Honam Petrochemical Corp.Honam Petrochemical Corp.

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2011. 4. 12011. 4. 1

Shareholders, Affiliates & Locations

Shareholders & Affiliates

Honam Petrochemical Corp. is the core company of the Lotte Groups Chemical Division

Lotte has around 57% of Honams share

KP ChemicalHonam

52%

100%

Listed

Locations

Head Office(Seoul)

1

Daesan MMA

Seetec

Lotte E&C

Free Float 42.8%Free Float 42.8%

LotteLotte (Japan) 10.0%(Japan) 10.0%

Hotel Hotel LotteLotte (Korea) 13.6%(Korea) 13.6%

LotteLotte MulsanMulsan (Korea) 33.6%(Korea) 33.6%

J/V with

MRC (50%)

J/V with

LG Chem (50%)

100%

50%

50%

31%

Daesan Complex Honam Daesan MMA Seetec

(Seoul)

R&D Center(Daejeon)

Yeosu Complex Honam Daesan MMA

Ulsan Complex KP chemical

Overseas BranchBeijing, Shanghai Qingdao, GuangzhouHong Kong, Moscow New York

Titan Chemical

Products & Capacity _ Honam / DMMA

Yeosu complex

Ethylene (750)

HDPE (380)

EO MEG (400)

EOA (130)

PET (70)

Daesan complex

Ethylene (1,000)

LDPE (110)

EO MEG (640)

LLDPE (290)

(Unit: KTA) (Unit: KTA)

PC (80)

Honam has 1,750 KTA of Ethylene capacity and various types of downstream products in Korea

(+250)

(+250)

(+20)

2

Propylene (380)

Mixed C4

PyrolysisGasoline

PP (380)

MMA (50)

BZ (165)

TL (78)

XL (47)

Propylene (500)

Mixed C4

PyrolysisGasoline

PP (500)

BD (150)

BZ (320) SM (500)

DMMA

DMMA

* As of Dec. 2010

PMMA (40)

BD (130)

(+200)

(+20)

(+125)

MMA (90)

Products & Capacity _ Titan / KP Chemical

Titan

Ethylene (720)

LDPE (230)

KP Chemical(Unit: KTA) (Unit: KTA)

Titan has its Naphtha Cracker in Malaysia and PE capacity in IndonesiaKP Chemical has its production facilities in Korea, United Kingdom and Pakistan

HDPE (115)

HD/LLD (220) Meta Xyl (160)

P-Xyl (720) PTA (950)

PIA (200)

PET (434)

3

Propylene (480)

Mixed C4

PyrolysisGasoline

PP (480)

BTX (220)

BD (100)

HD/LLD (450)

Indonesia Capacity

115KTA of Metathesis plant

O-Xyl (255)

Benzene (102)Ulsan Complex Capacity

(Korea)

PTA (500) PET (150)

LCUK Capacity (UK)

PTA (500)

LPPTA Capacity (Pakistan)

* As of Dec. 2010

Sales Breakdown_ non-consolidated

Sales by Distribution Channel Sales by Product

Around 40% of Honam sales were exported to the overseas market in 2010.

PE, PP, MEG, and SM account for around 65% of the sales.

EXPORT

Others

NC/BTX

4

PE : HDPE, LDPE(EVA), LLDPE

NC/BTX : C2, C3, M-C4, TBA, BTX

Others : BD, PC, EOA, PET, MMA, POP

DOMESTIC

NC/BTX

SM

EO&EG

PP

PE

Market Situation

Price trends of Feedstock & Products ($/ton)

5

Financial Review _ Non-consolidated

[[Unit: Billion Won]Unit: Billion Won]

I/S

2010 2009 2008

Revenue 7,189 5,970 3,098

Operating Profit 904 718 90

NP before Tax 1,018 853 71Net Profit 784 797 45

[[Unit: Billion Won]Unit: Billion Won]

B/S

2010 2009 2008

Asset 6,987 5,677 3,551

Liabilities 2,531 1,952 747

Equity 4,455 3,725 2,804

Liability/Equity 57% 52% 27%

Honam runs in the most stable financial structure among the Korean petrochemical

companies

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Net Profit 784 797 45(Depreciation) 203 234 73

EBITDA 1,107 952 163

Liability/Equity 57% 52% 27%

Cash & Cash Equ. 532 1,113 355

Debt 1,377 812 293

2010 2009 2008

4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q 2Q 1Q

Revenue 1,793 1,751 1,842 1,803 1,630 1,650 1,456 1,234 655 887 819 738

Operating Profit 256 186 216 246 115 224 225 154 86 47 64 66EBITDA 307 236 267 297 173 282 285 212 64 64 80 83

Quarterly Performance

Affiliate Companies _ KP Chemical

KP & Its Affiliates

KP Chemical

LPPTA

Lotte Chemical UK

PTA : 500KTA

PTA : 500KTA

PET : 150KTA

Honam Share : 52%

100%

75%

KP Chemtech100%

[[Unit: Billion Won]Unit: Billion Won]

I/S

2010 2009 2008

Revenue 2,428 2,107 2,094

Operating Profit 151 158 9NP before Tax 232 207 35Net Profit 181 164 4

(Depreciation) 76 87 95

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Sales by Product

Year 2010

EBITDA 227 245 86

B/S

2010 2009 2008

Asset 1,436 1,229 889

Liabilities 445 402 253

Equity 991 826 637

Liability/Equity 45% 49% 40%

Cash & Cash Equ. 426 291 141

Debt 0 0 0

BTX : P-X, OX, BZ, etc

Consolidated Financials & Other Affiliates

[[Unit: Billion Won]Unit: Billion Won]

I/S

2010 2009

Revenue 12,403 8,596

Operating Profit 1,263 989

Net Profit before Tax 1,285 1,048

Other Important Affiliates

[[Unit: Billion Won]Unit: Billion Won]

Company ShareSales /

Net Profit(2010)

Remark

From 2011, Honam will release the quarterly consolidated financial reports according to the

Korean regulation.

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Net Profit 895 890

(Depreciation) 285 312

EBITDA 1,548 1,301

B/S

2010 2009

Asset 8,613 6,593

Liabilities 3,626 2,437

Equity 4,987 4,155

(2010)

Daesan MMA

50.0%391 /

69

MMA/PMMA business

MRC 50%

Seetec 50.0%395 /

44

Utility supply to Daesan Plant

LG chem 50%

Lotte E&C 31.2%3,665 /

87

Construction company

KP Chemical and 8 other affiliate companies.

Investment Plan

On-Going Investment

ProjectInvestment Cost

(Billion won)Capacity (KTA) Location

Mechanical Completion

Titan Acquisition 1,500

Ethylene 720

PE 1,000

PP 480

BD 100

Malaysia

Indonesia

2010. November

(completed)

BD/BN-1 Plant 150 130 / 24 Yeosu 2010. 4Q (completed)

3rd EOA Plant 32 50 Yeosu 2010. 4Q (completed)

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3rd EOA Plant 32 50 Yeosu 2010. 4Q (completed)

NCC expansion 520

Ethylene 250

HDPE 250

PP 200

Yeosu 2012. 1H

GE/HPEO 54GE(Glycol Ether) 50

HPEO 100Daesan 2012

PET film 90 PET film (Optical) 20 Ulsan 2012

EO/ETA Plant 165EO 100

ETA 50China 2012

Uzbek Project 96mil USD

Ethylene 400

HDPE 380

PP 80

Uzbekistan 2015

Vision 2018 Aspiration

Top tier Asian Chemical company with the revenue target of 40 trillion won.

Current Core biz such as olefins & aromaticsBiz expansion based on 'Cash cost' competitiveness & market

Basicchemical

Core Business

Application Application IndustryIndustry

Auto/Mechanics

Opportunistic

Resource/Energy biz

Oil & Gas

10

Advancedmaterial

New Bizfrom

Megatrend

Performance material & Value-add chemical Focus on Eco-efficient materials

New business opportunities considering megatrendsProactively respond to future risk & opportunity

ProvideSolution

Electronics

Construction/ Environments

Energy/ Power

Consumer goods

Bio/ Pharma

Enter up-stream Biz

Natural resources/ energy

Raw materials for the new business

Growth History of Honam

(Billion Won)

Completion of Integration

Daesan plants revamping (08)

Acquired Titan ('10)

Acquired LPPTA & LCUK (09 & 10)

M&A andGlobal expansion

Consolidated

Honam only

CAGR~30%

CAGR~13%

Inorganic growth

Organic growth

Honam achieved rapid growth thru organic & inorganic efforts

11

1980 1985 1990 1995 2000 2005 2010

Consolidated ($0.1B) ($0.6B) ($1.1B) ($5.9B) ($10.6B(E))

Founded Honam Petrochem (76)

Completed Naphtha cracker (92)

Acquired KP Chemical (04)

Established Daesan MMA (06)

Downstream expansion (EG, HDPE, PP, PET, EOA, MMA)

Downstream expansion

Daesan plants revamping (08)

Extended HDPE(88), PP(88), EG(91)

Acquired Hyundai Petrochem (03)

2011

($13~14B)

CAGR~11%