Cheil Industries

May, 2010

CONTENTS

1. Company Overview

2. Business Target FY2010

3. Earnings Release 1Q10

4. Appendix

`• This document is provided for the convenience of investors only, before the completion of an external audit. Some figures may be subject to change according to the audit outcomes.• As the forward-looking statements this release may contain are based on the company’s own business outlook, they may differ from the real result. Therefore, the responsibility for investment on this material is imputed only to investors.

1. Company Overview

Company History

A Journey BeginsA Journey Begins A Refining RevolutionA Refining Revolution

Big AchievementsBig Achievements Reaching New HeightsReaching New Heights

Advanced into Fashion Business

Acquired Fashion Div.from Samsung Corp.

Founded as a Textile Player

Launched Korea’s First Textile Exports

Advanced into PlasticResin Business Advanced into Artificial Marble Business

Launched ECM Business

Started Polarizer Business with the Acquisition of Ace-digitech

Business Transformation

KRW 1,661bnKRW 1,661bnKRW 1,661bnKRW 1,661bn

KRW 82bnKRW 82bnKRW 82bnKRW 82bn

FY 1980FY 1980 FY1990FY1990

912912

716716

8282

FY2000FY2000

KRW 433bnKRW 433bnKRW 433bnKRW 433bn111111

322322

3333

1,2251,225

1,8271,827

FY2009FY2009

1,2091,209

KRW 4,261bnKRW 4,261bnKRW 4,261bnKRW 4,261bnECMECM

ChemicalsChemicals

Fashion & TextilesFashion & Textiles

2. Management Target FY2010

7

Management Target FY10

Sales Business Tasks

Chemicals ─ Accelerate sales of high-end products including PC-related and resins for auto ─ Reinforce capability of global business with expansion of manufacturing bases in overseas

Electronic Chemical Materials ─ Implement the early penetration into market with development of the new semicon. processing materials ─ Strengthen intensively film business through early ramp-up of new production for polarizer and development of high-end films for semi & display

Fashion ─ Enhance distribution competitiveness for men’s wear by diversifying retail channel. ─ Early stabilization of new brands ─ Develop new growth driver including outdoor

5,000

4,261

Chemicals ECM Fashion

CAPEX 231 125

※ Textiles sales excluded

[ Won in billions ]

3. Earnings Release 1Q10

1,140 1,164

924

9

Business Results 1Q10

Sales Profitability

4Q 09 QoQ

1Q 10 YoY

1Q 09

O P 61 28% 78 70% 46

R P 41 95% 80 196% 27

N P 39 69% 66 247% 19

[ Won in

billions ]

[ Won in

billions ]

Exports Domestic

662 725578

478 439

346

4Q 09 1Q 10 1Q 09

1,164

10

Quarterly Business Results

Sales O P

1,1401,1101,087

924

46 (4.9%)

81 (7.4%)77 (6.9%)

61 (5.3%)

78 (6.7%)

[ Won in billions ]

11

Financial Status

Financial Position Financial Ratios

1Q 10 4Q 09Chang

e

Assets 3,279 3,119 160

Quick 730 658 72

Inventories 524 488 36

Investments 864 812 52

PP&E 993 988 5

Intangible 60 61 -1

Other non-current

108 112 -4

Liabilities 1,239 1,149 90

Current 752 607 145

Non-Current 487 542 -55

Shareholders’ Equity 2,040 1,970 70

Total Borrowings 475 494 -19

Net Borrowings 440 410 30

[ % ][ Won in billions ]

Total Liabilities / Equity

4Q 08 4Q 09 1Q 10

Total Borrowings / Total Assets

Shareholder Equity Ratio

Net Debt to Equity

25

1614

71

5861

59

6362

42

20 22

12

Chemicals

Business Results Business Review & Outlook

Strong pricing trend maintained both

in the raw materials and products.

Substantial revenue increase was fueled by

the incremental demand growth in high-end

products amid the favorable environment

of IT industry. The margin improvement was rather small

due to the sharp increase in input costs

despite the rise in ASP. Steady near-term demand outlook

on the back of solid IT market condition.

[ Won in billions ]

($/bbl,ton) 1Q10 4Q09 1Q09

Crude Oil 78 76 44

S M 1,277 1,097 741

A N 2,151 1,616 887

B D 1,854 1,443 513

ABS(Spot)

1,822 1,475 1,108

468

519

368

O P

Margin

16

3.4%

23

4.5%

23

6.3%

13

E C M

Business Results Business Review & Outlook[ Won in

billions ]

Polarizer Display Semi Others

311321

271

O P

Margin

25

8.1%

30

9.4%

16

5.7%

Sales increase and margin improvement

followed by demand recovery

in semiconductor and LCDs.

Despite the volume increase, polarizer sales

slightly decreased YoY due to

KRW appreciation

* 1Q09 : KRW 1,409/$ → 1Q 10: KRW 1,145/$

New semi-materials are expected to be widely

adopted by captive users on the back of

the acceleration in their process migration

and upturn in semiconductor industry.

Focus to stabilize the 3rd production line for

polarizer and commercialize TV application

14

343

311

270

O P

Margin

21

6.2%

25

7.9%

10

3.7%

Fashion

Business Results Business Review & Outlook[ Won in billions ]

Casual Men Women etc. Others Overall, sales increased and margin

improved, thanks to the consumer sentiment

recovery.

Casual

- Revenue grew by 13% YoY mainly with

strong sales growth of Bean Pole

Men’s wear

- Revenue increased by 9% backed by

demand pick-up

Women’s line

- Growth in KUHO , theory & LEBEIGE and

development of new brands contributed to

continuing sales growth. (+66% YoY)

S/S collection roll-out will make positive

contribution to the overall profitability in 2Q10.

`

1.7

15

Non – op side

Analysis Net Equity Method Gains

[ Won in billions ][ Won in billions

]

Net Interest Expenses

12.1

Others

254

218

7.1

77.5

80.14Q 09 QoQ

1Q 10 YoY

1Q 09

Ace Digitech 2.0 -2.7 -0.7 +0.2 -0.9

Samsung Petro-chem

7.3 - 0.9 6.4 + 5.5 0.9

Others -2.4 - 7.4 -9.8 - 6.3 -3.5

Total 6.9 -11.0 -4.1 - 0.6 -3.5

O P R P

4.1

Net Equity Method Gains

Dividend

Income

4. Appendix

17Quarterly Business Results - Appendix

(Won in billions)

’08.1Q ’08.2Q ’08.3Q ’08.4Q ’09.1Q ’09.2Q ’09.3Q ’09.4Q ’10.1Q

Sales 829 980 1,038 881 924 1,087 1,110 1,140 1,164

　 Chemicals 396 466 553 358 368 473 518 468 519

E C M 156 229 220 211 271 306 321 311 321

Fashion 260 256 241 291 270 281 247 343 311

Others 17 29 24 21 15 26. 24 18 14

OP 56 68 68 49 46 81 77 61 78

Chemicals 20 23 26 24 23 45 39 16 23

E C M 15 29 28 23 16 24 30 25 30

Fashion 21 13 14 3 10 11 10 21 25

Others - 3 - -1 -3 - -2 -2 -1.0

Non-op Profit 30 30 61 97 97 20 29 32 46

Non-op Expenses 34 37 73 124 116 48 71 52 44

Net Interest Expenses 6 7 9 11 11 9 8 8 7

RP 52 61 56 22 27 53 35 41 80

NP 46 48 44 20 19 47 23 39 66