SFA Engineering

March 2011

1

Disclaimer

This presentation has been prepared by SFA Engineering Corp. and contains forward-

looking statements, that are subject to risks, uncertainties, and assumptions. The

Presentation is solely for your information, subject to change without notice, and makes

no representation or warranty, expressed or implied and no reliance should be placed on

the accuracy, fairness or completeness of the information presented.

The company, its affiliates or representatives accept no liability for any losses arising from

any information contained in the presentation.

The contents of this presentation may not be reproduced, redistributed or passed on,

directly or indirectly, to any other person or published in whole or in part, for any

purpose.

22

Introduction of SFA

- Business industries

- New orders & sales trends

- Plants in operation

- Products

- R&D status

- Restructuring of Organization

No. 10 Global / No. 1 domestic display equipment company

Products and customer diversification for stable growth

Transforming into total equipment company

3

Business industries

Spun off from Samsung Techwin

in 1998

Factory Automation/

Logistics system

LCD,PDP Manufacturing

Equipment

OLED, Solar, Semiconductor Manufacturing

Equipment

1999 ~ 2000 ~ 2008 ~

4

New orders & sales trends (1999~2010)

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

77.8

46.5

108.6

63.1

112.774.4

90.7 98.7

235.5

369.0343.5

318.4335.6

144.5

241.1

351.3380.8

306.8

409.6

307.1

261.3

430.8

743.1

423.0

New orders

Sales

(Unit : KRW billion)

CAGR (1999~2010) : New orders 23%, Sales 22%

Products diversification for the growth

Strategic partnership with major customer

Completed products diversification to display equipment

Successful Launch; PECVD, OLED equipments

5

Plants in operation

HWASUNG PLANT•Built in 2002

• Logistics & Display Equipment, R&D Center

• Land: 29,415㎡

•Clean Room: 4,958㎡

ASAN PLANT•Built in 2004

•Display and Solar Cell Equipment

• Land: 199,655 ㎡

•Clean Room: 23,796 ㎡

OVERSEAS OFFICE

•SFA China

•SFA Taiwan

•SFA UK

6

Glass manufacturing equipment

Processing

Inspector

Packaging

Formation

· BOD System

· Cutting System· Cell Grinding System

· GTS System

· DPS System

Gen1(300×300) ~ Gen10(3,000×3,300)

LCD, OLED substrate formation, processing, inspector, packaging system

Dep

ositio

n/

Encap

sulatio

n

Module(& Cell)

7

LCD/AMOLED equipment

TFT-LCD AMOLEDProcedureEquipment EquipmentProcedureMain Main

Launched Under R&D

Process equipment

Front ending

① PECVD(LCD)② Sputter③ Evaporator(OLED)④ Encapsulation(OLED)

High precision

⑤ C/S Offset Printer⑥ Scriber⑦ Edge Grinder

Module

⑧ Cullet Cleaner⑨ Pol. Attach M/C⑩ Bonder(OLB,PCB)⑪ Dispenser(Silicon)

Clean logistics

Clean

logistics

Clean logistics(LCD, OLED)

Glass, Cell Index Glass Input System Glass, Cassette C/V Glass, Cassette Lifter Glass, Cell Loader AGV, LGV Stocker Module packaging

Vacuum logisitcs(OLED eva/encap)

Loadlock Chamber Unloadlock Chamber TM Chamber Buffer Chamber

Logistic equipment

Deposition TFT

Lithography

Deposition

CF, C/S Coating

Lithography

Repair

Alignment layerCoating

Rubbing

ODF/Dispensing

Scribing

Edge Grinding

Cullet Remover

Pol. Attach

Bonder

Dispensing(실리콘)

BLU Assembly

CF

Cell

Module

② Sputter

② Sputter

⑥ Scriber

⑦ Edge Grinder

⑧ Cullet Cleaner

⑨Pol. Attach M/C

⑩ Bonder(OLB,PCB)

⑤ C/S Offset Printer

⑪ Dispenser(실리콘)

Cleaning

① PECVD

Cleaning

Deposition (Organic, Metal)

Scribing (Encap. Glass)

Edge Grinding(Encap. Glass)

Pol. Attach

Bonder

Dispensing(실리콘)

Deposition

Lithography

Scribing

Edge Grinding

Edge Grinding

Cleaning

Scribing

② Sputter

⑥ Scriber

⑥ Scriber

⑦ Edge Grinder

⑨ Pol. Attach M/C

⑩ Bonder(OLB,PCB)

⑦ Edge Grinder

⑪ Dispenser(실리콘)

③ Evaporator

⑥ Scriber(Encap. Glass)

Encapsulation ④ Encapsulation

⑦ Edge Grinder(Encap.Glass)

-※ Glass Encap.

Cleaning

① PECVD

TFT

Clean logistics

Vacuum logistics

Clean

logistics

Clean

logistics

Vacuum

lo

gistics

8

Cell Sorter Laminator Inspection

Stringer

Semi Framer M/C

Glass / EVA Loader Lay up M/C Auto Trimming M/C

Solar Module Turn Key Line

9

Test facility for satellite

Nuclear fusion power facility

(International Thermonuclear Experimental Reactor)

Accelerator Ass’y Line

Factory Automation

Autoclave (Airplane)Auto-track

(Hospital facility)Cable manufacturing Robot-picker

10

Automated Storage Distribution Center Retrieval System

Logistics

Clean Stocker OHT / OHSProbe Card /

Wafer StockerSolar poly silicon

manufacturing line

Clean logistics (LCD, OLED, Semiconductor, Solar)

Automated storage & retrieval system

11

R&D Status of Core Equipment

11

Advanced R&D in next growth-driven display equipment

Focus on high value added & technology products

Product diversification with related industries/products

LCD PECVD

OLED PECVD

Solar PECVD

Solar Sputter

LCD Sputter

Evaporation (organic/metal )

Glass/Film Encapsulation

Vacuum logistics (Back bone)

LCD roll printer

Semiconductor roll printer

TSP (Touch Screen Panel) roll printer

Flexible display components printer

Front-ending equipment OLED equipment Printed electronics

1212

PECVD Business Status

Prospects

Performance

Installed 2 units of 8G PECVD in domestic mass

production line

7.5G PECVD under R&D

8G Active type PECVD under R&D

OLED PECVD under R&D

<+10G PECVD under R&D

LCD PECVD

PECVD Market Forecast (M$)

◈ 3~5% of CAGR in PECVD market◈ PECVD has 9% of total LCD equipment market

Expecting new orders of passive & active PECVD

for mass production (7.5G, 8G etc)

Increasing needs for OLED PECVD in 2~3years

Expecting new orders of OLED

Pre-occupied market with price and quality

competitiveness

구분 2010 2011 2012 2013 2014 2015 2020

Global 519 665 628 400 647 666 722

Domestic 195 246 157 122 162 167 193

비고* Source : LCD equipment Data Book, Display Search* 3% growth rate applied after 2014

1313

Solar Sputter Business Status

Prospects

Performance

R&D subsidized by Government (2nd year)

Completed building 5G a-Si solar sputter

and optimized for procedure

5G CIGS solar sputter under Joint R&D with

customer (applying for government subsided

project )

Solar Sputter

Solar Sputter Market Forecast (M$)

Increasing needs for CIGS solar equipment in 2~3years

Expecting new orders of a-Si solar sputter after evaluation

Expecting new orders of CIGS solar sputter

Pre-occupied market with price and quality competitiveness

2009 2010 2011 2012 2013

Overseas 1,020 1,420 1,810 2,230 2,600

Domestic 73 109 140 177 209

Source : Photon International, Solar Buzz

Exceeds 20% of CAGR in Solar market

CIGS & a-Si has 50% or more of thin film solar market

1414

Printed Electronics Business Status

Prospects

Performance

Exclusively supplied TSP (Touch Screen Panel) roll

printers for 20 mass production lines (3 customers)

Shipped semiconductor packaging roll printer for

R&D line

Printed Electronics

Printed Electronics(Packaging & TSP) Market Forecast

Expanding TSP roll printer business

Applying semiconductor packaging roll printer for

mass production line

Creating new business areas (Flexible Display,

OLED, LCD, Solar etc)

TSP R2R System

Package P2P System

<Source : 2009’ Gartner semiconductor equipment market, 2009’ Display Research TSP market>

15

Restructuring Organization

Display division

Logistics division

FA division

R&D center

Logistics system

High precision

equipment

FGA

Front-ending equipment

R&D center

Old organization Current organization

Display high precision

Display clean logistic

Fine Glass manufacturing equipment

Solar equipment

Display module

Clean logistics

Clean material handling

General logistics system

Clean material handling

General material handling

General automation system

PECVD, Sputter

OLED Evaporation/Encap.

Printed electronics

Clean logistic

Clean material handling

General material handling

General logistic

Display high precision

Solar equipment

Fine Glass manufacturing equipment

General automation system

PECVD, Sputter

OLED Evaporation/Encap.

Printed electronics

Front- ending equipment

R&D TF

Display module

Feb 9, 2011

To maximize synergy, preoccupy the new product market and reinforce autonomy & responsibility of each division

1616

Financial status

- Earning results

- Sales, new orders & backlogs breakdown

- Assets & liabilities

- Performance & prospects

- Dividend

17

Earnings Results

(KRW billion) 2010 3Q 2010 4Q QQ YY 2009 4Q 2010 YY 2009

New orders 240.8 158.5 -34% 51% 105.1 743.1 184% 261.3

Sales 98.9 183.5 86% 50% 122.5 423.0 38% 307.1

Domestic 66.4 148.0 123% 29% 114.6 280.2 4% 269.4

Overseas 32.5 35.5 9% 348% 7.9 142.8 279% 37.7

G.P margin 13.6 34.1 150% 112% 16.1 70.2 91% 36.7

SG&A 8.0 10.5 31% 52% 6.9 32.4 51% 21.5

Operating profits(%)

5.6(5.7%)

23.6(12.9%)

321% 158%9.2

(7.5%)37.8

(8.9%)149%

15.2(4.9%)

Profits before tax (%)

95(9.7%)

28.9(15.8%)

203% 117%13.3

(10.9%)50.0

(11.8%)100%

25.1(8.2%)

Tax 2.1 6.0 180% 53% 3.9 10.7 52% 7.0

Net profits (%)7.4

(7.5%)23.0

(12.5%)210% 143%

9.4 (7.7%)

39.4 (9.3%)

118%18.0(5.9%)

Historic record of new orders (KRW 743.1 billion of total new orders , YY +184%)

Historic record of overseas sales (KRW 142.8 billion of overseas sales, YY +279%)

Highest quarter OP margin & NP margin since 2008 (4Q OPM 12.9%, NPM 12.5%)

18

Sales breakdown

2010 3Q 2010 4Q 2009 4Q 2010 2009

By divisions

By regions

Display

FA

Logistics

42%

21%

38%26%

24%

50%

22%

20%

58%

19%

81%

94%

6%

66%

34%

12%

88%

Domestic

Overseas

98.9

183.5

122.5

423.0

307.1

(KRW billion)

(KRW billion)

48%

26%

26%

98.9

183.5

122.5

423.0

307.1

2010 3Q 2010 4Q 2009 4Q 2010 2009

60%

17%

23%

33%

67%

+50%+86% +38%

+50%+86% +38%

19

New orders breakdown

72%

11%17%

28%25%

47%

27%

22%

51%

2%

88%

56%

44%

85%

15%

27%

73%

240.8

158.4

105.1

743.1

261.3

2010 3Q 2010 4Q 2009 4Q

24%

14%

62%

240.8

105.1

2010 2009

2010 3Q 2010 4Q 2009 4Q 2010 2009

36%

20%

44%

98%12%

-34%

+51%

743.1

261.3

+184%

158.4 +51%

-34%

+184%

By divisions

By regions

Display

FA

Logistics

Domestic

Overseas

(KRW billion)

(KRW billion)

20

Backlogs Breakdown

2009.4Q 2010.1Q 2010.2Q 2010.4Q

176.0

270.2

379.3

496.2

3%

54%

40%

growth

-backlogs

09.4Q 10.1Q 10.2Q10.4Q

176.0

270.2

379.3

496.2

50% 48% 45%41%

26%

28%

31%

29%

24%

24%

24%

30%

Display

FA

Logistics

65%

79%

80%

93%

35%

21%

20%

7%

Overseas

Domestic

2010.3Q

521.2

37%

5%

Backlogs as of Dec 2010 : KRW 496.2 billion

182% increase from Dec 2009

10.3Q

46%

25%

29%

521.2

176.0

270.2

379.3

496.2521.2

9%

91%

09.4Q 10.1Q 10.2Q10.4Q10.3Q

Quarterly backlogs (KRW billion)

21

Assets & Liabilities

09.4Q 10.1Q 10.2Q10.4Q10.3Q

(KRW billion) 09 4Q 10 4Q YY

Total assets 309.7 629.6 103%

Current assets 166.6 494.1 197%

• Cash, etc 92.7 180.7 95%

• Account receivable 39.1 89.5 129%

• Inventories 26.8 215.7 706%

Non current assets 143.1 135.5 -5%

09.4Q 10.1Q 10.2Q10.4Q

10.3Q

(KRW billion) 09 4Q 10 4Q YY

Total liabilities 81.4 365.6 349%

Current liabilities 69.3 356.8 415%

• Payable notes 30.2 104.0 244%

• Advance from customers 28.7 229.5 700%

Non current assets 12.1 8.8 -27%

• Reserves for warranties 8.9 8.8 -1%

Total assets : YY+103% increase

- Cash, etc. KRW 180.7bn (YY+95%)

- Inventories KRW 215.7bn(YY+706%)

Total liabilities : YY +349% increase

- Payable Notes KRW 104.0bn (YY+244%)

- Advance from customers KRW 229.5bn(YY+700%)

309.7

354.2

441.9

539.3

629.6

81.4

125.9

208.2

298.2

365.6

54%59%

70%

75%

78%

46%

41%

30%

25%

22%

85%90%

94%

96%

98%

15%

10%

6%

4%

2%

Current assets

Non current assets

Non current

liabilitiesCurrent

liabilities

Display Division

Sales

- 2010 Total sales KRW 245.5 bn (YY+61%)

- Record overseas sales (KRW 106.3 bn YY+280%)

New orders

- Record new orders (KRW 383.6 bn,YY+213%)

- Record overseas new orders (KRW 94.6 bn, YY+120%)

2010 Performance 2011 Prospects

10 1Q 10 2Q 10 3Q 10 4Q 2010 2009

19.4

78.5

59.6

88.0

245.5

152.5

71%

55%51%

22%

34%

18%

82%57%

78%

49%45%

29%

Sales(KRW billion)

Overseas

Domestic

New orders+61%

10 1Q 10 2Q 10 3Q 10 4Q 2010 2009

118.6105.5 98.3

383.6

122.5

44%

37%5%

25%

18%

75%

81%65%56%

95%65%

19%35%

61.1

+213%

22

Display CAPEX

- LCD & AMOLED CAPEX

- Possible approval of overseas CAPEX

Chinese LCD CAPEX (AUO, CSOT etc)

LCD Glass Substrate CAPEX

Solar cell/module CAPEX

Overseas

Domestic

(KRW billion)

FA Division

Sales

-Sales in KRW 82.9 bn (YY+13%)

- Sales of clean material handling systems increased

New orders

- Record new orders (KRW 162.4bn ,YY+144%)

- Turkey orders of 5.5G OLED material handling system

10 1Q 10 2Q 10 3Q 10 4Q 2010 2009

12.5

5.4

16.5

48.5

82.9

73.3

59% 4%

11%

34%

31% 12%

88%69%

66%

89%96%41%

+13%

10 1Q 10 2Q 10 3Q 10 4Q 2010 2009

48.3 49.3

21.8

162.4

66.5

39%

12%

18%

82%

88%

61%100%

78%

22%43.0

+144%

100%

100%

23

2010 Performance 2011 Prospects

Display CAPEX

- LCD & AMOLED CAPEX

- Possible approval of overseas CAPEX

Increase of overseas material handling system orders

Wind power generators & automotive assembly line CAPEX

Autoclave due to increasing need for airplanes

Sales(KRW billion)

Overseas

Domestic

New orders

Overseas

Domestic

(KRW billion)

Logistics Division

Sales

-2010 Sales of KRW 94.6 bn (YY+16%)

- Successfully completed LCD & Amore Pacific projects New orders

-Record new orders (KRW 197.2bn,YY+173%)

-Turnkey orders of 5.5G OLED logistics system

2410 1Q 10 2Q 10 3Q 10 4Q 2010 2009

17.0

7.9

22.7

47.0

94.6

81.3

62%

11%

99%

89%

99%38%

10 1Q 10 2Q 10 3Q 10 4Q 2010 2009

33.9

86.1

38.3

197.2

72.3

18%100%

100%83%

17%

38.9 100%

100%100%

100%

1%

+16%

100%1%

+173%

2010 Performance 2011 Prospects

Sales(KRW billion)

Overseas

Domestic

New orders

Overseas

Domestic

(KRW billion)

Display (LCD & OLED) CAPEX

Solar Poly-silicon CAPEX

Product diversification to clean logistics for Semiconductor

Retail and clothing distribution CAPEX

Receiving repeat orders from existing customers’ CAPEX

25

Dividend

Payout ratio : 22.5% (DPS KRW 500)

Yield ratio : 1.07%

Total issued shares : 17,954,380 shares (9,110,000 shares in 2009 / YY+97%)

Shares for dividends : 17,688,760 shares (excluded treasury stocks 265,620 shares)

2008 2009 2010

49.8

18.0

39.4

12.4

3.5

8.8

24.9%

19,6%

22.5%

*2008 *2009 2010

2,0382,225

5,570

1,400

400 500Net profits

Total dividend EPS DPS

(KRW)

Payout ratio

EPS vs DPS

(KRW billion)

Net profits vs Total dividends

*No of issued shares : 9,110,000 shares (in 2008, 2009)

2626

Appendix

- Balance sheets

- Income statements

- Shareholders’ structure

27

Apdx #1. Balance sheets

28

Apdx #2. Income statements

※ EPS of 2009 was adjusted after bonus shares

29

Apdx #3. Shareholder structure (as of Dec 31 2010)

DY assets & affliates 37%

Samsung10%*KITM

8%

Foreigners8%SFA

1%

Others 31%

Institutional investors, etc 67%

Foreigners 8%

Others 24%

SFA 1%

Shareholders structure Major shareholders

**NPS4%

*KITM : Korea Investment Trust Management

**NPS : National Pension System