HYUNDAI OILBANK Hyundai Heavy Industries Group Company

1

At a Glance

Fast Facts Financial Highlights

Energy is our VALUE

Establishment November 1964

CEO Mr. Moon, Jong-Bak

Refining Capacity 390 MBD

Number of Employees 1,775

Domestic Market shares 22.0% (No.3 in Korea)

Number of Service Stations 2,026

Major Products Petroleum and

Petrochemical products

2012 2013 2014

Sales 19,100 18,534 17,335

EBIT 274 368 183

Total Asset 7,549 7,852 7,312

The 20th largest refinery in the world with 390 MBD of refining capacity, soon to be 530 MBD (2016)

No.1 HOU ratio in Korea with 36.7%

Over 2,000 gas station with 22.0% market share

Named One of the Best Employers in Korea by Aon Hewitt

Daesan Refinery acclaimed three million man hours no accident in 2014, 3rd times in total

Declared a wage freeze for all employees in 2014, based on our will for co-prosperity

96% of Hyundai’s 1,800-plus employees have voluntarily chosen to participate in donating 1% of their payroll

Named a social responsible and reliable leader by the 2015 Management Transparency Awards by Korea Employers Federation In February 2015

Refining Value Expanding Value Empowering Value Sharing Value

(USD Millions)

※ In 2014, in contrast with other refining companies in Korea,

only HDO reports a positive operating income

Founded a JV with Cosmo to produce BTX

Formed a JV with Shell to produce Lubricant Base Oil

Launched Hyundai Chemical, a JV with Lotte, to pursue the condensate refining and MX manufacturing businesses

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Brief History Global Footprint

1964 Established as Kukdong Oil Industrial Company

1989 Completed construction of Daesan Plant (60 MBD)

1993 Became a Hyundai Affiliate company

1996 Relocated and commenced a 200 KBD facility

at Daesan (Dow’s Texas facility)

1998 Constructed a 400 Ktpa BTX plant

2002 Renamed to Hyundai Oilbank

2010 Became an affiliate

of the Hyundai Heavy Industries Group

2010

2000

1990

1980

1960

1999 Invested from IPIC

Merged Hanwha Energy and Energy Plaza

2009 Established HCP Pertochem, JV with Cosmo Oil

2011 Commenced #2 HOU plant

Completed construction of #2 BTX Plant,

Established HyundaI Oil Terminal

2012 Established HyundaI Shell Base Oil, a JV with Shell

★ Dubai

★ Singapore

★ Shanghai ○

★ Hanoi

2014 Established HyundaI Chemical,

a JV with Lotte Chemical

★ London

Achievements and Global Presence

Seoul Office

★

★ Daesan Head Office

& Refinery

Domestic Branch

3

91.1%

4.4%2.2%

1.4%Hyundai Steel

Hyundai Heavy Industries

Hyundai Motor Company

Hyundai Development

Shareholding Structure Hyundai Families

• World No. 1 shipbuilder and ship engine manufacturer

• 27affiliates

• World’s top five automobile company

• Produce 8 million automobiles in 10 factories across 9 countries

• 56 affiliates

• Korea’s No.1 manufacturer of paint and building materials

• Hyundai Merchant Marine

• Hyundai Department Store

• Hyundai Development Company

• Hyundai Marine & Fire Insurance

Factory Fueling Lubricant Chemical Engineering and

Construction

Stable Governance with Pan-Hyundai Advantage

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Chief Executive Officer Executive Officers

Seasoned Management

Moon, Jong Bak Representative Director, President & CEO

Previous Positions and Awards

SEVP & CFO / CSO, Hyundai Oilbank

President & CEO, HCP Hyundai Cosmo Petrochemical

President & CEO, HSB Hyundai and Shell Base Oil Company

CEO, HHI Hyundai Heavy Industries Holdings Company in China(~2010)

Awarded Best Management in Korea (Hankyung)

Kim, Byung Sub

Senior Executive Vice President

Head of Sales and Marketing

Chang, Ji Hak

Executive Vice President

Head of Global Business

Kang, Myoung Sub

Executive Vice President

Head of Projects and Constructions

Kang, Dal Ho

Senior Executive Vice President

Head of Safety & Production

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Strategically Positioned

Synergy within the Daesan Complex with scalable site

• A sole west-coast Korean refiner, close to East coast of China

(China is a net importer)

• Closest to metropolitan Seoul

• Historically, China policies have restricted exports to ensure

domestic supply

• Japan is a net importer, with oil product demand further

compounded by nuclear power shutdowns

• Australia has been shutting down inland refineries,

increasing net imports while Korean refineries meet the

strengthened regulations

Samsung Total :

Purchase Hydrogen, C4, C5, C6

Sell Naphtha, Steam

China

Net Importer

638,000 B/D

Japan

Net Importer

560,000 B/D

Japan

China

South Korea

Singapore

Singapore

Net Importer

716,000 B/D

Malaysia

Korea, Daesan

Seoul

Source: BP Statistical Review., Bloomberg.

KCC : Hyundai family.

Coating, Specialty chemicals.

LOTTE : Sells Steam,

Purchases Hydrogen

LG : Sells Naphtha and Steam,

Purchases Hydrogen

KNOC : Contingent Storage

“Secured future sites”

Geographic Advantage

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Naphtha8%

Gasoline16%

Kerosene1%

Jet fuel21%Diesel

39%

Bunker C3%

Others12%

Throughput & Utilization Rate Main Process Overview

Sales Breakdown (2014)

Process #1 #2 Total

Crude Distillation 110 280 390

Vacuum Distillation 78 - 78

Akylation - 18 18

LBO 20 20

HOU

Hydrocraking 40 - 40

Delayed Coking 35 - 35

RFCC - 68 68

Aromatics Benzene 120 115 235

Para-xylene 380 800 1,180

[ Sales by Volume] [ Export Destination ]

(Unit: MBD)

Expansion History

(Unit: Ktpa)

200

34

390

134

530

143

0

100

200

300

400

500

600

CDU HOU

400

1415

0

400

800

1200

1600

BTX

(1996)

(1999)

(1989)

(2013) (2014)

(2016)

(1998)

(Present)

Upgraded Refinery

(Unit : MBD, KTA)

334 313 309

345 366

339 322

86%

80% 79%

88%

94%

87% 83%

2008 2009 2010 2011 2012 2013 2014

China23%

Japan13%

USA6%

Oceania10%

Singapore22%

Others26%

(Unit: MBD)

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Domestic Market Share Lubricant Business

18.4% 18.5%

22.2% 22.0%

2008 2010 2012 2014

Major Sponsorship

K리그 스폰서 조인식

Customer Satisfaction Consumer Loyalty Co-marketing

K-LEAGUE title sponsor

since 2011

5 consecutive years

Co-marketing with

Hyundai Motor Group

Also implementing

co-marketing efforts with

other Hyundai affiliates

Customer Call Center

ranked No.1 in KS-QI

2014 (Korean Service

Quality Index)

Awarded

No.1 of KS-CQI

Membership reaches 12

million and continues to

grow

Securing customers with

information and feedback

2013 2014 2015 2016

Domestic Overseas

Quality Brand and Marketing Capability

Unit: DM

1,756

65,531

258,000

497,700

0

100,000

200,000

300,000

400,000

500,000

2013 2014 2015(e) 2016(e)

Domestic Overseas July

launch

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• Hyundai Chemical Co., Ltd, jointly owned by

Hyundai Oilbank and Lotte Chemical of the

Republic of Korea began to construct a new

Mixed Xylene production plant and supporting

facilities at the site of Hyundai Oilbank Daesan

refinery.

• The main objective of Condensate Crude

Refining and MX production Project is to

produce above 1,000 KMTA of Mixed Xylene

and other products.

• Hyundai Oilbank built and run at Daesan

refinery the #2 BTX plant in partnership with

Cosmo Oil of Japan.

• The #2 BTX plant increased our capacity by

800,000 tons of paraxylene and 130,000 tons of

benzene, actively targeting growing demand

from China, India, and other regional Asian

markets.

HYUNDAI COSMO Petrochemical HYUNDAI Chemical

Condensate → Mixed Xylene Business Mixed Xylene → BTX

Condensate 140KBD

MX 1,000 Ktpa Capacity

BZ 250 Ktpa

PX 1,180 Ktpa

USD 6,100 Mil Revenue USD 2,739 Mil

60% Share-holding

Ratio 50%

Expanding Value - Petrochemical

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• Hyundai Oilbank announced in Feb 2012 that it

has entered into a contract with Shell to

establish a joint venture and construct a

lubricant base oil plant.

• Mechanical completion was finished at the end

of April 2014 and commercial operation started

from Aug 2014.

• The JV supplies its high-quality products

to major Asian countries including China and

other regions as to meet the rapidly growing

lube base oil demand.

• Hyundai Oilbank entered the automobile engine

oil market by launching XTeer, a new lubricant

product, in 2013.

• 180,000 barrels of finished products annually

are serving demand at home and abroad.

• This will consist of expanding our distribution

network to include over 2,000 gas stations and

automobile repair shops nationwide.

* Sales Volume

Lubricants HYUNDAI and SHELL Base Oil

Lube Base Oil Business Lubricant Products

GⅡ Base Oil 650Ktpa Capacity 258,000 DM annually*

USD 857 Mil Revenue USD 100 Mil

60% Share-holding

Ratio 100%

Expanding Value - Lubricants

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• We established Hyundai Oil Terminal to pursue

the oil storage business more professionally.

The terminal has a storage capacity of 280,000

kiloliters and dock facilities capable of handling

tankers of up to 50,000 deadweight tons.

• The terminal securely stored the first arrival of

products in December 2013, attracting

customers for 100% of its total storage

capacity.

• We are to advance a higher value-added

business taking advantage of slurry oil, which is

a by-product of our FCC process.

• To proceed energy sales business(i.e. selling

energy to Petchem plants within Daesan

complex) by utilizing surplus steam available

from carbon black.

• Aim to complete the plant in Sep, 2016 and to

operate commercially in Nov.

Carbon Black HYUNDAI Oil Terminal

Oil Storage Business Carbon Black

280,000 KL Capacity 160,000 Ton annually(e)

USD 22 Mil Revenue USD 300 Mil(e)

70% Share-holding

Ratio 60%(e)

Expanding Value - Associated businesses

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Operational Recognition

Awards Received

ISO-14001 Certification from KFQ (Korean Foundation for Quality)

ISO-9001 Certification from KFQ (Korean Foundation for Quality)

ISO-14001 EMS (Environmental Management System) Certification

ISO-9001 QMS (Quality Management System) Certification

OHSAS-18001 Certification from KFQ (Korean Foundation for Quality)

OHSAS-18001 SMS (Safety and Health Management System)

KOLAS International Laboratory Qualification is accredited

Received No.1 of Knowledge

Management Awards 2014

Received the Minister of

Environment award in Global

Green Management Excellence

Awards 2014

Received the Presidential award

in Korean Safety Management

Awards 2014

Received No.1 of 2015

Management Transparency

Awards

Awards and Recognitions

12

Successful Upgrading Shutdown Days

The Best Place to Work in 2013

Awarded one shot startup of RFCC by UOP

• Hyundai Oilbank was named as one of the

2013 Best Employers in Korea by Aon Hewitt

in Feb 2013. The results judged that we

enjoyed high employee engagement pride,

and excellent CEO leadership.

• No labor dispute since 1964 • No strike declaration by

labor union, with agreement

to delegate wage increase

decisions to the management

36.7%34.6%

22.1% 20.8%

Hyundai GS Caltex S-Oil SK Energy

Empowering Value

5.68

1.94

0.99

0.53

1.02

0.29 0.20

0.79

0.23

2006 2007 2008 2009 2010 2011 2012 2013 2014

(Unit: days per 100,000 equivalent

distillation capacity)

* Solomon study (~2012), In-house Data (2013~14)

Cooperative Labor Relations

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Hyundai Oilbank 1% Nanum Foundation Supporting Local Communities

Volunteer activities Hiring the Disadvantaged

• Since September 2011, our employees have donated

1% of their monthly salaries to realize a warm and

sound society by reaching out to our neighbors in need.

We were the first large company in Korea whose

employees pledged to do so every month

• In September 2011, we completed Daejuk Park on a

17,400 square meter site, providing community

residents with access to cultural and sports activities

• In May 2014, we completed Hwagok Reservoir Park

in Seosan, providing local residents with a place

for rest and relaxation

• Support and encourage employee volunteer

service by making a financial contribution

(KRW 10,000 per volunteer hour) to the charities

they volunteer at. Our employees are providing over

5,000 hours of community service each year

• Operate employment programs that offer jobs to

the physically disabled to assist with self-sufficiency.

Since 2003, we have hired disabled individuals as car

wash attendants at our directly run gas stations in

cooperation with Korea Employment Agency

Sharing Value

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Disclaimer

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These materials have been provided to You by HDO in connection with an actual or potential business discussion or

engagement and may not be disclosed or referred to (in whole or in part) or used or relied upon for any other purpose

other than as specifically agreed by HDO. The information used in preparing these materials was obtained from or

through HDO, its representatives or public sources. While HDO has taken reasonable care in preparing these materials,

HDO has not independently verified the information contained in these materials. HDO, its affiliates and their respective

directors, officers or employees (the “Hyundai Heavy Industries (“HHI”) Group”) assume no responsibility for and do not

represent or warrant the completeness or accuracy of the information (whether written or oral) including estimates,

projections or forecasts (of future financial performance or otherwise) referred to in these materials or that may be

supplied in connection with these materials (“Information”). HDO is under no obligation to inform You or anyone about

any change (whether or not known to HDO) to the Information. You must make Your own independent judgment with

respect to any matter contained in these materials. The HHI Group will not be responsible for any losses or damages

which any person suffers or incurs as a result of relying upon or using these materials or as a result of any information

being omitted from these materials. These materials do not constitute an offer or commitment to arrange any form of

business and do not create any legally binding obligations on the HHI Group. The HHI Group does not owe any fiduciary

or other duties to You or any other person and the HHI Group may be involved in other transactions and services with

those who may have conflicting interests with You or any other person. If You do not accept any of the conditions above,

you must immediately return these materials and any copies of it, otherwise, the retention of these materials by You

shall evidence Your acceptance of such conditions.

Hyundai Oilbank Co., Ltd., a corporation organized and existing under the laws of the Republic of Korea (“Korea”), with

its registered head office located at 182, Pyeongsin 2-ro, Daesan-eup, Seosan-si, Chungcheongnam-do ,

Korea (“HDO”);

HDO (among various businesses) owns and operates an existing refinery plant, located at its Daesan industrial complex

(“Daesan Complex”) in the Republic of Korea;

Disclaimer