Sk Innovation Co., Ltd · KRX:096770

Sk Innovation — Q3 2005 Earnings Presentation

31 slides from Sk Innovation's earnings presentation, Oct 27, 2005

  1. Slide 1: 2005 3Q Earnings Presentation

    2005 3 2005. 10. 27 SK

  2. Slide 2: 2005 · . ,

    2005 3 · . , 1

  3. Slide 3: Contents

    1. 2005 3 2. 2005 3 [ ] Appendix 2

  4. Slide 4: 1. 2005 3Q Results

    1. 2005 3 3

  5. Slide 5: Income statement summary

    ’04 3Q ’05 2Q ’05 3Q (%) 44,728 51,817 57,549 12,821 (29) 4,155 2,374 3,331 -824 (-20) 324 2,908 1,515 1,191 (368) 4,479 5,282 4,846 367 (8) 4

  6. Slide 6: Sales by business

    ’04 3Q ’05 2Q ’05 3Q (%) 29,739 37,534 41,680 11,941 (40) 11,823 10,937 12,288 465 (4) 757 824 991 234 (31) 1,590 1,684 1,736 146 (9) 819 824 854 35 (4) 44,728 51,817 57,549 12,821 (29) 5

  7. Slide 7: Operating profit by business

    ’04 3Q ’05 2Q ’05 3Q ( ) (%) 1,157 611 1,220 (2.9) 63 (5) 2,109 830 1,071 (8.7) -1,038 (-49) 529 581 689 (69.5) 160 (30) 302 246 296 (17.1) -6 (-2) 58 106 55 (6.4) -3 (-5) 4,155 2,374 3,331 (5.8) - 824 (-20) 6

  8. Slide 8: Non-operating items and cash flow

    ’04 3Q ’05 2Q ’05 3Q -542 -510 - 537 5 83 -1 -242 - 325 1,553 1,094 1,455 -98 - 770 2,325 839 1,609 324 2,908 1,515 1,191 1) ’05 3 : 13.6/U$ (6 1,024.4/U$ 9 1,038.0/U$ ) 2) ’05 3 : SK (1,062 ), SK (99 ), SK (111 ) 3) : EB 1,193 ( 3,822 ) 7

  9. Slide 9: Balance sheet and debt

    ’04.12 ’05. 6 ’05. 9 148,600 158,730 166,912 81,753 86,416 90,495 (45,446) (45,074) (52,175) 66,847 72,313 76,417 ( 6,506 ) (6,526) (6,533) 122 % 120 % 118 % 74 % 62 % 64 % 8

  10. Slide 10: Debt breakdown

    ’04.12 ’05. 6 ’05. 9 11,977 10,417 14,352 33,469 34,657 37,823 45,446 45,074 52,175 7,231 4,050 3,500 52,677 49,124 55,675 (c) 3,505 4,137 6,721 (a+b-c) 49,172 44,987 48,954 * ’05. 9 : ABS Factoring (3,500 ) 9

  11. Slide 11: 2. 2005 3Q Business Review

    2. 2005 3 10

  12. Slide 12: Crack spreads

    / (Crack) Crack (US$/B) 25 Diesel/ Dubai B-C/Dubai Naphtha/ Dubai 23 ‰ B-C crack: 7~8 21 19 - B-C 17 - Arbitrage cargo 15 - 13 11 9 7 ‰ Naphtha crack: 8 Positive 5 - 3 1 - Gasoline blending Naphtha (1) 04.1 2 3 4 5 6 7 8 9 10 11 12 05.1 2 3 4 5 6 7 8 9 10 (3) (5) (7) ‰ Diesel Crack (9) - (11) - Dies

  13. Slide 13: Cracking spread trends

    ( ) ( ) (US$/B) 8 ‰ : 7~8 ,9 - 7~8 : Bunker C crack 55 7 -9 : 50 6 ‰ Cracking : 5 - Gasoline/B-C crack: 2 43% 45 - Diesel/B-C crack: 2 11% 4 40 * , , Crack (US$/B) 3 35 2 30 1 0 25 -1 20 -2 15 -3 ‰4 : ’04. 10 ’05. -4 - 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 - ’05.9 Source : Company - 12

  14. Slide 14: ( ) (30%) (14%) ( , ) ‰ ‰ ‰ ‰ ( : )

    ( ) (30%) (14%) ( , ) ‰ ‰ ‰ ‰ ( : ) 13

  15. Slide 15: Utilization and maintenance

    ( ) 52%, 50% ‰ - Maintenance 6% (’04.3 82%, ’05.3 88%) ‰ - 50% - , 14

  16. Slide 16: Olefin spread

    - spread (YoY) - (QoQ) Olefin spread (US$/Ton) ‰ spread (US$/Ton) 900 ’04 3Q ’05.2Q ’05 3Q 800 Naphtha 372 416 504 700 Ethylene spread 671 324 442 600 Propylene spread 546 491 471 500 ‰ 400 - (Gasoline Blending ) 300 - 200 ‰ 100 - Naph -Naph PP-Naph - / 0 '04.1 2 3 4 5 6 7 8 9 10 11 12'05.1 2 3 4 5

  17. Slide 17: Aromatic spread

    ( ) (Reformate) spread Aromatic Spread (US$/Ton) ‰ Spread (US$/Ton) ’04 3Q ’05 2Q ’05 3Q 1200 Benzene 739 411 301 1000 PX 482 401 382 SM 952 609 556 800 * spread: ‰ (Reformate) 600 - 400 (US$/Ton) ’04 3Q ’05.3Q 200 Reformate Premium1) 92 169 PX-Naph SM-Naph BZ-Naph 1) Reformate- Naphtha 0 '04.1 2 3

  18. Slide 18: Marketing

    ( ) / Marketing ( ) ‰ : , PE spot PE/PP: ‰ PX: SM: 4Q ) , Source: Company 17

  19. Slide 19: Products and reformate premium

    ( ) ( ) ‰ (US$/ton) Product ‘04 3Q ’05.2Q ‘05 3Q Naphtha 372 416 504 Reformate 92 107 169 Premium1) 1) Reformate- Naphtha - Naphtha: 35% Reformate: 84% ‰ - - Flexible >> ( ) ’04.1Q ’04.2Q ’04.3Q ’04.4Q ’05.1Q ’05.2Q ’05.3Q Source: Company 18

  20. Slide 20: LNG

    - 30% - LNG (YLNG, PLNG) / ( ) (US$/B) 1,200 70 ‰ - : 4 61.7 60 - : 26,000 / 1,000 - / : 8 50 800 41.7 - : 11 * YLNG 40 600 (1 ) 757 30 ‰ LNG (8 ) 400 529 688 991 20 200 10 0 0 '04 3Q '05 3Q (LHS) (LHS) Brent (RHS) 19

  21. Slide 21: ‰ 1,736 1,590 '04 3Q '05 3Q

    ‰ 1,736 1,590 '04 3Q '05 3Q 20

  22. Slide 22: 21

    21

  23. Slide 23: Appendix

    Appendix; 1. ( ) 2. / PLANT 3. ( / ) 4. /

  24. Slide 24: Crude oil sourcing

    1. ( ) ( : / ) Diesel Diesel Kero B-C Kero B-C Gasoline Gasoline Source: KNOC

  25. Slide 25: Plant utilization rates

    2. / Plant (SK Corp) ‰ Plant * CDU: 810,000 b/d, HOU 45,000 b/d, RFCC 57,000 b/d ‰ Plant ’04.2Q ’04.3Q ’04.4Q ’05.1Q ’05.2Q ’05.3Q Average NCC 100% 100% 100% 100% 100% 100% 100% PX 95% 95% 95% 95% * 64% 95% 85% PE 89% 89% 83% 85% 94% 84% 88% PP 100% 100% 100% 100% 100% 100% 100% * (5 ~6 )

  26. Slide 26: 3-A

    3- A.

  27. Slide 27: 3-B

    3- B.

  28. Slide 28: 4-A

    4-A. ( : ) ’ ’ ’ ’ ’ ’ ’ ’

  29. Slide 29: 4-B

    4-B. – ( : ) ’ ’ ’ ’ ’ ’ ’ ’

  30. Slide 30: 4-C

    4-C. – ( : ) ’ ’ ’ ’ ’ ’ ’ ’

  31. Slide 31: 4-D E&P

    4-D. – /E&P/ ( : ) ’ ’ ’ ’ ’ ’ ’ ’ ’ ’ ’ ’

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