Investor Relations 2012

1

Contents

Company overview

Product portfolio

Long term contracts

Sales breakdown

Vision 2018

Capacity expansion plan

Green growth business

CAPEX plan

Cash flow

Future growth strategies

1H 2012 business results

Summary of historical P&L

Stock information

Dividends

Financial statements

Outlook of polyurethane

2

Company overview

Key takeaways Locations

Company Huchems Fine Chemical Corp.

Established Sep. 15, 2002

Spun off from Namhae Chemical Corp.

Listed Oct. 7, 2002

CEO Mr. Choi, Gyu Sung

Paid-in capital W40.9bn

Number of

employees 210

Key products

Own products 85%

Trade 13%

CDM 2%

<Plant site 1> <Plant site 2>

• Area: 364,000m2

• Capacity: 1.3mMT/yr

• Area: 115,000m2

• Plant 2 starting from 2012

3

own products

DNT

MNB

+Toluene

+Benzene

+Ammonia

TDI

MDI

Adipic acid

Ammonium nitrate

Product portfolio

Largest nitric acid producer in Asia

Specializes in precursors of polyurethane

Vertically integrated from nitric acid to intermediates to isocyanates

Nitric acid

Ammonia

4

Long term contracts

Partnership with strategic key customers

Long term contracts are made for stable sales with key customers

Pricing formula : All factors for risk exposure are considered

Product Customer Contract year Contract period

Nitric acid BASF Korea 15-year 2003~2018

Rhodia Polyamide 8-year 2008~2016

DNT KPX Fine Chemical

6-year 2008~2013

10-year 2011~2021

OCI 2-year (automatically extended bi-yearly) 2008~

MNB Kumho Mitsui Chemical 15-year 2009~2024

15-year 2012~2027

Ammonium nitrate Koryo Nobel Explosives 5-year 2011~2015

CDM RWE Power AG 6-year 2007~2012

Sales volume is defined together with minimum off-take quantity

- Raw materials price, Exchange rate, Inflation

5

Sales breakdown

※The newly built DNT plant (60k tons pa) & Ammonium nitrate plant(37k ton pa) started operations in 2Q 2011 & 4Q 2011 respectively.

Product

1H 2012 1H 2011 2011

Total sales

(Wbn) Total (%)

Utilization

rate(%)

Total sales

(Wbn) Total (%)

Utilization

rate(%)

Total sales

(Wbn) Total (%)

Utilization

rate(%)

Own

product

Nitric acid 52 17% 87% 47 16% 99% 1,038 18% 99%

DNT 103 34% 65% 109 35% 78% 1,667 30% 59%

MNB 86 28% 107% 86 28% 98% 1,756 31% 103%

Ammonium

nitrate 26 8% 93% 17 6% 97% 360 6% 66%

Trade 37 13% - 41 12% - 75 11% -

CDM 2 1% - 7 2% - 9 2% -

Total 306 100% 86% 307 100% 94% 567 100% 88%

6

Vision 2018

• Healthy & Safe working environment

• Cultivate global human resources

• Corporate social responsibility

Sustainable management

• Strengthen customer service

• Enhance cost competitiveness

• Improve product quality to world-class

Create customer value

• Achieve global No.1 in current business

• Expand business area

• Secure own technology

New growth engine

2trillionW sales in 2018

The global leader of advanced chemistries & materials

7

#4 DNT plant construction

Expectation

Agreed with KPX Fine Chemical for 10-year contract, total US$800m of additional turnover for 10 years

Current level of profitability to be maintained

2010 2Q 2011

180,000

240,000

33%

Capacity expansion plan

(Unit: MT)

DNT (Di Nitro Toluene)

Capacity increased by 60ktons to 240ktons

Total US$100m invested

DNT plant construction

45 45 45 45 45

60 60 60 60 60

45 44 45 45 45 48

31

16

31

47

1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12

Capacity Production

8

Expansion through debottlenecking

Capacity increased by 37ktons to 90ktons

Total US$10m to be invested

Increase of market share in Japan and SE Asia

Export Trend

Capacity expansion plan

(Unit: MT)

Ammonium nitrate

96%

2007 2008 2009 2010 2011

0.6

4

5

8

9

(Unit: US$m)

100%

2009 2010 4Q 2011

45,000

53,000

90,000

9

2009 2010 3Q 2012(E)

150,000 164,000

314,000

Capacity expansion plan

2nd expansion

91%

1st expansion

9%

MNB (Mono Nitro Benzene)

(Unit: MT)

#2 MNB plant construction

Capacity to be increased by 150ktons to 314ktons

Total US$30m to be invested

Commercial production to be commenced in 3Q12

Expectation

Agreed with Kumho Mitsui Chemical for 15-year contract, total US$1.7bn of additional turnover

Opportunity for more number of customers in local and overseas to minimize risks

Minimum investment cost for maximum turnover & profitability

MNB plant construction

41 41 41 41 41 41 41 41 41 41

45

35

44 45 42

36

44 43 45

43

1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12

Capacity Production

10

Capacity expansion plan

#5 Nitric acid plant construction

Nitric acid

Capacity to be increased by 400ktons to 1,040ktons

Total US$150m to be invested

Commercial production to be commenced in 3Q12

Shortage to be released by new line

Expectation

Preparation for quick growth of captive use for downstream expansion

Aggressive sales expansion to China, Japan & SE Asian countries

2010 3Q 2012(E)

640,000

1,040,000

(Unit: MT)

63%

11

Green growth business

Carbon 76%

UN 2%

Huchems

22%

(2007~2012) (post 2012)

CDM earning sharing

CDM business review

UN 2%

Huchems

98%

Post 2012

2007 2008 2009 2010

US$1.8m US$6m US$4.5m US$4.9m

Expected revenue

2011 1H 2012 2013(E)~

US$8.7m US$1.5m US$20m

Launched CDM business alliance with Carbon GmbH(Austria) in 2007

Install facilities to reduce N2O gas in nitric acid plants CO2-equiv CER (certified emission reduction): 1.5mn tons

Expect annual sales and operating profit of US$6m with 22% share until 2012

To inherit facilities from Carbon for free

Total income will belong to Huchems after expiry of current contract with Carbon GmbH

12

Product Capacity(MT)

Capex(US$m) Completion Existing Additional Total

DNT 180,000 60,000 240,000 100 Completed 2Q 2011

Ammonium nitrate 53,000 37,000 90,000 10 Completed 4Q 2011

MNB 164,000 150,000 314,000 30 3Q 2012(E)

Nitric acid 640,000 400,000 1,040,000 150 3Q 2012(E)

Total 1,037,000 647,000 1,684,000 290

CAPEX plan

Investment plan

Capex

(Wbn) 2010 2011 2012(E)

Investment Cost 68 70 150

13

Cash flow

(Unit:Wbn) 1H 2012 2011

C a s h 220 298

Short-term financial instruments 189 167

Cash & Cash Equivalents 26 30

Short-term Investment Assets 5 0

Long-term financial instruments 0 101

D e b t 164 163

Short-term debt 101 102

Long-term debt 63 61

N e t d e b t -56 -133

※ Non-consolidated basis(K-IFRS basis from FY2010 Results)

Credit rating Equity & debt information

June 2009

August 2012

Corporate bond issuance

Description Debenture / First / Public

Total Amount 50Wbn

Issuance date 2012.09.06

Maturity date 2015.09.06

Financing purpose Investment 10bn

Operations 40bn

Debt ratio (%) 68.3 57.4

Liquidity ratio (%) 149.2 153.1

Debt to asset ration(%) 22.4 23.3

Stability index

14

Future growth strategies

Continuous growth

Globalization

Nitric acid

DNT

MNB

Ammonia

Benzene

Toluene

Other

Derivatives

Upstream Downstream

Increase market share in Japan, China and SE Asia

Overseas production base

Integration to upstream & downstream

Secure own technologies to increase competitiveness

Searching new business opportunities for long-term growth

15

1H 2012 Business Results

(Unit:Wbn)

2012 2011

1H 2012 1H 20121 YoY

2Q 1Q QoQ 2Q YoY

Sales 158.5 147.7 7.3% 156.6 1.2% 306.3 306.9 -0.2%

Operating profit 22.4 13.1 71.5% 22.6 -0.6% 35.5 40.6 -12.5%

OP margin 14.2% 8.9% 14.4% 11.6% 13.2%

Pre-tax profit 23.4 14.6 60.3% 23.2 0.6% 38.0 42.8 -11.3%

Net profit 17.8 11.2 59.1% 18.4 -3.3% 29.0 34.1 -15.0%

Net margin 11.2% 7.6% - 11.8% - 9.5% 11.1%

※All financial information is K-IFRS non- consolidated basis

Sales recorded 159bnW, increased by 7% QoQ and 1% YoY driven by increases of sales volume

Operating profit was 22bnW, a sharp improvement QoQ (increased by 72% ) .

16

Summary of historical P&L

(US$m) 2006 2007 2008 2009 2010 2011

Sales 301 302 416 452 539 567

Operating profit 22 38 46 83 76 56

Pre-tax profit 21 40 59 87 87 67

Net profit 15 28 40 67 67 54

Sales Pre-tax profit

2006 2007 2008 2009 2010 20112006 2007 2008 2009 2010 2011

CAGR 13.5% CAGR 26.5%

※ 2006~2010 data is based on K-GAAP standards while 2011 data are based on K-IFRS standards.

17

Shareholding structure

Stock Information

Outstanding shares : 40,878,588 shares

Rights issue : 4,258,186 shares in May 2010

Bonus issue : 15,329,470 shares in September 2010

Major

shareholder

36.8%

Foreign investor 11.1%

Stock overview

Largest Shareholder Stake

Taekwang Industrial 11.3%

Mr. Yeon-Cha Park 10.9%

Jeongsan 6.1%

Taekwang MTC 4.0%

Other related parties 4.7%

Total 37.0%

Code : 069260 KS

Face value : W1,000

Market cap : W922bn

Avg Trading Value (60D): W5.7bn

Largest shareholder,

37.0%

NongHyup Economic

Group, 8.3%

National pension,

8.3%

Foreign ownership,

12.1%

Domestic investor &

minority shareholders

34.3%

18

2005 2006 2007 2008 2009 2010 2011

EPS(W) 389 711 1,328 1,953 1,936 1,738 1,310

DPS(W) 180 260 490 1,000 1,500 800 700

Dividends(Wbn) 3.8 5.5 10.4 20.4 31.9 32.7 28.6

Payout ratio 46.3% 36.6% 36.9% 50.7% 48.0% 48.5% 53.4%

Dividend yield 2.4% 3.0% 2.6% 4.7% 4.8% 3.9% 3.4%

Dividends Trend Payout Trend

Dividends

(unit:Wbn)

2005 2006 2007 2008 2009 2010 2011

46.3%

36.6% 36.9%

50.7% 48.0% 48.5%

53.4%

2005 2006 2007 2008 2009 2010 2011

38 55

104

204

319 327

286

2.4% 3.0%

2.6%

4.7% 4.8%

3.9% 3.4%

※ 2005~2010 data is based on K-GAAP standards while 2011 data is based on K-IFRS standards.

Dividends

19

Balance sheet Income statement

<Wmn> 1H 2012 2011 2010

Total assets 731,599 699,454 576,755

Fixed assets 356,075 391407 223,944

Current assets 375,524 308,047 352,811

Shareholders’ equity 434,689 444,496 423,706

Paid-in capital 40,879 40,879 40,879

Capital surplus 181,839 181,842 181,842

Retained earnings 222,171 221,775 200,985

Capital adjustments -10,200 0 0

Total liabilities 296,910 254,958 153,049

Long-term debt 45,246 53,790 3,501

Current liabilities 251,664 201,168 149,548

Total liab, SE 731,599 699,454 576,755

<Wmn> 1H 2012 2011 2010

Sales 306,273 566,909 539,342

Cost of sales 253,475 477,087 427,282

Gross profit 52,798 89,822 112,059

Other profit 3,255 10,266 4,487

SG&A 16,094 31,142 35,356

Other expense 4,421 12,812 1,542

Operating profit 35,538 56,134 79,648

Net finance income 2,433 10,705 10,188

Pretax profit 37,971 66,839 89,836

Tax 8,960 13,287 19,316

Net profit 29,011 53,552 70,520

Financial Statements

20

4,8136,527

7,703 8,60210,151

3,712

4,458

4,9105,236

5,767

3,850

3,184

2,9512,805

2,600

1,375

1,751

1,9292,057

2,266

'05 '07 '10 '12(E) '15(E)

13,750

Other

(Unit : kt)

15,920

17,492

18,700

20,783

North

America

EU

Asia

10.9%

12.5%

27.7%

48.8%

Outlook of polyurethane

Polyurethane market analysis Polyurethane consumption structure

[Source: Fuji Research , ADL Analysis] [As of 2010]

23%

14%

11%

22%

30%

18.0% 20.0%33.0%

US Asia EU

27.0% 25.0%

43.0%

US Asia EU

25.0% 30.0%35.0%

US Asia EU

25.3% 28.2%37.0%

US Asia EU

Other

Clothing

Automobiles

Architectural

Home

appliance

Consumption by region

Demand breakdown

21

Financial results for 2Q ’12 are provisional and accordingly subject to change according to

the outside independent auditors’ review.

This presentation contains forward-looking statements that are based on our current

expectation, assumptions, estimates and projections about Huchems. We caution you not to

place undue reliance on any forward-looking statement which may involve various risks and

uncertainties.

Please also note that although we believe that the assumptions on which our forward-looking

statements are based are reasonable, any of those assumptions could prove to be

inaccurate, and, as a result, the forward-looking statements based on those assumptions

could be incorrect. Except as required by law, we do not undertake to release the results of

any revisions of these forward-looking statements to reflect future events or circumstances.

Disclaimer

IR contact

Yoon Chung

tel. 822-2262-0664

email. sinamon@huchems.com