Aug. 2nd 2021

Q2 FY21 Business ResultsAug. 2nd 2021

Since this document has yet to be reviewed by external auditors,

please note that the figures in the document may be revised

following an independent review.

This document contains forward-looking statements or information

that are based on estimates and assumptions.

Please be advised that such forward-looking statements involve

known and unknown risks, uncertainties and assumptions,

and are subject to change.

The financial information in this document has been prepared

in accordance with K-IFRS.

Contents

Q2 FY21 Business Results01

Divisional Results Analysis

Investment Plan

CAPEX trend

① Quarterly Business Results

② Dividend Policy

③ Price Movement of Major Products

02

03

04

APPENDIX

(1) Income Statement (2) Financial Position

(1) Chemicals (2) Green Materials

Q2 FY21 Business Results (1) Income Statement

Sales and operating profit recorded KRW 421.7 billion and

KRW 53.9 billion respectively (OPM 12.8%)

- The highest quarterly revenues

(Bil. KRW) Q2 FY20 Q1 FY21 Q2 FY21 QoQ YoY

Sales 293.2 343.9 421.7 22.6% 43.8%

Gross Profit 57.7 59.7 79.4 33.0% 37.6%

Operating Profit 33.9 35.5 53.9 51.8% 59.0%

Pre-tax Income 86.4 49.4 144.3 192.1% 67.0%

Net Income 65.0 40.5 114.0 181.5% 75.4%

Oil Price(WTI, $/bbl) 27.85 57.84 66.07 14.2% 137.2%

Exchange Rate (￦/$) 1,221.30 1,113.41 1,121.33 0.7% ▲8.2%

330.2 324.7 329.6

349.9

293.2

316.7 303.7

343.9

421.7

52.2 51.4 48.4 51.0

33.9

25.9 28.5

35.5

53.9

0

20

40

60

80

100

120

140

150

200

250

300

350

400

450

Sales Operating Profit

4

Q2 FY19 Q3 Q4 Q1 FY20 Q2 Q3 Q4 Q1 FY21 Q2

(Bil. KRW)

[Consolidated basis]


(Bil. KRW) Dec. 2020 Mar. 2021 Jun. 2021Compared to

Dec. 2020

Asset 1,874.6 1,917.2 2,071.7 197.1

Cash and Equivalents 9.1 6.4 13.1 4.0

Liabilities 224.9 265.2 305.6 80.7

Shareholder’s Equity 1,649.7 1,652.0 1,766.1 116.4

Capital 129.0 129.0 129.0 -

Debt Ratio 13.6% 16.1% 17.3% 3.7%p

Capital Ratio 88.0% 86.2% 85.2% ▲2.8%p

5

Assets and liabilities stood at KRW 2,071.7 billion and

KRW 305.6 billion respectively at the end of June.

Q2 FY21 Business Results (2) Financial Position

[Consolidated sta]

Quarterly sales of the Chemicals

107.2 111.2 107.1 124.5 139.7

90.7 109.0

99.6

118.5

175.5

11.7 8.8

8.9

9.9

10.6

Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21

Chlorine Ammonia relatives Etc

QoQ

28.9%

215.6209.6

Q2 Results

Outlook for Q3

The Q2 sales of the Chemicals reached KRW 325.8 billion,

accounting for 77.3% of the total sales of the company. It is a 28.9% increase QoQ.

229.0

- Revenues and operating incomes increased driven by

the international price increase as affected by continued

constraint in supply and demand conditions for chlorine

products

- Operating incomes is expected to improve thanks to

the hike of international prices, a result of favorable

demand of market.

6

Divisional Results (1) Chemicals

(Bil. KRW)

※ The performance figure by business line above and the accumulated performance figure show a gap

attributable to the round-up of figures at the hundred of million position.

252.9

325.8


Sales

107.2 111.2 107.1

124.5

139.7

40

60

80

100

120

140


Cellulose

27%

Ammonia

Relatives

42%

Etc. 2%

ECH 17%

Caustic Soda 8%

Etc. 8%

Chlorine

33%

Sales stood at KRW 139.7 billion,

accounting for 33.1% of the total sales.

ECH

Caustic soda

- Revenues rose QoQ with a supply decrease due to troubles and

scheduled maintenance of major producers, and with strong

downstream businesses.

- Revenues rose YoY driven by selling price appreciation and

grown sales volume.

- Revenues rose QoQ with rising international prices and selling prices

enabled by the reduced regional supply, a result of scheduled

maintenance of major producers.

- Revenues rose YoY thanks to an increased sales volume.

7

Divisional Results (1) Chemicals : Chlorine

Sales Portion

(Bil. KRW)




Ammonia

EUROX ®

Chlorine

33%

Cellulose

23%

Etc. 2%

Ammonia 35%

EUROX® 4%Etc. 3%

AmmoniaRelatives

42%

90.7

109.0 99.6

118.5

175.5

30

50

70

90

110

130

150

170

190


- Revenues rose QoQ following increased international prices and

selling prices resulted from troubles experienced by major producers and

continued constraint in supply-demand conditions.

- Revenues rose YoY thanks to increased sales volume and upturn of

selling prices.

- Revenues rose QoQ as affected by an increased sales volume,

a seasonal peak in logistics.

- Sales rose YoY as affected by increased demands driven by AdBlue market

growth.

8

Divisional Results (1) Chemicals : Ammonia Relatives

Sales

Sales Portion

(Bil. KRW)


Quarterly sales of the Green Materials

The Q2 sales of Green materials division reached KRW 95.8billion,

accounting for 22.7% of the total sales of the company. It is a 5.2% increase QoQ.

52.5 60.9 61.9 63.8

67.7

31.1

26.8 26.2 27.3

28.1


Industrials Foods and Pharmaceuticals

QoQ

5.2%

88.183.6

87.7

- Operating income turned a downturn due to increased raw

material costs and logistics costs, while the revenues increased

thanks to improved industrial demands from global construction

economic recovery and by the increase of sale enabled

by the added lines of the company.

- Operating income is expected to decrease due to a continued

cost rise, although an expanded sale to meet additional

construction demand and a revenue increase are expected

as a result, based on the steady demand from overall

downstream businesses.

9

Divisional Results (2) Green Materials

(Bil. KRW)

※ The performance figure by business line above and the accumulated performance figure show a gap

attributable to the round-up of figures at the hundred of million position.

Q2 Results

Outlook for Q3

91.195.8




Industrials

(MECELLOSE® , HECELLOSE® )

Foods and Pharmaceuticals

(AnyCoat® , AnyAddy® )

52.560.9 61.9 63.8 67.7

31.126.8 26.2 27.3

28.1

20

40

60

80

100


Industrials Foods and Pharmaceuticals

Chlorine

33%

Ammonia

Relatives

42%

Etc. 2%

Industrials 16%

Foods and

Pharmaceuticals

7%

Cellulose

23%

- Revenues rose QoQ thanks to an increased sales volume with expanded

commercial production from added lines of MECELLOSE.

- Revenues rose YoY with a sales volume increase resulting from additional

lines, offsetting selling price falls, a result of the weakened exchange rate

compared to the previous year.

- Revenues rose QoQ with an increased sales volume supported by

commercial sale of the products from added lines and by growing

customer demand.

- Sales went down YoY with a selling price downturn due to the unfavorable

exchange rate. 10

Divisional Results (2) Green Materials : Cellulose

Sales

Sales Portion

(Bil. KRW)

(Industrials, Foods and Pharmaceuticals)

88.183.6

87.7 91.195.8


Investment Plan

ProjectInvestment cost

(Bil. KRW)Capacity (KMT) Mechanical Completion

HECELLOSE®

Expansion47.3 9

2018.2H

(Completion)

MECELLOSE®

Expansion33.6 7

2019.1H

(Completion)

MECELLOSE®

Expansion115.0 13.8

2021.1H

(Completion)

AnyCoat®

Expansion23.9 1.9

2021.1H

(Completion)

AnyCoat® /AnyAddy®

Expansion

(Inc. revamping for expanded

production of raw materials)

37.0 2 2022.1H

11

CAPEX Trend• Facility expansion and new investments made for profitability improvement after 2018.

• Expansion of green material business (MECELLOSE and Foods & Pharmaceuticals production line) and

investment in private equity investment JV in 2020.

• Additional line installation for Foods & Pharmaceuticals line and focused investment in ESG-related

environmental facilities in 2021.

12

Point

64.484.3

32.060.5

30.8 42.0 24.8 27.358.1 59.5

180.3

268.3

31.021.4

1.2

21.1 67.5 42.6

112.0 105.9

57.0

63.5

38.4

92.1

4.3

0.20.2

290.2301.7

416.1

101.4

174.0

36.363.1

92.470.1

460.3

165.4

1,431.2

1,314.1

1,210.5 1,161.9

1,110.7 1,159.5

1,371.7 1,311.3

1,263.6

-100

100

300

500

700

900

1100

1300

1500

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21(E)

Equity Investment

New Business & Capacity Expansion

Maintenance

Sales

(Bil. KRW)

① Quarterly Business ResultsAppendix

(Bil. KRW)

FY20 FY21

Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

Sales 349.9 293.2 316.7 303.7 1,263.6 343.9 421.7 765.6

Gross Profit 74.9 57.7 49.8 51.6 234.1 59.7 79.4 139.1

Operating Profit 51.0 33.9 25.9 28.5 139.2 35.5 53.9 89.4

Income Before Tax 64.6 86.4 28.6 79.9 259.5 49.4 144.3 193.7

Net Income 43.1 65.0 24.1 66.6 198.8 40.5 114.0 154.5

Oil Price (WTI, $/bbl) 46.17 27.85 40.93 42.66 39.40 57.84 66.07 61.96

Exchange Rate (￦/$) 1,192.72 1,221.30 1,188.18 1,118.86 1,180.27 1,113.41 1,121.33 1,117.37

13

※ The difference between quarterly results and cumulative results is attributable to the round-off.


② Dividend PolicyAppendix

Dividend is decided with future investment and financial stability into consideration for dividend stability of

shareholders and corporate value increase.

650 650 650

300 300

500

300

800

1,700 1,700

1,500

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

14

Dividend

per Share(KRW)

Divident

Yield

Payout

Ratio

(Separate)

0.8% 1.1% 1.1%0.7% 0.9%

1.4% 1.0% 1.3%

4.1%3.7%

2.8%

19.4% 22.4%20.4%

108.6%

18.4% 28.8%

-23.1%

29.2% 25.1% 22.1% 23.8%

③ Price Movement of Major ProductsAppendix

(U$/MT) (U$/MT)

15

International price movement (Based on the posted prices of ICIS news)

-

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Spread ECH Epoxy Propylene

-

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Caustic Soda Ammonia

Aug. 2nd 2021

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