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Vol.155 GREEN DONGWHA MAGAZINE 2 nd 2012 Change and Innovation

2012 Vision Creating Happiness To Dongwha happiness is a treasured value and our reason for existing. We are devoted to the happiness of our employees, their families and our customers. Respecting People There is nothing more precious to Dongwha than people. People are what create a better world. Building Partnership Dongwha exists for its customers. Dongwha makes good products But our customers are what make Dongwha better.

Happiness Trust Respect for Talent Change and Innovation Ethical Management CONTENTS Global Dongwha 08 12 16 30 36 Do Dream Dongwha 42 54 56 60 Core Value 66 68 72 76 Vol.155 Life & Culture 82 86 92

Dongwha s new vision 08p 12p 16p 30p 36p Global Dongwha 2012 Anniversary Speech Congratulations on Dongwha s 64th Anniversary An Invitation to Dongwha s Happiness The new energy of global Dongwha! This is their six day story Dongwha Vietnam Establishing Global Management System

08 09

2012 Anniversary Speech 10 11

Global Dongwha Dongwha has celebrated its 64th anniversary. In addition to ushering the spring season, Dongwha employees celebrated the company s anniversary on the first Monday of April promising a new leap forward and growth for the future. Congratulations on Dongwha s 64 th Anniversary 12 13

14 15

Global Dongwha On April 28, the April outdoor open agora held at Wolmi Stadium and Wolmi Park provided Dongwha members with an unforgettable festival. Some of the stories from that exciting event are shared below. An Invitation to Dongwha s Happiness Happinic Happy+Picnic 16 17

A Happy Picnic Prepared for the Dongwha Family 18 19

Creating Happiness To Dongwha happiness is a treasured value and our reason for existing. We are devoted to the happiness of our employees, their families and our customers. Respecting People There is nothing more precious to Dongwha than people. People are what create a better world. Building Partnership Dongwha exists for its customers. Dongwha makes good products But our customers are what make Dongwha better. Dongwha s Vision A Company That Makes its Employees and Customers Happy 20 21

Awards for Outstanding Results and Employees Living the Core Values 22 23

Helping the Financially Disadvantaged and Harmony Between Employees 24 25

Among the events, drawing the most attention from young children was Roboca Poli s character show. Kids at the event sang and danced together to the theme song and their enthusiastic support for the show led to an encore show. The mini field day with hula hoops and the family skipping rope event was created to help families experience teamwork. After 10 minutes of practice, families jumped right into the family skipping rope game in which a total of five families participated. The company has gone to great lengths to prepare for today s event. I have had a variety of experiences today making salt cars, bubbles, playing baseball and getting my face painted with my daughter. it was much bigger than I had expected. It was a great opportunity to witness how much the company cares about its people and their families. 26 27

Great Achievement Award Chang-gon Yoon, Dongwha Enterprize, Board Sales 2 Team Great Achievement Team Award Myung-kyun Park and three others, Dongwha Enterprize, Board Sales 2 Team I dream of the company s vision and future through the customers I would first like to thank my family members who have always put their trust in me. I m sure Hye-rin, my 9 year old daughter, liked her dad winning a prize in front of other people as did my wife. One can never achieve any goals alone. Had it not been for the generosity and consideration of fellow colleagues and the trust and support from my bosses we could not have reaped such great success. There s really no secret to it, it s simply just having a desire to achieve goals. I think we were able to achieve good results because we kept challenging ourselves, almost to the point of being obsessed. Today, Dongwha s new vision was announced and I was especially touched to hear that the company would try its best to make our customers happier. I myself work hard to think from the perspective of our customers and try to find ways to accomplish our company s goals. I will continue to work hard to achieve the goals set out for this year and make this year even better than last. I hope that this will be a year that I can show the company I will grow consistently in the years to come. I will work harder to live the company values and to help create a happier Dongwha. I will take the lead to exceed target sales and create excellent results Last year s sales and market conditions were tough but we were able to get good results by not giving up and working hard to achieve our target goals. Looking out and seeing how happy our families are makes it all worthwhile. This year is equally tough but our team has never for a moment thought we couldn t reach our targets. That s how much pride we have in our team. The Board Sales Team Two has the highest revenues of all the teams in this company. We believe that Dongwha s 2012 gross profit will be determined by our team s sales and profits. We will work hard to exceed our targets and in doing so help add to the company s bottom line. Each member of our team has always felt bad about working late every day and spending so little time with our families but the award we were given today somewhat makes up for that. Dongwha s first core value is happiness. Satisfying our customers leads to the happiness of our employees and customers and using that as our foundation we will try even harder to achieve better results in 2012. 28 29

Global Dongwha The new energy of global Dongwha! This is their six day story 1 2 3 4 5 6 1 ABDUL GHANI BIN SALLEH - Dw Enter./Mf Plan 2 ABDUL MATIN AL-BARR BIN MALEK - Dw Enter./Mf Plan 3 AFIQ SYAHMI BIN AB AZIZ - Dw Enter./Mf Plan 4 MUHAMMAD SYAHID BIN HASAN - Dw Enter./Mf Plan 5 MUHAMMAD FAKHRUL AZZAD BIN SARANI - Dw Enter./Mf Plan 6 MUHAMAD AMIRRUDIN BIN ZAKARIA - Dw Chemical Malaysia (Intern) MALAYSIA Last February, the On Job Training(OJT) Program for new hires took place over six-day period at Dongwha factories in Malaysia. The new hires were fresh graduate from university in Korea. These six had just graduated in February and were now embarking on a new chapter of their life as part of the Dongwha family. They spent the last five years studying in Korea and are well versed in Korean culture as well as the Korean language. They also recently finished a six-month stint at Dongwha factory in Korea, gaining hands-on experience. During training program at Malaysia factories, these six new Dongwha employees had the opportunity to compare working in Korea and Malaysia factories. They first had a chance to meet with colleagues who had already joined the company and were given advice on various aspects of company life. It might be a short six-day program with these new friends but it was a very memorable one. 30 31

Day 2 Kulim & Merbok Plant Tour Day 1 Workshop with Senior Colleagues and OJT Briefing As High, As Strong and As Creative As We Can! The first day of the entire program took place at Nilai Springs Resort. The highlight of the day came when the twelve participants were divided into three teams to take part in the Straw and Paper Clip Game which emphasized teamwork to build a tower using just straws and paper clips. The task; to build the highest, strongest and most creative tower within the allotted amount of time teaching the importance of time management, teamwork and the importance of each individual s role. Mr. Noranaz (Technical Training Manager) had briefed the new hires on the overall Dongwha Malaysia operations in Kulim, Nilai and Merbok. Just by listening to the briefing, they can understand and got some idea on Dongwha Malaysia. However, Mr. Farid (Kulim Production Executive) brought all of them to the plant and explained the process during the tour. 32 33

All 6 new hires were divided into 2 groups, 1 group to be attached at Kulim Plant and another 1 group to be attached at Merbok Plant. During these two days they were given a topic to learn and to prepare for presentation with our General Manager. Global Dongwha! Day 3 Day 4 OJT Mission Clear in respective locations Day 6 Presentation & Session with GM Nilai Plant Tour Day 5 After completed tour in Northern, they moved to Southern part of Malaysia. They went to see Nilai operation and with this, they had completed touring all 4 factories in Dongwha Malaysia. After finish work at 5pm, they had a futsal friendly match with Nilai Plant people. As a saying Those Who Sweat Together Stay Together, through this kind of activity, they became closer to each other. After 5 days on the job training, finally the day had come. Each of them presented on the topic they had learned and shared with other new hires on the new knowledge. This presentation ceremony was attended by Mr. Kim WonBae (Dongwha Malaysia General Manager), Mr. Lee YoungSeok (Head of Human Resource), and Mr. You SeungRock (Head of Manufacturing). Upon closing session, our Top Management gave their comments and messages to the new hires, to work smart and learn as much as they can while they are in Korea. All the best! 34 35

Global Dongwha Dongwha Vietnam Establishing an Global Management System 36 37

G L O B A L M A N A G E M E N T S Y S T E M 38 39

42p The 2012 Kyunghyang Housing Fair 54p Dongwha is One Family: Settlement of Wages without Having to Negotiate, Two Years Running 56p Dongwha News 60p Dongwha in Media Do Dream Dongwha

Do Dream Dongwha The 2012 Kyunghyang Housing Fair Dongwha Nature Flooring participated in the 2012 Kyunghyang Housing Fair which took place at Kintex in Ilsan, Gyeonggi Province between February 22 and February 26. It was a fantastic event filled with enthusiasm and excitement so let s take a look at what the event entailed. 42 43

Dongwha Nature Flooring Participates in the 2012 Kyunghyang Housing Fair 44 45

Booth Concept : Live in Pride 46 47

Dongwha Nature Flooring; A Company That Designs Space 48 49

50 51

A Quick Interview Visitor, Bo-hae Park Are these really Korean technologies? I am thinking about moving into a house within the next 2-3 years. I came to the exhibition because I thought it would be better to learn as much as I could before then instead of being unprepared and it looks like it will be a great chance for me to just do that. Overall, Dongwha Nature Flooring s booth is well designed and its natural colors and the atmosphere give it a natural, simple and environmentally friendly look. I am a housewife so I normally don t have a lot of opportunity to come into contact with construction materials but looking around the booth with my daughter we saw many things that impressed us. The wallpaper and flooring look fantastic just as they are so I was surprised to hear how many functions they had. I had no idea that there were products out there with so many functions. Are these really Korean technologies? Starting today, my impression of Dongwha Nature Flooring has really gone up. 52 53

Do Dream Dongwha Dongwha is One Family: Settlement of Wages without Having to Negotiate, Two Years Running Corporate Culture of Communication and Mutual Understanding. 24 year Record of Settling without any Labor Disputes! 54 55

DONGWHA NEWS NEWS DONGWHA Do Dream Dongwha Field Trip for Environmental and Forestry Officials Officials from the Forest Human Resources Development Institute and the National Institute of Environmental Human Resources Development visited Dongwha Enterprise to learn about wood recycling. Date : Forest Human Resources Development Institute 20 people(march 7), National Institute of Environmental Human Resources Development 40 people(march 15) Place : 2nd MDF Factory Green Factory PB Factory Program : Company introduction, lecture on wood recycling field trip Goals 1) To raise awareness among forestry officials of the importance of domestic wood recycling 2) To demonstrate to environmental officials from local governments the example of genuine green growth through the use of waste wood in the manufacturing of particle boards Meeting of CEOs of School Representative Stores The 2012 meeting of the CEOs of school representative stores was held March 19 in Daejeon. CEOs of 12 2 representative stores nationwide attended the meeting, where they discussed local market situations, business strategies and success stories, and devised strategies for the future. Goals 1) Result review, analysis of market trends, future strategies 2) Introduction of new products and distribution strategies Participants : CEOs of 12 school representative stores nationwide Date : March 19, 2012 (Conference room in Daejeon) Agenda 1) Briefing on 2011 business results and market trends 2) Sharing success stories and devising success strategies 56 57

DONGWHA NEWS NEWS DONGWHA Dongwha Nature Flooring, Design Wall Hi-glo Launched Definition and Purpose 1) This premium wall finish is a high glossy surface finish that makes the marble texture look even more attractive, removing a typically dull finish as well as any difficulties installing the product. 2) It is a product that has improved the real look of the finish and differentiates itself from existing design wall products. Launch Date : May 1st, 2012 Product Specifications : 210mm X 790mm X 9t Pattern : 5 Styles of Marble Main Target Market 1) Residential: Living Room, Kitchen (luxurious yet comfortable) 2) Commercial: Accommodations (Hotels), Retail (Luxury Restaurants, Cosmetic Stores), Officetels, Residential/Commercial Complexes Dongwha Nature Flooring, Nationwide Green Service Advance in Unison Conference Held Dongwha Nature Flooring held their Advance in Unison Conference with construction companies from around 4 the country as well as SM. Date : May 12~13, 2012 Location : Youth Training Center in Hoam-dong, Choong-ju City, North Chungchung Province Participants : Headquarters and Related Construction Companies (Including SM) Schedule Day 1) Share Policy, Special Lecture, Event to Promote Harmony Day 2) Sports Activities (Pep Rally) After-effect 1) Solidarity Event for Dongwha Nature Flooring SM Increase sense of belonging by adopting competing direct delivery construction. 2) Feel pride to be a Dongwha SM. 58 59

Do Dream Dongwha DONGWHA IN MEDIA 60 61

DONGWHA IN MEDIA 62 63

Core Value 66p 68p 72p 76p Dongwha is Part of a Healthy Tax Paying Culture Eating Snacks and Being Congratulated~ Dongwha, One Mind in Music and Dance Dongwha Nature Flooring s Group Baseball Outing

Core Value Ethical Management Dongwha is Part of a Healthy Tax Paying Culture Dongwha CEO Hong-jin Kim named Honorary Superintendent of the West Incheon District Tax Office for a Day Dongwha CEO, Hong-jin Kim was appointed honorary superintendent of the West Incheon District Tax Office for a day. CEO Kim was given a variety of job duties which included delegating a number of tasks to the office s employees. Faithfully Paying Taxesis the Cornerstone of National Finance At 10 a.m. on March 5, CEO Hong-jin Kim kicked off his day as the honorary superintendent of the West Incheon District Tax Office. As honorary superintendent he was to carry out the same tasks conducted by the current superintendent in charge. At 10:30 in the morning the 46th Taxpayers Day ceremony began. When superintendentmyung-hwan Godistributed the letters of appointment naming Hong-Jin Kim and Gu-ra Kim honorary superintendentsa warm round of applause ensued. Shortly after, awardswere given to model taxpayers and civil servants at the tax office recognized for their outstanding contribution to the development of the national tax administration. To cap things off, CEO Kim took the stand to give his appreciation stating that as CEO of Dongwha and speaking for all of the companies operating under the jurisdiction of the West Incheon Tax Office, he was extremely honored to have been appointed honorary superintendent for the day. Paying taxes is an essential part of your duty as acitizen of this country and the tax administration responsible for the smooth execution of such a duty plays a significant role in becoming the foundation for national finance. I thank all the people in the tax office for carrying out their responsibilities to ensurethat paying taxes is a smooth process. Later on, CEO Kim added that Dongwha would continue to play its part in social responsibility by contributing to the development of the nation as well as local communities. 66 67

Core Value Change and Innovation Dongwha s PB1 factory won the top prize for technicians at the 3rd Dongwha Management Innovation Festival. We met with the team that achieved outstanding results on their project reducing costs related to waste disposal. Eating Snacks and Being Congratulated~ Just before lunch when everyone was beginning to feel slightly hungry, we went to the PB1 factory with some chicken and pizza. The 30 employees at the factory were delighted with this unexpected treat and sat down to enjoy the snack. In that moment they were like brothers, handing out chicken and pouring drinks for each other. While they were busy laughing and chatting, it didn t take long for all of the food to disappear. The employees at the PB1 factory chose reducing costs related to waste disposal as their innovation project. They focused on this project between March and July and through their efforts successfully reduced costs by 1.2 billion won annually. They all agreed that it was the result of every member actively participating on the project and doing their best. Do-hyung Kim who works on the PB1 factory press nodded and said, I knew we would receive the award. 68 69

PB1 Factory, Dongwha Management Innovation Festival s Outstanding Technician Team While we were working on the task force we constantly had meetings to discuss how to make things better and improve our activities. Our success was the result of everyone on the team working together as one. When we start something everyone tends to follow through with enthusiasm. We are like a family and whenever things get tough we re there to help each other out and give each other advice. That doesn t mean it was smooth sailing from the start. According to site manager Bong-gi Kim, we were kind of confused when we first started adding, working together to fine-tune everyone s suggestions was quite meaningful. He placed great importance on the fact that many people participated in this small group activity. There were many activities and proposals in the past but I think it was the first time we accomplished something as a unit. Because everyone is busy it s a fact that most people lacked individual interest in small group activities but this time it felt natural to participate. The joy from winning doesn t last long. Members of the PB1 factory face another challenge. From reducing the cost of waste disposal they are now engaged in a new project; reducing the costs arising from managing waste water. We give them our support and encouragement as they take on this new challenge. 70 71

Core Value Respect for Talent Dongwha, One Mind in Music & Dance On April 28th the air was filled with youthful energy as Dongwha employees presented a group chorus performance at the Vision Proclamation Ceremony. Here we were able to see the product of a week s worth of sweat. Wishing for the Accomplishment of a Unified Vision 72 73

74 75

Core Value Happiness Cheers of Support Together with a Different Pep Rally Dongwha Nature Flooring s Group Baseball Outing 76 77

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Life & Culture 82p Love spread through the sounds of a violin~ 86p 92p

Life & Culture Laurent Korciaperformed at the Concert Hall of the Seoul Arts Center just in time for White Day. Members of the Dongwha family were invited to the concert and spent a lovely evening indulgingthemselves in the beautiful sounds of the violin. 82 83

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Life & Culture The 2nd Annual 100 day Ceremony was created to help employees adjust in their early days with the company and to create a place where they could communicate. It has already been 100 days since the latest hires started their quest for happiness within the confines of Dongwha. Let s see how they have been doing during this short period of time by taking a closer look at the 100days Party. 86 87

In addition to the 2nd 100 day ceremony there is another communication channel for new employees. Just a week before the 100 day ceremony was the One Year Party that was held in the Green Lounge. This was a party to congratulate the new hires on hitting the one year mark as employees of the company and it was a far more relaxed environment than the 100 day ceremony with far more participants. A year has already passed since they became a part of the Dongwha family and a year since they first met while in training. Having lots to catch up on they started chatting as soon as they came together. 88 89

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Green Dongwha is about you. If you want to share your stories with other Dongwha members or post your photographs, feel free to contact us anytime. Dongwha s representative stores are also the members of the Dongwha family. We are ready to listen to your feedback. If you have any stories to share with us or want to recommend any specific store, please contact the PR and Corporate Culture Team of Dongwha Holdings. We ask for your active participation. Become a part of Green Dongwha! Green Dongwha has various events in store for Dongwha employees. If you are interested in taking part in the events mentioned above, please send an e-mail to Green Dongwha. We will be looking forward to your active participation. Corporate culture, Dongwha Holdings TEL 02.2122.0515 E-mail msy@dongwha-mh.com