Kumho Petro Chemical : 2024 1Q Earnings Release

May 7, 2024

1Q 2024 Earnings Release

The business result for the 1st quarter of 2024 is currently under the audit process, however this is

presented purely for the purposes of investors' convenience.

Hence, please be advised that some of the contents may be altered in the course of audit.

Forecasts and projections contained in this material are based on current business environments and management strategies, so these may differ from the actual result upon changes and unaccounted variables.

1. 1Q 2024 Business Results
2. Divisional Results
3. Appendix

1Q 2024 Business Results

Income Statements					(Unit: KRW bn)
Classification		24.1Q	23.4Q	QoQ	23.1Q		YoY
Sales		1,667.5	1,516.1	10.0%	1,721.3		-3.1%
Operating Profit		78.6	35.1	123.9%	132.0		-40.5%
	(4.7%)	(2.3%)	(7.7%)
EBITDA		141.7	97.2	45.8%	190.6		-25.7%
	(8.5%)	(6.4%)	(11.1%)
Pre-tax Income		120.3	55.0	118.7%	174.1		-30.9%
	(7.2%)	(3.6%)	(10.1%)
Net Income		102.5	91.4	12.1%	136.6		-25.0%
	(6.1%)	(6.0%)	(7.9%)
Equity Income		20.0	30.6	-34.6%	25.4		-21.3%

* Net Income is based on Controlling interests.

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1Q 2024 Business Results

Balance Sheet

(Unit: KRW bn)

Classification	24.1Q	23	Change
(End)
Asset	8,289.0	7,979.7	3.9%
(Cash and	(727.6)	(452.4)	(60.8%)
equivalents)
Liabilities	2,430.8	2,145.7	13.3%
(Debt)	(825.6)	(8,218)	(3.7%)
Shareholder's	5,858.2	5,834.0	0.4%
Equity
Liabilities/	41.5%	36.8%	4.7%p
Equity (%)

Financial Ratios

Classification	24.1Q	23	Change
(End)
Debt/Equity	14.6%	14.1%	0.5%p
Net Debt	2.1%	6.3%	-4.2%p
/Equity
Interest
Coverage	11.9	11.8	0.1
Ratio (x)
ROE	7.0%	7.8%	-0.7%p
ROA	5.0%	5.7%	-0.7%p

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Divisional Results & Outlook

(Unit: KRW bn)

Synthetic	576.4	595.5
Rubbers
547.0	531.6
		507.1

Sales

Operating Profit	23.1Q	23.2Q	23.3Q	23.4Q	24.1Q
33.6	32.9	15.0	15.3	25.1
(%)	(5.8%)	(6.0%)	(3.0%)	(2.9%)	(4.2%)

1Q Earnings Review

• Product price increases were limited compared to the increase in BD prices, but profits improved due to demand recovery and increased sales of high value-added products compared to the previous quarter.
• Despite a slight improvement in the operation rate of glove companies at the end of the quarter, competition among NB Latex suppliers continues to intensify due to weak glove sales prices.

2Q Outlook

• BD: After mid-quarter, market prices are expected to stabilize as supply issues in the region ease, but the price decline is expected to be limited due to risks in the Middle East.
• Purchase wait-and-see stance expected to strengthen due to expectations of raw material decline, Promoting profit expansion by adjusting sales by product/market.

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Divisional Results & Outlook

(Unit: KRW bn)

Synthetic

Resins

347.4		322.2
317.4	300.5

Sales	284.8

	23.1Q	23.2Q	23.3Q	23.4Q	24.1Q
Operating Profit	3.2	1.1	1.2	-11.5	-1.4
(%)	(0.9%)	(0.4%)	(0.4%)	(-4.0%)	(-0.4%)

1Q Earnings Review

• Profitability improved compared to the previous quarter due to a slight improvement in the spread of major products.

2Q Outlook

• SM: Prices are expected to rise due to strong benzene prices and decreased supply in the region, but the increase is expected to be limited due to the delayed recovery in demand for derivatives.
• Despite the rise in raw materials, product spread improvement slows due to delayed market demand recovery.

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Divisional Results & Outlook

(Unit: KRW bn)

Phenol
Derivatives	410.8	398.8
	370.3	366.3
		337.0

Sales

	23.1Q	23.2Q	23.3Q	23.4Q	24.1Q
Operating Profit	11.3	6.0	-4.1	-10.4	-2.5
(2.8%)	(1.6%)	(1.2%)	(-2.8%)	(-0.6%)
(%)

1Q Earnings Review

• Increased sales volume and slight improvement in phenol and BPA profits compared to the previous quarter.

2Q Outlook

• Demand for phenol and BPA major products continues to be weak, but EPOXY spread is expected to improve.

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Divisional Results & Outlook

(Unit: KRW bn)

EPDM/TPV

164.1	167.7	154.4	159.1	168.5

Sales

	23.1Q	23.2Q	23.3Q	23.4Q	23.4Q
Operating Profit	21.4	33.4	23.4	8.2	23.2
(13.0%)	(19.9%)	(15.2%)	(5.2%)	(13.%)
(%)

1Q Earnings Review

• Increased operating rate compared to the previous quarter and improved profits due to increased sales volume.

2Q Outlook

• Sales volume and profitability expected to be maintained due to solid market demand.

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Divisional Results & Outlook

Others

222.6			(Unit: KRW bn)
		208.0
	175.7	174.3	182.5
82.6
		109.4

Sales		103.8		75.0	87.4
Specialty Chemicals	90.3
Energy			57.5		52.5
Others		35.5	63.4
		49.7
		36.4	41.1	35.9	42.6

	23.1Q	23.2Q	23.3Q	23.4Q	24.1Q
Operating Profit(%)	62.5	34.2	48.7	33.5	34.2
Energy/Specialty	(28.1%)	(19.5%)	(23.4%)	(19.2%)	(18.7%)
Chemicals/Others

1Q Earnings Review

• Energy: Despite decline in SMP, profitability maintained through increased sales.

2Q Outlook

• Energy: Sales volume and profitability expected to decrease due to SMP and regular maintenance.

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