The earnings data for the second quarter of 2015 included in this press release have not been reviewed or audited by an external auditor and thus are subject to change in the event of an external audit. The data have been compiled _ base_d on a K-IFRS consolidated financial statement and on the operating profit calculated under the revised rules of No. 1001 of K-IFRS on the “Presentation of Financial Statements”. Please note that for this reason, the data on operating profit may differ from the previously disclosed figures.

Q3 sales fell 7.4% to 631.7 billion won from the same period one year ago due to the establishment of MCNS, while the operating profit rose 50% to 54.6 billion won, helped by a rise in the operating profit in chemicals. Net profit increased 2,158.2% to 221.3 billion won due to one-time non-operating gains from the disposal of assets held for sale.
Financial stability improved on a reduced debt-equity ratio following the establishment of MCNS (183.4% at the end of last year and 138.6% at the end of Q3), and interest expenses dropped on reduced borrowings.

[Chemicals]

ㅁ Q3 sales of 207.6 billion won, operating profit of 42.3 billion won, operating margin of 20.4%
The setup of MCNS, a polyol unit, brought sales down by 21.5% to 207.6 billion won from the same period last year while operating profit jumped 85.5% to 42.3 billion won during the same period, backed by tight Propylene Oxide (PO) demand and a supply imbalance in Asia, the addition of major new propylene glycol (PG) clients to the company’s client _ base_, and brisk sales of high value-added PG.

[Films]

ㅁ Q3 sales of 195.6 billion won, operating profit of 10.1 billion won, operating margin of 5.2%
Both sales and operating profit grew 10.2% and 20.2% to 195.6 billion won and 10.1 billion won, respectively, from the previous quarter, on the back of seasonally high demand for some products, amid the continuing lackluster performance of front industries such as displays.

[Subsidiaries]

ㅁ Q3 sales of 228.5 billion won, operating profit of 2.2 billion won
Sales grew 50% to 94.8 billion won year-on-year and the company turned around the operating loss to post 2.3 billion won in operating profit in line with the ongoing progress of SK Telesys’ business normalization efforts. Earnings were further boosted by the stable business performance of Bioland and SKC Air Gas.

Appendix 1. Earnings Data Based on Consolidated Financial Statements (Unit: 100 million won, %)

Appendix 2. Quarterly Earnings by Business Area (Unit: 100 million won)