Technology-Driven Global Energy Company

March 2012
This presentation contains forward-looking statements with respect to financial conditions, results of operations and business of
SK Innovation, and plans and objectives of the management of SK Innovation.
Statements that are not historical facts, including statements about SK Innovations beliefs and expectations, are forward-looking
statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results or performance of SK Innovation to be materially different from any future results or performance
expressed or implied by such forward-looking statements.
These materials are not an offer for sale in the United States of the securities of SK Innovation or any of its subsidiaries or affiliates.
No such securities may be offered or sold in the United States absent registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended, and at present there are no intentions to register any offering of such securities in the United States
or to conduct a public offering of such securities in the United States.
I. Corporate Transformation
III. 4Q11 Financial Performance
IV. New Growth Momentum
V. Appendix
P. 2
P. 11
P. 25
P. 33
II. Industry Dynamics & Business Strategy P. 3
Tech Enabled
Global Energy
Company
Enhancing
Accountability
& Transparency
Company in
Company
Management System
Maximizing Biz Potentials,
Enhancing Value Chain
through Restructuring
Holding
Company
(2007)
CIC
(2008)
Independent
Management
(2011)
E&P R&D
As of January 1, 2011
Innovating Biz Structure
through Strengthened
Global Growth Portfolio
(Targeting 10% Growth YoY)
Accelerate
Growth &
Globalization
(2012)
2
Industry Dynamics
Business Strategy
Mid-term Vision Strategy
II. Industry Dynamics & Business Strategy
3
Actual net capacity additions lower than global oil demand growth in Asia-Pacific
Net capacity additions and robust demand in Asia-Pacific lead to favorable market in 2012
- USEurope net capacity additions 0.1 MM b/d, Asia-Pacific net capacity additions 1.1 MM b/d
Financial issues reflect weak demand in EU while Asia market continue to show strong growth
<America / Europe / FSU / Africa>
<Asia-Pacific / Middle East>
Source : IEA Global Oil Market (11. Dec), Reuters, Company
1.6
-0.1 -0.1
0.0
-0.3
0.1
2010 2011 2012
(MM B/d)
(MM B/d)
1.9
0.8
1.2
0.1
0.7
1.1
2010 2011 2012
Demand Growth Net Capacity Additions
4
Accelerated global refinery rationalization trigger strong margins in Asia-Pacific region
Source : Bloomberg, Company (12. Jan)
[Singapore Refining Margin Outlook]
($/Bbl)
The Golden Age
0
2
4
6
8
10
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
E
2
0
1
3
E
[Global Refinery Rationalization]
1.0
0.5
1.6
0.4
0.4
0.2
2010 2011 2012
North America / Europe Asia-Pacific
(MM B/d)
Source : Reuters, Company (12. Feb)
2010~2012 Refinery Closure
5
Reason for Refinery Rationalization :
Deterioration of old facilities (US/Europe/Japan) Lower Cost Competiveness
Possible global supply shortage due to larger than expected refinery shutdowns/closures
Gradual recovery due to economic improvement and limited capacity addition
6
[Asia PX/PTA Growth Outlook]
(KTA)
[Asia Ethylene Spread Trend]
Source : CMAI (12. Feb.)
Spread = Ethylene FE Asia - Naphtha MOPJ
Olefins Outlook
- Increased downstream demand owing to global economic recovery and Chinas easing of its monetary policy
- Limited Ethylene capacity additions compared to 2010~2011 (10. 11 mil 11. 3.8 mil 12. 3.5 mil)
- Strong Butadiene spreads anticipated from a structural tightness and regular maintenance at US crackers
Aromatics Outlook
- Tight PX supply expected from massive PTA capacity additions in 2012
0
100
200
300
400
500
600
700
2009 2010 2011 2012(E)
($/MT)
Japanese
earthquake
Recovery due to
global economic
improvement
Forecast
1,900
1,250
2,380
3,800
6,085
3,960
9,550
5,000
0
2000
4000
6000
8000
10000
2011 2012 2013 2014
Massive new PTA
capacity addition
PX Growth
PTA Growth
Source : CMAI, PCI (12. Jan.)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Accelerating global expansion through JV partnership
[ LBO Global Expansion]
Dumai
LBO J V
(Indonesia,
w/ Pertamina)
Cartagena
LBO J V
(Spain, w/ Repsol)
In Progress
(b/d)
Solidifying Leadership in Group III Base Oil
Targeting environment-friendly premium market
JV with JX Energy (SK 72%): 2Q2012
JV with REPSOL : 2014
Reviewing product portfolio diversification through
facility transformation
[ New PX Project ]
Pursuing Regional Leading PX Player
Enhancing product portfolio mix
JV with JX Energy (SK 50%) : 2Q2014
PX 1,000 KTA
Benzene 560 KTA
Toluene,
Mixed Xylene,
C9 + Aromatics
#3 LBO J V
(Ulsan,
w/ JX Energy)
Product
Diversification
JV Co.
(50:50)
Toluene,
Mixed Xylene
Utility, Land
7
LBO Expansion &
Diversified Products
#1/2 LBO
(Ulsan)
24,300
9,000
26,000
13,300
Operatorship
Mid-term E&P Aspiration : Global Leading Independent E&P Company
Global Leading
Independent E&P Company
Farm-out high-risk
exploration blocks
M&A (Production blocks)
Houston Tech. Center
Develop Niche Tech.
with SKIs R&D Center
Portfolio Rebalancing
Competitive Technology
[Mid-term Aspiration for E&P Business]
Pursuing Global Leading Independent E&P Company with operatorship capabilities
- Portfolio Rebalancing Strategy / M&A options on production blocks
- HR & Technical Excellence through Houston E&P Technical Center
Mid-term P1 Target
1 Billion BOE (P1)
534 million BOE P1
(End of 2010)
Daily Production Volume
100,000 B/D
New
Blocks
Peru
Vietnam
YLNG
8
Strengthening competitiveness through Battery JV and I/E Materials commercial start-up
[I/E Materials Commercialization] [Pioneering Battery Partnership]
Global Leading Battery Supplier
Heads of Agreement (2012.Jan)
Establish JV Company (2012.2Q)
Full-fledged commercial start-up of I/E
Materials concentrated on LiBS, TAC, FCCL
Supply Battery
Management
Electronics and
its overall
automotive
systems
competence
Supply lithium
ion battery
cells Battery
Li-Ion battery systems for
automotive customers
Location: Korea and Germany
JV Co.
(51:49)
Production Start-Up of Lines #6~7
(1H12)
Review Expansion of Lines # 8~9
Pilot Tests Underway for Potential
Customers
Commercial Production Start-Up
(2H12)
FCCL
LiBS
TAC
Commercial Production Start-Up
(2H11)
# 2 Line Expansion In Progress
9
Sales
(Unit : trillion KRW)
12
10
8
6
4
2
0
Operating Profit Ratio(%)
2010 2011 2015 2020
Tech.
(15%)
Tech.
(4%)
Sales :100
OP:10
Green Growth
Tech. Based Globalization
2015 New Growth Momentum
E&P Expansion
I/E Materials Quantum Leap
Global Partnership
Battery, LiBS, ACO, Nexelene, GreenPol
TM
,
FCCL, TAC, etc.
54
68
10
2011 Financial Highlights
4Q11 Financials
4Q11 Business Analysis
III. 4Q11 Financial Performance
11
Exploration & Production
Oil equivalent reserves (P1) : 534 mn BOE
2012 Production (E) : 60,000~70,000 BOE/D
Refining Business
Koreas No. 1 energy provider
Asias No.4 CDU capacity of 1.1 mn b/d
Petrochemical Business
Strategic product mix with Olefins & Aromatics
Ethylene: 860,000 ton/yr
Propylene: 980,000 ton/yr
B/T/X: 3,765,000 ton/yr
Lubricant Business
World No.1 Group III Base Oil Producer
Base Oil: 26,000 B/D
Lubricants: 5,800 B/D
Grease: 6,000 ton/yr
Research & Development
I/E Materials : LiBS, TAC Film, FCCL
HEV, PHEV, EV Battery
Green Energy : GreenPol, GreenCoal, Biofuel
4 Year Revenue Profile
4 Year Operating Profit Trend
52,606
43,679
53,723
68,375
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2008 2009 2010 2011
(bn KRW)
2,029
1,186
1,891
2,849
0
500
1,000
1,500
2,000
2,500
3,000
2008 2009 2010 2011
(bn KRW)
12
(bn KRW)
Sales 52,606.4 43,679.1 53,722.5 17,209.6 16,935.3 68,375.4
Operating Profit 2,028.6 1,186.1 1,891.2 861.9 343.1 2,848.8
- SK innovation 240.6 329.8 452.3 103.0 -18.3 322.0
- SK energy 1,409.5 109.9 811.8 254.1 174.7 1,241.6
- SK global chemical 124.1 683.8 332.4 306.3 92.2 774.3
- SK Lubricants 254.4 62.6 294.7 198.5 94.5 510.9
Non-Operating Profit -1,028.8 -309.2 -388.8 1,505.1 -25.6 1,447.2
Pre-Tax Income 999.8 876.9 1,502.4 2,367.0 317.5 4,296.0
EBITDA 2,518.3 1,890.0 2,407.7 990.3 471.4 3,362.8
2008 2009 2010 3Q11 4Q11 2011
1) 2008~2009, SK Innovation Consolidated
2) 2010~2011 based on K-IFRS
13
1) Net debt = Interest bearing debt Cash & Cash equivalents
2) 2008~2009, SK Innovation Consolidated
3) 2010~2011 based on K-IFRS
(bn KRW)
Assets 24,942.8 24,667.3 29,405.4 34,824.0
- Cash & Cash Equivalents 4,067.4 2,827.7 3,072.8 3,492.2
Liabilities 17,274.1 16,559.8 17,854.0 19,925.3
- Debt 11,370.7 9,298.6 10,786.6 8,853.3
(Net Debt) 7,303.3 6,470.9 7,713.8 5,361.1
Shareholders Equity 7,668.7 8,107.5 11,551.4 14,898.7
- Paid-in Capital 468.6 468.6 468.6 468.6
Net Debt to EBITDA 2.9 (x) 3.4(x) 3.2(x) 1.6(x)
Net Debt to Equity 95% 80% 67% 36%
2008 2010 2011 2009
14
1) 2008 numbers reflect the SKICO merger as of Feb. 1, 2008
2) 2009 numbers reflect the spin-off of SK Lubricants as of Oct. 1, 2009
Facility Investment 988.2 623.1 273.4 980.0
- Refining 680.2 270.4 126.9 147.1
- Petrochemical 223.6 258.3 113.7 19.2
- Lubricants 4.6 12.4 - 247.4
- Others 79.8 82.0 32.8 566.3
Marketing Investment 119.4 81.9 40.9 96.0
E&P 451.4 315.9 395.7 297.4
R&D, etc. 99.9 73.7 96.6 104.8
Sub-Total 1,658.9 1,094.6 806.6 1,478.2
Equity Investment 106.0 64.4 128.3 324.6
Total 1,764.9 1,159.0 934.9 1,802.8
(bn KRW)
2009 2010 2011 2008
15
Source : JBC, Company
U$/B (average) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 QoQ
Dubai 75.8 78.1 73.9 84.3 100.5 110.7 107.1 106.5 -0.6
Gasoline/HSFO 16.9 16.9 14.6 20.1 22.2 22.1 21.3 12.3 -9.9
Diesel/HSFO 13.2 18.9 18.4 22.5 28.5 29.8 24.2 22.4 -1.8
0
20
40
60
80
100
120
140
07-12 08-06 08-12 09-06 09-12 10-06 10-12 11-06 11-12
0
10
20
30
40
50
60
70
80
07-12 08-06 08-12 09-06 09-12 10-06 10-12 11-06 11-12
Dubai Crude Oil
Diesel/HSFO
($/Bbl) ($/Bbl)
Gasoline/HSFO
Refining Margin Trend : Weak Dubai Crude Oil : Stable
Sluggish economy caused light distillates product
(gasoline, naphtha) demand to decrease,
leading to weaker refining margin
However, Diesel and Fuel Oil margins displayed
stability owing to increased regional demand for
heating and power generation
Strong oil demand in emerging economies and
geopolitical issues in M.E. underpin oil price at
100~110$ level, despite weak global economy
Crude oil price volatility may increase,
based on economic conditions and Iranian issue
Refining margin weakness: Sluggish global economy led to lower light distillate margins
16
369.7
715.4
97.4
254.1
174.7
8,616.3
12,242.2
12,012.9
12,589.6
12,556.2
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
200
400
600
800
1,000
1,200
1,400
4Q10 1Q11 2Q11 3Q11 4Q11
Operating Profit Sales
(Sales : Bn KRW) (OP : Bn KRW)
2010 : K-GAAP, 2011 : K-IFRS
Operating profit decline Q-o-Q : Weak product market & major one-off expense incurred
4Q11 Analysis (QoQ) Major Issues
OPEC consents to increase oil production quota
- 24 Million B/D (08.11) 30 Million B/D (11.12)
Major one-off expense incurred due to pension plan
amendment
Lower refining margin due to weak petroleum product
market
17
0
100
200
300
400
500
600
700
800
900
1000
'10/6 7 8 9 10 11 12 '11/1 2 3 4 5 6 7 8 9 10 11 12
PE-Naph PP-Naph
SM-Naph PX-Naph
Source : ICIS, Platts, Company
(US$/Ton)
Bearish ethylene spreads on decreased demand due to
economic slowdown mainly in Europe and the US,
in addition to Chinas monetary tightening policy
Weak polymer market conditions owing to reduced global
demand, despite the decrease in raw material price from
the decline in naphtha price
Decreased PX spread due to low utilization of
downstream producers such as PTA owing to weak
demand, despite tight supply situation in the region
SM spread decreased due to declined PS and ABS
demand caused by global economic recession
4Q Olefins Spread : Bearish 4Q Aromatics Spread : Bearish
U$/Ton 2010 2Q11 3Q11 4Q11 QoQ
Naphtha 723 995 956 888 -7.1%
PE-Naph 496 368 418 420 +0.5%
PP-Naph 573 601 593 532 -10.3%
PX-Naph 278 516 618 569 -7.9%
SM-Naph 468 415 498 411 -17.5%
Declined chemical spreads on weak demand due to global economic slowdown
18
Operating profit decrease due to reduced product spreads and one-off items
Chemical margins are expected to show gradual recovery
with the Chinese Governments easing monetary policy
and expectations on global economic improvement
PX supply to remain tight due to large scale new capacity
addition of PTA facilities
- 2012 Capacity Addition : PX 1,250 KTA vs. PTA 3,960 KTA
4Q11 Analysis (QoQ) 2012 Outlook
Product spreads declined due to slowing demand caused
by Chinas tight monetary policy and continued global
economic slowdown
FX-related losses driven by KRW appreciation at the end
of 4Q and one-off items such as expensing prior service
costs due to a pension plan amendment impacted earnings
8.8
242.9
132.9
306.3
92.2
3,291.3
3,891.4
4,186.3
3,621.3
3,356.1
0
1,000
2,000
3,000
4,000
5,000
0
100
200
300
400
500
600
4Q10 1Q11 2Q11 3Q11 4Q11
Operating Profit Sales
(OP: bn KRW) (Sales: bn KRW)
2010 : K-GAAP, 2011 : K-IFRS
19
122.1
160.1
131.4
120.4
82.2
220.5
277.8
245.2
260.9
246.8
0
50
100
150
200
250
300
4Q10 1Q11 2Q11 3Q11 4Q11
Operating Profit Sales
Main factor for operating profit decrease
- One-off impairment loss on Equatorial Guinea S block
of KRW 50.4 bn
2012 Exploration Plans
- Colombia CPO-4 and SSJN-5 blocks
Substantial QoQ operating profit decline, due to impairment loss of Guinea S Block
(bn KRW)
Major Issues
1,000
BOE/D
Total
Oil
Portion
Peru
88
Vietnam
15-1
Peru
56
Yemen
LNG
4Q11
63 30% 22 5 26 10
3Q11
66 30% 24 5 26 11
4Q Average Daily Production
2010 : K-GAAP, 2011 : K-IFRS
20
56% 56%
60%
63%
75%
78%
76%
70%
65%
57%
47% 47%
36%
32%
30% 30%
0%
50%
100%
150%
200%
250%
300%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 2012(E)
Peru Vietnam Brazil Others YLNG Oil Ratio
2011 average daily production to reach 64,000 BOE/D
Yemen LNG
Start-up
4Q09
(BOE/D)
24,000
36,000
40,000
40,500
41,700
44,022
51,764
66,785
66,809
64,664
63,175 63,560
Peru LNG
Start-up
3Q10
Vietnam 15-1
Sutuvang field
& Peru 56
Start-up 4Q08
23,000
* Reflects Brazil asset sale to Maersk Oil as of Jan. 1, 2011
Sale of
Brazil
BM-C-8*
26,000
40,400
73,815
64,000
21
* Gas 378 mn boe = 2.27tcf (trillion cubic feet)
Oil Gas Total
Peru 88&56
Vietnam
Peru 88&56
YLNG
515 mn bbl
Others Others 19 mn bbl
128 mn bbl 406 mn boe* 534 mn bbl
400
440
500
520
503
534
300
500
2005 2006 2007 2008 2009 2010
(Mn BOE/D)
Oil & Gas Ratio 534 Million Barrels (P1) Breakdown
Proven Reserve By Region Proven Reserve Growth (P1)
* As of the End of Dec 2010
Gas
76%
Oil
24%
* As of the End of Dec 2010
Latin
America
78.1%
Middle
East
19.1%
Africa
0.4%
SE Asia
2.5%
22
Operating profit decline from FX related loss and lower base oil spreads QoQ
4Q11 Analysis (QoQ) Major Issues
Accelerating global expansion through JV partnerships
- JV project with Japans JX Energy
- JV project with Spains Repsol
75.5
87.3
130.6
198.5
94.5
534.5
611.1
672.9
694.3
735.1
-
250
500
750
0
50
100
150
200
250
300
350
4Q10 1Q11 2Q11 3Q11 4Q11
Operating Profit Sales
(OP: bn KRW) (Sales : bn KRW)
2010 : K-GAAP, 2011 : K-IFRS
4Q FX related translation losses from year end KRW
appreciation in contrast to the sharp KRW depreciation
at the end of September, which resulted in FX related
translation gains in 3Q
23
Lithium-ion Battery Technology
I/E Materials : LiBS / FCCL / TAC
Green Tech : Geen Pol / Green Coal
TM
IV. New Growth Momentum
24
No.1 Production Line No.2 Production Line
Location SK Innovation R&D Center Seosan Industrial District
Completion May 2010 March 2012
Capacity (MWh) 100MWh 200MWh
Capacity
(# of Vehicle)
HEV 70,000 ~ 100,000 140,000 ~200,000
EV 5,000 10,000
Proven Lithium-ion Battery and advanced packing technology
2002 2009
Started manufacturing LIB for electronic devices
2005
Launched Large Format LIB project for xEV application
Launched project for EV
2010
Full automation of large format LIB production
2012
Commercial Production
Supply to MFTBC
Awarded HMC
EV Project
Partnership with
MFTBC
2012 2011
Supply to HMC
Awarded Daimlers
EV Project
2010 2009
Milestone
Contracts
JV with Continental to focus on
LIB systems for automotive customers
25
Multiple technology areas in works for a wide range of potential applications
Applications
Energy Storage System
Automotive
Key Technology
Areas
e
Electrode
Separator
Cell/Pack
BMS
Higher Power Less Number of Cells Lower Cost
Key Competitiveness
Thin Electrode Coating
Highly Permeable LiBS
Proprietary Electrolyte Additives
26
Location Line Capacity Operation Usage
ChungJoo #1~#3 58 05~09
IT
Materials
Jeung
Pyoeng
#4~#5 72 10
#6~#7 72 12
xEV
Battery
Total 202 by 12
SK Innovations LiBS Capacity
(unit: Mn m
2
/year)
Become a Global Top 3 player in premium LiBS market (1
st
in Korea)
Produce world-class low-shrinkage/heat resistant products and ultra-thin film
with superior strength and permeability
Secure global market share through capacity expansion
Anode (Positive)
Cathode (Negative)
Separator
27
Pre-marketing activities from current Demo Line
Develop continuous curling technology using infrared rays
Commercial production from July 2011
2010 2011 2012
Commercial Production
Mechanical Completion
Capacity Location
#1 Line 4.0
Jeung
Pyoeng
#2 Line
Under
construction
[unit: bn USD]
Display
Mobile IT
1.50
0.88
0.46
2008 2015
0.72
Construction Start-up
SK Innovations FCCL Capacity
(unit: Mn m
2
/year)
( Source : Displaybank )
28
2010 2015
1.25
2.13 1.79
3.31
High-performance TAC Film for globally dominant Asian LCD makers
Growing demand for high-performance optical films
Commercial production in 2012
Mass production Mechanical Completion
Construction Start-up
TAC Film Application
Domestic
Global
(Unit: bn USD)
( Source : Displaybank )
2010 2011 2012
Commercial Test
29
Propylene Oxide
(56%)
CO
2
(44%)
SK Innovations
Proprietary Catalyst
Converting CO
2
into value added polymer products through Green Pol
Producing environment friendly polymer products using breakthrough technology
GreenPol
TM
Clean burning with no soot or toxic gas
Superior optical properties
Enhanced barrier properties(O
2
/H
2
O)
Less expensive to make than conventional polymer products
Advantages of GreenPol
2009~2010 2011~2012 2013~2014
Pilot Plant Operation
Market Development
(Contd)
Commercial Plant Construction
& Commercial Test
Market Development
Commercial
Production
30
2010 ~ 2011 2012 ~ 2013 2014 ~
Technology Development
Lab-scale Test
Pilot Plant Operation
Scale-up Verification
Demo Plant Construction
and Operation
Commercialization
Commercial Plant
Construction and Operation
Breakthrough GreenCoal technology with reduced CO
2
emission and low cost
Chemical
Products
Electricity
Synthetic
Petroleum
Current
Tech.
CO+H
2
1,500
1,000
Advanced
Tech.
High Quality
Low Quality
Products Gasify Coal
Participated in Korean government-sponsored project with POSCO, government aid of 25bn KRW (11~12)
31
Korea Refining & Petrochem Landscape
Utilization Rate
Product Sales
Maintenance Schedule
E&P Blocks
Holding Company Structure
V. Appendix
32
* The total number of service stations in Korea is 13,002 which includes 851 other service stations (End of 4Q11)
Ulsan CLX Incheon CLX SK Innovation GS Caltex S-Oil Hyundai Total
CDU 840 275 1,115 840 580 390 2,925
Mkt Share - - 34% 31% 13% 14%
Service Stations - - 4,452 3,379 1,951 2,369 12,151
De-sulfurizer 542 161 703 313 309 189 1,514
% CDU 65% 59% 63% 37% 53% 48% 52%
Naphtha/Gasoline 82 65 147 123 40 58 368
Diesel/Kerosene 268 96 364 190 121 131 806
HSFO 192 - 192 - 148 - 340
Cracker 172 - 172 215 149 58 594
% CDU 20% - 15% 26% 26% 15% 20%
RFCC 127 - 127 93 73 - 293
HOU 45 - 45 120 73 27 265
Coker - - - - - 31 31
Ethylene 860 860 860
Propylene 980 980 980
BTX 2,720 1,045 3,765 2,800 1,000 7,565
PX 758 758 1,200 1,600 3,558
*
33
Petrochemical
Petroleum
Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
CDU 82% 72% 69% 71% 74% 80% 75% 83% 81% 78% 76% 80%
Ulsan 94% 80% 77% 83% 88% 91% 87% 96% 93% 88% 91% 92%
Incheon 42% 47% 44% 35% 30% 44% 39% 44% 46% 47% 30% 36%
HOU 100% 73% 98% 100% 100% 98% 99% 99% 81% 100% 99% 97%
#1 RFCC 100% 100% 100% 100% 100% 99% 100% 100% 83% 74% 100% 98%
#2 RFCC 100% 100% 100% 100% 100% 97% 69% 100% 100% 100% 100% 98%
Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
NCC 72% 77% 77% 77% 77% 77% 77% 63% 96% 99% 100% 98%
PE 94% 100% 97% 98% 98% 86% 97% 77% 95% 95% 95% 100%
PP 93% 100% 100% 98% 100% 98% 100% 81% 100% 100% 95% 100%
PX 98% 98% 74% 86% 100% 100% 100% 100% 100% 100% 100% 100%
34
(Unit : kBbl)
(Unit : kTon)
Numbers exclude sales between SK Energy, SK Global Chemical and SK Lubricants
Petrochemical
Petroleum
Product Domestic Export Sub-Total Product Domestic Export Sub-Total Product Domestic Export Sub-Total
Gasoline 6,678 5,919 12,597 Gasoline 7,127 7,124 14,251 Gasoline 6,672 6,229 12,901
Kerosene 3,556 144 3,700 Kerosene 1,069 14 1,083 Kerosene 2,273 264 2,537
Diesel 13,236 16,664 29,900 Diesel 12,010 19,288 31,298 Diesel 12,568 17,812 30,380
Fuel Oil 5,225 3,037 8,262 Fuel Oil 3,889 3,436 7,325 Fuel Oil 3,889 3,847 7,736
Jet Oil 811 8,478 9,289 Jet Oil 419 9,678 10,097 Jet Oil 484 7,369 7,853
Other 9,427 8,604 18,031 Other 5,846 6,634 12,480 Other 6,716 8,285 15,001
Total 38,933 42,846 81,779 Total 30,360 46,174 76,534 Total 32,602 43,806 76,408
3Q11 4Q11 4Q10
Product Domestic Export Sub-Total Product Domestic Export Sub-Total Product Domestic Export Sub-Total
Ethylene 30 28 57 Ethylene 36 46 82 Ethylene 38 45 83
PX 70 488 558 PX 104 422 526 PX 60 582 642
SM 24 292 316 SM 18 185 203 SM 4 228 232
PE/PP 85 112 197 PE/PP 75 120 195 PE/PP 65 110 175
BTX 65 808 874 BTX 75 595 670 BTX 5 789 794
Other 294 321 615 Other 297 339 636 Other 281 327 608
Total 568 2,049 2,617 Total 605 1,707 2,312 Total 453 2,081 2,534
4Q10 3Q11 4Q11
35
Petrochemical
Petroleum
Lubricants
Capacity 2010 2011 2012
Olefins
#1 NCC (200 kTon/yr) - - -
#2 NCC (660 kTon/yr) 10/4~11/4 (32days) - -
Polymers
#1 PE (220 kTon/yr) 10/12~11/4 (24days) - -
#2 PE (190 kTon/yr) 10/20~11/5 (17days) - -
#1 PP (183 kTon/yr) 10/18~11/2 (16days) - -
#2 PP (193 kTon/yr) 10/20~11/4 (16days) - -
EPDM(20 kTon/yr) 10/18~11/26 (40days) - Oct.~Nov.(29days)
Aromatics
#2 PX (348 kTon/yr) - - 10/4~11/2(30days)
NRC (28.0 MB/D) - - 10/4~11/2(30days)
#1 PX (410 kTon/yr) - - -
NAC (45.0 MB/D) - - -
NRP (28.0 MB/D) 6/21~7/25 (35days) - 3/20~4/24(36days)
Capacity (b/d) 2010 2011 2012
Ulsan # 1 LBO (12,300) - 3/7 ~ 3/27 (21days) 3/19~4/25 (38days)
Ulsan # 2 LBO (12,000) - - 3/22~4/24 (34days)
Dumai LBO (9,000) 4/27 ~ 5/9 (13days) 10/8 ~ 10/29 (22days) -
Capacity (b/d) 2010 2011 2012
Ulsan
Complex
#1 CDU (60,000) 5/11~5/26 (15days) 9/15~10/11 (27days) -
#2 CDU (110,000) 5/12~5/23 (12days) - 10/11~11/9 (30days)
#3 CDU (170,000) 6/28~7/26 (29days) - -
#4 CDU (240,000) - 3/10~3/17 (8days) 3/20~4/22 (34days)
#5 CDU (260,000) - 5/8~6/8 (32days) -
HOU (45,000) - 3/7~3/22 (16days) 3/19~4/25 (38days)
#1 RFCC (57,000) - 5/9~6/6 (29days) -
#2 RFCC (70,000) 6/28~8/3 (37days) - -
Incheon
Complex
#1 CDU (75,000) - - -
#2 CDU (200,000) - 6/13~7/24 (42days) -
36
Region (Oil & Gas)
Ownership
(%)
Participation
Initial
Production
Contract Period Operator
Egypt/North Zaafarana (O) 25.0 Jun. 1989 1994 Jun.1989 ~ Jan. 2013 PICO
Peru/Block 8 (O) 8.33 Jul. 1996 1996 May 1994 ~ May 2024 Pluspetrol
Cote dIvoire /CI-11(O&G) 12.96 Jan. 1997 1997 Jan.1993 ~ Jul.2019 Afren
Vietnam/15-1 (O) 9.0 Oct. 1998 2003 Oct. 1998 ~ Oct. 2023 Cuulong JOC
Libya/NC-174 (O) 8.33 Feb. 2000 2004 Feb. 1990 ~ Dec. 2015 Eni N.A.
Peru/88 Camisea (O&G) 17.6 Dec. 2000 2004 Dec. 2000 ~ Dec. 2040 Pluspetrol
Algeria/Issaouane (O) 8.5 Nov. 1991 1998 Jun. 1996 ~ Jun. 2011 Repsol-YPF
Peru/56 (O&G) 17.6 Sep. 2004 2008 Sep. 2004 ~ Aug. 2044 Pluspetrol
Offshore block names are bold and italicized
LNG Project
Ownership
(%)
Participation
Initial
Production
Contract Period Operator
Yemen LNG 6.9 1997 Oct. 2009 Dec. 2008 ~ Dec. 2033 Total(39.62%)
Peru LNG 20.0 2003 Oct. 2010 Dec. 2000 ~ Aug. 2044 Hunt(50%)
Oman LNG 0.8 1996 - - Shell(30%)
Qatar LNG 0.4 1999 - - ExxonMobil(24%)
37
Offshore block names are bold and italicized
Region Block Ownership (%) Participation Operator (%)
Kazakhstan Zhambyl 6.75 Jan. 2009 Kaz Munai Gas(73)
Indonesia NE Madura I 37.5 Oct. 2003 KNOC (50)
Vietnam
15-1/05 25 Apr. 2007 PVEP (40)
123 20 Jun. 2008 Santos (50)
Cote dlvoire Cl-01 15 1995 Afren (65)
Madagascar Majunga 10 Jun. 2006 ExxonMobil (50)
Australia
WA34R 10 Aug. 1998 ENI (39)
WA-425-P 30 Feb. 2009 Hunt (30)
WA-431-P 30 Apr. 2009 Hunt (30)
U.S.A. Iberia North 70 Oct. 2004 CSV
Peru Z-46 60 Jul. 2007 SK Innovation
Equatorial Guinea
Area D 9.4 1995 Marathon Oil (84.6)
Block S 25 Dec. 2009 CNOOC (45)
Colombia
CPE-5 28.6 Sep. 2008 BHP (71.4)
CPO-4 50 Dec. 2008 SK Innovation
SSJN 5 50 Dec. 2008 SK Innovation
VIM-2 100 2010 SK Innovation
SSJS-1 30 2010 Ecopetrol (70)
38
100 % 100 %
39.1% 83.1% 23.2% 94.1% 42.5% 40.0%
33.4%
31.8%
Netruck 92.4%
etc.
SK Petrochemical 100 %
etc.
100 %
1) Corporate name changed to SK Innovation & new subsidiaries SK Energy and SK Global Chemical spun off on Jan. 1, 2011
2) SK Lubricants spun off on Oct. 1, 2009
39
SK Innovation Investor Relations
Tel: +82-2-2121-5061~5, 5451~8
Fax: +82-2-2121-5698
E-mail: ir@sk.com
www.SKinnovation.com