SK Innovation NDR PT 2011Aug Daeshin final · SK Innovation, and plans and objectives of the management of SK Innovation. Statements that are not historical facts, including statements

Technology-Driven Global Energy Company

February 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 Innovation’s 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

- US∙Europe 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

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

E

20

13

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 :

① Deterioration of old facilities (US/Europe/Japan) ② 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 China’s 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]

DumaiLBO JV(Indonesia,

w/ Pertamina)

CartagenaLBO JV(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 JV(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 SKI’s 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, GreenPolTM, 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

Korea’s No. 1 energy provider

Asia’s 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

52,60643,679

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 20112009

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 20112008

15

EBITDA 2,518 1,890 2,408 3,363

Dividends Income 45 29 29 110

Asset Disposals 114 366 278 2,313

CAPEX 1,659 1,095 807 1,478

Equity Investment 106 64 128 325

Interest Expense 453 444 384 300

Dividend Payout 195 195 195 195

Corp. Tax 70 140 273 780

Free Cash Flow 194 347 928 2,708

(bn KRW) 2009 2010 20112008

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

16

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 OilDiesel/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

17

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

market18

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 China’s 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

19

Operating profit decrease due to reduced product spreads and one-off items

Chemical margins are expected to show gradual recovery

with the Chinese Government’s 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 China’s 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

20

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/DTotal

OilPortion

Peru

88

Vietnam

15-1Peru

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

21

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

40,00040,500 41,700

44,022

51,764

66,78566,809

64,66463,175 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

22

* Gas 378 mn boe = 2.27tcf (trillion cubic feet)

Oil Gas Total

Peru 88&56

Vietnam

Peru 88&56

YLNG515 mn bbl

Others Others 19 mn bbl

128 mn bbl 406 mn boe* 534 mn bbl

400440

500 520 503

534

300

500

2005 2006 2007 2008 2009 2010

(Mn BOE/D)

Oil & Gas Ratio534 Million Barrels (P1) Breakdown

Proven Reserve By RegionProven Reserve Growth (P1)

* As of the End of Dec 2010

Gas76%

Oil24%

* As of the End of Dec 2010

LatinAmerica78.1%

MiddleEast

19.1%

Africa 0.4%

SE Asia 2.5%

23

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 Japan’s JX Energy

- JV project with Spain’s 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

depreciation in contrast to the sharp KRW appreciation

at the end of September, which resulted in FX related

translation gains in 3Q24

Lithium-ion Battery Technology

I/E Materials : LiBS / FCCL / TAC

Green Tech : Geen Pol / Green CoalTM

IV. New Growth Momentum

25

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

20122011

• Supply to HMC

• Awarded Daimler’s

EV Project

20102009

Milestone

Contracts

JV with Continental to focus on

LIB systems for automotive customers

26

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

27

Location Line Capacity Operation Usage

ChungJoo #1~#3 58 ‘05~’09

IT

Materials

Jeung

Pyoeng

#4~#5 72 ’10

#6~#7 72 ‘12xEV

Battery

Total 202 by ‘12

SK Innovation’s LiBS Capacity (unit: Mn m2 /year)

Become a Global Top 3 player in premium LiBS market (1st 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

28

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 LineUnder

construction

[unit: bn USD]

Display

Mobile IT

1.50

0.88

0.46

2008 2015

0.72

Construction Start-up

SK Innovation’s FCCL Capacity

(unit: Mn m2 /year)

( Source : Displaybank )

29

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 productionMechanical Completion

Construction Start-up

TAC Film Application

Domestic

Global

(Unit: bn USD)

( Source : Displaybank )

2010 2011 2012

Commercial Test

30

Propylene Oxide

(56%)

CO2 (44%)SK Innovation’s

Proprietary Catalyst

Converting CO2 into value added polymer products through Green Pol™

Producing environment friendly polymer products using breakthrough technology

GreenPolTM

Clean burning with no soot or toxic gas

Superior optical properties

Enhanced barrier properties(O2/H2O)

Less expensive to make than conventional polymer products

Advantages of GreenPol™

2009~2010 2011~2012 2013~2014

• Pilot Plant Operation

• Market Development

(Cont’d)

• Commercial Plant Construction

& Commercial Test

• Market Development

• Commercial

Production

31

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 CO2 emission and low cost

Chemical

Products

Electricity

Synthetic

Petroleum

Current

Tech.

CO+H2

1,500℃

1,000℃

Advanced

Tech.

High Quality

Low Quality

ProductsGasifyCoal

※ Participated in Korean government-sponsored project with POSCO, government aid of 25bn KRW (’11~’12)

32

Korea Refining & Petrochem Landscape

Utilization Rate

Product Sales

Maintenance Schedule

E&P Blocks

Holding Company Structure

V. Appendix

33

* 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

*

34

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%

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(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 4Q114Q10

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

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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) -

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Region (Oil & Gas)Ownership

(%)Participation

Initial

ProductionContract 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 d’Ivoire /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 ProjectOwnership

(%)Participation

Initial

ProductionContract 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%)

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※ 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)

Vietnam15-1/05 25 Apr. 2007 PVEP (40)

123 20 Jun. 2008 Santos (50)

Cote d’lvoire 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 GuineaArea 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)

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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

40

SK Innovation Investor Relations

Tel: +82-2-2121-5061~5, 5451~8

Fax: +82-2-2121-5698

E-mail: [email protected]

www.SKinnovation.com

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