Investor Relations 2011

2

Contents

Company overview

Product portfolio

Sales breakdown

Long term contracts

Capacity expansion plan

• DNT

• Ammonium nitrate

• MNB

• Nitric acid

Capex plan

Green growth business

Huchems in 2015

Future growth strategies

Outlook of polyurethane

2011 earnings review

Summary of historical P&L

Appendix

3

Company overview

Key takeaways Locations

Company Huchems Fine Chemical Corp.

EstablishedSep. 15, 2002

Spun off from Namhae Chemical Corp.

Listed Oct. 7, 2002

CEO Mr. Jung, Kyong Duck

Paid-in capital W40.9bn

Number of

employees216

Key products

Own products 86%

Trade 13%

CDM 1%

<Plant site 1> <Plant site 2>

• Area: 340,000m2

• Capacity: 1.1mMT/yr

• Area: 115,000m2

• Plant 2 starting from 2012

4

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

5

Product

2010 1H 2011

Total sales(Wbn) Total (%) Utilization rate(%) Total sales(Wbn) Total (%) Utilization rate(%)

Own product

Nitric acid 92 17% 101% 47 16% 99%

DNT 183 34% 100% 109 35% 78%

MNB 151 28% 99% 86 28% 98%

Ammonium

nitrate34 6% 102% 17 6% 97%

Trade 74 14% - 41 13%

CDM 5 1% - 7 1% -

Total 539 100% - 307 100% 93%

Sales breakdown

※The newly built DNT plant (60,000 tons pa) started operations in 2Q

6

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 acidBASF Korea 15-year 2003~2018

Rhodia Polyamide 8-year 2008~2016

MNB Kumho Mitsui Chemical 15-year 2009~2024

DNT

KPX Fine Chemical6-year 2008~2013

10-year 2011~2021

OCI 2-year2008~

(automatically extended bi-yearly)

Ammonium

nitrateKoryo 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

7

#4 DNT plant construction

Expectation

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

Construction and test-run are successfully completed

Agreed with customer for 10 year contract

8

Expansion through debottlenecking

Capacity to be increased to 80ktons

Total US$10m to be invested

Increase of market share in Japan and SE Asia

Export target

0.6

45

9

18

78%

CAGR 134%

Capacity expansion plan

(Unit: MT)

(Unit: US$m)

2007 2008 2009 2010 2011(E)

2009 2010 2011(E)

45,00053,000

80,000

Ammonium nitrate

9

Capacity expansion plan

2009 2010 2012(E)

150,000170,000

320,0002nd expansion

88%

1st expansion

12%

MNB (Mono Nitro Benzene)

(Unit: MT)#2 MNB plant construction

Capacity to be increased by 150ktons

Total US$30m to be invested

Commercial production to be commenced in 3Q12

Minimum investment cost for maximum turnover & profitability

Expectation

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

10

Capacity expansion plan

#5 Nitric acid plant construction

Nitric acid

Capacity to be increased by 400ktons

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

(Unit: MT)

11

Product

Capacity(MT)

Capex(US$m) Completion

Existing Additional Total

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

Ammonium nitrate 53,000 27,000 80,000 10 4Q 2011

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

MNB 170,000 150,000 320,000 30 3Q 2012

Total 1,043,000 637,000 1,680,000 290

CAPEX plan

12

Green growth business

Carbon76%

UN2%

Huchems

22%

(2007~2012) (post 2012)

CDM earning sharing

CDM business review

- 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

UN2%

Huchems

98%

Post 2012

2007 2008 2009 2010

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

Expected revenue

1H 2011 2012(E) 2013(E)~

US$6.6m US$6m US$20m

13

Huchems in 2015

(bnW)

1.2tnW sales in 2015

300

600

900

1,200

2009 2010 2011(E) 2012(E) 2013(E) 2014(E) 2015(E)

A project

#1 MNB

#4 DNT &Ammonium

nitrate

#5 Nitric acid & #2 MNB

100% CDM

B project

14

Future growth strategies

Continuous growth

Globalization

Nitric acid

DNT

MNB

Ammonia

Benzene

Toluene

TDI

MDI

AA

Upstream Downstream

Increase market share in Japan, China and SE Asia

Overseas production base

Integration to upstream & downstream

Secure original technologies to increase competitiveness

Searching new business opportunities for long-term growth

15

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

17,53918,700

20,596

North

America

EU

Asia

11.0%

12.6%

28.0%

49.3%

Outlook of polyurethane

Polyurethane market analysis Polyurethane consumption structure

[Source: Fuji Research , ADL Analysis] [Source: Data Monitor, ADL Analysis ] [As of 2009]

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

16

2011 earnings review

(Wbn)2011 2010

1H 2011 1H 2010 YoY2Q 1Q QoQ 2Q YoY

Sales 156.6 150.3 4.2% 125.3 25.0% 306.9 265.1 15.8%

Operating profit 22.6 18.0 25.1% 18.0 25.5% 40.6 42.7 -4.9%

Pre-tax profit 23.2 19.6 18.6% 18.5 25.9% 42.8 47.7 -10.2%

Net profit 18.4 15.7 17.1% 14.6 26.1% 34.1 36.8 -7.2%

※ 2Q10, 1Q11, 2Q11 financial information are K-IFRS non- consolidated basis

Sales recorded 157bnW, improved by 25% YoY and 4% QoQ, driven by increases of product prices

Operating profit was 23bnW, increased by 26% YoY and 25% QoQ due to growing CDM sales.

Net profit totalled 18bnW improved 26% YoY and 17% QoQ.

2Q FY11 Performance

17

Summary of historical P&L

(US$m) 2006 2007 2008 2009 2010 1H 2011

Sales 301 302 416 452 539 307

Operating profit 22 38 46 83 76 41

Pre-tax profit 21 40 59 87 87 43

Net profit 15 28 40 67 67 34

Sales Operating profit

2006 2007 2008 2009 20102006 2007 2008 2009 2010

CAGR 15.7% CAGR 37.4%

Appendix

19

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%

Foreigninvestor11.1%

Stock overview

Largest Shareholder Stake

Taekwang Industrial 11.1%

Mr. Yeon-Cha Park 10.9%

Jeongsan 6.2%

Taekwang MTC 4.0%

Other related parties 4.8%

Total 37.0%

Code : 069260 KS

Face value : 1,000W

Market cap : W1,051bn

Avg Trading Value (60D): W7.0bn

Largest shareholder,

37.0%

NACF, 8.3%

National pension,

7.5%

Foreign ownership,

13.0%

Domestic investor &

minority shareholders

34.2%

20

Dividends

2005 2006 2007 2008 2009 2010

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

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

Dividends(Wbn) 3.8 5.5 10.4 20.4 31.9 32.7

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

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

Dividends Trend Payout Trend

Dividends

2005 2006 2007 2008 2009 2010

3.85.5

10.4

20.4

31.9 32.7

2005 2006 2007 2008 2009 2010

46.3%

36.6% 36.9%

50.7%48.0% 48.5%

(unit:Wbn)

2.4%3.0%

2.6%

4.7% 4.8%

3.9%

Dividend

yield

21

Financial Statements

Balance sheet Income statement

<Wmn> 2Q 2011 1Q 2011 2010

Total assets 664,201 675,476 576,755

Fixed assets 258,269 243,735 223,944

Current assets 405,932 431,741 352,811

Shareholders’ equity 429,090 408,510 423,706

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

Capital surplus 181,842 181,841 181,842

Accumulated other comprehensive

income3,947 1,808 0

Retained earnings 202,422 183,982 200,985

Total liabilities 235,111 266,966 153,049

Long-term debt 59,482 43,847 3,501

Current liabilities 175,629 223,119 149,548

Total liab, SE 664,201 675,476 576,755

<Wmn> 1H 2011 1H 2010 2010

Sales 306,920 265,071 539,342

Cost of sales 251,262 206,230 427,282

Gross profit 55,658 58,842 112,059

Other profit 2,834 605 4,487

SG&A 15,694 16,216 35,356

Other expense 2,181 522 1,542

Operating profit 40,617 42,709 79,648

Net finance income 2,209 4,956 10,188

Pretax profit 42,826 47,665 89,836

Tax 8,686 10,876 19,316

Net profit 34,140 36,789 70,520

Forward-looking statements in this presentation material reflect the current views of Huchems with respect to future events and financial performance, and are subject to certain risks and uncertainties,

which could cause actual results to differ materially from those anticipated.

Huchems believes the expectations reflected in this material are based on reasonable assumptions, but gives no assurance that the expectations will be realized.

19F, Kukdong Bldg. 60-1 Chungmuro 3ga, Junggu, Seoul, Korea

Investor Relations : T. 822-2262-0664, email : sinamon@huchems.com

www.huchems.com