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The figures provided in this presentation are based on un-audited financial statements. Certain numbers may be presented differently once audited, and The company takes no responsibility and accepts no liability for such changes. Contents. Results from the 1 st Half of 2007
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The figures provided in this presentation are based on un-audited financial statements. Certain numbers may be presented differently once audited, and The company takes no responsibility and accepts no liability for such changes.
Contents • Results from the 1st Half of 2007 • Overseas Subsidiaries • Major Businees Activities • Q&A
Results from the 1st half of 2007 • Financial Statement in brief • Production • Sales by Region / Division • Sales Breakdown
Financial Statement in brief Business Performance (KRW Bn) Business Performance Trend Sales Operating Profit Ordinary Income EBITDA Margin(%)
Financial Statement in brief Financial Status (KRW Bn) Liabilities/Equity(%) Net Debt/Equity(%)
Production CRC & Steel Pipes Dangjin CRC Plant 85.2% 81.8% 14.8% 18.2% (Thousand M/T) (Thousand M/T) • CRC : Dangjin CRC Plant Stablization, 555 thousand M/T increase • Steel Pipes : Mid & Large D. Pipes increse, 29 thousand M/T increase • H-CVGL full operation : CR 91 thousand M/T increase, CG 211thousand M/T increase • Totally 409 thousand M/T , 73.4% increase
Sales by Region/Division Domestic & Export(KRW bn) Division (1,501thousand M/T) (1,280 thousand M/T) (958 thousand M/T) (684 thousand M/T) 58.8% 66.2% 41.2% 33.8% • Domestic : Sales increase by 20.1% • Export : Selling price & quantity increase by 53.8% • CRC : Portion increase due to Dangjin CRC Plant stablization • Steel Pipes : Quantity increase but Portion decrease • Auto Parts : No. 4 Hydro-Forming operation start
Sales Breakdown (KRW bn) CRC Steel Pipes Auto Parts 1,421.4 368.6 327.7 1,034.2 65.3 (46.7%) (28.5%) (31.4%) 48.8 (16.2%) (58.1%) (6.8%) (40.8%) (37.3%) (83.8%) (50.9%) (93.2%) (39.7%) (30.7%) (31.3%) (2.2%) (2.4%)
Overseas Subsidiaries • Location • Overseas Subsidiaries in Operation • Overseas Subsidiaries under Construction
Overseas Subsidiary Overseas Office Overseas Subsidiaries – Location Europe North America • Alabama • Houston(Trading Company) • Zilina, Slovakia • Czech(Registration Completion) Tokyo, Japan LA Shanghai, China Guangzhou, China Kuala Lumpur, Malaysia Asia • China(Beijing, Yancheung) • India (under construction)
Overseas Subsidiaries – in Operatin (US$ Million) Sales (Trading Company) (Steel Service Center) Equities
Overseas Subsidiaries – under construction Operation schedule Status Czech Jan. 2009 May. 2007 Introduction Registration Operation Jun. 2006 Aug. 2007 Registration Operation India
Major Business Activities • Dangjin Plant Effects • H-CVGL Alteration Completion • Expansion of Hydro-Forming Business • TOP(Total Operational Performance)
Dangjin Steel R&D Center Major Business Activities(1) Dangjin Plant Effects • HRC Procurement Stablization • Improvement HRC Procurement Logistics • Dangjin Steel R&D Center : Improving quality with Hyundai Steel • Sharing port & Facilities • H-CVGL Full Operation KIA Hwaseong Plant Hyundai Motor Asan Plant
Major Business Activities(2) H-CVGL Alteration Completion After Before Effects - Increasing surface quality - Improving Productivity - Change of Production Mix - Minimizing defection Working Pot Melting Pot • Schedule Sink Roll Jul. 2007 Oct. 2007 • Sink Roll in Galvanizing Pot • All-in-one Galvanizing Pot • No Sink Roll in Galvanizing Pot • Working Pot & Melting Pot Hot Run Commercial Prodcution
Major Business Activities(3) Expansion of Hysdro Forming Business Auto Parts Electronics <Refrigerater Handle> <Sub-Frame> <Side Memeber> No. 6 No. 5 No. 4 No. 3 No. 2 No. 1 Lotze, New Avante etc. Operation On Schedule
Major Business Activities(4) Total Operational Performance • TOP means total operational performance to manage the results from the improvement target objectives, to develope the ideas and action based on the results of usage • Suncheon CRC Plant acquired 210 ideas among 1,437 ideas suggested through TOP activities. Preparation Consulting Company Execution 2007 2008 Suncheon Plnt Project Execution & Tracking March 2007 Jun. 2007 Jun. 2008 Dangjin Plant Project Execution & Tracking Aug. 2007 Nov. 2007 Nov. 2008 Project Execution & Tracking Ulsan Plant Sep. 2007 Nov. 2007 Nov. 2008
Appendix • Income Statement • Balance Sheet