.55
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Cash & Cash Equivalents	349.1	701.2	864.7	271.9	87.5
Other Current Fincl Assets	608.8	9.6	13.5	0.8	1.4
ST Secs for Sale	0.9	0.9	0.9	1.7	1.7
Trade Receivables, Gross	760.1	665.8	479.2	454.7	443.5
Allow. for DA for Trade Receivable	-24.6	-12.1	-6.1	-6.9	-6.2
ST Employee Loan	6.7	11.7	17.0	20.6	22.3
ST Loan, Net	0.6	1.7	0.8	1.1	0.9
Other Receivable	79.3	54.6	60.8	47.8	43.8
Doubtful Account-Account Rcvbls	-	-	-1.7	-1.9	-1.4
Trade Guarantee	-	-	-	0.0	0.0
Accrued Income	6.6	1.7	1.9	0.5	0.3
Adjustment for Trade & Other Receivables	0.0	0.0	0.0	0.0	0.0
Advance Payments	62.2	55.9	36.6	37.5	24.6
Prepaid Expenses Total	19.2	17.8	19.7	10.1	2.9
Prepaid Taxes on Cigarette Consumption	241.2	175.3	156.0	145.5	160.2
Fixed Assets Reduction Provision	-	-	-	39.6	18.2
Merchandises	7.1	4.2	7.0	2.3	0.6
Finished Goods	325.3	265.2	209.7	178.0	145.8
Work in Progress	421.6	281.6	275.7	273.8	235.1
Raw Materials	767.8	756.4	765.8	754.3	668.6
Supplies	24.0	22.7	22.9	21.7	18.5
Residual Products	5.7	5.8	6.6	4.9	2.6
Finished Housing	-	-	-	46.2	0.0
Unfinished Housing	-	-	0.3	0.0	144.5
Lots	6.1	-	8.3	0.0	14.0
Goods in Transit	42.6	28.9	22.8	14.8	7.9
Adjustment	0.0	0.0	0.0	0.0	0.0
Unfinished Residential Units	0.2	-	-	-	-
Total Current Assets	3,710.7	3,048.8	2,962.4	2,319.0	2,037.2
Other Non-Current Fincl Assets	0.3	1.2	0.6	0.2	0.0
Invmt in Properties	170.7	163.5	107.0	89.4	85.2
Financial Assets Available for Sale	247.5	214.7	276.8	379.6	239.9
LT Trade Receivable	-	-	100.9	111.7	109.9
Other Receivable	25.8	19.3	-	-	-
LT Employee Loan	21.1	28.2	-	-	-
Loans	6.5	7.4	-	-	-
Adjustment for Non-Current Trade & Other	0.0	0.0	-	-	-
Equity Method Securities	52.3	30.7	1.4	1.4	1.0
Guarantee Deposit	60.8	61.5	-	-	-
Long-Term Prepaid Expenses	5.1	5.0	5.5	5.5	5.0
LT Deposit Withheld	158.2	127.9	116.7	101.4	87.5
Long-term Advance Payments	135.6	124.0	122.4	114.5	93.9
Non-Current Assets Held for Sale	0.7	2.8	-	-	-
Land	485.8	399.7	385.0	375.4	346.6
Buildings	776.9	716.5	670.9	600.5	534.9
Buildings Depre.	-281.1	-254.6	-233.5	-203.3	-167.0
Structures	56.8	56.4	56.6	51.3	47.4
Structure Depre.	-31.5	-30.3	-28.4	-26.0	-22.4
Machinery/Equip.	1,068.7	918.4	876.3	831.4	757.9
Mach/Equip Depre	-719.3	-601.5	-540.3	-493.2	-421.0
Transport Equip.	10.3	10.6	7.8	11.2	13.9
Transport Deprec	-7.5	-7.5	-6.3	-9.9	-11.8
Tools & Equipments	49.9	43.2	40.6	39.4	38.1
Tool/Equip Depr.	-41.6	-34.6	-29.9	-29.0	-26.0
Fixtures	233.0	202.5	169.6	193.3	155.2
Deprec. Fixtures	-171.2	-145.0	-116.7	-137.6	-97.6
Other Tangible Assets	1.2	1.1	0.7	0.6	0.6
Construction in Progress	99.6	100.5	78.8	59.5	45.3
Adjustment	0.0	0.0	0.0	0.0	0.0
Deferred Income Taxes Assets Non-current	16.4	13.4	9.8	7.0	5.6
Industrial Property Rights	32.0	20.4	1.8	1.3	1.5
Usage Right-Facility	24.4	21.2	21.3	17.8	15.9
Other Intangibless	92.2	92.6	3.7	2.6	2.3
Intangible Assets-under Development	4.0	14.1	28.8	26.2	21.6
Goodwill	78.9	76.3	-	-	-
Adj. for Intangibless	0.0	0.0	0.0	0.0	0.0
Total Assets	6,372.8	5,448.3	5,090.4	4,441.4	3,900.5
Trade Acct. Pay.	-	-	265.4	280.5	361.5
Trade Payable	45.2	71.1	-	-	-
Other Payable	75.3	62.1	-	-	-
Inc. Taxes Pay.	139.7	142.9	196.4	110.3	148.9
Accrd Cigaret Tx	387.2	272.0	286.2	300.6	293.9
Accrued Expense	135.9	114.4	-	-	-
Advance for Customers	29.0	11.0	8.2	20.2	56.9
Withheld	128.3	119.2	-	-	-
Leasehold Deposits Received	-	0.1	-	-	-
Derivatives in Liabilities, Current	-	-	-	-	2.1
Current Portion of Long-term Debt	2.7	2.7	0.4	0.4	0.2
Short-term Borrowings	86.1	71.9	58.6	81.2	82.7
Adjustment for Trade & Other Payables	0.0	0.0	-	-	-
Total Current Liabilities	1,029.4	867.4	815.4	793.1	946.3
Long Term Borrowings	102.8	32.9	1.4	1.7	2.0
Total Long Term Debt	102.8	32.9	1.4	1.7	2.0
Long-term Trade Payables	-	-	20.2	19.8	18.7
Long-term Other Payables	-	0.3	-	-	-
Long-term Advances from Customers	19.0	12.2	9.6	8.8	6.7
Non-Current Fixed Benefit Liabilities	100.9	72.1	42.6	30.4	58.7
LT Deposit Withheld	0.4	0.6	-	-	-
Leasehold Deposits Received	23.4	21.8	-	-	-
Deferred Income Taxes Liabilities Non-cu	222.8	197.6	147.6	143.7	84.8
LT Reserve	3.1	3.0	2.0	1.9	1.6
Minority Interest	97.1	84.2	37.1	23.3	21.9
Adjustment for LT Trade and Other Liabil	0.0	0.0	-	-	-
Total Liabilities	1,598.9	1,291.9	1,075.8	1,022.8	1,140.6
Capital Stock	895.5	829.0	841.4	820.1	758.2
Other Capital Surplus	-4.3	4.6	4.7	4.6	2.3
Treasury Stock	-317.9	-298.2	-191.1	-194.9	-180.2
Gains on Sale of Treasury Stock	461.4	421.8	424.8	402.1	371.8
Appropriated Retained Earnings	2,823.6	2,311.9	1,920.2	1,782.1	1,449.5
Retained Earnings	915.6	887.3	1,014.5	604.6	358.4
Total Equity	4,773.9	4,156.4	4,014.6	3,418.6	2,759.9
Total Liabilities & Shareholders' Equity	6,372.8	5,448.3	5,090.4	4,441.4	3,900.5
S/O-Ordinary Shares	125.9	125.7	127.6	127.2	128.7
Total Common Shares Outstanding	125.9	125.7	127.6	127.2	128.7
T/S-Ordinary Shares	11.4	11.5	9.6	10.1	10.1
Deferred Sale, Current	29.0	11.0	8.2	20.2	56.9
Accumulated Intangible Amort, Suppl.	27.0	36.6	17.7	13.1	-
Deferred Sale - Long Term	19.0	12.2	-	-	-
Full-Time Employees	4,313	4,313	4,214	4,653	4,750
Number of Common Shareholders	-	-	104,382	132,863	105,512
Long Term Debt Maturing within 1 Year	-	-	0.4	0.4	0.2
Long Term Debt Maturing within 2 Years	-	-	-	-	0.4
Long Term Debt Maturing within 3 Years	-	-	-	-	0.4
Long Term Debt Maturing within 4 Years	-	-	-	-	0.4
Long Term Debt Remaining Maturities	-	-	-	-	0.8
Total Long Term Debt, Supplemental	-	-	0.4	0.4	2.2

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	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated 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	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified	Unqualified
Net Income or Loss	643.5	737.4	891.5	666.0	966.2
Depreciation	146.9	138.0	127.7	119.0	-
Corporate Taxes	263.8	310.6	324.2	244.3	-
Financial Expense	9.3	7.4	3.9	5.1	-
Finance Income	-38.2	-42.7	-233.8	-10.1	-
Amort. of Intangibless	11.4	4.1	1.1	1.2	-
Retirement Allowance	36.0	36.0	75.2	32.5	-
Loss on Equity Method Securities	0.2	0.0	0.2	0.1	-
Gain under Equity Method	-2.0	-1.2	-	0.0	-
Losses on Foreign Currency Translation	44.9	6.1	5.0	13.9	-
Loss-Reduction of Other Receivables	-	0.1	-	-	-
Losses on Valuation of Inventories	1.3	0.6	0.1	-	-
Impairment Loss on Trade & Other Recevia	14.0	-	0.4	0.6	-
Impairment Loss on Trade Receivable	-	1.6	-	-	-
Disp Tang Asst Loss	6.9	3.2	2.1	5.9	-
L-Tang Asset Redct	-	-	-	0.5	-
Loss-Reduction of Intangible Assets	-	-	-	0.5	-
Loss on Sale of Intangible Assets	0.4	0.6	0.1	-	-
Loss Reduction of Intangible Assets	-	14.4	3.2	-	-
Loss Reduction of Investment Properties	-	-	1.2	-	-
Other Expense	3.4	6.6	6.3	3.3	-
Gains on Disposal of Subsidiaries Invest	-	-1.0	-	-	-
Gain Disp Tang. Ast	-30.5	-41.4	-88.1	-13.3	-
Gain on Sale of Intangible Assets	-0.3	-6.3	0.0	-	-
Gain-Disposal of Sec. under Equity Mtd.	-	-	-0.3	-	-
Recovery-Loss Reduct.of Trade Recei	-	-0.2	-0.2	0.0	-
Rec. of Losses on Valt of Inventories	-	0.0	-	-3.0	-
Gains on Foreign Currency Translation	-5.0	-16.2	-1.5	-0.9	-
Miscellaneous Gain	-	-	-	-0.1	-
Inventories	-144.3	13.7	12.2	37.7	-
Trade & Other Receviables	-130.8	-153.7	-44.7	13.9	-
Other Receivable	-	32.2	-	-	-
Prepaid Expenses	2.3	-2.3	-1.9	-2.8	-
Advance Payments	-7.5	-23.4	-3.1	-22.0	-
Prepaid Taxes on Cigarette Consumption	-49.4	-19.1	-6.6	25.3	-
Trade & Other Payables	66.7	-3.6	-20.7	-95.6	-
Other Payable	-	40.4	-	-	-
Cigarette Consumption Tax Payables	81.6	-	-	-	-
Accrued Cigarette Consumption Taxes	-	-10.1	-21.8	-15.8	-
Advances Received	21.0	5.8	-11.5	-36.1	-
Retiremt Allow Paymt	-34.5	-33.8	-70.2	-42.5	-
Cash-Tax Paid	-269.8	-320.2	-219.3	-276.3	-332.2
Adj.	0.0	0.0	0.0	0.0	-
Cash from Operating Activities	641.5	683.1	730.9	651.1	634.0
Decrease-Financial Assets	-	7.2	-	-	-
Proceeds from Sale of Available for sale	3.7	2.3	229.8	1.8	0.3
Proceeds from Sale of Investment in Subs	-	0.1	-	0.0	-
Decrease-Loans	19.2	19.8	41.3	20.1	26.5
Cash Interest Received	36.1	30.0	17.8	8.4	15.9
Disposal of Subsidiary Investment	-	-	-	-	0.3
Received-Gain on LT Deposit Investment	0.4	9.6	1.1	-	-
Dividend Income, IP	7.9	6.4	1.8	0.2	3.1
Decrease in Deposits Provided	59.4	33.3	34.4	13.6	11.2
Disposal of Non-Current Assets Held for	-	0.9	87.2	-	-
Proceeds from Sale of Property Plant and	31.8	29.5	30.9	14.6	21.0
Decrease-Intangible Assets	0.7	23.0	0.9	0.1	0.0
Loans	-33.4	-6.7	-13.9	-8.2	-20.5
Increase in Deposits Provided	-54.7	-38.3	-42.4	-15.8	-16.7
Increase-LT Deposit	-30.3	-13.7	-11.8	-14.1	-16.3
Purchase of Derivatives Assets	-	-	-	-3.5	-5.7
Purchase of Fincl Instruments	-	-1.2	-	-	-
Purchase of Available for sale Securitie	-14.6	-20.1	-34.5	-9.4	-17.4
Purchase of Equity Method Sec.	-18.6	-15.0	-	-0.4	-0.5
Purchase of Invmt in Subsidiaries	-	-175.6	-	-	-
Purchase of Real Estate	0.0	-1.9	-	-0.3	-0.2
Other Financial Instruments, Net	-565.1	-	-	-	-
Purchase of Tangibles	-233.8	-260.4	-183.0	-119.3	-186.9
Purchase of Intangibless	-5.5	-16.4	-11.8	-4.6	-5.8
Cash Flows from Other Investing Activity	-	-	-14.3	0.5	-0.6
Cash Flows from Other Investing Activity	-	0.4	-	-	-
Cash from Investing Activities	-796.9	-386.9	133.5	-116.3	-192.3
Cash-Interest Paid	-10.3	-3.2	-2.3	-3.9	-3.9
Proceeds from Short-term Borrowings	-	51.3	39.6	59.0	73.5
Increase-LT Borrowings	-	-	-	-	0.0
Increase in Borrowings	256.5	-	-	-	-
Disposal-Treasury Stock	11.1	7.2	24.6	-	-
Capital Increase	-	0.0	14.4	-	-
Inc Lease Guarantee	5.2	9.1	4.9	2.3	4.0
Decrease in Current Borrowings	-	-	-54.4	-65.2	-58.8
Decrease in Non-Current Borrowings	-	-	-0.4	-0.2	-0.2
Redemption-Borrowings	-129.9	-47.6	-	-	-
Decrease-Lease Guarantee Deposit	-4.6	-5.9	-6.0	-2.8	-5.4
Increase-Treasury Stocks	-	-117.0	-	-81.5	-176.4
Payments in Dividends	-357.1	-345.7	-308.0	-282.3	-309.3
Cash from Financing Activities	-229.1	-451.8	-287.7	-374.7	-476.5
Foreign Exchange Effects	-1.9	-1.2	-1.9	1.5	2.0
Incs or Decs in Cash & Cash Equivalents	-386.5	-156.7	574.8	161.7	-32.7
Cash and Cash Equivalent at Beginning	716.8	885.7	273.9	86.4	132.9
Cash and Cash Equivalent at End	330.4	729.1	848.7	248.1	100.2
Cash Interest Paid	10.3	3.2	2.3	3.9	3.9
Cash Taxes Paid	269.8	320.2	219.3	276.3	332.2

Financial Health

Financials in: USD (mil)

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

Key Indicators USD (mil)
Â	Quarter Ending 30-Jun-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Sale1	815.1	-9.04%	3,536.1	7.03%	3.19%	5.52%
Research & Development1	-	-	32.9	26.39%	22.18%	10.20%
Operating Income1	221.7	-8.45%	919.3	-4.99%	-3.58%	1.23%
Income Available to Common Excl Extraord Items1	173.9	-8.98%	655.0	-9.56%	-4.64%	2.18%
Basic EPS Excl Extraord Items1	1.38	-9.09%	5.21	-9.02%	-3.98%	3.24%
Capital Expenditures2	68.3	-24.90%	239.3	-12.09%	19.47%	-0.29%
Cash from Operating Activities2	645.8	-12.85%	641.5	-4.49%	-4.55%	-4.38%
Free Cash Flow	555.4	-11.17%	425.0	0.68%	-12.35%	-6.39%
Total Assets3	6,156.7	5.63%	6,372.8	8.28%	9.53%	10.45%
Total Liabilities3	1,721.2	4.12%	1,598.9	14.57%	12.71%	11.46%
Total Long Term Debt3	104.9	99.00%	102.8	189.59%	278.17%	109.24%
Employees3	-	-	4313	0.00%	-2.50%	-0.25%
Total Common Shares Outstanding3	125.9	0.12%	125.9	0.12%	-0.34%	-0.77%
1-ExchangeRate: KRW to USD Average for Period	1122.022568	Â	1126.848795	Â	Â	Â
2-ExchangeRate: KRW to USD Average for Period	1103.219597	Â	1126.848795	Â	Â	Â
3-ExchangeRate: KRW to USD Period End Date	1147.202838	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	56.31%	56.82%	58.20%	57.17%	60.37%
Operating Margin	26.00%	29.29%	32.94%	31.87%	37.37%
Pretax Margin	25.66%	31.19%	40.61%	32.04%	37.59%
Net Profit Margin	18.52%	21.92%	29.81%	23.47%	27.10%
Financial Strength
Current Ratio	3.60	3.52	3.63	2.92	2.15
Long Term Debt/Equity	0.02	0.01	0.00	0.00	0.00
Total Debt/Equity	0.04	0.03	0.02	0.02	0.03
Management Effectiveness
Return on Assets	11.09%	13.56%	18.83%	16.86%	19.79%
Return on Equity	14.94%	17.47%	24.17%	22.83%	27.13%
Efficiency
Receivables Turnover	4.64	5.10	5.64	5.88	6.26
Inventory Turnover	1.02	1.01	0.94	0.99	0.90
Asset Turnover	0.61	0.62	0.63	0.72	0.73

Market Valuation USD (mil)
P/E (TTM)	13.25	.	Enterprise Value2	8,398.9
Price/Sales (TTM)	2.76	.	Enterprise Value/Sale (TTM)	2.52
Price/Book (MRQ)	1.91	.	Enterprise Value/EBITDA (TTM)	8.28
Market Cap as of 08-Nov-20131	9,946.0	.
1-ExchangeRate: KRW to USD on 8-Nov-2013	1062.889897
2-ExchangeRate: KRW to USD on 30-Jun-2013	1147.202838

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	3.60	3.52	3.63	2.92	2.15
Quick/Acid Test Ratio	1.74	1.65	1.76	1.05	0.65
Working Capital1	2,681.3	2,181.5	2,147.0	1,525.9	1,090.9
Long Term Debt/Equity	0.02	0.01	0.00	0.00	0.00
Total Debt/Equity	0.04	0.03	0.02	0.02	0.03
Long Term Debt/Total Capital	0.02	0.01	0.00	0.00	0.00
Total Debt/Total Capital	0.04	0.03	0.01	0.02	0.03
Payout Ratio	54.53%	49.61%	37.00%	42.23%	40.59%
Effective Tax Rate	29.08%	29.64%	26.67%	26.83%	28.11%
Total Capital1	4,965.6	4,263.8	4,075.0	3,501.9	2,844.8
Efficiency
Asset Turnover	0.61	0.62	0.63	0.72	0.73
Inventory Turnover	1.02	1.01	0.94	0.99	0.90
Days In Inventory	357.47	360.46	389.96	369.23	407.58
Receivables Turnover	4.64	5.10	5.64	5.88	6.26
Days Receivables Outstanding	78.64	71.56	64.70	62.12	58.32
Sale/Employee2	866,347	749,302	723,772	669,278	553,635
Operating Income/Employee2	225,233	219,447	238,390	213,302	206,908
EBITDA/Employee2	262,651	250,113	269,545	241,609	232,512
Profitability
Gross Margin	56.31%	56.82%	58.20%	57.17%	60.37%
Operating Margin	26.00%	29.29%	32.94%	31.87%	37.37%
EBITDA Margin	30.32%	33.38%	37.24%	36.10%	42.00%
EBIT Margin	26.00%	29.29%	32.94%	31.87%	37.37%
Pretax Margin	25.66%	31.19%	40.61%	32.04%	37.59%
Net Profit Margin	18.52%	21.92%	29.81%	23.47%	27.10%
R&D Expense/Sale	0.93%	0.79%	0.62%	0.56%	-
COGS/Sale	43.69%	43.18%	41.80%	42.83%	39.63%
SG&A Expense/Sale	27.85%	25.43%	24.85%	21.80%	25.08%
Management Effectiveness
Return on Assets	11.09%	13.56%	18.83%	16.86%	19.79%
Return on Equity	14.94%	17.47%	24.17%	22.83%	27.13%
Valuation
Free Cash Flow/Share2	3.38	3.11	4.28	4.54	3.00
Operating Cash Flow/Share 2	5.38	5.22	5.83	5.61	4.30
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)	14.45
Market Cap/Equity (MRQ)	2.08
Market Cap/Sale (TTM)	2.76
Market Cap/EBIT (TTM)	10.69
Market Cap/EBITDA (TTM)	9.09
Enterprise Value/Earnings (TTM)	13.17
Enterprise Value/Equity (MRQ)	1.89
Enterprise Value/Sale (TTM)	2.52
Enterprise Value/EBIT (TTM)	9.75
Enterprise Value/EBITDA (TTM)	8.28

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.36
UK Pound	1	Rs.101.11
Euro	1	Rs.84.68

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.