2 IPO & After (GE) 1. 2. 3. 4. 5. 1976 7 10 72 ( 14,400,000, 500 ) ( ), EO/PO (EOA),, Glycol Ether GE 70% - :,,, - : stripper,,, - : Dow, Kyowa, BP, Shell Ethylene Oxide Additive EOA 17% - :,, - : /,,, - :, KPX,, Dow : 587 Emulsifier : 404-1 EM : 1588-11 37% 93 (2008 9 ) www.hannong.co.kr - :, - : - :,
3 IPO & After 1. 2. 3. ( ) 1,200 800 CAGR 22.3% 4. 5. 400 0 '77 '80 '83 '86 '89 '92 '95 '98 '01 '04 '07 1970s~80s 1990s 2000s 2001. 08 1976. 07 1991. 03, 2003. 01 KRX 1981. 01 1991. 06 GE 1 (7,000 / ) 2003. 12, 1983. 08 1995. 07 GE 2 (23,000 / ) 2005. 08 GE 1985. 08 1998. 10 50 2006. 06 EOA 1985. 11 EOA 1998. 11 100 2007. 07 1987. 05 1999. 09 PIPP (photoinitiator) 2008. 04 ( 500 ) 2008. 07 EOA
4 IPO & After 1. 2. 3. 4. 5. GE, (MT) 37,200 GE EOA EM 44,200 59,200 85,200 GE 2003 30,000MT 2008 60,000MT EOA 2003 12,000MT 2008 22,200MT EM 2003 2,200MT 2008 3,000MT : 2003 44,200MT 2008 85,200MT '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q ( ) GE EOA EM 409 424 467 459 EOA, 324 GE 22 EM 113 grade 33 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q
5 IPO & After GE : 1. 70 357 2. 58 327 3. 49 4. 272 38 5. 250 GE / GE, EOA '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q EOA : EM : 12 14 16 510 467 17 37 35 35 34 9 9 8 8 355 388 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q
6 IPO & After 1. 2. 3. 4. 5. 18.2% 28.6% ( ) ( ) 524.0 701.7 783.9 803.2 1,022.4 17.8 36.8 50.0 28.9 48.7 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 GE GE 65% EOA 38% GE 61% 05 EOA 30% 07 EOA 29% GE 52% 03 EM 10% EM 9% EM 6%
7 Recent Developments 7% 1. 34% 5% 2. 3. 4. MPEG 39% 2006 7% 5% 45% 2008 11 6% 3% 3% 5% 10% 31% 2007 03 2007 11 200, 10% 34.28% 6% 2007 12 (4%) 2008 01 2008 04 2008 05
8 Recent Developments 1. 2. 3. (U$/kg) 1.03 0.99 1.54 1.95 (%) 4.0 5.3 10.3 16.9 4. MPEG '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q 2008 3 2007 (U$1,000) 14,861 7,866 1,231 2,058 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q 68% 7% 5% 11% 9%
9 Recent Developments 1. 2. 3. LCD CAGR 23.3% LCD ( ) ( ) 440 530 660 825 4. MPEG ( ) SSCP LG LG EFON( ) 2007 2008 2009 2010 ( ) TNC LCD 20% 3M FM, 90% ( 50%) - :,, - : BIMAX, COGNIS EO/PO, / 2005 3M EOA, EOA know-how grade
10 Recent Developments 1. 2. MPEG PC (Poly Carbonate) MPEG 20% ( ) 361 390 450 3. 4. MPEG ( ) LG KPX ( ) 258 2007 2008 2009 2010 2 MPEG EOA MPEG - : HUANGMA, Taijie Downstream - : - : DOW, BASF LG PC
2008.3Q 11 5.5% Current Issues 1. 2008.3Q (MT) 47,963 50,612 ( /kg) 1,830 2. 2008.3Q 3. 39,533 1,512 1,529 4. '06.3Q '07.3Q '08.3Q '06.3Q '07.3Q '08.3Q 3 26.3% 19.6%, 7% ( ) ( ) 10.7% 9.4% 16.9% 7.7% 7.2% 733 926 6.0% 56 67 601 36 '06.3Q '07.3Q '08.3Q '06.3Q '07.3Q '08.3Q
2008.3Q 12 3 QoQ, 3.0% YoY 4 Current Issues 1. 2008.3Q 2. 2008.3Q (MT) 16,880 18,097 16,642 17,589 16,381 ( /kg) 1,561 1,598 1,712 1,824 1,958 3. 4. '07.3Q 4Q '08.1Q 2Q 3Q '07.3Q 4Q '08.1Q 2Q 3Q 0.0% QoQ, 22.1% YoY turnaround, 9% ( ) ( ) 321 321 9.3% 9.5% 263 289 285 24 6.5% 19 6.0% 17 6.0% 19 30 '07.3Q 4Q '08.1Q 2Q 3Q '07.3Q 4Q '08.1Q 2Q 3Q
13 Current Issues 1. 2008.3Q 2. 2008.3Q 3 ( /kg) 2,500 2,000 EO (Ethylene Oxide) Butanol PO (Propylene Oxide) ( /kg) 3,500 3,000 2,500 GE EOA EM 3. 1,500 4. 1,000 2,000 1,500 1,000 500 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q 500 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q 313 1,252 1,190 33 1,024-74 -34 1,012, 1~2% / '99 '00 '01 '02 '03 '04 '05 '06 '07 '08.3Q
14 GDP (%) Current Issues 32.2 1. 2008.3Q 25.2 2. 2008.3Q 3. 9.7 4. 6.0 9.5 4.3 3.8 5.0 3.1 1.4 '99 '00 '01 '02 '03 '04 '05 '06 '07 LCD, 11.4% (MT) 66,060 27,930 33,174 38,813 45,405 30, '99 '00 '01 '02 '03 '04 '05 '06 '07
15 Next Stage 1. 2. 3. VISION 4. 5. :: / :: :: / EOA EOA know-how MPEG ::
16 Next Stage 1. 2. 3. 4. 5. CAGR 16.0% 7%, CAGR 17.6% ( ) ( ) 9.4% 9.8% 803 (2008 20.4%) 1,022 15.8% 1,230 22.3% 1,393 1,595 25.7% 5.4% 44 (2008 18.7%) 7.4% 7.2% 7.1% 75 89 99 122 7.7% '06 '07 '08(E) '09(E) '10(E) '06 '07 '08(E) '09(E) 10(E) EOA GE 51.7% EOA 43.6% 2010(E) EM 4.7%, EOA 2008 EOA, (2007 9.8% 2008 15.8% 2010 25.7%) 2008 7.2% 2010 7.7%
17 Next Stage 1. 2. 3. 4. 5. % YoY 2006 2007 2008(E) 2009(E) 2010(E) 2.5 27.3 20.3 13.3 14.5 (38.8) 71.9 18.2 11.1 23.7 (42.3) 68.7 24.5 13.7 25.3 % 2006 2007 2008(E) 2009(E) 2010(E) 5.4 7.4 7.2 7.1 7.7 3.6 4.8 4.9 4.9 5.4 ROE 9.9 15.2 16.6 16.6 18.3 6.6 12.4 14.7 13.0 14.2 ROA 4.4 7.0 7.8 8.4 9.9 % 2006 2007 2008(E) 2009(E) 2010(E) 144.6 144.0 150.9 181.6 196.8 117.1 119.6 105.4 92.2 79.6 42.0 40.3 36.4 32.2 28.4 319.2 371.1 440.5 510.8 597.6 2006 2007 2008(E) 2009(E) 2010(E) 1.2 1.5 1.6 1.7 1.8 2.6 3.4 4.2 4.9 6.1 3.6 4.0 4.1 4.2 4.2 10.1 10.6 10.9 11.5 11.6
18 Next Stage 1. 2. 3. 4. 5. PER PER 10 8 6 4 2 0 KPX 0 3 6 9 NP margin ROE PBR 1.0 PBR 0.8 0.6 0.4 KPX 0 5 10 15 20 25 ROE PER PER PER 10 10 PER 8 KPX 8 KPX 6 6 4 2 4 2 0 0 0 5 10 15 20 25 30 EPS (2003~2008) 0 5 10 15 20 25 30 (2003~2008) (2008 3, 2008 11 25 )
19 Next Stage 1. 30 22.3% 2. GE EOA 3. 2008 ~ 2010 21% 4. 5. 2, ( 500 ) 2007 2010 ROE 18.3% Valuation,, KOSPI discount IR
20 Appendix 1. 2. 3. 4. 5. Data Sheet G E E O A G E E O A E M 1 TEAM 2 TEAM
21 Appendix 1. 2. 3. 4. 5. Data Sheet Naphtha NCC Ethylene EO EM UV/EVA [EOA formulation] (Monomer) EOA FM UV (Prism sheet) Alcohol( ) [EOA + AA(MA)] Fatty acid( ) (MPEG) GE Me-OH Bu-OH LG GE + Glyme CH 3 C 2 H 5 C 4 H 9 Over coat Column space Propylene PO EOA SKC Alcohol( ) Fatty acid( ) Me-OH GE
22 Appendix 1. 2. 3. 4. 5. Data Sheet ( ) 2005 2006 2007 2008.3Q 32,176 32,682 42,735 46,451 24,583 24,406 31,697 34,834 22,246 21,946 28,609 31,637 7,593 8,277 11,037 11,617 32,087 32,859 31,751 31,808 29,862 30,763 29,188 28,213 64,263 65,541 74,486 78,259 24,241 22,599 29,674 31,963 8,495 6,622 8,461 8,901 13,405 14,842 17,808 19,047 11,715 12,757 10,889 9,287 11,208 12,203 10,200 8,295 35,955 35,356 40,564 41,250 7,200 7,200 7,200 7,200 2,784 2,784 2,784 2,784 0 0 (410) (832) 18,323 20,201 24,348 27,857 28,308 30,185 33,922 37,009 64,263 65,541 74,486 78,259 ( ) 2005 2006 2007 2008.3Q 78,391 80,320 102,242 92,636 67,405 72,058 89,677 81,912 10,987 8,262 12,565 10,724 3,839 3,889 5,047 4,054 1,280 1,255 1,602 1,177 1,229 1,449 2,027 1,905 299 265 431 286 305 280 353 224 98 55 51 51 7,148 4,373 7,518 6,670 289 776 657 761 123 138 142 86 12 3 36 399 1,119 1,520 1,816 1,520 955 1,442 1,627 1,402 46 51 48 86 6,319 3,630 6,359 5,910 1,320 744 1,492 1,479 4,998 2,885 4,867 4,431
Data Sheet 23 Appendix 1. 2. 3. 4. 5. Data Sheet ( ) 99 00 01 02 03 04 05 06 07 08.3Q 378 435 458 480 524 702 784 803 1,022 926 32 42 35 42 23 50 71 44 75 67 18 22 23 26 18 37 50 29 49 44 274 284 265 319 343 491 643 655 745 783 178 171 133 161 131 250 360 354 406 413 96 114 132 157 212 242 283 302 339 370 ( ) 99 00 01 02 03 04 05 06 07 08.3Q GE 181 227 237 249 273 388 474 509 669 601 EOA 148 156 166 178 198 246 238 237 294 274 EM 49 52 54 53 53 68 72 58 59 51 (%) 99 00 01 02 03 04 05 06 07 08.3Q GE 48 52 52 52 52 55 61 63 65 65 EOA 39 36 36 37 38 35 30 29 29 30 EM 13 12 12 11 10 10 9 7 6 6
Data Sheet 24 Appendix 1. 2. (MT) 99 00 01 02 03 04 05 06 07 08.3Q GE 23,000 30,000 30,000 30,000 30,000 30,000 45,000 60,000 60,000 60,000 EOA 12,000 12,000 12,000 12,000 12,000 12,000 12,000 14,400 17,200 22,200 EM 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 3,000 3,000 3. 4. (MT) 99 00 01 02 03 04 05 06 07 08.3Q 5. Data Sheet GE 18,050 20,921 21,598 22,743 24,758 28,991 31,142 38,388 49,922 37,205 EOA 7,996 8,441 9,527 10,503 11,503 12,859 11,619 12,122 13,934 11,782 EM 1,884 1,933 2,049 2,120 2,552 2,918 2,644 2,245 2,204 1,625 (%) 99 00 01 02 03 04 05 06 07 08.3Q GE 40 44 49 51 54 58 60 62 70 EOA 13 14 14 15 15 16 16 16 17 EM 35 36 35 37 34 35 36 36 37 99 00 01 02 03 04 05 06 07 08.3Q (U$1,000) 1,231 1,909 1,643 2,058 2,384 3,075 7,866 7,890 10,760 14,861 (%) 4.0 5.3 4.6 5.3 5.4 5.0 10.3 9.4 9.8 16.9 (U$/kg) 1.03 1.07 1.01 0.99 0.97 1.24 1.54 1.50 1.84 1.95
Data Sheet 25 Appendix 1. ( /kg) 99 00 01 02 03 04 05 06 07 08.3Q GE 1,002 1,086 1,098 1,096 1,105 1,337 1,523 1,325 1,341 1,614 EOA 1,848 1,854 1,747 1,694 1,719 1,912 2,047 1,952 2,110 2,329 EM 2,596 2,673 2,643 2,510 2,071 2,335 2,710 2,583 2,678 3,163 2. 3. ( /kg) 99 00 01 02 03 04 05 06 07 08.3Q 4. EO 884 966 943 894 1,024 1,271 1,348 1,265 1,368 1,680 5. Data Sheet Butanol 620 648 672 721 774 892 994 1,161 1,382 1,676 PO 1,382 1,445 1,510 1,510 1,469 1,550 1,986 2,050 1,822 2,015 99 00 01 02 03 04 05 06 07 08.3Q ( / ) 1,190 1,131 1,291 1,252 1,191 1,146 1,024 955 929 1,100 ( ) 0.3 (0.4) 1.0 (0.7) (0.2) (0.5) (0.3) (0.5) (0.1) 3.1 99 00 01 02 03 04 05 06 07 08.3Q ( ) 92 90 87 91 91 104 108 96 94 93 ( ) 410 484 526 528 576 675 726 837 1,088 996 ( ) 20 24 26 28 20 35 46 30 52 48 ( ) 99 00 01 02 03 04 05 06 07 08.3Q 182 218 227 256 124 256 347 200 338 317