The earnings data for 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. These 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.

Sales slipped 8.5% to 2,564.8 billion won in 2015, but operating profit reached a record high of 218.1 billion won, representing a 43.1% rise from the previous year.
Operating profit rose considerably due to the improved sales of chemicals, a stable profit _ base_ of the films business, and improvements to the fundamentals of subsidiaries, including business normalization at SK Telesys. Net profit increased sharply as a result of large one-time gains from the sale associated with the creation of MCNS.


[Chemicals]

ㅁ 2015 sales reached 881.2 billion won, operating profit 169.9 billion won, operating margin 19.3%
Sales decreased 18.8% to 881.2 billion won year-on-year due to the launch of MCNS in the polyol business in the third quarter, while operating profit increased 77% to 169.9 billion won, which is attributed to the high propylene oxide (PO) demand in Asia and the growing sales of high value-added propylene glycol (PG) products.


[Films]

ㅁ 2015 sales amounted to 35.0 billion won, operating profit 32.4 billion won, operating margin 4.4%
The operating margin reached 4.4% on profits from the increase in sales of high value-added products, despite the challenging business circumstances, including sluggish front industries such as displays and IT, and the continuing oversupply of PET films.


[Subsidiaries]

ㅁ 2015 sales totaled 948.6 billion won, operating profit 15.8 billion won
SK Telesys successfully turned around to achieve an operating profit in the wake of rights issues and restructuring, while Bioland and SKC Air Gas achieved solid earnings _ base_d on a stable business portfolio.

Appendix 1. Annual Earnings and Changes (Unit: 100 million won, %)

Appendix 2. Annual Earnings by Business Area (Unit: 100 million one)