Pursuit of Super Excellence 2017

Contents 1. SK Group at a Glance

2. SK Group Business Portfolio

01

SK Group Overview

SK Group Standings

SK Group Companies

SK Group Governance

SK Group At a Glance

1st Energy & Telecommunication

Korea’s leading company in Energy and Telecommunication

• No.1 player in energy & chemical sector and telecommunication service in Korea

• No.2 semiconductor manufacturer of the world

• 265 operating companies in the field of energy, chemical, IT, logistics and service

3

Summary Growth History SK Group Overview

Information, Telecommunication & Semiconductor

U$ 122 billion FY2015 Revenue

Energy & Chemicals 47% Marketing & Service

25%

28%

U$ 122 billion

’15 ’00 60 ’53 80

Continuous Growth Since 1953

Summary Growth History SK Group Overview

4

SEMICONDUCTOR New Growth

Founded as Sun Kyong Textiles

THE BEGINNING From Textiles

1953

1969

1978

Began polyester fabrication

First Korean company to Develop polyester films

1980

1988

1991

Privatization of Korean Oil Corp-Yukong (now SK Innovation)

Began production from Overseas oil fields (Yemen)

Completed vertical integration In energy business

TEXTILES TO PETROLEUM Vertical Integration 1994

1996

2006

Acquisition of Korea Mobile (now SK Telecom)

World’s first CDMA

Marked over 20 million mobile subscriber (M/S 50%)

2007

2012

2013

Reorganized into a holding company

Acquisition of Hynix Semiconductor (now SK Hynix)

Exports reached USD 60 Billion (over 10% of Total Korean exports)

TELECOMMUNICATIONS Expansion to ICT

Summary Growth History

SK's Quantum Leaps

SK Group Overview

5

319

Revenue & Net Profit Unit : Billion US$ (EX rate : 1,100 KRW / USD)

CY 2015

3rd

Largest Enterprise in Korea

125

277

224

129

20 14 12

4

146 190

96

317

Total Asset Unit : Billion US$ (EX rate : 1,100 KRW / USD)

6

SK Group Standings Domestic Worldwide

Ranked 1st in Oil & Gas Sector and Telecommunication Sector

Oil & Gas Sector

Telecommunication Sector

3rd Largest in sales (U$ 122 Bil.) and in assets (U$ 142 Bil.)

Significant Part of Korean Economy

9.2% 11.2% Of Korean GDP Of Korean export

2nd 3rd 4th 5th 6th 1st

A Growth Engine for Korean Economy

7

Domestic Worldwide SK Group Standings

57th Global Fortune 500 (2015)

Global Networks

263 Affiliates/Branches

Global Assets

U$ 22 Billion

Global Talents

15,720 Talents (As of 2015) 2nd 3rd 15th 57th 1st 82nd 56th

Worldwide

A Highly Recognized Global Company

8

SK Group Standings Domestic

3 Major Business Domain

9

Energy & Chemical Information &

Telecommunication Marketing & Logistics

holding companies

SK Group Companies Company Description Structure

Energy & Chemicals

37 Companies

13,240 Employees U$ 55.7 billion

: E&P, future energy, R&D

: Oil refining & marketing

: Lubricant

: Holding co. of LNG distributors, Power generation

: Chemical & Electronic materials

: Green chemicals, life science

: LPG marketing & trading

: Mobile service provider

: Commerce platform service

: Memory Semiconductor

: International call & VoIP service

: Internet Portal, SNS / messaging

: Trading, ICT Marketing, Energy Distribution, Consumer Goods

: Engineering, procurement, construction

: Marine transportation

: Investment bank, Wealth management

: Petrochemicals

: High-speed internet, telephone, IPTV

U$ 52.4billion 18 Companies

38,016 Employees

Information, Telecommunication & Semiconductor

: IT Solutions & Consulting

U$ 33.9 billion 31 Companies

31,422 Employees

A Global Conglomerate of 86 Businesses and 82,700 Talents

Marketing & Service

10

SK Group Companies Company Description Structure

A Holding Company Structure

2007 Established a holding company structure

2015* Streamlined the holding company structure for the more transparent and efficient SK group governance

* Merger of SK Holdings and SK C&C (1st of August, 2015)

11

SK Group Governance

02

Energy & Chemicals

Information, Telecommunication & Semiconductor

Marketing & Service

SK Global Presence

Business Portfolio

Green Chemicals (Eco-friendly materials and bio energy) Life Science (Biopharmaceuticals And Pharmaceuticals)

Chemicals Films Advanced Materials (Semiconductor, Organic-Inorganic, Healthcare)

Petroleum Development Batteries Information & Electronics Materials Future Energy

Production of Petrochemical Products

Lubricants Base Oil

Trading of Crude Oil & Petroleum Products

LNG (Shale Gas) Power Generation Domestic and Overseas City Gas New and Renewable Energy

LPG Marketing Global LPG Trading LPG Import Base Operation Tank Terminal PDH(Propane De-Hydrogenation)

Refining (Petroleum, Gas, and Special Products) & Marketing

Energy & Chemicals

13

A Fully Integrated Energy and Petrochemical Player

Snapshot Scheme

Exploration & Production No.1 Energy Provider in Korea World’s No.1 Group III Base Oil Producer

Sales U$ 1.5 bil. (U$ 42.7 bil.) Employees 1,522

- 20 projects in 11 Countries with 623 million oil & gas reserves and 73,000 boed production

Sales U$ 24.6 bil. (U$ 24.7 bil) Employees 2,480

- The 2nd largest single-site refinery (Ulsan Complex) in the world (840,000 b/d CDU) - Asphalt M/S No. 1 in Korea

Global Top-tier Chemical Company

- Market expansion collaborating with global major companies (Sinopec, SABIC, JX, etc.) - Tech. innovation related to high-performance products (NexleneTM) - Global major player in Paraxylene sector

- Accounts more than 35% of Group III market - Korea brand power No. 1 in engine oil sector for 17 consecutive years - Operating JV LBO plants with global partners (Pertamina, JX, Repsol, etc.)

Sales U$ 9.3 bil. (U$ 9.9 bil.) Employees 1,027

Sales U$ 2.1 bil. (U$ 2.6 bil.) Employees 295

( ) Based on consolidated financial statements

Energy & Chemicals

14

Snapshot of SK Affiliates

Snapshot Scheme

Green Chemicals

- The 1st successful production of eco-friendly/bio-based plastic resin in the world('09, ECOZENTM)

Global Specialty Material Company – A leader in Chemical & Film Industry

- A leading company in Polyurethane sector and the first in the world to commercialize ‘HPPO’ plant - Global M/S No. 1 in Optical film business for LCD and No. 4 producer in Polyester film maker

No. 1 City Gas Distributor in Korea

- Accounts 21.5% of domestic Market

Sales U$ 1.5 bil. (U$ 2.3 bil.) Employees 1,588

Sales U$ 0.9 bil. (U$ 4.7 bil.) Employees 1,683

Sales U$ 2.5 bil. (U$ 3.6 bil.) Employees 333

No. 1 LPG Player in Korea

- Accounts over 50% of imported LPG distribution - Top LPG trading co. in Korea for

over 20 years and big-scale LPG terminal (470,000 tons capacity)

- Business expansion to PDH and coal power plants

Sales U$ 0.6 bil. (U$ 4.1 bil.) Employees 332

Life Science

- Total healthcare solution provider – vaccine(domestic M/S No.1), medicine, etc.

Global LNG Value Chain Integration

- Shale gas E&P, LNG direct import, LNG Trading, LNG terminal and Power plants operation

( ) Based on consolidated financial statements 15

Snapshot Scheme Energy & Chemicals

Snapshot of SK Affiliates

Mobile Communications Mobile Communications Network, B2B Solutions Health Care Lifeware

O2O & e-Commerce Digital Content Marketing Communication

Repeaters, CPE(Giga-WiFi, AP), Transmission/LTE Equipment Smartphone R&D, FEMS, High-Efficiency Electric Installation

International Calls Mobile Virtual Network Operator

Integrated Portal, Integrated Communication Messenger, Mobile Service

Consulting System Integration IT Outsourcing Security Service

DRAM NAND Flash CIS

16

Information, Telecommunication & Semiconductor Snapshot Scheme

An Innovative ICT Service Provider and Leading Memory Semiconductor Manufacturer

The 1st Telecommunication Company in Korea

- Over 28 million mobile subscriber (M/S 50%)

- Top ranking in the Korean Customer satisfaction Index for 16 consecutive years

- Global tech. leadership – Winning ‘Prestigious LTE Award at LTE World Summit 2013’

Offering Integrated Commerce Platform Services

- O2O commerce business in Korea & US (O2O: Online to Offline)

- e-commerce business in Korea, Malaysia, Indonesia, Turkey

- Providing digital contents – e.g. Mobile navigation(T map), App market (T store), etc.

Sales U$ 1.5 bil. Employees 2,080

Sales U$ 11.1 bil. (U$ 15.1 bil.) Employees 4,046

World No. 2 Player in DRAM Market

- No. 4 in overall semiconductor market

- Exports over 90% of total revenue based on global network (16 countries)

- World leading R&D competitiveness

Sales U$ 16.6 bil. (U$ 16.6 bil.) Employees 22,061

Global ICT Service Leader

Sales U$ 1.8 bil. Employees 4,164

( ) Based on consolidated financial statements

- Providing premium IT services in system integration, outsourcing, info. security, etc.

- The 1st Korean IT co. listed in the Dow Jones Sustainability Index World for 3 consecutive years (’12~)

- Expansion to new business area with IT synergy : Used car sales (No.1 in Korea), semiconductor module distribution, etc.

17

Snapshot Scheme Information, Telecommunication & Semiconductor

Snapshot of SK Affiliates

Trading ICT Marketing Energy Distribution Car-Life Fashion & Consumer Goods Hotel Service

Chemical and Power Plants Infrastructure Architecture & Housing u-Businesses

Marine Transportation (Crude Oil, LNG, LPG, Coal, Iron Ore, Steel Product) Ocean Bunkering

Wealth Management Securities Brokerage & Underwriting

18

Snapshot Scheme Marketing & Service

A Diversified Global Marketing & Service Provider

World-class Trading & Marketing Company

- 52 worksites in 15 countries, industrial commodity trader (coal, chemical and steel products) - Korea No. 1 mobile device & petroleum product distributor - Korea Brand Power No. 1 in automobile maintenance service sector for 12 consecutive years - Global fashion trendsetter and top-quality hotel/DFS service provider

Build the Great – Global Total Solution Provider

- 57 global projects in 22 countries with 33 overseas affiliates/branches - Top-notch technical expertise and outstanding project management capability - The first Korean company to land

the World’s largest oil sands plant project

- Successful performance in Infrastructure project development

Global Top Shipping Co. in Resources Transport

- Largest domestic crude oil and LNG transportation operator - Responsible for more than 1/3 of imported crude oil in Korea - Ranked 1st in M/S among global bunkering operators

Sales U$ 7.7 bil. (U$ 8.3 bil.) Employees 6,226

Sales U$ 16.5 bil. (U$ 18.0 bil.) Employees 3,187

Sales U$ 1.2 bil. (U$ 1.8 bil.) Employees 962

Total Financial Service Provider

Sales U$ 0.4 bil. (U$ 0.4 bil.) Employees 808

( ) Based on consolidated financial statements

- PEF cumulative size No.1 in securities industry - Top-tier company in the domestic bond underwriting sector - 1st ranker of the Korea Customer Satisfaction Brand Index for three consecutive years in 2013~2015 - Winning the grand prize of ‘2014 Compliance Awards’ by Korea Exchange

19

Snapshot Scheme Marketing & Service

Snapshot of SK Affiliates

OCEANIA / REST OF ASIA

EUROPE

Asset Size

15,720 Talents

U$22 bil. Assets

263 Affiliates/Branches

410 Talents

U$1.4 bil. Assets

27 Affiliates/Branches

MENAT

690 Talents

U$0.4 bil. Assets

19 Affiliates/Branches

SOUTHEAST ASIA

850 Talents

U$3.2 bil. Assets

38 Affiliates/Branches

460 Talents

U$1.7 bil. Assets

23 Affiliates/Branches

LATIN AMERICA

30 Talents

U$1.2 bil. Assets

5 Affiliates/Branches

NORTH AMERICA

1,530 Talents

U$4 bil. Assets

37 Affiliates/Branches

CHINA

11,740 Talents

U$10 bil. Assets

114 Affiliates/Branches

SK Global Presence

Expanding Global Outreach

20

Thank You