GS Energy Brochure Download

Company Introduction

Subsidiaries p.04

Business Portfolio

Refining & Petrochemicals p.05 Gas & Power p.07 Exploration & Production p.12 Green Growth p.14

GS Energy R&D Center p.18

Financial Information p.19

History p.21

GS Energy was incorporated on January 3, 2012 as a result of GS Holdings’ spinoff of GS Caltex, its refining, marketing, chemicals and transportation arm, creating a new independent Korean energy company. Subsequently, GS Energy assumed the high growth businesses previously operated by GS Caltex including, exploration & production and renewable energy operations. Further, by acquiring GS Caltex’s electric & gas utilities operations, GS Energy has solidified its position as an integrated energy-specialized holding company.

Value chain integration and operational agility are fundamental to GS Energy’s long term growth strategy. GS Energy is organized into four interrelated segments: Exploration & Production, Refining & Petrochemicals, Gas & Power and Green Growth. Our integrated business model allows us to capture synergies among our different segments and activities.

Our upstream businesses include the development of oil & gas projects across the globe, from the Middle East to the Americas and Southeast Asia. Further downstream, GS Energy is currently constructing a Liquefied Natural Gas (LNG) terminal in South Chungcheong Province to optimize value chain integration and to ultimately provide a steady flow of electric power and gas to customers through various subsidiaries and affiliates. Furthermore, given our focus on sustainable growth, we have been actively developing our technical know-how in the alternative energy sector. We are currently engaged in a variety of renewable businesses ranging from the manufacture of cathode and anode materials for rechargeable batteries to reprocessing scrap or waste plastic.

GS Energy will continue to concentrate its resources and capabilities on capturing new business opportunities in order to achieve long term sustainable growth. Our commitment to preserving our reputation in safety, security and reliability will guide our mission to diversify the nation’s energy supply and establish our presence on the global stage.

Facts & Date of Establishment January 3, 2012 Figures Assets USD 6 billion (KRW 6,664 billion)

Paid-in Capital USD 230 million (KRW 250 billion)

CEO & Vice Chairman Rha, Wan-Bae

Refining / Petrochem.

- Refining - Petrochemicals - Lubricants

Gas & Power / LNG Green Growth

- Heat & Power -Material for Li-ion Batteries - Natural Gas Distribution -Recycled Plastics - LNG Upstream/Terminal -Lead-tab

E & P -Middle East (U.A.E. Concession Area 1,2,3) -South Asia (Thailand, Cambodia, Indonesia) -Americas (Nemaha)

GS Energy Portfolio

COPYRIGHT © 2012 GS ENERRGY. All RIGHTS RESERVED Refining & Petrochemicals GS Energy, through its subsidiary GS Caltex, is a globally-recognized manufacturer and marketer of transportation fuels and other petrochemical products

From an extensive and integrated industrial base, GS Caltex’s efficient production methods position the company in competitive markets

Founded in 1967 as the first private oil refining company in Korea, GS Caltex has fueled the engine of the Korean economy, evolving over the decades into new markets and developing know-how in trading and shipping to strengthen our extensive network overseas.

Through the application of new technologies and continuous investment in building an integrated platform, we have enhanced our production methods and remained competitive as a world- class oil refining company, perpetually striving towards long term sustainable growth.

775,000 No.3 2,800,000 Global Scale Capacity Barrels per day The world’s 3rd Aromatic largest single- Production GS ranks as a top-tier player in scale, site refinery Capacity capacity and competitiveness [Tonnes/Year]

34.6% 75% 0.7 Operational Excellence Highest HOU GSC Energy Accidents per capabilities in Efficiency year GS ranks as a world leader in operations Korea (world avg is and safety performance 50%)

Petroleum GS Caltex’s state-of-the-art manufacturing base has a refining capacity of 775,000 barrels per day and upgrading capacity of 268,000 barrels per day. Our Yeosu Complex, the world’s third largest oil refinery at a single site, has the largest upgrading capacity in Korea, allowing us to enjoy significant economies of scale. GS Caltex exports more than 50 percent of its products overseas and supplies more than 30 percent of domestic oil consumption.

Petrochemicals GS Caltex entered the aromatic business in 1990, and has since made timely investments in the petrochemical business, currently manufacturing over 2.8 million tonnes of aromatics a year and 1.35 million tonnes of paraxylene.

Our polypropylene plant was constructed in 1988 and with a production capacity of 180,000 million tonnes per year. Further, GS Caltex has expanded its business to include polypropylene (PP) and composite resin (PP compound), now running two composite resin plants in China and one composite resin plant in the Czech Republic.

Base Oil & Lubricants GS Caltex began its base oil production in 2007, and has since increased production capacity to 26,000 barrels per day, exporting more than 70 percent of its base oil products across the world. GS Caltex also produces 9,000 barrels of lubricants and 8,000 tonnes of grease products per day. GS Caltex is recognized for its top- class product quality and technology as demonstrated by its leading market share and sales in the domestic market. Leveraging its competitiveness in the domestic market, GS Caltex has since expanded into international lubricant markets in China, Russia, and established a subsidiary in Mumbai, India.

[Units: Billion KRW] Contact Information

2013 Tel: +82-1544-5151 Revenue 45,659.8 Address: Nonhyeun-ro 508, Gangnam-gu, Seoul, Korea, Operating Income 900.1 135-985 Assets 22,285.3 Homepage: http://www.gscaltex.com

Through effective risk management and strategic investments, our goal is to integrate

our LNG activities with our existing electric power & gas industrial base

Given the trend towards liberalization in natural gas markets and the recent volatility of the LNG trade, GS Energy has increased its involvement across the LNG value chain in order to provide further flexibility in our operations, minimize unit costs and maximize the value of our ongoing LNG projects. GS Energy recently acquired equity stakes in Shin Pyeongtaek Power Co., Ltd., Dongducheon Dream Power Co., Ltd., and Cheongna Energy Co., Ltd. to further our strategy of downstream LNG demand aggregation.

GS Energy operates gas-fired power plants through our subsidiary GS Power, supplying district heating to approximately 300,000 households in high growth cities of Gyeonggi Province. We distribute natural gas to commercial and residential end users through our subsidiaries, Haeyang City Gas and Seorabeol City Gas.

Continuous investments across the value chain will enable GS Energy to effectively and efficiently provide electric and gas services in an affordable, reliable and sustainable way.

Subsequent to the Korean government’s initiative to privatize state-owned-enterprises in the Korean energy sector, GS Power acquired cogeneration (co-gen) power plants of Korea Electric Power Corporation (KEPCO) and the district cooling and heating facilities of the Korea District Heating Corporation (KDHC)

Electric Power Business GS Power produces 900 MW of electric power and heat through its operation of co-gen power plants in Anyang and Bucheon. GS Power contributes to stabilizing the electric power supply in these metropolitan areas and supplies district heating and cooling to approximately 300,000 households. On December 19th, 2013 the company received approval from the Ministry of Trade, Industry and Energy (MOTIE) to upgrade deteriorated facilities and increase electric generating capacity to 935 MW.

District Heating and Cooling Business GS Power employs state-of-the-art technology to efficiently generate heat in a centralized facility and then through its vast network of district heating and cooling systems distribute the heat to numerous residential and commercial consumers throughout Anyang and Bucheon.

ESCO Business ESCO is a business division that aims to provide a total energy-saving solution. Leveraging its 37-year track record of experience and know-how in various fields including, mechanical equipment, electrical equipment, automatic controls, and greenhouse gas management, ESCO delivers the optimal energy-saving solution required by the customer, best financing methods, and operational consulting to GS Power.

Absorption Heat Pumps Business GS Power imports absorption heat pumps (AHP) from Broad Group, a manufacturer of AHPs powered by natural gas and waste heat. GS Power distributes these AHPs to newly constructed apartments, hotels, and other commercial facilities. In order to diversify its portfolio and simultaneously integrate its existing power assets, GS Power is constantly on the look out to identify new sources of sustainable growth, bring comfort to our customers and support business and commerce across the nation.

[Units: Billion KRW] Contact Information

2013 Tel: +82-32-420-2590

Revenue 1,083.7 Address: Burim-ro 100, Dongan-gu, Anyang, Gyeonggi

Operating Income 117.4 Province, Korea, 431-828 Assets 903.8 Homepage: http://www.gspower.co.kr/en

Boryeong LNG Terminal Co., Ltd. was established as a joint venture between GS Energy and SK E&S for the purpose of distributing and supplying Korea’s growing demand for LNG.

The terminal will be located within the Yeongbo Industrial Zone in Boryeong with facilities including three 200,000-kiloliter (52.8-million-gallon) LNG storage tanks, a 45,000-ton LPG tank, and a regasification plant. Construction is expected to be completed by January 2017.

In accordance with the Korean government’s initiative to boost energy security and prevent recurring supply shortages, GS Energy plans to increase its involvement in the LNG market and seek new opportunities to further diversify our business portfolio and energy mix.

Contact Information

Tel: +82-2-6263-9990

Address: Yeongbo-ri 21-104, Ocheon-myeon, Boryeong, South Chungcheong Province, Korea, 355- 844

Homepage: http://www.gsenergy.co.kr/business/content.aspx

Natural Gas Distribution Business Since incorporation in 1982, Haeyang City Gas has overseen the distribution of natural gas to commercial and residential consumers in Gwangju, Naju, Hwasun and Jangseong districts with the objective of providing energy security, supporting business and commerce and developing strong communities in these growing metropolitan areas. In 2012, the company increased its nationwide presence by supplying natural gas to Damyang, Yeonggwang, Haenam districts, and is currently working towards extending its distribution network to Hampyeong district in the near future.

Renewable Energy Business Haeyang City Gas constantly strives to meet the energy demands of consumers in ways that improve quality of life and protect the environment for future generations. Thus, Haeyang City Gas continuously seeks to expand its business operations into renewable energy businesses including, fuel cells and solar technology systems.

Compressed Natural Gas(CNG) Business CNG is quickly becoming a desirable alternative fuel for fleets, municipal transportation and private vehicles. In support of the government’s focus on new and renewable forms and uses of energy in response to the challenge of climate change, Haeyang City Gas commits to CNG through its operation of numerous CNG stations.

Haeyang City Gas is committed to social responsibility and sustainability, providing greater access to renewable and clean energy technologies. With an emphasis on supporting continuous improvement of our environmental performance and pollution prevention standards, Haeyang City Gas strives to becoming a good corporate citizen and environmental steward.

[Units: Billion KRW] Contact Information

2013 Tel: +82-1544-1115

Revenue 630.5 Address: Sonjae-ro 287-59, Gwangsan-gu, Gwangju, Operating Income 16.0 Korea, 506-053 Assets 437.9 Homepage: http://www.hygas.co.kr

Natural Gas Distribution Business

Seorabeol City Gas oversees the distribution of natural gas to commercial and residential consumers in Gyeongju and Yeongcheon of North Gyeongsang Province, constantly striving towards affordable, reliable and clean energy solutions for its consumers.

Safety, performance and value in natural gas distribution is of the utmost importance to Seorabeol City Gas. The company makes every effort to optimize its distribution services by applying gas-insulated switch gear and ERP systems to continuously enhance its safety systems. Seorabeol City Gas is recognized for achieving the ISO 9001 standard for our quality management systems, and the OHSAS 18001 standard for its health and safety management systems.

Seorabeol City Gas aims to set the standards for safety, efficiency and reliability in its distribution systems. Through programs and technologies that protect people and promote energy efficiency, Seorabeol commits to working with our stakeholders to maximize the social and environmental impacts of our operations.

[Units: Billion KRW] Contact Information

2013 Tel: +82-1544-5916

Revenue 151.8 Address: Gongdandurim-gil 159, Gyeongju, North Operating Income 9.3 Gyeongsang Province, Korea, 780-951 Assets 91.9 Homepage: http://www.srbgas.co.kr

Given heightened global uncertainties and recent volatility of oil prices, GS Energy seeks to reduce its exposure to macro risks and vulnerabilities by diversifying its portfolio and expanding its involvement in upstream activities

In accordance with the Korean government’s initiatives to establish a broader fuel base for energy security, GS Energy is currently participating in a total of six E&P projects located around the world. In March of 2012, GS Energy signed a landmark exploration agreement for Concession Area 1,2,3 in the UAE, becoming the first Korean oil and gas company to gain a concession in the UAE since 1968. Subsequently, in May of 2012, GS Energy acquired onshore tight oil assets in Oklahoma, USA as part of our effort to further diversify our E&P business portfolio.

By leveraging our extensive global network and strategic partnerships, the E&P division will play a key role in securing energy resources for domestic energy security and long-term sustainable growth.

Leveraging our extensive network through our downstream operations, GS Energy has continuously sought to identify new sources of hydrocarbons to supplement our legacy assets from GS Caltex. GS Energy has committed to best practices in our exploration, development and production of hydrocarbons by partnering with leading international oil and gas companies. GS Energy seeks to reduce risk exposure through strategic portfolio management and by maintaining a system of checks and balances to enhance the depth and quality of our assets and investment opportunities.

E&P Projects

U.A.E. Concession Area 1,2,3 In 2012, GS Energy signed an exploration agreement, together with the Korea National Oil Corporation for three blocks in the UAE, becoming the first Korean E&P company to have been granted a concession by the UAE. GS Energy estimates that Area 1 and 3 contain approximately 135 million barrels of recoverable resources. In 2015 one exploration well and two appraisal wells will be drilled, and a 3D seismic survey will be conducted. The joint venture between the Korean Consortium and the Abu Dhabi National Oil Company expects to produce approximately 7~8 million barrels per year beginning in 2017 for 20 years.

U.S.A. Onshore Production Field (Nemaha) Together with GS Global, GS Energy obtained a 30 percent working interest in the Nemaha Project in Oklahoma. GS Group plans to further diversify and expand its business operations by exploring and acquiring other high- potential unconventional oil assets. The Nemaha oil field is currently producing 5,000 barrels per day and expects to produce 4 million barrels per year after 4 to 5 years of development.

Exploration Projects in South East Asia GS Energy is currently involved in two ongoing exploration projects in Indonesia. The development feasibility study will be an important milestone in our pathway to commercialization.

U.A.E Concession Area 1,2,3 USA Nemaha Abu Dhabi, U.A.E. L10/43Thailand & L10/43L11/43 & Block A Nemaha Project ThailandL11/43 Cambodia Oklahoma, U.S.A. UAE 3 Blocks Cambodia Block A

Indonesia Sea Tuna NE Natuna PSC Indonesia 13 Tuna PSC Indonesia

GS Energy has continued to invest in alternative energy solutions, being innovative and resilient in the face of new opportunities and challenges

GS Energy commits to being a good corporate citizen and protecting the environment by investing in sustainable energy solutions, including our fast growing materials business for lithium-ion batteries, plasma technology based Waste-to-Energy business, and our recycling business using waste and 금속 scrap plastic. PP Film

Business Area

Cathode materials, lead-tab for lithium-ion batteries (LIB), recycled plastics

Company Overview GS EM is a leader in the energy material business producing cathode materials, lead-tab and recycled plastics. GS EM develops and produces different types of cathode using synthesizing and surface treatment technologies. GS EM is diversifying is product line-up by leveraging its competitiveness in Ni-rich technology.

Current production capacity for precursors is 2,000 tonnes per year and 3,000 tonnes per year for cathodes. However, by 2018, GS EM plans to aggressively scale-up its operations (precursor: 13,000 tonnes per year, cathode: 8,000 tonnes per year), with plans to expand into overseas markets in 2015.

Our lead-tab business is dedicated to addressing the diverse needs of our growing customer base through continuous investment in R&D. Though our operations in China, GS EM is strengthening our presence in overseas markets. GS EM also aims to become a global leader in the lead-tab business by increasing its market share in the portable electronics market and by breaking into the xEV market. GS EM commits to producing top quality products through continuous investment in R&D and quality control.

Waste plastics are recycled into eco-friendly composite resins and sold to domestic and overseas customers as materials for automobile parts, home appliances, etc. In 2012, GS EM began operations in Jiangsu Province, China. In 2013, GS EM completed the construction of a new factory in Jinju equipped with state-of-the-art technology. Through this new production capacity we plan to enhance our competitiveness in domestic and overseas markets. Contact Information

Cathode Materials Tel: +82-63-720-6679

Address: Boseokro 4-gil 69, Iksan, North Jeolla Province, Korea, 570-977

E-mail [email protected]

Lead-tab

Tel: +82-32-710-0077

Address: 20, Songdogukje-daero 286beon-gil, Yeonsu-Gu, Incheon, Korea, 406-840

E-mail: [email protected]

Recycled Plastics

Tel: +82-70-4332-1011

Address: Yongbongro 130, Jisoomyeon, Jinju, South Gyeongsang Province, Korea, 660-891

Business Area

Carbon materials for Electric Double Layer Capacitors (EDLC); Anode materials for lithium ion batteries (soft carbon type)

Product Information (Carbon materials for EDLC)

Carbon materials charge and discharge batteries through the physical movement of electrons.

Product Information (Anode material for LIB, soft carbon type)

Compared to other types of anode materials, soft carbon is superior in both power and cycle life.

Company overview

Power Carbon Technology (PCT) is established as a joint venture with Japan’s largest oil refinery, JX-NOE (formerly Nippon Oil). PCT produces the next generation of carbon materials for EDLC and anode materials for lithium-ion batteries.

PCT has completed the world’s largest facility to produce carbon materials for EDLC and also holds proprietary technologies to produce soft carbon type anode materials. PCT commits to providing high quality products to meet the growing demands of our diverse customer base.

Contact Information

Tel: +82-54-476-5100

Address: 4-Gongdan-ro 161-43, Gumi, North Gyeongsang Province, Korea, 730-400

Homepage: http://www.powercarbon.co.kr

Entrance Exit

GS Park24 is a joint venture between GS Energy and Japan’s Park24. Park 24 is the leading parking service company in Japan. With a state-of-the-art parking service system, GS Park24 is the leading parking station in Korea.

GS Park24’s parking management service system is unmanned and optimized via database management for each station. We provide a friendly and safe environment for both drivers and automobiles.

Under its vision of “The Best Parking Service in Korea”, GS Park24 provides advanced and convenient parking services.

Contact Information

Seoul Headquarter

Tel: +82-2-3272-3500

Address: Yumridong 85-2(KT Mapo Building), Mapo-gu, Seoul, Korea, 121-872

Homepage: http://www.gspark24.co.kr

Busan Office

Tel: +82-51-781-2052

Address: Centumphil 1Kwan, Jaesong-dong 1220, Haewoondae-gu, Busan, Korea

Research Area Cathode/anode materials for LIB Lead-tab for LIB Carbon materials for EDLC

R&D Center Overview GS Energy established an R&D Center in Seoul(Seongnae) to further develop its know-how and technical competitiveness in the energy materials business.

The primary focus of the R&D Center is the development of key materials used for LIB – cathode and anode materials and carbon material for EDLC. Since our launch in 2012, our focus has extended beyond technical support for our subsidiaries GS EM and PCT, but towards the development of proprietary technology necessary for realizing the next generation of energy materials.

Our R&D Center holds itself to the highest research standards by hiring and retaining the best talent and collaborating with other world-class engineers. In order to further enhance our competitiveness, we plan to establish a R&D Center in Hwado, focusing on the development of energy materials for LIB and renewable energy solutions.

Seongnae R&D Center

Contact Information

Tel: +82-2-6900-4073

Address: Seongnae-ro 6-gil 50, Gangdong-gu, Seoul, Korea, 134-848

Consolidated Financial Statements * Units: Billion KRW 2012 2013 Classification 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Assets 6,370 6,370 6,370 6,370 6,766 6,500 6,677 6,636 Current Assets 558 558 558 558 1,034 606 708 780 Cash & Cash Equiv. 332 332 332 332 691 411 306 287 Trade & Other Receivables 189 189 189 189 304 151 363 457 Other Current Assets 37 37 37 37 39 44 39 36 Non-Current Assets 5,812 5,812 5,812 5,812 5,732 5,894 5,969 5,856 Investment Securities 4,954 4,954 4,954 4,954 4,791 4,784 5,035 4,932 PP&E 506 506 506 506 544 676 534 547 Intangible Assets 272 272 272 272 303 332 313 289 Other Non-Current Assets 80 80 80 80 94 102 87 88 Liabilities & Equity 6,370 6,370 6,370 6,370 6,766 6,500 6,677 6,636 Liabilities 1,685 1,685 1,685 1,685 2,131 1,896 1,920 1,994 Current Liabilities 518 518 518 518 553 288 301 365 Trade & Other Payables 200 200 200 200 214 101 99 203 ST Borrowings 310 310 310 310 316 170 178 152 Other Current Liabilities 9 9 9 9 24 16 23 10 Non-Current Liabilites 1,167 1,167 1,167 1,167 1,578 1,609 1,619 1,629 Non-Current Account Payables 0.7 0.7 0.7 0.7 2.6 2.5 2.7 2.8 LT Borrowings / Bonds 1,030 1,030 1,030 1,030 1,436 1,463 1,465 1,472 Other Non-Current Liabilities 137 137 137 137 138 143 152 154 Equity 4,685 4,685 4,685 4,685 4,636 4,604 4,757 4,642 Owners of Parent Equity 4,685 4,685 4,685 4,685 4,637 4,606 4,760 4,647 Common Stock 250 250 250 250 250 250 250 250 Capital Surplus 4,274 4,274 4,274 4,274 4,274 4,274 4,274 4,275 Accumulutive Other -87 -87 -87 -87 -82 -77 -82 -90 Comprehensive Income Retained Earnings 247 247 247 247 194 158 318 212 Non-Controlling Interest Equity -0.4 -0.4 -0.4 -0.4 -1.0 -1.8 -3.7 -4.6

2012 2013 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Revenue 132.2 -39.9 261.4 295.3 649.0 403.8 153.4 294.2 207.2 1,058.6 Cost of Sales - - 98.1 212.0 310.1 269.2 152.4 117.6 233.4 772.6 Gross Profit 132.2 -39.9 163.4 83.3 339.0 134.6 1.0 176.5 -26.1 286.0 Selling & Admin. Exp. 3.0 1.6 22.8 31.5 58.8 27.8 29.6 32.2 37.1 126.7 Operating Income 129.2 -41.5 140.6 51.8 280.1 106.8 -28.6 144.3 -63.2 159.3 Interest Income 1.8 9.3 3.3 3.4 17.8 4.7 6.0 0.5 9.1 20.3 Interest Expense 1.7 8.6 12.7 12.6 35.5 15.6 18.6 26.0 21.7 82.0 Other Income - - 0.6 1.2 1.8 1.4 2.1 57.6 4.5 65.7 Other Expense - - - 0.1 0.1 0.5 0.1 20.0 38.6 59.2 Earnings Before Tax 129.4 -40.9 131.9 43.7 264.1 96.8 -39.2 156.5 -109.9 104.2 Income Tax 2.1 4.1 1.4 -0.9 6.8 3.0 -1.7 -1.6 0.2 0.0 Net Income 127.2 -45.0 130.5 44.6 257.3 93.8 -37.5 158.0 -110.2 104.2 Owners of the Parent 127.2 -45.0 131.7 46.2 260.1 94.4 -36.7 159.9 -109.7 108.0 Non-Controlling Interest - - -1.2 -1.6 -2.7 -0.6 -0.8 -1.9 -0.5 -3.8

Address Nonhyeonro 508 (Yeoksam-dong GS Tower) Gangnam-gu, Seoul, Korea, 135-985 E-Mail [email protected] Tel +82-2-2005-0800 Fax +82-2-2051-6262

Business Division

Refining & Petrochemicals [email protected] Gas & Power [email protected] Exploration & Production [email protected] Battery Materials [email protected] Recycled Plastic [email protected]

History 2012. 01. 03 GS Energy Establishment

2012. 03. UAE E&P Project Participation

2012. 05. USA Nemaha E&P Project Participation

2012. 06. 29 Acquisition of E&P, G&P, Green Growth assets from GS Caltex

2013. 02. Boryeong LNG Terminal Establishment (Joint Venture in August)

2013. 05. Initiation of Boryeong LNG Terminal construction

2014. 06. 35% acquisition of Shin Pyeongtaek Power Co., Ltd.

2014. 07. 30% acquisition of Cheongna Energy Co., Ltd.

2014. 08. GS EM Statutory Merger with Samil Polymer

2014. 08. 10% acquisition of Dongducheon Dream Power Co., Ltd.