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Cheil Industries

Cheil Industries. May, 2010. CONTENTS. Company Overview Business Target FY2010 Earnings Release 1Q10 Appendix `. This document is provided for the convenience of investors only, before the completion of an

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Cheil Industries

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  1. Cheil Industries May, 2010

  2. CONTENTS • Company Overview • Business Target FY2010 • Earnings Release 1Q10 • Appendix • ` • This document is provided for the convenience of investors only, before the completion of an • external audit. Some figures may be subject to change according to the audit outcomes. • As the forward-looking statements this release may contain are based on the company’s own • business outlook, they may differ from the real result. Therefore, the responsibility for • investment on this material is imputed only to investors.

  3. 1. Company Overview

  4. Company History “Creator of Cutting-edge Materials and Sensibility” 55Years of Innovation and More Years to Come A Journey Begins A Refining Revolution Founded as a Textile Player Advanced into Fashion Business (1954) (1983) Launched Korea’s First Textile Exports Acquired Fashion Div. from Samsung Corp. (1961) (1999) Big Achievements Reaching New Heights Advanced into Plastic Resin Business Launched ECM Business (1989) (1996) Started Polarizer Business with the Acquisition of Ace-digitech (2007) Advanced into Artificial Marble Business (1997)

  5. ECM KRW 4,261bn Chemicals 1,209 KRW 1,661bn Fashion & Textiles 33 1,827 716 KRW 433bn 111 KRW 82bn 912 1,225 322 82 FY 1980 FY1990 FY2009 FY2000 Business Transformation

  6. 2. Management Target FY2010

  7. Management Target FY10 [ Won in billions ] Chemicals ECM Fashion • Chemicals • ─ Accelerate sales of high-end products including • PC-related and resins for auto • ─ Reinforce capability of global business with • expansion of manufacturing bases in overseas • Electronic Chemical Materials • ─ Implement the early penetration into market • with development of the new semicon. • processing materials • ─ Strengthen intensively film business through • early ramp-up of new production for polarizer • and development of high-end films for • semi & display • Fashion • ─ Enhance distribution competitiveness for • men’s wear by diversifying retail channel. • ─ Early stabilization of new brands • ─ Develop new growth driver including outdoor ※ Textiles sales excluded 5,000 4,261 231 125 CAPEX

  8. 3. Earnings Release 1Q10

  9. 439 478 346 725 662 578 4Q 09 1Q 10 1Q 09 Business Results 1Q10 [ Won in billions] [ Won in billions ]  Exports Domestic 1,164 1,140 924

  10. Quarterly Business Results  SalesO P [ Won in billions] 1,164 1,140 1,110 1,087 924 81 (7.4%) 78 (6.7%) 77 (6.9%) 61 (5.3%) 46 (4.9%)

  11. Financial Status [ Won in billions] [ %] 71 • Total Liabilities • / Equity 61 58 63 62 • Shareholder • Equity Ratio 59 42 • Net Debt • to Equity 22 20 25 • Total Borrowings • / Total Assets 16 14

  12. Chemicals [ Won in billions] • Strong pricing trend maintained both • in the raw materials and products. • Substantial revenue increase was fueled by • the incremental demand growth in high-end • products amid the favorable environment • of IT industry. • The margin improvement was rather small • due to the sharp increase in input costs • despite the rise in ASP. • Steady near-term demand outlook • on the back of solid IT market condition. 519 468 368 23 16 O P 23 Margin 6.3% 3.4% 4.5%

  13. E C M [ Won in billions]  Polarizer Display SemiOthers • Sales increase and margin improvement • followed by demand recovery • in semiconductor and LCDs. • Despite the volume increase, polarizer sales • slightly decreased YoY due to • KRW appreciation • * 1Q09 : KRW 1,409/$ → 1Q 10: KRW 1,145/$ • New semi-materials are expected to be widely • adopted by captive users on the back of • the acceleration in their process migration • and upturn in semiconductor industry. • Focus to stabilize the 3rd production line for • polarizer and commercialize TV application 321 311 271 30 25 16 O P 8.1% 5.7% 9.4% Margin

  14. Fashion [ Won in billions]  Casual Men Women etc.Others • Overall, sales increased and margin • improved, thanks to the consumer sentiment • recovery. • Casual • - Revenue grew by 13% YoY mainly with • strong sales growth of Bean Pole • Men’s wear - Revenue increased by 9%backed by demand pick-up • Women’s line • - Growth in KUHO , theory & LEBEIGE and • development of new brands contributed to • continuing sales growth. (+66% YoY) • S/S collection roll-out will make positive • contribution to the overall profitability in 2Q10. • ` 343 311 270 25 21 O P 10 3.7% 6.2% Margin 7.9%

  15. Non – op side [ Won in billions] [ Won in billions] 80.1 Others 1.7 Net Interest Expenses 77.5 7.1 4.1 Dividend Income Net Equity Method Gains 12.1 254 218

  16. 4. Appendix

  17. Quarterly Business Results - Appendix

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