2013. 2. 1.

Disclaimer

2

This presentation is for informational purposes only, contains preliminary financial and other information about Korean Air Lines Co., Ltd. and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of Korean Air Lines Co., Ltd. or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions are intended to identify forward-looking statements. Korean Air Lines Co., Ltd. assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation.

Financial Position (consolidated)

End of 2012 End of 2011 Changes Ratio

Current Asset 3,365.4 3,350.2 15.2 0.5%

Cash & Cach Equivalent 1,465.5 1,465.7 -0.2 -

Non Current Asset 19,617.6 19,038.2 579.4 3.0%

Aircraft related asset 11,776.9 11,186.7 590.2 5.3%

Investment in Associates 2,566.8 2,612.3 -45.5 -1.7%

Total Assets 22,983.0 22,388.4 594.6 2.7%

Financial Liabilities 15,206.9 15,325.4 -118.5 -0.8%

Current 4,114.4 4,639.8 -525.4 -11.3%

Non Current 11,092.5 10,685.6 406.9 3.8%

Other Liabilities 4,866.3 4,294.0 572.3 13.3%

Total Liabilities 20,073.2 19,619.4 453.8 2.3%

Total Equity 2,909.8 2,769.0 140.8 5.1%

3

(Unit : KRW Billion)

Income Statement (consolidated)

4

4Q 2012 4Q 2011 Changes 2012 2011 Changes

Operating Income 3,083.5 3,190.6 -3.4% 12,728.0 12,269.1 3.7%

Operating Expense 3,101.1 3,113.6 -0.4% 12,405.6 11,808.9 5.1%

Operating Profit -17.6 77.0Turn to

loss322.4 460.2 -29.9%

Non Operating

Profit257.0 -24.3 125.9 720.6

Foreign Currency

related gains, net473.5 140.2 695.4 -261.7

Interest Expense, net 121.9 133.3 530.5 535.2

Equity method gain,

net-26.1 45.7 92.2 221.9

Income before tax 239.4 52.7 354.3% 448.3 -260.4Turn to

profit

Net Income 140.3 44.5 215.3% 256.4 -199.8Turn to

profit

(Unit : KRW Billion)

Income Statement (non consolidated)

4Q 2012 4Q 2011 Changes 2012 2011 Changes

Operating Income 2,977.4 3,062.1 0.0 12,263.9 11,805.3 3.9%

Operating Expense 2,991.3 2,985.3 0.0 11,992.3 11,411.2 5.1%

Operating Profit -13.9 76.8Turn to

loss271.6 394.1 -31.1%

Non Operating

profit311.4 -42.6 123.9 -837.1

Forign currency

related gains, net474.5 139.6 696.2 -262.0

Interest Expense, net 109.0 117.5 463.3 469.0

Income before tax 297.5 34.2 7.7 395.5 -443.0Turn to

Profit

Net Income 220.8 58.2 2.8 259.6 -301.1Turn to

Profit

5

(Unit : KRW Billion)

Borrowings (non consolidated)

※ Applied FX rate(USD) : as of YE 2012 (KRW 1,071.1, JPY: 85.86, EUR: 0.76)

6

Balance

(Billion)Ratio

Balance

(Billion)Ratio

Balance

(Billion)Ratio

USD $74.1 57.7% $73.5 60.1% $0.60 0.8%

KRW ₩4,860 35.3% ₩4,413 33.6% ₩447 10.1%

JPY ￥76 6.9% ￥65 6.2% ￥11 16.9%

EUR € 6 million 0.1% € 8 million 0.1% -€2 million -25.0%

Total

(KRW)₩13,754 100% ₩13,590 100% ₩164 1.2%

As of Dec 31, 2012 As of Sep 30, 2012 Changes

Domestic Passenger

4.5%

Int’l Passenger 56.4%

Cargo 26.5%

Others 7.5%

(In-flight sales, etc.)

Aerospace 4.0%

Catering 0.7%

Hotel /Limousine

0.4%

Revenue Composition

4Q Operating revenue: KRW 2.977 trillion

여객

※ Non consolidated

7

Passenger Traffic

8

4Q 2012 4Q 2011 YOY 4Q 2012 4Q 2011 YOY

Supply

(Mil ASK)21,117 21,081 0.2% 863 1,000 -13.7%

Oct 7,011 7,134 -1.7% 325 349 -7.0%

Nov 6,762 6,717 0.7% 274 324 -15.3%

Dec 7,345 7,230 1.6% 264 328 -19.3%

Traffic

(Mil RPK)16,167 15,783 2.4% 612 688 -11.1%

Oct 5,528 5,481 0.9% 253 262 -3.6%

Nov 5,079 4,925 3.1% 200 226 -11.5%

Dec 5,560 5,377 3.4% 159 200 -20.6%

L/F(%) 76.6% 74.9% 2.3%p 70.9% 68.8% 2.1%p

Yield (US Cent) 9.5 9.2 3.3% 19.7 17.7 11.3%

Int'l Passenger Domestic Passenger

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

12,000

13,000

14,000

15,000

16,000

17,000

18,000

19,000

1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4(mil RPK)

International Passenger Trend International Passenger hit the historically high L/F and RPK for 4Q.

72%

75% 77%

75%

RPK(left)

L/F(right)

9

2009 2010 2011 2012

Domestic

7%

Japan

12% China

11%

SEA

18%

Oceania

5%

Americas

32%

Europe

15%

4Q 2012

0

100

200

300

400

500

600

Domestic Japan China SEA Oceania Americas Europe

4Q 2012

4Q 2011

Passenger revenue by route operation

[Unit : billion]

Domestic

8%

Japan

16% China

11%

SEA

15%

Oceania

5%

Americas

32%

Europe

13%

4Q 2011

10

Passenger revenue by regional sales

0

100

200

300

400

500

600

700

Korea Japan China SEA Americas Europe

4Q 2012

4Q 2011

[unit : billion]

Korea

44%

Japan

14%

China

8%

SEA

9%

Americas

19%

Europe

6%

4Q 2012

Korea

41%

Japan

18%

China

7%

SEA

8%

Americas

19%

Europe

7%

4Q 2011

11

Passenger Business Overview & 2013 Business Plan

12

4Q Business Summary

Traffic increased in all routes : SEA 12%↑, Europe 8%↑, China 6%↑, Oceania 14%↓, Japan 9%↓ Americas 1%↓

Korea outbound traffic increased 9%, Overseas outbound decreased 4%

( Korea Inbound : 16%↓, Transit : 10%↑)

2013 Business Plan

Global air travel demand is projected to grow by 5.1% in 2013.(IATA) (Asia region 8%↑, Korea market 7%↑)

Despite high fuel price and expansion of LCC, demand in Asia region is expected to consistently grow.

New route : ICN - Colombo/Male (3 flights per week) Frequency Increase : ICN - Narita/Xiamen/Dalian/Dallas/Seattle/ Toronto/Paris Busan – Narita

Cargo Traffic

13

4Q 2012 4Q 2011 Changes

Supply (Mil AFTK) 2,721 3,028 -10.1%

Oct 953 1,040 -8.3%

Nov 905 995 -9.0%

Dec 863 993 -13.1%

Traffic (Mil FTK) 2,122 2,288 -7.2%

Oct 733 789 -7.1%

Nov 712 746 -4.6%

Dec 677 753 -10.1%

L/F(%) 78.0% 75.6% 2.4%p

Yield (US Cent) 31.3 31.5 -0.6%

Cargo (Domestic + International)

60.0%

65.0%

70.0%

75.0%

80.0%

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4 1/4 2/4 3/4 4/4

Cargo Traffic Trend

4Q 2012 cargo traffic(FTK) was decreased by 7%(yoy).

(million FTK)

FTK(left)

L/F(right)

76%

2009 2010 2011 2012

14

76%

78%

76%

Maintain Load Factor by capacity control.

0

100

200

300

Domestic Japan China SEA Oceania Americas Europe

4Q 2012

4Q 2011

[unit : billion]

Cargo revenue by route operation

Domestic

1% Oceania

1% Japan

5%

China

11%

SEA

13%

Americas

40%

Europe

29%

4Q 2012

Domestic

1% Oceania

1%

Japan 6%

China

11%

SEA

13%

Americas

36%

Europe

32%

4Q 2011

15

Cargo revenue by Regional Sales

0

100

200

300

Korea Japan China SEA Americas Europe

4Q 2012

4Q 2011

Korea

32%

Japan

8%

China

25%

SEA

14%

Americas

10%

Europe

10%

4Q 2012

Korea

33%

Japan

12% China

20%

SEA

14%

Americas

11%

Europe

11%

4Q 2011

16

[unit : billion]

Cargo Business Overview & 2013 Business Plan

17

4Q Business Summary

Korea outbound shipment decreased by 5%.

Transit shipment decreased by 7% (Americas 16%↑, Japan 28%↓)

Traffic shrunk due to weak economic recovery, relocation of manufacturing facilities abroad.

Ensure profitability with cost cutting by capacity control, focusing on the sales of high margin products (eg. perishables or medicines) and so on.

2013 Business Plan

Global air cargo demand is projected to be increased by 2% in 2013(IATA).

Increase margins with sales growth in Asia region and reorganizing of network.

Exploitation of new markets such as South America/MEA.

Fuel

39.2%

Labor

14.0%

Depreciation

12.8%

Airport

related

9.7%

In-flight service 3.3%

Sales Commission

2.8%

Maintenance 3.5%

Rentals

1.7%

Others

13.0%

영업수익 x억원 4Q 2012

(KRW 2,991 billion)

4Q 2011

(KRW 2,985 billion)

Operating Expense Breakdown [non consolidated]

18

Fuel

40.7%

Labor

13.5%

Depreciation

12.0%

Airport

related

10.4%

Maintenance 0.9%

In-flight service 3.3%

Sales Commission

3.5%

Rentals 2.0%

Others

13.7%

(Unit: KRW billion)

Key Expense

19

* Include : 7 A/C subleased to JIN Air

** Include 3 A/C rented out

4Q 2012 4Q 2011 Changes

Fuel 1,172 1,215 -3.5%

Consumption(million bbl.) 796 826 -3.6%

Average Unit Price(U$/bbl.) 134.0 129.2 3.7%

Labor 419 403 4.0%

Aircraft Rental 339 427 -20.6%

No. of A/C(as end of 3Q)* 21 22 -1

Aircraft Depreciation 359 337 6.5%

No. of A/C(as end of 3Q)** 135 127 +8

2013 Business Plan & Key Assumptions

20

2012 2013 Changes(yoy)

Operating Revenue 12,263.9 13,070.0 7%

Operating Expence 11,992.2 12,410.0 3%

Operating Profit 271.6 660.0 143%

Unit 2012 2013

Fuel Into plane USD/bbl. 132 134

FX rate KRW/USD KRW 1,127 1,100

Interest

Rate3M Libor % 0.48 0.50

Description

※ Non-consolidated

(unit : KRW billion)

6

7

8

9

2012 2013

50

55

60

65

70

75

2012 2013

2013 Supply & Traffic Plan

2013 Plan YOY

Supply

(mil Km) 91,014 3.1%

Traffic

(mil Km) 71,538 3.9%

L/F 78.6% 0.7%p

Supply

(mil ton Km) 10,702 -1.2%

Traffic

(mil ton Km) 8,467 2.1%

L/F 79.1% 2.6%p

Passenger

Cargo

Description

3.9% ↑

2.1% ↑

21

billion Km

billion Km

0

1

2

2012 2013

2013 CAPEX & Fleet Utilization Plan

Description2012

(Assupmtions)2013 Changes

Aircraft 1,486.5 1,702.0 14%

Project 160.0 213.0 33%

Total 1,646.5 1,915.0 16%

22

(unit : KRW billion) (trillion)

Description 2012 2013 Changes

Passenger 119 119 -

Cargo 27 27 -

Total 146 146 -

62

96 105

119 119

10

16 24

27 27

0

50

100

150

1990 2000 2010 2012 2013

Freighter

Passenger

16%↑

Project

Aircraft

(no. of A/C) (as of end of the year)

Fleet Type Status Delivery plan for 2013

A380 6 2

A330 23 1

A300 3

B747 15

B777 32 2

B737 40 2

Passenger Total 119 7

B747F 23

B747-8F 2 1

B777F 2 1

Cargo Total 27 2

Total 146 9

23 ※ Fleet rented out to Jin Air & Uzbekistan Airways are excluded from the chart

Fleet Status

(as 2012 year end)

24