Hyundai EP Introduction 2018. 01 Table of Contents Ⅰ. Overview · Company Overview · Business Overview · Revenues and Incomes · History and Global Network Ⅱ. Business Segment · PP Compound · PE Compound · PS Compound · Construction Materials Annex. Hyundai EP Organization Chart Ⅰ. Overview 1. Company Overview ▌Summary ▌Vision “Global Company in □ Capital : 17.2 billion Vision Functional Polymer Industry” □ CEO : ChangGyun Kang □ The number of Employees : 694 (Domestic: 400, Overseas: 294) Mid & long 1.9 Trillion in Global Sales , Term Goal 128.7 Billion in Operating Profits until 2022 □ Organization : 4 Business Units, 1 Support Unit (PP, PE, PS, Construction Materials, Management Support) ※ Functional Polymer : General-Purpose Plastic with Specialty ▌CEO’s Profile ▌Growth Strategy □ Academic Career Base Materials · 1979 Entered the Korea University (PS, EPS) · 1989 Master’s degree in Materials Engineering at the Korea University · Enhancement in Production, R&D, Marketing. □ Work Career · Development in high functional Products. · 1988 Cheil Industries Inc. (Production, R&D, Marketing) Compound Materials Construction Materials · 1996 Entered Hyundai Development Company (HDC) (PP, PE) (PB, C-PVC) · 1999 General Director in Petrochemical Business Division of HDC · Development in · Diversifying the Portfolio · 2001 Director of (General Management Executive) Hyundai EP Co., Ltd. Carbon Composite Materials. of Products. · 2006 Vice President of (General Management Executive) Hyundai EP · Broadening the Business area. · Entering in Global Market. · 2010 Vice President of Hyundai EP (Head of PS Business Unit) · 2014 CEO of Hyundai EP Ⅰ. Overview 2. Business Overview ▌Supply Chain Oil Refinery Petrochemical Industry Compounding Processing Extrusion & Base Intermediate Synthetic Compounding Injection Gasoline Naphtha Propylene PP PP PB-1 PIPE Crude Kerosene Cracking Oil Ethylene PE C-PVC PIPE Styrene PE Diesel Ethylbenzene PS/EPS Monomer Engineering B-C Oil Butadiene PB-1/C-PVC Plastics ▌Major Customers Proportion Application of Sales(’16) Major Customers PP Compound Automotive 38% Hyundai Motors, KIA Motors, GM, etc. PS Electronic 32% Samsung Electronics, LG Electronics, etc. PE Compound, EPS Construction 30% GS, POSCO, Daewoo engineering & construction etc. Construction Materials 3 Ⅰ. Overview 3. Revenues and Incomes ▌Sales Revenue [Unit : KRW 100 Million] 12,000 Overseas 9,669 9,560 10,000 HEP 8,677 8,612 8,071 Global □ CAGR 8,000 7,186 · Global : 21.4% 6,000 5,204 · HEP : 19.8% 2,967 4,000 7,934 7,956 · Overseas : 69.5% 2,766 6,888 7,005 6,928 6,282 1,916 2,000 1,292 4,528 495 632 699 1,188 386 912 2,239 2,112 1,166 1,239 1,617 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 ▌Income Before Tax [Unit : KRW 100 Million] 655 700 602 Overseas 600 HEP 500 □ CAGR Global 340 400 290 · Global : 43.6% 300 231 · HEP : 39.9% 172 200 148 400 431 147 · Overseas : 63.6% 109 306 72 92 256 100 37 58 16 51 41 179 173 2 107 106 71 55 84 89 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 4 Ⅰ. Overview 4. History and Global Network ▌History ▌Global Network 1980 1988.06 Establishment of HDC’s Polymer Division 11 4 5 1994.11 Completion of a petrochemical plant in Dangjin 3 2000 2000.01 Establishment of Hyundai Engineering Plastics Co., Ltd. 2004.06 (BASELL社) Export License Sales of PP Compound 10 2006.09 Listed on the Korean Stock Market 9 1 6 7 Changed its company name to Hyundai EP Co., Ltd 13 2 2007.01 Establishment of a subsidiary in Sanhe, China - Hyundai (Sanhe) Engineering Plastics Co., Ltd. 8 2007.02 Establishment of a subsidiary in Chennai, India - Hyundai Engineering Plastics India Private Limited 2007.06 Signed a MOU with Advanced Polymer Department of SK Corporation 12 2008.03 Establishment of a branch office in Nagoya, Japan Domestic & Overseas 2010 2010.04 Acquired the petrochemical business unit from 1 Bundang, Dangjin, Jincheon, 2 Nagoya, Tokyo (Japan) Dongbu HiTek (PS & EPS) Ulsan, Sejong, Gimcheon (Korea) 2010.08 Acquired the PB-1 business unit from PEM KOREA 3 Beijing 4 Suzhou 5 Yancheng 6 Chongqing 7 Guangzhou (China) 8 Chennai (India) 2011.03 Establishment of a subsidiary in Dafeng, China 2015 Business Partnership with LyondellBasell 2016.03 Acquired the C-PVC PIPE business unit 9 Turkey 10 Czech 11 Slovakia 12 Brazil 13 US 2016.09 Establishment of a subsidiary in Chongqing, China 5 II . Business Segment 1. PP Compund PP/EP Compound Base Additives PP/EP Compound Products Automotive In/Exterior Bumper Fascia Reinforcing Agent Materials Electricals / PoE, EP Rubber, etc. Home Appliance PP Electronics PA6, PA66 PPE, etc. Stiffener LFT Compounds Air Cleaner Cover Talc, CaCO , etc. 3 EP Compound Engine Cover, Bobbin ▌End Product ▌Dangjin Plant Date of November, 1994 Foundation [ Cowl Top Cover ] Major Products PP Compound, Engineering Plastics Annual Capacity 70,000 MT Site of Plant 89,000㎡ Lines 5 Lines Seokmun-Myeun, Dangjin,. Location [ Bumper ] [ Wheel Guard ] Chungchoennam-Do, Korea. 6 II . Business Segment 2. PE Compound PE Compound Base Additives PE Compound Products Single layer pipe, XLPE · Silane Group Composite pipe · PA6 / PA66 Polyglue Steel pipe coating PE · Functional Group · EPDM Rubber TPV Bellows, Glass Run Channel · Colorants · Peroxide MATT Film ▌End Product ▌Jincheon Plant Date of July, 2007 (Acquisition) Foundation Major Products PE Compound [ XLPE ] [ Polyglue ] Annual Capacity 29,000 MT Site of Plant 17,000㎡ Lines 5 Lines Kwanghewon-Myeun, Jincheon-Gun, Location Chungcheongbuk-Do, Korea [ TPV ] [ MATT ] 7 II . Business Segment 3. PS Polystyrene (PS) Base Process GPPS / HIPS Products GPPS Constructional insulator, Refrigerator storages · Polymerization Styrene · Dehydration HIPS Refrigerator storage sheet Monomer (SM) · Extrusion High Flat-panel display Performance PS component materials · Storage PS Compound Home appliance in/exteriors ▌End Product ▌Ulasn Plant [ GPPS ] Transparent Inner Case Date of May, 1978 (Acquisition in 2010) Injection Foundation [ HIPS ] Shock Withstand Major Products GPPS, HIPS Inner Case Injection Annual Capacity 145,000 MT Site of Plant 138,000㎡ Lines 2 Lines Bugok-Dong, Sapyeong-Ro, [ GPPS ] Food Containers Location Nam- Gu, Ulsan Metropolitan City, Korea. 8 II . Business Segment 3. PS Expandable Polystyrene (EPS) Base Process EPS Application Flame EPS (Beads Type l) · Polymerization Retardant Non-Flame · Dehydration Cushioning packaging material Styrene Retardant Monomer · Selecting Grey EPS (Beads Type ll), (SM) High- · Coating Insulation Soundproof materials for floors · Storage High-Flame Outside insulation material, Retardant Flame retardant panel ▌End Product ▌Ulsan Plant Date of May, 1978 (Acquisition in 2010) Foundation Major Products GPPS, HIPS Annual Capacity 145,000 MT Site of Plant 138,000㎡ Lines 2 Lines [ Building Insulation ] [ Package Form ] Bugok-Dong, Sapyeong-Ro, Location Nam- Gu, Ulsan Metropolitan City, Korea. 9 II . Business Segment 5. Construction Materials 건자재 Base Process Applications Extrusion PIPE ▌PB-1 PB – 1 (Polybutene – 1) · Cold & Hot water distributor Injection PB Fittings · Heating distributor Assembly PB Distributor C-PVC ▌C-PVC (Chlorinated PVC) Double Pipe Double PIPE Manufacture · Fire Sprinkler Pipes ▌End Product ▌Sejong Plant & Gimcheon Plant Sejong Plant Gimcheon Plant Date of 1992 (Acquisition in 2010) 2001 (Acquisition in 2016). Foundation Major PB PIPE, Distributor, etc. C-PVC PIPE, Fittings [ PB PIPE ] [ C-PVC PIPE ] Products Annual 36,000km (3,600 MT) 4,200 MT Capacity Site of 10,160㎡ 18,236㎡ Plant Lines Extrusion 7, Injection 4 Extrusion 6, Injection10 Gongdan-Ro, Yeonggi- Gongdan-Ro, Gimcheon- [ PB Distributor ] [ Cross Fittings ] Location Myeon, Sejong, Korea Si, Gyeongsangbuk-Do, Korea 10 Organization Chart CEO Future Business Team Management Overseas Construction Head of PO Business Unit PS Business Unit Support Unit Business Unit Materials Research Business Unit Head of PP B Head of PE Head Of usiness Sales Ulsan Plant Construction Materials Business Strategic Production Beijing PP Sales Team 1 PS Sales Team Safety Research Management Team(Jincheon) Branch Construction Environment Materials Sales Team 1 Team PP Sales Team 2 Yancheng Team EPS Sales Team Team Research HR & General Branch PP Products PS Research Support Team Team 2 Affairs Team Chongqing Production Team Development Team Research Branch Production (Sejong) Team Team 3 Financing & Guangdong EPS TFT Team 1 (PS) Production Team Safety & Support Accounting Branch Production (Gimcheon) Team Team Chennai Team 2 (EPS) Production Team Official Purchasing (Dangjin) Branch Team BusinessTeam Japan Office 11 Thank you..