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ANNUAL REPORT 2005 CHALLENGE TO THE WORLD

TABLE OF CONTENTS 02_FINANCIAL HIGHLIGHTS 04_MESSAGE FROM THE CEO 06_BOARD OF DIRECTORS 08_QUALITY & ENVIRONMENTAL MANAGEMENT 10_SOCIAL CONTRIBUTION 12_TIMELINE IN 2005 14_JOB SITES 20_REVIEW OF OPERATION 38_FINANCIAL SECTION 56_CORPORATE HISTORY 57_ORGANIZATION CHART 58_GLOBAL AFFILIATES 62_TAIHAN AROUND THE WORLD 63_OFFICES & PLANTS 63_CORPORATE DATA

50 100 1955,. Network., 21.,, 50,.,.

FINANCIAL HIGHLIGHTS 2003 2004 2005 1,246,135 1,611,120 1,587,320 75,845 76,224 21,109 EBITDA 98,047 96,093 37,138 43,268 44,841 145,493 6.1% 4.7% 1.3% EBITDA 7.9% 6.0% 2.3% 3.5% 2.8% 9.2% 2.9% 2.8% 8.9% 6.9% 6.8% 18.4% 1,342 1,168 3,638 1,246,135 1,611,135 1,587,320 145,493 18.4% 43,268 44,841 6.9% 6.8% 2003 2004 2005 2003 2004 2005 2003 2004 2005

2003 2004 2005 1,624,682 1,602,561 1,680,320 843,240 733,169 501,023 968,853 928,955 771,257 100,000 100,000 110,039 655,829 673,606 909,062 88.4% 87.4% 193.9% 147.7% 137.9% 84.8% 51.9% 45.8% 29.8% 500 500 500 44.4% 42.8% 14.9% 909,062 843,240 733,169 501,023 655,829 673,606 51.9% 45.8% 29.8% 2003 2004 2005 2003 2004 2005 2003 2004 2005 CHALLENGE TO THE WORLD 0203

MESSAGE FROM THE CEO

. 2005 50.. 100., R&D. 2005 1 5,873 2,027. 1 2,291, 3,453, 129. 2005.., FTTH(fiber to the home) solution. TSC, TMC. Skytel, SkyNetworks. 2005.,,., 2010 EBITDA 5000....., Process Innovation. KPI, ERP,.. ESOP,.,..,.,.. 2006 50 2010... CHALLENGE TO THE WORLD 0405

CTO 50 TSC

STS M-TEC CHALLENGE TO THE WORLD 0607

QUALITY & ENVIRONMENTAL MANAGEMENT 04

Master Plan SCR 1995 CHALLENGE TO THE WORLD 0809

SOCIAL CONTRIBUTION

1970 21.,,..,.. 1.,,. 2004 3. 12 22.. CHALLENGE TO THE WORLD 1011

TIMELINE IN 2005 4. IPTV FTTH system., TMC 4, TMC. 12 18,000, 6,000 LNG. TMC 50,000km. 5 50 50 5 6.. 600.,., 5 7,, 100., 12 50. 1955,. 7. Slow-Valley Muju,. 9 1 6 CB 9 21 1 6 (CB). CB 1 6. CB 3 2%, 25%. FTTH Solution - BcN FHHT(Fiber to the Home) Solution. 6 KT(Korea Telecom) FTTH GE-PON,. FTTH,. 9 BcN( ). BcN,,., 4 32.

10 Cebu Cebu 2005 10 26. 138kV XLPE 24C 2 Cebu.,. Cat.7 Data Cable 7 STP (Shielded Twisted Pair). 6 UTP (Unshielded Twisted Pair) 10 10., UTP. FTTH. 11.,, 40%. TSC 2005 11 29 SACOM,, TSC CO., LTD. 2006 3. TSC 140,000 XLPE ASCR OPGW. 42 7 2005 11 42 7. 1997 5.,, UAE 80%. FTTH(Fiber To The Home) Cat.7 STP. 12,. 5. IPP (Independent Power Plant)., 10 2005 [ 10 ].,,... CHALLENGE TO THE WORLD 1213

. 1976 1978 OF, 1980 SCR, 1984, 1996 XLPE. 21,.

1987,,.,,,,,.

CHALLENGE TO THE WORLD 0000

M-TEC 2000 M-TEC. M-TEC. Skytel 1999,. CDMA. SkyNetworks SkyNetworks. SkyNetworks In ternet Gateway, VoIP. TSC 2005 TSC,.. TSC. Taihan USA 90 2000..

,,. IT IT,.,?

,. - - Power Cable, Telecommunication, Stainless Steel.

Power Cables 22 Telecommunication 26 Copper Rod & Wire 30 Stainless Steel 34 4.1% Review of Operation MANAGE THE POLLUTION EMISSION CONTROL UNDER 30% OF LEVEL

POWER CABLES, 400kV.,,. 27.8%

1955 PVC ACSR, 1969 33kV XLPE, 154kV, 345kV, 500kV....,,,. EHV POWER CABLE, 70 OF cable XLPE cable. OF XLPE., ACSR/AW, 2 STACIR. 2005 30%. MEDIUM-LOW VOLTAGE CABLE (Medium-low Voltage Cable) /,.. 2005 36%.,... NUCLEAR POWER CABLE 1981. 1992 1, 1993 Class 1E., 40. 50%.. CHALLENGE TO THE WORLD 2223

2005 2006 2005 154kV XLPE (2,500sqmm) Pre-Molded Joint (KEPCO) 345kV XLPE PD POSCO FINEX Plant 230kV OF/XLPE 138kV XLPE (Cebu-Mactan Interconnection Project Schedule II(SP02. CMIP vw-0358) 2005 10 2005 GCC Dubai Palm Island Kuwait 132kV 80 UAE Dubai Underground Cable..,.! 04 05 333,040 441,093

Medium Voltage Cable, 69kV 138kV. Utilities. 2006 1 Baltimore,. (TAIHAN USA)., Utility Energy Australia 33kV, 132kV. Utility Utilities. 400kV XLPE 400kV XLPE (accessories) KEMA Type Test,. 400kV XLPE 345kV XLPE. 400KV XLPE Pre molded Joint XLPE PMJ (Pre Molded Joint). 2006 230kV XLPE PMJ Type test Pre-qualification test. 2006 400kV XLPE PMJ. XLPE/Oil-filled OF XLPE. (Transition Joint), 2004 154kV. 400kV OF PPLP 400kV OF Poly- Propylene Laminated Paper,. PPLP. CHALLENGE TO THE WORLD 2425

TELECOMMUNICATION, FTTH(Fiber To The Home). data cable. 5.0%

1977, 1983 Foam Total Solution Provider. FTTH, Ubiquitous,,.,... UTP Cat. 6 10 Cat. 7 STP. 2005 KT FTTH System. FTTH Solution,. 2005,. PLC, FTTH, RFID. OPGW(OPTICAL FIBER GROUND WIRE) OPGW. OPGW.. 2004 OPGW,,,. (EGAT) OPGW. UTP UTP, 1 CAT.5 CAT.5E, CAT.5E CAT.6. 2005 CAT.6 10 Cat. 7 STP.. 2G. 3G( IMT-2000; HSPDA, WCDMA) Wi-Bro.,. CHALLENGE TO THE WORLD 2627

Copper., CATV.. OPGW Turn-Key Project EGAT(Electricity Generating Authority of Thailand) OPGW turn-key Project, OPGW,,. FTTH Project _ FTTH,. FTTH Solution,. 2005 MOC FTTH FTTH 3 1000. FTTH,. 2000 IT.,. FTTH Solution. IT.,,. 04 05 73,492 79,300

FTTH Gigabit Ethernet PON (GEPON). 2004 9 ITU Telecom Asia 2004 Busan, 2006 3 OFC/NFOEC 2006 GE-PON FTTH Solution. FTTH solution. 2 KT FTTH, 2006 FTTH KT 12 FTTH., FTTH Ubinet FTTH 1Gbps HDTV,,,. KT FTTH. Ribbon in tube type 432. NGF, 35%, Drop.... 2005 4.,,. CHALLENGE TO THE WORLD 2829

COPPER ROD & WIRE 25 Copper Rod SCR(Southwire Continuous Rod) 8mm 23mm( ) Copper rod wire 44.6%

Winding wire, Copper Rod. 1980 99.97% Copper rod 12, 1991 19, 1998 25. Copper Rod Winding Wire Copper wire..,,.,,, Wire & cable Copper Rod. CHALLENGE TO THE WORLD 3031

1990 Copper Rod,... Copper Rod. Copper Wire. SCR,, Copper Rod & Copper Wire. SCR.. 1990 19,., 20. 5 10. 2005,. 2005 2004.. Magnet Wire, Electric Wire, Computer Wire Harness Wire, Copper Rod Copper Rod. 04 05 729,481 708,675

Rod. Copper Rod.. Rod. Orbital Type Dense Laid Type compact,..,,, Wire & cable Copper Rod. CHALLENGE TO THE WORLD 3233

STAINLESS STEEL,,.,,,.,, ( 0.04mm). 21.8% STS

, LCD,,. 2005 STS, 12 7 32% ( 27% ). 2B. 300 6%, 400 6%..,. (Reduction), Hard(1/4H~EH). TLL 4mm. 2 40 System Crown ( )... CHALLENGE TO THE WORLD 3435

/.,. TV LCD 2005 28%. 300 XM15J1.. 2006 7% 12%. LCD,,. 2005.. 2005 Nickel.,. 2003. 2005 28% 35,260.. 04 05 345,266 463,895 STS

R&D CAP UPGRADE _ Stainless Steel. 2003 CAP(Continuous Annealing and Pickling). FURNACE /, CONTROL, FURNACE.. 300 400,. TENSION LEVELLER _ (thinnest gauge) (high surface uniformity),.. 2004, (super thinnest gauge) 0.04mm 0.5mm, 400mm CSP. DULL _ STS. 2.0mm 1219mm C, 30TON. DURA _ STS 304L 2B, BA. 0.4mm 508mm C, 1,200 TON. CHALLENGE TO THE WORLD 3637

25.3% MANAGE THE POLLUTION Financial Section EMISSION CONTROL UNDER 30% OF LEVEL Management Discussion and Analysis 40 Balance Sheets 47 Income Statements 50 Statements of Appropriations of Retained Earnings 52 Statements of Cash Flows 53

MANAGEMENT DISCUSSION AND ANALYSIS 2003 2004 2005 1,246,135 1,611,120 1,587,320 112,980 113,493 66,710 75,845 76,224 21,109 EBITDA 98,047 96,093 37,138 62,259 64,481 202,750 43,268 44,841 145,493 536,504 548,257 711,772 512,431 498,674 479,422 574,748 555,110 488,438 1,624,682 1,602,561 1,680,320 894,486 808,337 627,646 843,240 733,169 501,023 968,853 928,955 771,257 100,000 100,000 110,039 435,858 435,858 504,717 143,163 168,427 294,723-23,191-30,678-417 655,829 673,606 909,062 6.1% 4.7% 1.3% EBITDA 7.9% 6.0% 2.3% 3.5% 2.8% 9.2% 2.9% 2.8% 8.9% 6.9% 6.8% 18.4% 1,342 1,168 3,638 88.4% 87.4% 193.9% 147.7% 137.9% 84.8% 55.1% 50.4% 37.4% 51.9% 45.8% 29.8% 500 500 500 44.4% 42.8% 14.9% 8.6% 6.2% 1.9%

( ),. 2005 1.5% 1 5,873. 2005 1.5%, 72.3%. 224.5% 1,455. 2005 4.9% 1 6,803 13.1%p 37.4%. 2005 1 5,873 211 2005 2004 EBITDA. 12,985 345,266 10,211 463,895 3,428 42,867 4,394 48,522 1,229,069 1,137,014 5,807 23,313 29,929 6,682 34,346 43,177 2005 1,587,320 2004 1,611,120 21,109 76,224 37,138 2005 2004 2005 2004-8,011-3,890 96,093 2005 1 5,873 3.2% 7,095 5.0%.. 1 2,291 8.1% LME 1 2004 US$ 2,866 2005 US$ 3,679 28.4% 0.7%p.,,, 2005 2,150, 793, 2,261 7,087. 2.9% 42.3%, 7.9% 23.6%. 2005 2004 735 1,511 793 2,150 7,087 7,295 2,261 1,830 130 3,453 102 4,639 15,873 16,111 25.6% 80. 2005 72.3% 3.4%p, EBITDA 61.4% 371. CHALLENGE TO THE WORLD 4041

MANAGEMENT DISCUSSION AND ANALYSIS 2005 1,816. 1,814. 225 293. 2005 88 207 42 11 118. 157.. 2003 2004 2005-13,585-11,743 181,640-9,538-11,840-20,639-4,323 6,770 29,294-3,983 14,626-1,136-15,687 181,366-11,799 2005 214.4% 2,027. 2005 2004 ( ) 27.5% 29.7% 2005 2004 28.2% 30.5%. 2003 2004 2005 23,514 24,971 44,556-4,523-5,331 12,701 18,991 19,640 57,257 30.5% 30.5% 28.2% 2005 1,007 1,455 2005 2004 2003 2.8% 3.5% 44,841 43,268 9.2% 145,493

.. 2005 32.2% 322. 2003 2004 2005 75,845 76,224 21,109 23,135 23,217 5,961-4,536-5,474 17,075 48,173 47,533 32,223 2005 ( ) 1.8% 9,315.. 2003 2004 2005 272,705 345,386 443,948 37,384 48,334 47,620 154,520 217,929 247,377 133,390 162,311 237,792 21,145 36,411 46,164-36,834-71,793-53,517-36,900-47,806-81,487 574,748 555,110 488,438 10,836 15,643 7,683 633 1,020 8,608 857,657 915,119 931,462 794,020 886,388 923,290 692,658 566,823 605,247 1,550,315 1,481,942 1,536,708 ( ) 3.5% 2005 931,462 3.5% 2004 2003 5.4% 857,657 915,119 6.1% CHALLENGE TO THE WORLD 4243

MANAGEMENT DISCUSSION AND ANALYSIS 2005 4.85% 1 6,803. 12.0% 3.7%. 2005 464.. 464 522 736. 2003 2004 2005 75,845 76,224 21,109 / 22,203 19,869 16,029-4,536-5,474 17,075-64,485-72,680-98,562-9,538-11,840-20,639-18,991-19,640-57,257-33,073 393 168,619 33,571-13,149 46,375-91,172 856 46,442-15,197-19,197-19,197-72,798-31,489 73,621 1,060. 522 1,623. 4 441 111 311. 1,140. 1,681. 160 606. 2005 384 759. 2003 2004 2005 33,571-13,149 46,375-293,041 134,964 106,095 260,126-87,454-114,049 656 34,361 38,421 2005 17.0% 7,713.. 2005 22.4% 6,276 13.1%p 37.4%. 31.6% 5,010 15.9%p 29.8%.. 2005 9,091 34.6%. 4,015,778 43,359,897. 2005 49.8% 1152 2003 2004 2005 29,683 76,884 115,168 4 772-29,687 77,656 115,168

,.,,.. AA. 2005. Position (US$/ton) (ton) 2006.01.04~2007.01.04 Buying 2,480.00~4,570.00 23,350 2006.01.18~2006.07.19 Selling 2,890.00~4,370.00 21,550 2006.01.02~2007.01.03 Buying 824.00~1,020.00 375 ( US$) 2005.12.27 2008.12.24 US$ 29,644 : 6.19%, : Libor+1.20% ( US$) ( ) 2005.12.27 2008.12.24 US$ 29,644 30,000 2003 2004 2005, -1,424 5,769 3,962-372 -940-108 504-7,034 29-1,777-58 500 14.9%. 2005 2004 2003 14.9% 42.8% 44.4% 500 500 500 1 2 3 4 KOSPI 965.7 1,008.20 1,221.00 1,379.40 14,650 12,350 19,250 27,000 7,360 9,230 11,750 19,300 5,172 5,260 8,539 1 1378 CHALLENGE TO THE WORLD 4445

2005 2004 12 31,....... 2005 2004 12 31., 5, 2003 ( ) 172,348. 2006 2 4

NON-CONSOLIDATED BALANCE SHEETS 51( ) 50( ). 711,771,892 548,257,485 (1) 473,980,198 385,946,238 1. 75,943,359 37,522,866 2. 42,606,941 30,853,942 3. - 3,200,000 4. 249,531,961 218,977,821 (-)2,155,066 247,376,895 (-)1,049,286 217,928,535 5. 67,751,329 65,387,025 (-)5,862,500 61,888,829 (-)5,357,500 60,029,525 6. 12,672,633 9,480,978 7. 3,627,329 1,986,458 (-)996,164 2,631,165 (-)996,164 990,294 8. 3,876,952 3,340,734 9. 1,102,628 1,297,261 10. 14,699,970 53,937 (-)4,399,391 10,300,579-53,937 11. 8,531,399 15,478,826 12. 7,048,818 5,769,340 (2) 237,791,694 162,311,247 1. 26,319,845 26,232,094 2. 44,893,890 33,995,444 (-)512,444 44,381,446-33,995,444 3. 103,212,878 61,999,067 (-)289,264 102,923,614-61,999,067 4. 27,591,831 27,369,391 (-)602,066 26,989,765-27,369,391 5. 7,377,717 5,510,279 6. 501,850 878,045 7. 816,676 826,257 8. 28,480,781 5,500,670. 968,547,750 1,054,303,537 (1) 479,422,399 498,673,967 1. 1,023,500 1,021,500 2. 59,785,710 18,770,170 3. 101,481,208 90,236,669 4. 296,136,721 198,147,004 5. 13,819,888 176,624,137-13,819,888 (-)1,430,006 175,194,131 6. 180,014 180,893 7. - 20,555 8. - 9,688,651 9. 6,995,358 5,414,394 (2) 488,437,642 555,110,025 1. 383,518,851 427,016,486 CHALLENGE TO THE WORLD 4647

NON-CONSOLIDATED BALANCE SHEETS 51( ) 50( ) 2. 93,578,574 97,760,227 (-)24,274,292 69,304,282 (-)22,899,517 74,860,710 3. 10,277,376 10,577,639 (-)4,977,891 5,299,485 (-)4,883,839 5,693,800 4. 196,879,462 221,408,467 (-)172,832,981 24,046,481 (-)179,794,283 41,614,184 5. 2,238,524 2,263,151 (-)1,753,261 485,263 (-)1,814,943 448,208 6. 29,855,754 33,753,271 (-)27,853,347 2,002,407 (-)31,320,745 2,432,526 7. 2,270,346 2,524,498 8. 1,510,527 519,613 (3) 687,709 519,545 1. 687,709 519,545 1,680,319,642 1,602,561,022. 367,004,065 627,596,138 1. 53,516,739 71,792,578 2. 168,147,351 337,479,381 3. 7,332,072 7,508,951 4. 58,460,292 4,168,112 5. 497,802-6. 700,825 579,218 7. 6,190,826 6,884,382 8. 5,157,152 6,017,042 9. 3,040,345 13,401,518 10. 60,600,000 170,609,350 (-)98,569 60,501,431 (-)91,486 170,517,864 11. 108,081 9,247,092 12. 3,351,149 -. 404,253,121 301,359,220 1. 34,101,644 31,346,743 2. 280,000,000 270,000,000 (-)550,883 279,449,117 (-)1,007,321 268,992,679 3. 92,136,478-5,668,250 - (-)10,220,931 - (-)2,137,674 85,446,123 - - 4. 4,411,128 10,967,649 (-)3,144,761 (-)9,533,859 (-)45,659 1,220,708 (-)413,992 1,019,798 5. 4,035,529-771,257,186 928,955,358

NON-CONSOLIDATED BALANCE SHEETS 51( ) 50( ) 1. 110,039,445 100,000,000. 504,716,999 435,857,514 1. 139,878,655 77,927,279 2. 11,419,902 4,511,793 3. 353,418,442 353,418,442. 294,722,704 168,426,640 1. 9,358,206 7,438,532 2. 1,924,882 1,924,882 3. 3,218,427 3,218,427 4. 134,500,000 118,000,000 5. 145,721,189 37,844,799 (: :145,492,802 :44,840,818 ). (-)416,692 (-)30,678,490 1. 5,486,388 37,594 2. 30,805,292 7,996,896 3. (-)32,106,336 (-)26,983,607 4. (-)78,359 (-)940,305 5. (-)5,641,184 (-)10,789,068 6. 1,117,507-909,062,456 673,605,664 1,680,319,642 1,602,561,02 CHALLENGE TO THE WORLD 4849

NON-CONSOLIDATED INCOME STATEMENTS 51( ) 50( ). 1,587,319,920 1,611,119,664 1. 1,229,032,395 1,397,693,480 2. 300,067,663 174,359,437 3. 58,219,862 39,066,747. 1,520,610,018 1,497,627,041 1. 1,192,557,103 1,315,009,989. 33,995,444 21,805,991. 1,231,037,177 1,352,861,310 1,265,032,621 1,374,667,301. (-)44,381,446 (-)33,995,444. (-)7,369,973 (-)3,572,651. (-)20,724,099 (-)22,089,217 2. 287,919,115 157,579,232. 26,232,094 9,304,391. 250,186,701 161,812,254. 37,878,262 13,511,457 314,297,057 184,628,102. (-)26,319,845 (-)26,232,094. (-)58,097 (-)816,776 3. 40,133,800 25,037,820. 66,709,902 113,492,623. 45,600,680 37,268,597. 21,109,222 76,224,026. 296,839,244 109,375,977 1. 19,211,599 34,366,039 2. 510,844 458,337 3. 340,341-4. 2,473,229 958,721 5. 34,218,974 11,479,480 6. 1,127,390-7. 15,664,004 22,280,386 8. 1,665,550 19,632,222 9. 437,083-10. 8,767,362 1,398,112 11. 14,331,933 4,100,377 12. 161,535 2,534,351 13. 44,094 408,601 14. 4,048,520 5,769,340 15. - 575,461 16. 181,365,782-17. 4,884,723-18. 7,586,281 5,414,550

NON-CONSOLIDATED INCOME STATEMENTS 51( ) 50( ). 115,198,752 121,118,769 1. 39,850,413 46,205,776 2. 4,904,391 3,649,342 3. - 11,785 4. - 317,194 5. 4,014,860 15,518,840 6. 4,925,278 4,709,562 7. - 165,282 8. 19,866,743 21,856,647 9. 2,801,140 5,006,304 10. 212,090 143,546 11. - 33,463 12. 15,687,382-13. 43,964 790,405 14. 9,027,718 10,316,837 15. - 8,811,032 16. 889,566 192,649 17. 753,721 3,034,327 18. 158,050 264,029 19. 62,129-20. 11,798,688-21. 202,619 91,749. 202,749,714 64,481,234. - -. - -. 202,749,714 64,481,234. 57,256,912 19,640,416. 145,492,802 44,840,818 ( : :3,638 :1,168 : :3,550 :1,168 ) CHALLENGE TO THE WORLD 5051

NON-CONSOLIDATED STATEMENTS OF APPROPRIATIONS OF RETAINED EARNINGS 51( ) 50( ). 145,721,189 37,844,799 1. 228,387 (-)6,615,788 2. - (-)380,231 3. 145,492,802 44,840,818. 145,359,563 37,616,412 1. 2,167,995 1,919,674 2. 21,679,949 19,196,738. 21,679,949 19,196,738 (( )( ) :500 (20%)) 3. 511,619-4. 121,000,000 16,500,000. 361,626 228,387

NON-CONSOLIDATED STATEMENTS OF CASH FLOWS 51( ) 50( ). 46,374,932 (-)13,148,754 1. 145,492,802 44,840,818 2. 59,830,566 66,537,078. 15,539,728 19,389,591. 489,336 479,320. 4,390,593 80,000. 4,904,391 3,649,342. 2,369,997 3,371,138. 1,117,507 -. ( ) 717,658 1,517,524. ( ) 1,315,945 -. - 11,785. - 317,194. 4,014,860 15,518,840. 4,925,278 4,709,562. - 165,282. - 33,463. 15,687,382 -. 43,964 790,405. 2,608,511 4,465,624. - 8,811,032. 889,566 192,649. 753,721 3,034,327. 62,129-3. (-)58,731,987 (-)43,197,008. 161,535 2,534,351. 340,341 -. 2,473,229 958,721. 34,218,974 11,479,480. 1,127,390 -. 437,083 -. 8,767,362 1,398,112. 1,603,455 19,433,903. 4,048,520 5,769,340. - 575,461. ( ) 28,435 1,047,640. ( ) 640,940 -. 4,884,723-4. (-)100,216,449 (-)81,329,642. (-)39,746,616 (-)69,899,793. (-)3,191,655 (-)5,168,270. ( ) (-)1,640,871 2,218,764. (-)536,218 (-)436,673. 194,633 2,307,144. ( ) (-)14,646,033 12,097 CHALLENGE TO THE WORLD 5253

NON-CONSOLIDATED STATEMENTS OF CASH FLOWS 51( ) 50( ). ( ) 6,947,427 (-)10,433,924. 2,739,397 1,390,455. (-)75,480,447 (-)28,921,004. 5,491,422 2,442,696. ( ) 9,688,651 (-)5,330,040. ( ) (-)18,143,840 34,959,009. (-)176,879 (-)3,824,374. ( ) 54,292,181 (-)4,477,056. 497,802 -. ( ) 121,607 (-)419,681. (-)693,556 (-)364,005. ( ) (-)859,890 223,129. ( ) (-)11,479,616 11,944,645. (-)9,136,986 (-)1,555,753. 3,351,149 -. (-)8,926,519 (-)6,206,571. 368,332 209,563. 750,076 -. 106,094,958 134,963,733 1. 330,506,777 200,080,743. - 3,159,788. - 12,181,819. 9,546,290 10,306,227. - 986,025. 1,127,390 818,281. 91,871,857 152,206,127. 162,273,436 10,826,312. 4,780 8,182. 20,555 41,111. 6,389,098 3,012,912. 3,609,354 113,539. 52,163,143 5,681,377. 3,291,598 621,541. 141,000 -. 44,931 59,385. 23,345 21,040. - 37,077 2. (-)224,411,819 (-)65,117,010. 11,752,998 -. 2,000 1,000,000. 40,661,373 8,157,598. 11,244,538 -. 49,604,764 13,261,259. 94,176,023 35,661,741. - 1,463,144

NON-CONSOLIDATED STATEMENTS OF CASH FLOWS 51( ) 50( ). 3,904 9,238. 7,744,509 -. 47,000 -. 22,500 71,615. 194,990 381,308. 822,472 778,719. 5,966,722 3,772,150. 1,510,526 560,238. 657,500 -. (-)114,049,397 (-)87,453,929 1. 372,233,411 223,162,000. 120,005,929 34,003,800. 80,000,000 189,158,200. 161,307,137 -. 10,920,345-2. (-)486,282,808 (-)310,615,929. 168,133,773 70,700,570. 170,664,555 110,718,621. 116,582,343 60,000,000. 10,000,000 50,000,000. 1,705,399 -. 19,196,738 19,196,738. ( + + ) 38,420,493 34,361,050. 37,522,866 3,161,816. 75,943,359 37,522,866 CHALLENGE TO THE WORLD 5455

CORPORATE HISTORY 1950 1960 1970 1980 1955 1957 1958 PVC 1959 1961 1964 KS, 1965 1.2/4.4mm 1966 1968 1969 33kV XLPE 1970 345kV ACSR 2 1972 1974 UL CSA 1975 1976 154kV OF 1977 100 1978 1 8 OF 1979 1980 - SCR SCR 1981, 1982 154kV POF 1983 VCV OF () 1984 154kV XLPE 1985 345kV OF 154kV OF 132kV XLPE 1986, TV KS ' ' 1987 (OPGW) CATV OF 1988, Kraft 345kV OF 1989, 154kV OF PPLP 345kV OF 500 1990 2000 1991 SCR 565Mb/s (KT) 1992 345kV OF Class 1E 1993, ISO 9001 1994 345kV OPGW 1995 345kV 765kV AWS 765kV ACSR/AW 480SQMM(Cardinal) (STACIR) ISO 9002 1996 VCV TOWER,, TACSR/AW 765kV OPGW ISO 9001 1997 34 5 (ABC-W) 1998 2 1999 SkyTel ( ) ( ) 2000 JIS Malesela Taihan Electric Cable(Pty) Ltd., OPGW ISO 9001, UAE 2001 ISO 14001 345kV XLPE OIP 2002 345KV XLPE, ( ) 2003 345kV XLPE - 345kV XLPE / 2004 400kV XLPE (KEMA ) ( ) Low Water Peak Fiber FTTH Solution BcN (Ubinet, FTTH ) ( ) 2005 SkyNetworks ( ), 1 6000 TSC 42 7 TMC,,

ORGANIZATION CHART TMT 1 2 ENG ENG SCR CTO QM IR HR Global IT STS CTO Global STS CEO 5657 CHALLENGE TO THE WORLD

GLOBAL AFFILIATES www.optomagic.co.kr 21 5 f.km. VAD, (Low Water Peak Fiber).. www.tbt.co.kr (TBT) 1982.. www.tmc-cable.com www.tecwizhome.com, FTTH System.

www.mujuresort.com, 4.,. www.trybrands.co.kr TRYBRANDS (TRY),. 2006 TRY BRANDS CI. www.techren.co.kr 5, IPP(Independent Power Plant). www.novelis.co.kr Alcan Aluminum 1999 Alcan Taihan, 2004 6. 2005 1 Novelis Korea. www.korearental.co.kr.,. CHALLENGE TO THE WORLD 5859

GLOBAL AFFILIATES MALESELA TAIHAN ELECTRIC CABLE(PTY) LTD.(M-TEC) www.m-tec.co.za M-TEC 2000.,. 2005/2006 1 5.. 2000. 1999 Skytel, 2005 SkyNetworks. 2001Taihan USA, 2005 11.

TSC CO., LTD. 2005 11 SACOM. 2006 3, 2006 XLPE ASCR OPGW. TAIHAN ELECTRIC USA LTD. 90 2001.. SKYTEL CO., LTD. www.skytel.mn 1999 SK Skytel 30%., 2005 10. 2005 1,215 570. SKYNETWORKS www.skynetworks.mn 2005 4 Sky Networks. SkyNetworks Internet Gateway, VoIP FTTH,. CHALLENGE TO THE WORLD 6061

TAIHAN AROUND THE WORLD New York Mongolia Riyadh Dubai Thailand Vietnam Kuala Lumpur Singapore Sanghai Philippines Johannesburg Branch Office Subsidiary Company Shanghai Hongqiao Hongxu Road 788, ming Du Cheng 43 Black, Room 601, Shanghai, Post Code: 201103, China Tel. 21-6405-4957 Fax. 21-6405-4957 629 Aljunied Road #05-19, Cititech Industrial Building, Singapore 389838, Singapore Tel. 65-6842-5069 Fax. 65-6842-5076 Tel. 966-1-419-0227 Fax. 966-1-419-0262 15th Floor, Kenanga International, JL. Sultan Ismail, 50250, Kuala Lumpur, Malaysia Tel. 60-3-2161-8017 Fax. 60-3-2161-3628 10A Queen s Street Dona Rita Village Talamban Cebu City 6000 Tel. 63-32-346-8797 Al Akariyah Shopping Center 2, Room No. 726, Olaya Road, P.O.Box 201, Riyadh, Saudi Arabia Flat no. 705, Al Safa Tower, Sheikh Zayed Road, Dubai, U.A.E.P.O Box 117561 Tel. 97-14-331-7233 Fax. 97-14-331-7322 253,26th Floor Asoke, Sukhumvit 21 Road, Klongtoeynua, Wattana, Bangkok 10110, Thailand Skytel Co.,Ltd. Skytel Plaza Building, Chinggiskhan Ave-9, Ulaanbaatar, 210613, Mongolia. Tel. 976-11-318-488 Fax.976-11-318-487 SkyNetworks Co.,Ltd. Chinggiskhan Ave-9, Ulaanbaatar, 210613, Mongolia. Tel. 976-11-318-840 Fax.976-11-318-841 Malesela Taihan Electric Cable(Pty) Ltd. Vereeniging 1930, Steel Road, Peacehaven Vereeniging 1939,Gauteng, South Africa Tel. 27-16-450-8333 Fax.27-16-450-8266 www.m-tec.co.za TSC Co.,Ltd. 7th Floor, 71-73 Dien Bien Phu, phoung 15, Binh Thanh District, Vietnam Tel. 84-8-518-0785 Fax.84-8-518-0786 Taihan Electric USA Ltd. 85 Denton Avenue, New Hyde Park, NY 11040, U.S.A Tel. 1-718-347-6030 Fax.1-718-347-6045 www.tecables.com

OFFICES & PLANTS Tel. 02-316-9114 Tel. 031-420-9114 Tel. 031-490-5114 Tel. 031-420-9590 Produced by : Tendom Associates Inc. Photography : Min-Kyu Kim CORPORATE DATA 1955 2 21 1968 12 27 868 40,000,000 Tel. 02-316-9114 www.taihan.com IR http:// www.taihan.com PDF

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