1. Q1, 2014 Earnings (based on K-IFRS)

n Financial results

Ø Sales: KRW 5.67 trillion (Up 0.6% QoQ)/ KRW 5.72 trillion (Down 0.8% YoY)

Ø Operating profit: KRW 362.1 billion (Up 14.5% QoQ)/ KRW 408.9 billion (Down 11.4% YoY)

Ø Net profit: KRW 286.0 billion (Up 61.7% QoQ)/ KRW 340.4 billion (Down 16.0% YoY)

2. Commentary on the results

Ø (Petrochemicals) Overall profitability has improved thanks to the increased sales of high value-added premium products. Despite slow demand recovery of the industry, focusing on differentiated product lines contributed to the firm performance.

Ø (IT & Electronic Materials) Decrease shipments of polarizer for display panels slowed down the growth of the 1st quarter along with the off-seasonal demand of IT industry.

Ø (Energy Solution) Operating profit recorded a surplus compared to the previous quarter due to improved demand of mobile batteries that increased the operating ratio of production lines.

3. Business Outlook in 2Q

Ø (Petrochemicals) Gradual recovery of the market expected as the upcoming quarter shifts into the time of on-seasonal demand. Attempts to boost up sales of premium products will be the main driving force of competitiveness.

Ø (IT & Electronic Materials) Aims to improve performance by expanding the production line capacity of polarizer in Nanjing, China.

Ø (Energy Solution) Sustainable growth in sales expected by diversifying the application of cylindrical batteries and expanding the production of polymer batteries to cope with the trend of slim IT gadgets.



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