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PoongLimPoongLim Industrial Co., Ltd.Industrial Co., Ltd.

April 2006

Building a Brighter Future for All Mankind

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Table of Contents

Profile

Operation highlights

Financial Status

Management Reference

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1954. 10. 05 Poonglim Industrial established.

1976. 11. 29 Launch of first overseas project (pile foundation for natural

gas liquefaction plant, Juaymah, Saudi Arabia)

1978. 11. 30 Listed on Korean Stock Exchange (KSE).

2001. 06. 01 Launch of “I-WANT” apartment brand.

2005. 07. 11 Won “Most User-Friendly” award at 9th annual apartment awards

2005. 08. 01 Ranked 20th among Korean general contractors.

Company name: Poonglim Industrial Co. ltd

President: Lee, Pil Seung

Chief stockholders: Lee, Pil Woong (23.5%), Lee, Yun Hyeong (1.5%)

The largest shareholders and related parties hold 35.3% of total shares outstanding.

Headquarters: Poonglim Building, 823 Yeoksam-Dong, Kangnam-Gu, Seoul, Korea,

(Tel: 82-2-528-6114)

Profile

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Ownership Structure

T/SPoongLim

P/LSakhalin

PoongLimResort

Fine Con

Lee family

50% 100% 50% 100%

50%

35.3%

Foreigninvestors

5.8%

Domesticinvestors

58.9%

Lee family35.3%

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Operation highlights♦ Orders

* Targets W2.2tr in new order receipts in 2006.* Current order backlog of roughly W5tr, or 3-4x est. 2006 construction sales.

♦ Sales* Poonglim expects 2006 sales to rise 26.7% YoY to W1,200bn.

New Orders(W bn)

Backlog(W bn)

Sales(W bn)

‘03 ‘04 ‘05 ’06(E) ‘05 ’06(E) ‘03 ‘04 ‘05 ’06(E)

1,467.2 1,490.1

1,127.5

2,200.04,147.7

5,184.7

1,059.4

1,175.0

946,8

1,200.0

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Operation highlights♦ Market Share

1. Domestic: Market share of 1.1-1.5% in the past, but should rise to around 2.2% in 2006.2. Overseas: Boosting EPC capability since 2004, when it entered Russian market.

Domestic contract amount(W bn)

Oversea contract amount(W bn)

‘03 ‘04 ‘05 ’06(E)

97tr99tr

95tr

102tr

1,467.2 1,490.1

1,127.5

1,998.0

‘03 ‘04 ‘05 ’06(E)

US$ 13.0bn

US$ 10.9bn

US$ 7.5bn

US$ 3.7bn

15.5

193.7

49.6

202.0

Source: Construction Association of Korea(2005)

Total

P/L

Total

P/L

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♦ Operating performance* 2005 OP surged to W61.2bn (from W38.9bn in 2004) on 4%p YoY drop in construction cost ratio and W2.5bn

decrease in SG&A costs.* Poonglim expects 2006 OP to increase to W79.1bn.

♦ Bottom-line to improve substantially* RP and NP to surge on absence of large one-off costs (such as additional tax payment in 2005).

Operation highlights

Operating Profit(W bn)

Recurring Profit(W bn)

Net Profit(W bn)

‘03 ‘04 ‘05 ’06(E)

38.1 38.9

61.279.1

‘03 ‘04 ‘05 ’06(E)

14.116.5

9.7

33.5

6.6%6.5%

3.3%3.6%

23.9

‘03 ‘04 ‘05 ’06(E)

26.019.9

54.1

4.5%

2.1%2.2%2.3%

2.8%

1.0%

1.4%1.3%

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Operation highlights♦ Current ratio

* Current ratio to continue to improve to 133.9% in 2006 from 118.8% in 2005, backed by slowing growth of current liabilities

♦ Liabilities-to-equity ratio*Liabilities to equity ratio has stabilized since 2003

Current ratio(W bn)

Liability ratio(W bn)

‘03 ‘04 ‘05 ’06(E)

730.7 731.2

649.8

749.4

133.9%

118.8%110.0%106.0%

689.6 664.5

546.8 559.6

‘03 ‘04 ‘05 ’06(E)

758.0

663.2724.7

299.5%312.0%

359.9%365.0%

203.2 210.6212.6 242.0

741.7

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Financial Status

Balance Sheet (W bn)

Total assets

Current assetsFixed assets

Total liabilities

Current liabilitiesLong-term liabilities

Total shareholder equity

Paid-in capitalCapital surplusRetained earningsCapital adjustment

805.4

575.9229.4

607,9

505.7102.2

197.5

107.675.612.12.2

944.9

730.7214.2

741.7

689.652.1

203.2

107.675.621.9-1.9

968.5

731.2237.3

758.0

664.593.5

210.5

107.675.629.3-2.0

875.8

649.8226.0

663.2

546.8116.4

212.6

107.675.634.2-4.8

966.7

749.4217.3

724.7

559.6165.1

242.0

107.675.662.7-3.9

2002 2003 2004 2005 2006(E)

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Financial Status

Income Statement (W bn)

Sales

Cost of salesGross profit

SG&A expenses

Non-operating profitNon-operating expense

Recurring profit

Extraordinary gainPre-tax profitIncome taxesNet profit

854.2

762.691.6

44.7

15.748.5

141

-14.16.67.5

2002

Operating profit 46.9

1,059.4

970.089.4

51.3

21.135.3

239

-23.99.8

14.1

38.1

1,175.0

1,086.388.7

49.8

23.236.1

260

-26.09.5

16.5

38.9

946.8

838.3108.5

47.3

19.160.4

19.9

1.821.712.09.7

61.2

1,200.0

1,068.0132.0

52.9

15.040.0

54.1

-54.120.633.5

79.1

2003 2004 2005 2006(E)

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Financial Status

Major business indicators

1.Stability

Current ratioLiability ratioInterest coverage ratio

2. Profitability

OP marginNP marginROE

3. Activity

Asset growth ratioAsset turnover

113.9%307.9%

1.34x

5.5%0.9%3.8%

6.7%1.09x

2002

106.0%365.0%

1.43x

3.6%1.3%6.9%

17.3%1.21x

110.0%359.9%

1.21x

3.3%1.4%7.8%

2.5%1.23x

118.8%312.0%

1.96x

6.5%1.0%4.5%

-9.6%1.03x

133.9%299.5%

2.25x

6.6%2.8%

13.8%

10.4%1.30x

2003 2004 2005 2006(E)

2002 2003 2004 2005 2006(E)

2002 2003 2004 2005 2006(E)

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Management Reference

Major Projects

Work-type

Civil work

Incheon airport runway 37.9 2005. 9 ~ 2007. 12

Name Contract amount(W bn)

Constructionperiod

Housingunits Customer

Kyeongju road 111.7 2006. 2 ~ 2011. 1

Pangyo housing site 26.6 2005.12 ~ 2008. 12

Architecture College of Dentistry Kyunghee Univ. 13.1 2003.11 ~ 2005. 12

Development

Goodmorning City Shopping Mall 105.7 2005. 6 ~ 2008. 4

JongroSajik redevelopment 325.5 2004.10 ~2007. 12 1,030

Pohang Yangdeok Apartment 204.7 2005.11~ 2008. 6 1,723

Daejeon Seokbong-dong Apartment 511.0 2006.12 ~ 3,982

Incheon Int’l Airport Corp

Pusan Nat’l Territory Mgmt Office

Korea Land Corp

Kyunghee University

Goodmorning City

Sajik 1st area Redev Assn

Korea Real Estate Inv Trust

PoongAn Construction

Overseas SEIC BS2 Compression 67.9 2006. 2 ~ 2008. 8 SEIC

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Management Reference

Jongro Sajik commercial & residential complex project 1. Client: Sajik 1st area redevelopment association

2. Construction period: 2004.10 ~ 2007.12

3. Contract amount: W325.5bn

4. Scale: 744 housing units, 286 offices.

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Management Reference

Pohang Yangdeok Apartment project

1. Client : Korea Real Estate Inv Trust

2. Construction period : 2005.11 ~ 2008. 6

3. Contract amount : W204.7bn

4. Scale: 1,723 housing units

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Management Reference

SEIC BS2 Compression project1. Client: Sakhalin Energy Investment

Company Ltd.

2. Construction period: 2006. 2 ~ 2008. 8

3. Contract amount: W67.9bnPipeline (Exxon)

Onshore Processing Fac. (Sakhalin Energy)

Pipeline (Sakhalin Energy)

Prigorodnoye

Piltun/Molipaq Well (Sakhalin Energy)

Lunskoye Well (Sakhalin Energy)

GastelloBooster Station2 (SEIC)

LNG Plant (Sakhalin Energy)

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585,382

Appendix

-2,9351,404-Rebuilding & Redevelopment

6,9284,4842,3891,362Land-owner’s joint development project

454-6832,528In-house project

’06(E)‘05‘04‘03(Unit)

3,8904,476

7,4197,382

463,800 463,641

520,000

Source: Construction Association of Korea (2005)

PoongLim

♦ Supply trend in domestic housing market 1. Housing supply volume expected to grow 112% YoY to 520,000 units in 2006

2. Lowered in-house project portion, given expected slowdown in domestic housing market caused bygovernment’s property measures.

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