GS Global Overview 2019 Table of Contents

I. About GS Group

II. Overview

III. CEO’s Message

IV. Corporate History

V. Business Portfolio

VI. Business Fields (1) Steel (2) Petroleum & Chemicals (3) Coal & Biomass (4) Industrial Products (5) Logistics (6) GS Entec (7) SOC Development (8) New Biz. / Project Development I. About GS Group (1) Overview

 GS Group was launched in July, 2004, after being separated from LG Group following joint management based on over 60 years of partnership.  GS Group is a corporate group ranked at 7th in sales and 8th in assets as of 2018.

GS Group in Korea Summary of GS Group (Unit : In Billion Dollars) Sales Asset . Subsidiaries: 170 in total SAMSUNG 213 372 (64 in Domestics, 106 in overseas) HYUNDAI 156 200 . No. of Employees : Approx. 34,000 MOTOR SK 165 196 . Business Fields

LG 113 116

LOTTE 66 103 Construction · POSCO 62 70 Energy∙Power Retail∙Trade Other Hanwha 54 59 • GS Energy • GS Retail • GS E&C • GS Caltex 61 7th in Sales / 8th in Assets as of 2018 56 • GS SHOP • GS Sports • GS EPS HHI 41 49 • GS Global • GE E&R SHINSEGAE 24 33

* Based on the announcement made by the Fair Trade Commission in May, 2018, excluding state-owned public enterprises. 1 / 14 I. About GS Group (2) Subsidiaries of GS group

100.0% . Founded in 2012 as a holding company specialized in energy business under GS Group. . Major Business Fields are Exploration & Production, Refining & Petrochemicals, Electric Power & District Heating and LNG Business. 50.0% . Procured world-class competitiveness in the fields of refinery, petrochemical, lubricant & base oil businesses through partnership with Chevron of the U.S. in 1967.

70.0% . Korea’s first-ever private power generation company founded in 1996. . It is a leading power generation company in Korea operating LNG & Biomass power plants. 89.9% . Evolved into a comprehensive energy company through CHP(Combined Heat and Power), coal- fired thermal power, renewable energy, and energy distribution business. 65.8% . Founded in 1971, it has focused on franchise distribution businesses, including supermarkets, convenient stores and H&B (Health & Beauty) stores. 36.1% . Founded in 1994, it has maintained its market positon as a No.1 home shopping company in Korea and expands its businesses into global market such as China, Southeast Asia, etc. 50.7% . As one of the largest general trading companies in Korea, it leads the global business of GS Group by assuming the role of global business platform for GS Group. 100.0% . It contributes to Korean professional sports through operation of “FC Seoul,” a professional soccer club, and “GS Caltex Seoul KIXX”, a professional volleyball club.

. Founded in 1969, it grew into one of the world’s best construction companies throughout various fields of plant, power generation, environment, civil construction, building and housing.

1) Health & Beauty 2 / 14 II. Overview

General Information Business Fields

Business Type General Trading Company Trading

GS Group Affiliation (Major shareholder : GS Holdings) . Export, import and triangular trade of steel, petroleum & chemicals and industrial products, etc. CEO Tae-Hyung Kim . Import of power generation fuel, including coals and biomass. . Import and distribution of machinery (HONDA Engine, etc.). No. of Employees 438 (As of December 31, 2018)

Global Network 28 overseas offices in 17 countries Operation

. Logistics : Imported car PDI (Pre-Delivery Inspection ) services, Shareholder Composition Unloading/Transportation, Manufacturing of special vehicle. . GS Entec : Manufacturing equipment for refinery / petrochemical / LNG power plants. Shareholder No. of Shares (thousand) Equity Ratio

GS Holdings 41,846 50.7% Investment

Others 40,688 49.3% . SOC project developments focusing on ports in relation with our current logistics business. Total 82,534 100.0% . Project developments of plant, infrastructure, power generation, and * As of the end of December, 2017 renewable energy around the world as a global project organizer.

3 / 14 III. CEO’s Message

GS Global is a global networker with supreme competencies. Since its establishment in 1954, GS Global Corp. has grown into a global corporation overcoming various obstacles through its challenging spirit and ability to create the best values and optimum solutions for our domestic and international customers and business partners. Especially, by becoming a new member of GS Group in 2009, we have arrived at a turning point for a new leap as our employees including myself are striving to make GS Global a better company under our vision of “Value No.1 Solution Provider”.

GS Global will stay strong despite endlessly fluctuating market situations. Based on business skills obtained from decades of experience and over 30 overseas branches & offices, GS Global is now playing the role of a Global Leader in Steel, Petrochemicals, Coal & Biomass and Industrial Products trading sectors. Moreover, we continuously strive to enhance our capability and competitiveness by increasing sales volume of our core items, diversifying global sourcing, and expanding our presences in the global market. Furthermore, we are keen to shift our business paradigm from supplier-oriented to customer-oriented, while we expand our value chain through investing in upstream & midstream assets which solidifying our role and competitiveness in the global arena. We are expanding our business fields to project organizing & development areas such as port and IPP (Independent Power Plant) projects based on synergies within GS Group. As such, GS Global will serve as a global platform for GS Group’s overseas businesses through collaboration with affiliates, and continuously seek business opportunities by developing various projects which can generate synergies with our foundation in trading and logistics. We will do our best to enhance our organizational capacity while pursuing sustainable growth and strengthening ties with our esteemed customers and partners, in an ever fluctuating market.

GS Global will exert all possible efforts to provide optimal values to customers and business partners. Based on our healthy organizational culture and business experience in the global market, we promise that all employees at GS Global, including myself, will provide you with the optimal value by maximizing our capabilities and holding the highest competitiveness. Furthermore, by adopting the values of fairness and transparency into our management, we will do whatever it takes to become your most reliable business partner. I would like to sincerely ask for your continuous trust and support for GS Global. Thank you. GS Global Corp. Tae-Hyung Kim, President & CEO 4 / 14 IV. Corporate History

 As a general trading company with 60 years of history since founded in 1954 and incorporated into GS Group in 2009, the company has been engaged in various businesses to ensure sustainable growth.

July, 2009 Incorporated into GS Group 1954 Renamed as GS Global 2014 Establishment of Invested into lubricant Kumsung Industry Corporation blending factory in Tianjin, China May, 2011 Newly opened 1964 October, 2009 Pyeongtaek PDI Establishment of global network Established PLS Corp. to Center 2017 - Tokyo Office expand logistics business Acquired shares of BSSR Coal Mine in Indonesia

2018 November, 2010 Received the business 1976 Acquired GS Entec July, 2011 approval from the Listed on the Stock Exchange (a plant equipment Suzhou Steel government for Donghae manufacturing Service Center in port coal terminal PJT 1975 subsidiary) China established Renamed as Ssangyong Corp. December, 2015 Designated as the 2nd general trading Received the business approval from the company in Korea government for Pyeongtaek port-west bulk cargo port development project May, 2012 Invested into Nemaha Oil Field Development Project in the U.S.

5 / 14 V. Business Portfolio

Portfolio by Businesses (2018) Portfolio by Regions (2018)

Logistics, etc. Africa, etc. GS Entec N. America (2%) (2%) (5%) (6%) Industrial Products Oceania (6%) Europe (3%) Coal & Biomass (10%) (10%) Petroleum & Chemicals

(44%) Domestic 1.6 (16%) 1.6 $37 Bil $37 Bil Asia* (63%) Steel (33%)

* Asia : China 41%, ASEAN 27%, Japan 14%, India 9%, Etc. 9%

6 / 14 VI. Business Fields (1) Trading - Steel

 Steel business has procured substantial commercial supremacy based on the long-term relationships with steel manufacturers and loyal customers which have been built for decades.

Steel Business Overview Foreign Investment Overview

• Trading of steel products through global network by • GS Global Suzhou Steel Service Center Biz. sourcing from domestic/overseas manufacturers • Processing capacity per annum : Overview • Increase of sales volume through expansion into Japan, Suzhou C/C 60,000 MT of EG, GI etc. China, Southeast Asia, India and Middle East. (China) • Provides processing and distribution of steel products to global OA and Home Appliance companies Items • HR, CR, STS, GI, GL, Bar, Beam, etc.

• Export, Import, Triangular Trade Biz Types - Exports domestic steel products, imports and • DKSI Service Center Private LIMITED • Processing capacity per annum : triangular trade of foreign steel products DKSI 60,000 MT of Color sheets (India) Major • Domestic : POSCO, Hyundai Steel, HYSCO etc. • Joint establishment with Dongkuk Steel of Manufact • Foreign : Ansan/Jinan/Nanjing Steel (China) Korea. urers Nippon Steel/JEF (Japan) etc.

7 / 14 VI. Business Fields (2) Trading - Petroleum & Chemicals

 Petroleum & Chemicals business deals with products from global manufacturers including GS Caltex, and expands the scope of business throughout items and regions by utilizing our strong global networks.

Petroleum Business Overview Chemicals Business Overview

• BTX, SM, PA • Lubricants for automotive/construction equipment / Aromatics Lubricant • Petrochemical products and industrial raw materials industrial use

Fiber • Handles PE, PP, ABS, EPS, PET, etc. Inter Bunkering • Fueling service to large vessels in domestic & overseas • Export to Europe, South America, Bangladesh, China, etc. -mediates

• PE, PP, PVC, PET, DOP, ABS • Fuel Oil, Gas Oil (Diesel) Cargo Polymer • Management of Tank Terminal and expansion of • Highly-durable, heat-resistant product used in parts for Trading home appliances business fields

8 / 14 VI. Business Fields (3) Trading - Coal & Biomass

 Coal & Biomass business is poised with promising future potential as its annual sales growth rate reaches 60% for the past 5 years by stably supplying coals and biomass fuels to power plants and cement manufacturers in Korea.

Business Overview BSSR Overview

• Distributing coals to customers in domestic and Location Kalimantan, Indonesia overseas by sourcing from Indonesia / Russia / Coal Australia, etc. Time In 2017 • Supply for subsidiaries of GS Group (GS E&R, GS EPS) • Distributing biomass to customers in domestic by • BSSR is one of the largest coal mining companies in sourcing from Indonesia / Vietnam Indonesia, producing 10 million of thermal coal per Biomass BSSR - Handles Wood Pellet and PKS(Palm Kernel Shell) annum • PKS Long-term supply agreement with GS EPS • Having off-take right to secure BSSR coal. • Acquired shares of BSSR, a leading Indonesian coal Acquire mine company to ensure stable supply of coal • GS Global 5.0% • TATA Power 26.0% equity - Acquired a total of 14.74% Share from BSSR, (5% by GS Global, 9.74% by GS Energy) • GS Energy 9.74% • Idemitsu 3.0% Composition Indonesia - Secured procurement of off-take (1.4million ton/year) • Baramulti 51.5% • Etc. 4.76% and dividend income 9 / 14 VI. Business Fields (4) Trading - Industrial Products

 Industrial Products business has built substantial commercial supremacy over machine equipment, component material and engine, moreover it variously handles cement, palm oil and bio-diesel, etc.

Machinery Business Overview Commodity Business Overview

• Plant equipment (Petrochemical, Shipbuilding) • Sales of 300,000 tons/year of cement to Japan, Machine - Valve, Fitting, Flange Taiwan, and India Cement equipment • Steel / Industrial equipment • Cement Silo in 2 locations in Japan - Pumps, Rolling rolls, etc. - Yokohama, Nagoya

• Alloy parts, material, etc. Industry Material • Imported Fly Ash, Slag, etc. • Ferrite magnets, ceramics Material

• Manufacture and sales of small-sized machinery • Import and distribute Palm Oil HONDA utilizing Honda industrial engines Commodities • Export Bio Diesel • Water pumps, Engine saws, Washing machines, etc.

10 / 14 VI. Business Fields (5) Operation - Logistics

 Logistics business engages in imported car PDI ( Pre-Delivery Inspection ) services, unloading/transportation and special vehicles manufacturing through its subsidiary, PLS Corp.

Business Overview

• PDI services for imported automobile embracing unloading, custom clearance, PDI warehousing, inspection, storage, maintenance and transportation (Pre-Delivery - Audi, Volkswagen, Honda, Nissan, etc. Inspection) • Established the Korea’s largest PDI center at Incheon in 2004 and transferred it to Pyeongtaek, the largest PDI site in Korea, in 2011

Unloading • Unloading/transportation business for generation fuel including coal & biomass /Transportation

Manufacturing of • Manufacturing / supplying aircraft refueling vehicles Special Vehicle - Export to Pakistan, Egypt, etc.

11 / 14 VI. Business Fields (6) Operation - GS Entec

 GS Entec, a manufacturer of processing equipment for refinery/petrochemical plant and LNG power plant, was incorporated into GS Group in 2011 and has successfully positioned as one of leading manufacturers in Korea.

Plant Business Energy Business

Main Products

Heat Exchanger Reactor Pressure Vessel Column & Tower HRSG Steam Drum Transfers heat Develops chemical Oppresses Assorts oil in a Heat exchanger that Stores and Function between mediums reaction under high substances into high vertical tower by recovers heat from a separates steam temperature to pressure to assist distinct boiling hot gas steam to run generated in HRSG change material reaction points steam turbine and acts as a phase attributes separator

Application Refinery Plant Petrochemical Plant LNG Power Plant

12 / 14 VI. Business Fields (7) Investment - SOC Development

 SOC business has secured long-term growth by winning business rights for the state-running port development projects, and it currently maximizes its investment efficiency through joint investments with subsidiaries of GS Group.

Pyeongtaek port Pyeongtaek port Donghae port west bulk cargo Dev. PJT hinterland Dev. PJT coal terminal Dev. PJT

. Selected as project operator by Pyeongtaek . Selected as project operator by Pyeongtaek . Selected as project operator by Donghae Regional Office of Oceans and Fisheries in Regional Office of Oceans and Fisheries in Regional Office of Oceans and Fisheries in October, 2015 July, 2016 Overview February, 2018 . Development and operation of bulk cargo . Acquisition / parceling out of the land . Construction / operation of a coal terminal terminal with a size for 2 berths 30,000 ton following the reclamation of hinterland of 100,000 DWT at approx. 1 mil ㎡ land scale bulk cargo port at Pyeongtaek port surrounding Pyeongtaek Port . Entry into port management business . Secured of profit through parceling out . Enhancing competitiveness of coal business following reclamation of the land Investment . Development of various business . Securing stable income through Effect opportunities using the land within wharf . Generation of synergy with our logistics biz. operation of coal terminal of PDI business and development project Pyeongtaek port west bulk cargo

Aerial View

13 / 14 VI. Business Fields (8) Investment - New Biz. / Project Development

 GS Global diversifies its business portfolio by promoting new growth engines and project organizing and developments for the purpose of sustainable growth.

New Biz. Overview Project biz. Overview

. Development of new businesses to secure new . growth energies Development and promotion of projects of plant, infrastructure, power generation ( IPP ), etc. . Business Expansion into other businesses in association Business → Performing as a project organizer Direction with existing businesses of GS Global Direction . Enhanced collaboration with power generation . Creation of synergy by expanding into related subsidiaries of GS Group and overseas partners businesses with subsidiaries of GS Group

. Adoption of new growth business area . Organizing of power generation PJT including : New industrial equipment solution platform coal-fired power generation business . Development of renewable energy power project Major → Sales and rental services of cobots Major including photovoltaic project in Japan Projects → Import / sales of electric commercial vehicle Projects . Scheduled to enter into business partnership . Development and implementation of plant agreements with globally renowned robot projects mainly in Myanmar, Southeast Asia and companies and rental companies; Turkey

14 / 14