Annual Report 2014

Content

10

Vision & Strategy

04

Milestones

75

Contact Information

08

Key Figures

12

2014 Highlights

70

Product List

74

Global Network

22

CEO Message

24

Board of Directors

26

Business Review

38

Sustainability Review

48

Financial Review

Turning questions

into solutions

Over the past 50 years Samsung Fine Chemicals (SFC) has been asking questions in its pursuit of better solutions.

From fertilizer to basic chemicals and fine chemicals to electronic materials, we have been offering distinctive solutions and creating new values.

Setting our sight on the new objective, ‘World-leading chemical company of advanced materials’,

we ask questions once again. We ask new questions and seek new solutions

to make what was only probable yesterday into a reality today.

Fu

tu

re

Pr

es

en

t

Pa

st

1980

MA and DMF plant built

50 years of delivering fine solutions

1964

Korea Fertilizer Industries founded

1967

Ammonia and urea fertilizer plant built

Korea Fertilizer Industries nationalized

1976

Initial Public Offering (IPO) conducted

1986

R&D Center opened

1991

Cogeneration plant constructed

Chlorinated methane plant constructed

MILEStONES

Samsung Fine Chemicals’ 50 year-long footprint is traced back to 1964, when the industrial development of Korea was still in its early stage. In a half century of keeping pace with the industrial growth of Korea, we have gone through numerous changes and innovations to find solutions that contribute to the prosperity and happiness of mankind.

Now, striding toward our new vision of becoming a ‘World-leading chemical company of advanced materials’, we create ‘fine solutions’once again for a ‘finer future’.

Laying the foundation for Korea’s chemical industry Growing into a fine chemical company

1993

Korea Fertilizers Central R&D Center opened

1994

Returned to Samsung Group, changed name to

‘Samsung Fine Chemicals’

1964 1980 1990

Pa

st

Fu

tu

re

Pr

es

en

t

Pa

st

2013

ECH plant expanded

Advanced Materials Research Institute moved to the Samsung Materials Research Complex

Received the Presidential Award at the Korea Precision Industry Technology Awards, for bio-degradable plastic

2012

MECEllOSE® plant expanded

Ammonia dome tank expanded

HECEllOSE™ plant expanded

AnyCoat® plant expanded

2011

S-EnPol, a bio-degradable plastic company, established

SMP, a joint venture to produce polysilicon, established

STM, a joint venture to produce active materials for rechargeable batteries,

established

HECEllOSE™ plant built

International Financial Reporting Standards (IFRS) adopted

Appointed as ‘Green Company’

2014

lithium Nickel cobalt manganese oxide (NCM), an active material for rechargeable batteries commenced commercial production

Europe GmbH, an overseas subsidiary, opened

Seoul office moved to the Samsung Materials Research Complex

Going for global competitiveness Toward the world’s foremost in material chemistry

1995

Semiconductor tetramethyl ammounium hydroxide (TMAH) plant built

1994

CA and MECEllOSE® (HPMC) plants built

1999

ECH plant built

2000

AnyCoat® and DMAC plant built

2001

PTAC and barium titanate powder (BTP) plant built

ISO 9001:2000 certified

2005

Shanghai office in China opened

2010

China subsidiary opened

2009

EUROX® (urea solution) plant built

Color laser printer toner plant built

Europe office opened

2007

liquid crystal polymer (lCP) plant built

2000 2010 2014

2014 MILEStONES

January February March April

Another fine milestone in 2014 To SFC, the year 2014 proved to be more dynamic than any other years. Despite difficult business conditions, we continued our march of innovation for sustainable growth. Moreover, marking our 50th anniversary, we have built the firm footing of progress and embarked on another journey of challenge toward a centennial commemoration.

Creative partnership strengthened

The labor and management of SFC signed an Overcome-Crisis Agreement in March 2014, pledging their support for a creative partnership. Meanwhile, the company held the “SFC Culture for Empathy” for employees of SFC and its partners at the Ulsan plant, and a cultural event of “SFC Day” at the Suwon office, all in efforts to strengthen the creative partnership, which will play a key role in overcoming crises and driving growth.

Financial and business structures reformed

In 2014, SFC improved its financial structure by selling some of its shares in SMP and PPG-SSC, and refined its business portfolio by selling off barium titanate powder (BTP) and liquid crystal polymer (lCP) facilities. In addition, cost reform was conducted throughout the entire operations of the company. Through such efforts, SFC succeed in improving profitability, laying a basis for enhancing product competitiveness, and shifting its focus to the eco-friendly energy materials area, the very future growth driver of the company.

Pr

es

en

t

Fu

tu

re

Pr

es

en

t

June July August Semptember October November December

Europe subsidiary opened

Europe GmbH was launched in July 2014. located in Frankfurt, Germany, the overseas subsidiary will conduct customer-friendly marketing and market-tailored sales operations, playing a beachhead role for SFC’s market expansion in the E.U. In addition, SFC has recently set up a T/S Center within the Europe Research Center of the Korea Institute of Science and Technology, and signed an agreement to conduct joint research in response to new environmental regulations. This will help us expand our technology support base in the E.U., and strengthen our competitiveness in the global market.

MECELLOSE® reaches monthly production goal of 3,000 tons

MECEllOSE®, a main product of SFC, had its monthly production exceeded 3,000 tons in May 2014. It was an achievement that took 20 years to reach since 1994, when the production began with an annual capacity of 2,500 tons. This is attributable to the enlargement of the market enabled through production increases and expansions, the development of new areas of application, and the enhancement of product competitiveness. And it is expected to help the company lead the market as well as drive its growth.

Active materials for rechargeable batteries commenced commercial production

In August 2014, SFC began mass-production of lithium nickel cobalt manganese oxide (NCM), an active material for rechargeable batteries. SFC plans to expand the applications of the material to include not only small IT-type battery applications but also mid-to-large-sized battery areas for such as electric vehicles and energy storage systems.

50th anniversary celebrated

SFC held a commemorative event celebrating its 50th anniversary under the theme of “Pride 50, Passion 100” in October 2014. Held at the Ulsan plant, the event began with the oration of President In Hee Sung, who pledged his resolve to grow the company into a leading chemical engineer of eco-friendly energy materials through embrace of changes and pursuit of challenges. Meanwhile, by publishing a corporate anal titled “50 Years, A Journey toward Centennial Commemoration”, SFC looked back on its half-century long footprints and defined the milestones for growing into a centennial corporation.

May

ANNuAL RESuLtS

In 2014, despite a difficult business environment owing mainly to the dwindling performances of downstream industries, SFC achieved a decent pre-tax income by selling off idle properties, cutting costs and improving efficiencies in its overall business structure. Though operating loss amounted to KRW 24.4 billion in 2014, we succeeded in turning a profit in the 4th quarter with an operating income of KRW 6.4 billion, as some of our key products started to regain their profitability and the cost for business restructuring was reduced.

Operating Performance

　 2014 2013 Change Change (%)

Sales 1,210.5 1,314.1 (103.6) (7.9)

Chlorine/Cellulose 620.1 538.1 82.0 15.2

Electronic Materials 111.4 127.7 (16.3) (12.8)

Ammonia 479.0 648.3 (169.3) (26.1)

Gross profit 116.8 108.3 8.5 7.8

Selling and administrative expenses 107.2 102.0 5.2 5.1

logistics expenses 34.0 26.6 7.4 27.8

Operating income (loss) (24.4) (20.3) (4.1) n/a

Income before income tax 70.4 0.3 70.1 23,366.7

Net income 58.7 3.3 55.4 1,678.8

(Unit: KRW billion)

2014 QuARtERLy RESuLtS

　 2014 4Q 2014 3Q 2014 2Q 2014 1Q

Sales 315.4 292.9 304.2 298.0

Operating income (loss) 6.4 (9.1) (2.6) (19.1)

Income before income tax 25.7 (11.7) 76.2 (19.8)

Net income 18.6 (8.7) 65.3 (16.5)

(Unit: KRW billion)

KEy FIGuRES

* Based on K-IFRS consolidated financial statements

* Based on K-IFRS consolidated financial statements

Fu

tu

re

SuMMARIzED StAtEMENtS OF FINANCIAL POSItION

SFC liquidated its equity holdings in Samsung life, a major life insurer, and partially sold its shares in PPG-SSC and SMP joint ventures, and idle proprieties. The company also sold off its facilities for barium titanate powder (BTP) and liquid crystal polymer (lCP) operations which were nearing their growth and profitability limits. As a result of these efforts to improve its financial structure, assets and liabilities decreased 2.9% and 16.0% from the previous year respectively, while the ratio of shareholders’ equity rose 5.5%p to 64.8%.

Financial Status

　 2014 2013 Change Change (%)

Assets

Current assets 472.0 506.8 (34.8) (6.9)

Non-current asset held for sale 125.0 - 125.0 100.0

Non-current assets 1,249.0 1,393.3 (144.3) (10.4)

Total assets 1,846.0 1,900.1 (54.1) (2.9)

Liabilities

Current liabilities 184.4 201.9 (17.5) (8.7)

Non-current liabilities 465.8 571.7 (105.9) (18.5)

Total liabilities 650.2 773.6 (123.4) (16.0)

Equity

Equity attributable to owners of the Parent 1,186.7 1,126.5 60.2 5.3

Capital stock 129.0 129.0 - -

Capital surplus 302.9 302.9 - -

Retained earnings 622.1 567.1 55.0 9.7

Others 132.7 127.5 5.2 4.1

Non-controlling interest 9.1 - 9.1 100.0

Total equity 1,195.8 1,126.5 69.3 6.2

Total liabilities and equity 1,846.0 1,900.1 (54.1) (2.9)

(Unit: KRW billion)

* Based on K-IFRS consolidated financial statements

Fu

tu

re

Enhancing profitability

Securing future growth

engines

Safety environment

Change and innovation

Creative partnership

STrATegy

ViSiOn

World-leading chemical company of advanced materials

New Challenges

VISION & StRAtEGy

Samsung Fine Chemicals channels the competencies, the conviction, the passion and the creativity of all of its employees into

a drive toward the vision of becoming a ‘World-leading chemical company of

advanced materials’.

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

10

Pioneers building our own

futurePioneers going into uncharted territory do not fear change.

They take pride in and value the quests they made, but not dwell on findings from yesterday.

Samsung Fine Chemicals, eying on a centennial of excellence based on its 50 years of innovation, will front-run changes and open up a new horizon

with the goal of becoming the ‘World-leading chemical company of advanced materials’.

11

What coloris the Future ?

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

12

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

Active materials for rechargeable batteries are crucial to such growth industries of the future as IT devices and electric vehicles. They are also a new source fueling the growth of SFC.

Bio-degradable plastic, which completely dissolves into water and CO2 when exposed to microbes without any residue of harmful substance, represents our commitment to sustainable growth.

P. 32 Refer to the business review of eco-friendly energy materials

P. 33 Refer to the business review of eco-friendly energy materialsSa

mS

un

g F

ine

Ch

em

iCa

lS

an

nu

al

Re

po

Rt

20

14

13

2009

Feasibility study conducted for the business of producing active

materials for rechargeable batteries and a pilot plant built

2011

STM, a joint venture, formed

The construction of STM’s plant to produce active materials for rechargeable batteries began

2014

Mass-production of NCM, an active material for rechargeable batteries, began

2012

The construction of STM’s plant to produce active materials for

rechargeable batteries completed

the lithium-ion batteries market for electric vehicles grows fast, which is expected to grow at an annual rate of 41.5% from 2014 to 2017.

Stm’s 3,300㎡ plant, located in uljoo-gun of ulsan City, can produce up to 2,500 tons per year of lithium nickel cobalt manganese oxide (nCm), an active material for rechargeable batteries.

41.5 2,500%

B l u e

Tons

Roadmap for active materials for rechargeable batteries business

* Source: Estimate of Samsung Securities (December 2014)

active materials for rechargeable batteries, a key ingredient of the future energy industry, represent a new blue ocean with high economic and

environmental values. In this market of opportunities, sFC will solidify the stature as a ‘Fine solution Provider’ based on its proven technological prowess.

14

sFC dreams of a greener future. Bio-degradable plastic is an eco-friendly, highly value-added innovative material, fast replacing the non-decomposing plastic.

We believe that our bio-degradable plastic will surely contribute to turning the dream of ours and the global community into a reality.

uses of Bio-degradable Plastic

Fishing nets/equipment, plastic shopping bags, mulching films, construction, civil engineering, coating uses, and disposable materials, etc.

Whereas the normal plastic takes over 100 years to decompose, SFC’s bio-degradable plastic naturally dissolves into water and Co2 in six to 24 months.

6 months

G r e e nConceptual diagram of bio-degradable plastic

End Products

Compost

Organic W

aste Collection

Extraction

Bio

Pro

cess

Bio-degradation

IntermediateChemical Building Block &

CO2 & H2O

Agriculture Feedstock

Co2 neutralization15

What is built on? the Future

SFC is strengthening the global competitiveness of MECEllOSE®, HECEllOSE™, AnyCoat®, and other core chemical materials products, in order to achieve stable and profitable growth.

P. 28-31 Refer to the business review of core chemical materials

16

SFC is strengthening the global competitiveness of MECEllOSE®, HECEllOSE™, AnyCoat®, and other core chemical materials products, in order to achieve stable and profitable growth.

SFC’s core chemical materials may not readily noticeable in our life, but they are actually ubiquitous in it, making our daily life more convenient and more abundant.

P. 28-31 Refer to the business review of core chemical materials

17

59.3%

s t a B I l I t Y

sFC has decisively selected what we are good at and focused on what we must do well in order to grow into a ‘World-leading chemical company of

advanced materials’. accordingly, we have carried out bold business restructuring, implemented value-based management, and solidified stable growth platform.

Capital adequacy ratio improved 5.5%p year-on-year

64.8 % % %Debt-to-equity ratio

decreased 14.3%p year-on-year

54.4 26.7net debt-to-equity ratio

decreased 9.3%p year-on-year

Key Financial Indexes

* As of the end of 2014

Improvement of cash flows(Unit: KRW billion)

68.7% 36.0%

Cash and cash equivalents at the beginning of year

(As of the end of 2013)

87.0

Cash flows from operating activities

23.9

Cash flows from investing activities

95.6

Cash flows from financing activities

(109.4)

Net increase in cash

and cash equivalents

10.1

Cash and cash equivalents at the

end of year(As of the end of 2014)

97.1

18

a G I l I t Y

Businesses that follow change cannot come out on top. sFC continues to expand its investments to increase production of core products and to improve its eco-friendly, energy materials operations, as it moves

with agility at the center of changes and leads innovation.

Sustainable expansion of market

MECELLOSE®

203.8

164.1(Unit: KRW billion)

Sales

ECH

123.7

20092008

117.9116.1

2007

76.8

2006

76.4

2005

130.3

2010

176.0

20132012

199.2

101.4

2009

83.9

2008

89.3

2007

89.9

2006

70.0

2005

122.3

2010

113.2

2011 2014

2014

167.4

2011

117.1

2013

119.1

2013

11.5% CAGR

(2005-2014)

9.9% CAGR

(2005-2014)

sales of ammoniaKrW 479.0 billion

Sales by Business

* As of the end of 2014

sales of Chlorine/CelluloseKrW 620.1 billion

sales of electronic MaterialsKrW 111.4 billion

51.2 % %39.6 %9.2

19

G l o B a l I t Y

Global Network

Exports by Region (Unit: %)

europe subsidiary

t/s Center

tokyo office

China subsidiary

u.s. office

(slated to open in 2016)

to grow into the world’s foremost‘World-leading chemical company of advanced materials’,

we develop overseas markets and enhance our market position by improving production competencies and refining product competitiveness.

Expanding global market presence

Exports to Sales Ratio

49 % * As of the end of 2014

20.5

18.9

16.5

7.2

10.7

China

americas

26.2europe & CIs

Middle east & africa

other asian Countries

Japan

14%

73%

14%

35%

MeCellose® anyCoat®

Market Share of Key Products Domestic Overseas

Korea Headquarters

23%

58%

tMaH

20

C r e a t I v I t Y

Corporations can sustain growth only when they retain complete employee support through open and sincere communication. sFC has built up a creative partnership based on the long-accumulated trust from its members. the creative partnership

is the foundation and the center that powers and moves us.

the cumulative number of visitors to the company portal site increased 33% over the previous year to 235,817 in 2014, a result of diverse efforts made for open communication.

the number of certified master-craftsmen increased at an annual average rate of 145% over the past three years, as the corporate culture of promoting self-development took root along with the continued efforts to strengthen technology prowess.

33 1452014 Key Achievements

%

SFC Vision Park

Place to glimpse and share SFC’s history and vision

Infrastructure for creative corporate culture

‘Idea lounge,’ refresh rooms, fitness centers and other body and mind-recharging facilities

on business premises

SFC Culture for Empathy

Event for interaction and creative partnerships between labor and management

Soh-tong Insight

On-line space for open communication among employees

SFC Day

Regular event featuring lectures on humanities and cultures

Cinema Day

Film screening event for employees and

their family members

Cases of creative corporate culture

%

21

CEO MESSAGE

22

We will take a step further toward

being a ‘World-leading chemical

company of advanced materials’

by focusing our resources and

energies on enhancing profitability

and securing future growth engines.

Dear shareholders and customers,

First of all, I would like to thank all of you for the encouragement and support you have given us throughout last year.

In 2014, the world economy struggled amid economic and political uncertainties such as the Chinese economic slowdown and the rising sense of crises in Russia and the Middle East, despite a steady recovery of the U.S. economy. The Korean economy also remained contracted.

Faced with such unfavorable business situations, Samsung Fine Chemicals (SFC) recorded sales of KRW 1,210.5 billion and a pre-tax income of KRW 70.4 billion. Although the sales and profitability of our key operations were negatively affected by a dwindling demand of downstream industries for our products, we were able to turn in a stable pre-tax income at year-end by liquidating some of our shares in joint venture and subsidiaries and selling idle properties, which had generated additional income.

The year 2014 marked the 50th anniversary of SFC, and we took diverse steps preparing for a bigger leap toward being a centennial corporation.

We carried out such excruciating business optimizations as carving out operations nearing their growth limits and a large-scale human resources rationalization. To improve the financial structure and cash flows, we sold off idle properties and liquidated some of our equity holdings in joint ventures. To overcome the stagnant market environment, we strengthened our sales competencies including opening a Europe subsidiary, and conducted diverse cost-cutting measures to enhance business competitiveness. Through these painstaking efforts, we were able to gain a gradual improvement of profitability. Moreover, by beginning commercial production of cathode materials for rechargeable batteries last August, we proved the growth potential of our new business, and took preparatory steps toward producing active materials for mid-to-large-

sized batteries used in electric vehicles and energy storage systems.

This year, we will focus on enhancing profitability and securing future growth engines based on the business optimization and competitiveness enhancement efforts we conducted last year. To create and expand profitability, we will give the top priority to the development of new markets and new applications for our major products, whose production facilities have been recently expanded, and also raise our global competitiveness by strengthening our execution power as a “Total Solution Provider”.

To secure growth engines for the future, we will continue to enhance the productivity and expand the facility for the operations to produce active materials used in rechargeable batteries, extend our market reach to include mid-to-large-sized batteries used in electric vehicles and energy storage systems at an earliest moment, and explore business opportunities of developing additional items. We will execute these tasks to the best of our ability so as to stand tall as a de facto leader in the battery materials industry.

The year 2015 will witness our leap toward being a centennial corporation. All of us at SFC will take on new challenges and turn them into milestones in the history of a centennial corporation. We will also do our utmost to make this journey to be a way to grow together with our customers, partners and community members. Thanking, once again, all of our stakeholders for your unwavering support, we will continue to embrace change and innovation and to march toward being a ‘World-leading chemical company of advanced materials’.

I wish you and your loved ones health and happiness.

Thank you.

In Hee SungPresident & CEO

23

BOARD OF DIRECtORS

Samsung Fine Chemicals seeks to create

long-lasting value for our stakeholders through

responsible and transparent management

based on advanced corporate governance.

Hee In Lee• Vice President• Head of Chemicals Business Division

InSIDE DIRECtoRS

outSIDE DIRECtoRS

In Hee Sung• President & CEo

24

Byung Hoon Choi• Auditor

Dong Geul Byun• outside Director• Lead Attorney, Yoon & Yang LLC

Kyu Cheol Lee• outside Director• Emeritus Professor,

College of Engineering, university of ulsan

Jeong Sik Shin• Managing Director, CFo• Head of Management Support Division

25

Samsung Fine Chemicals strives to stay one step ahead.

By maintaining the pace of innovation in the face of the challenging environment in 2014 and offering future-oriented solutions and distinctive value, we have laid the foundation for sustainable growth.

ofaheadtime

for the future26

27

28 Core Chemical Materials

32

Eco-friendly Energy Materials

34 Research & Development

36

Management Innovation

37

Quality Management

BusIness revIeW

CORE CHEMICAL MAtERIALS

meCelloSe® MECEllOSE® is a white powder additive for construction, made with a cellulose extracted from woods or cottons. It is excellent at absorbing humidity and holding moisture, hence widely used in cement mortar, tile cement, paint, plaster, underwater concrete, and ceramic extrusion. SFC has been expanding its global market share of MECEllOSE® by continuously increasing production capacity and gradually expanding business scale. In 2014, MECEllOSE® became one of our strategic products as its sales grew thanks to the production increase. We will sustain our market dominance by maximizing economies of scales.

Sales Portion of MECELLOSE®

(2014)

16.8 %heCelloSe™HECEllOSE™ is a water-soluble polymer composed of pulp and ethylene oxide, and an eco-friendly functional, high value-added material that guarantees superior quality and characteristics of final products. It is widely used in household applications including shampoos and water-soluble paints, and also in other areas including construction as a viscous, moistening and stabilizing additive. With commercial production beginning in 2011, the sales of HECEllOSE™ has been steadily growing enabled by new market development, product quality improvement and improved brand recognition.

28

anyCoat® AnyCoat® is a functional material for pharmaceutical capsules and coating, helping store and protect medicines and control the persistency of medicinal effects. Consisting of plant ingredients, AnyCoat® presents an effective alternative to animal gelatins extracted from swine or cattle. SFC expanded the use of AnyCoat®. It announced the release of a food additive called AnyAddy® for breads, cookies and fried goods in 2009. And in September 2012, we completed a large scale production capacity increase based on the expectation that the development of new products for new uses would lead to a steady increase in sales. In 2014, we spurred quality improvement and new grade development to enhance product competitiveness.

Sales Portion of Ammonia Products

(2014)

32.8 %ammonia products Ammonia is a basic chemical material widely used for nylon, which is a synthetic fiber, and ABS resin. Mass-produced at the Korea’s best production infrastructure in the Ulsan area, our ammonia products contribute to the company as a stable cash cow. In 2014, they recorded KRW 393.7 billion in sales. Going forward, we will enhance the efficiency of the production process for greater profitability.

2929

eCh (epichlorohydrin)

ECH is a key material for epoxy resins which are used in a wide range of industries such as construction, shipbuilding and electronics. Despite a difficult business environment affected by the dwindling epoxy consumption of such downstream industries as construction and IT in 2014, the sales of ECH grew thanks to an increased volume following a production expansion in 2013.

Caustic SodaCaustic soda is a chemical product widely used in chemical-related businesses, ranging from soap and detergent to metal surface treatment, water treatment, and paper production. SFC’s caustic soda has played a pivotal role in the growth of the company enabled by the price competitiveness following the 2013 production increase and the quality competitiveness due to the eco-friendly, low-cost production process we had developed. In 2014, it maintained the steady growth trend on the back of growing exports.Sales Portion of ECH

(2014)

13.6 %

3030

euRoX®

EUROX® is an SFC-developed urea solution that removes nitrogen oxides, a main air pollutant in exhaust fumes from diesel-operated automobiles. As an eco-friendly material produced under strict quality control, EUROX® is widely and increasingly used in production of vehicles, machinery, and ships in response to the toughening environmental regulations worldwide. Encouraged by the demand that has steadily increased since the product launch in 2008, we have continuously expanded EUROX® business and established it as a No.1 brand in the domestic urea market. Expecting a market expansion following the upgrade of the domestic regulatory system covering fume exhaustion to the EURO6 level, we are focusing on retaining new demands and launching proactive brand marketing.

Sales Portion of Electronic Materials

(tMAC, color laser printer toner, and others)

(2014)

9.2 %tmaC (tetramethylammonium Chloride)

TMAC is a core chemical material used in semiconductors for electronic devices and lCD circuit boards for TVs, smartphones and similar devices. Fueled by the continuing growth of semiconductor, lCD, OlED and other display-related industries, the product has maintained a solid growth trend, and the area of applications has been broader. Having started mass-producing TMAC in 2005, SFC has gradually expanded production. Through the strengthening of our market dominance and competitiveness, we have proactively responded to the rapid evolvement of market conditions, realizing a stable profit in 2014 as before.

31

active materials for Rechargeable BatteriesRechargeable batteries, which can last semi-permanently through repeated charges, are economical and eco-friendly. For these characteristics, they are widely used in mobile phones, smart devices, electric vehicles, energy storage systems, and others. To develop eco-friendly energy materials business into a new growth engine, SFC has launched the business of producing active materials, a key ingredient for rechargeable lithium-ion batteries. By establishing STM in 2011, we spurred the cathode materials operations, and succeeded in mass-production in August 2014, realizing the growth potential of our new business. Going forward, we plan to conduct the R&D of additional secondary battery materials and become the world’s leader in the secondary battery materials industry.

ECO-FRIENDLy ENERGy MAtERIALS

eco-friendly

economical

long-lasting

energy materials

32

Bio-degradable plasticSFC began a business to produce an alternative to existing plastic in 2010, and in 2011, we established S-EnPol, a company specializing in bio-degradable plastic, thereby securing a growth engine in the eco-friendly energy materials area. Plastic, which has been widely used in the production of plastic bags and disposable goods, has become a leading environmental pollutant. In contrast, the bio-degradable plastic, an eco-friendly material that completely dissolves into water and carbon dioxide when left exposed to microbes, is expected to grow at an annual rate of over 20% through 2020. Having developed the world’s first bio-degradable fishing nets and other related uses, we export our bio-degradable plastic to around 20 countries.Convenience

eco-friendly

Diversity

Package materials

3333

RESEARCH & DEVELOPMENt

To strengthen product competitiveness and to secure next-generation core technologies, SFC conducts a strategic R&D employing state-of-the-art facilities and the top-tier talents. In particular, we focus our efforts on developing eco-friendly energy materials in order to grow into a ‘World-leading chemical company of advanced materials’.

Advanced Materials Research InstituteSFC established its Advanced Materials Research Institute in 1993 to conduct a more systematic and strategically-focused R&D, and in November 2013, we relocated the Institute to the Samsung Materials Research Complex in Suwon City. The relocation was done to bolster infrastructure and manpower to create more synergies with other like-minded entities, and to maximize its R&D competencies. Our pursuit of core technologies and technological competitiveness will continue through expansion of R&D investments.

R&D PerformanceBattery Materials

SFC has conducted research in battery materials as a new growth engine to cultivate. Having launched the operation of developing active materials for rechargeable batteries in 2011, we completed a plant to manufacture active materials for rechargeable batteries and other ceramic materials in 2012, and began mass-production of the materials in August 2014. Going forward, we plan to direct our R&D focus to quality improvement and application expansion.

SFC spares no financial or other resources in R&D in pursuit of new values and possibilities of advanced materials.

3434

Cellulose Derivatives

HECEllOSE™ and MECEllOSE®, both etheric water-soluble polymers, are cellulose derivatives used as high-performance additives for use in construction, pharmaceutical coating, food, water-soluble paint, and other various areas. To meet diverse customer needs, SFC continues to improve the capabilities of these products. Moreover, we are concentrating our R&D efforts on developing new cellulose derivatives with outstanding properties.

Food and Pharmaceutical Materials

SFC continues to research on AnyAddy®, a food additive, AnyCoat®, a pharmaceutical coating material we have commercialized using water-soluble cellulose polymers, while providing customers with technology support to offer them optimum solutions. We are also working on pharmaceutical materials that help human bodies better absorb natural health foods which are low in absorption rate, as well as on food materials related to major food-related issues such as food safety and low-fat.

Biomaterials

In response to a fast-growing global demand for eco-friendly materials, SFC has succeeded in commercializing bio-degradable etheric polymers for the first time in Korea. We also have developed eco-friendly, high-quality PBS and PBAT through the use of the world’s most advanced polymerization compounding technology and our own polymerization process and catalyst technology. In recognition of this breakthrough, we received the Presidential Award at the Korea Precision Industry Technology Awards hosted by the Ministry of Trade, Industry and Energy in 2013.

R&D History

Nov. 2013

Advanced Materials Research Institute relocated to the Samsung Materials Research Complex

Aug. 2012

lFP, an active material for lithium-ion batteries, received a Ministerial Award of the Ministry of Knowledge Economy for at the 2012 Nano-Korea Awards

Dec. 2009

High-performance liquid crystal polymer received the Presidential Award at the Korea Precision Industry Technology Awards

Nov. 2011

Polymerized toner for color laser printers receives the Presidential Award at the Korea Precision Industry Technology Awards

Nov. 2008

Received Presidential Award and Citation at the 34th National Quality Management Convention

Sept. 2012

HECEllOSE™ received the Jang Young Sil Award at the 29th IR52

Oct. 2013

Bio-degradable plastic received the Presidential Award at the Korea Precision Industry Technology Awards

Nov. 2009

Joint technology agreement signed with Korea Institute of Science and Technology to prepare for global environmental regulations and to develop green technology

Jan. 1993

Advanced Materials Research Institute established

35

MANAGEMENt INNOVAtION

Strategy and AchievementIn 2014, SFC adopted ‘SCM Planning Day’ and ‘SCM Day’ in order to enhance supply chain management (SCM). We strengthened demand-side management by improving the automatic order rate of the material requirement planning (MRP), and focused on production and sales operations as planned at regular sales & operations planning (S&OP) meetings, while exploring various ways to optimize inventory. In addition, we strengthened the operation of information systems by adopting a mid-to-long-term informationization strategy and 17 detailed guidelines. Moreover, by constructing MES, a system to execute manufacturing, and S-TIMS, a system to manage drawings and information technologies, we sought to improve our management system. To enhance the management systems not only of our HQ office but also of our subsidiaries and partners, we built up ERP system at the Europe subsidiary and quality & operation monitoring systems at STM.

As part of our efforts to achieve four strategic objectives—best production cost, best quality, best-performing facility, and best operator—we actively took actions directed at improving operation sites, expanded the Manufacturing Execution System throughout the entire operations, and conducted training programs, to improve employee job skills.

Objectives and PlansIn the area of information innovation, we will maximize business performance by developing a work process most suitable for our operations. For this, we will improve the accuracy of demand forecasts, enhance customer satisfaction, and strengthen inventory management by upgrading the SCM-based S&OP process. We will also establish an index management system linked with management strategies and performance objectives, while strengthening the quality management of basic information in order to improve production quality. Moreover, by upgrading business processes and the governance management level by systems and by strengthening the management of information security risks and the competency to execute information strategies, we will have all work executed in a systematic manner and in compliance with regulations throughout the whole operations.

As for production innovation, we will focus on three areas—safety/environment, innovation, and creative partnership—under the slogan of “Safety for life, innovation for the future SFC No.1”.

SFC will continue to change and innovate to become the best at what we do based on our optimized systems governing the entire value chain.

2015 Execution Strategy

36

safety for life, innovation for the future sFC no.1

Creating a safe and competitive workplace

World-leading chemical company of advanced materialsvision

Mission

execution Direction

Innovation

Production cost Quality

technology

Creative partnership

Communication optimism

success story

safety/environment

People Facility Process

QuALIty MANAGEMENt

SFC’s quality policy is to achieve the highest quality possible and practice customer-focused quality management, which is based on the business philosophy of “Touching the hearts of customers with the best products and services”. In accomplishing the quality target and meeting the customer requirements, we singled out main tasks such as zero customer complaint, quality improvement of products with lower quality than those of our competitors, and enhancement of the quality index of each product. Moreover, we have established a comprehensive quality manual for more systematic management and provided employees with training programs on the use of the manual for quality management in each production procedure.

Quality Guarantee Process and StrategySFC has recently overhauled its quality assurance process and related systems in an effort to provide its customers with the highest quality products. Specifically, we defined such strategic tasks as adopting an advanced raw materials management system, establishing statistical process and change management system, and selecting systems for management of total customer quality and quality accidents. The establishment of a system-based quality management structure has enabled an efficient management of raw materials inventory, production processes, and quality analysis interlocked with one another on a real-time basis, thereby preventing quality accidents and improving efficiency.

Responding to Customer NeedsSFC listens to customer voices and endeavors to align its business management to customer interests and needs. To enhance customer satisfaction and better respond to customer needs, we utilize the VOC system to systematically manage customer visits to our business facilities and our employee visits to customers. We also strive to address customer requests as quickly and thoroughly as possible by promptly relaying the messages to relevant personnel via email or SMS, and keeping track of all requests sorted out by cause, response, and improvements through a quality responsibility system. In 2014, a total of 388 customer requests were registered related to regulations on hazardous chemicals, quality system, product assurance and technical support, and all have been resolved to the full satisfaction of the customers, thus further improving their trust in SFC.

SFC will grow into a ‘World-leading chemical company of advanced materials’ that customers can trust, based on an advanced technology prowess and high quality products.

statistical process management (sPC for reporting abnormality and etc.)

Change management

Supplier Input Process Output Customer

raw and sub materials management

Quality for customer

Incident and accident management

Quality Assurance System

37

worthl iving

for the future

Samsung Fine Chemicals pursues “fine” changes.

As our small chemical materials can catalyze big innovations, even a small sharing activity can make a big stride in our life. Based on this belief, SFC pledges to create a sustainable future, where all can enjoy happy lives.

38

sustaInaBIlItY revIeW

39

40 Safety Management

41 Environmental Management

42 Human Resources Management

43 Social Contributions

SAFEty MANAGEMENt

Safe work environment is the first and foremost prerequisite to a great workplace, and a force that powers the healthy growth of SFC.

Safe Environment CenterAs part of its plan to strengthen safe environment management, SFC has consolidated and upgraded existing work safety teams at all of its production units into a ‘Safety Environment Center’ operated under the supervision of the director of the center. Aiming to create an accident-free workplace, the Center thoroughly oversees all safety and environment management practices at the company level.

Safety & Health PromotionIn 2013, SFC set up key tasks for workplace safety such as fostering a self-enforcing safety culture, taking measures aimed at eliminating any dangers in high-risk procedures, conducting a bi-annual regular maintenance, and enforcing a safety-first stance on partner companies. For health care, we have introduced a nutritious menu and adopted diverse health care programs for employees with work-related musculoskeletal symptoms, and refined the operation environment.

Safe Environment ManagementSafety Inspection

SFC conducts a monthly safety inspection, performs special safety checks prior to annual holidays, and operates self-enforced safety ensuring programs for all production operations. Any discrepancies found are immediately examined, thoroughly analyzed and completely remedied. 4,670 cases of discrepancies were identified in 2014, of which 4,268 were corrected.

Facility Efficiency

SFC strives to reduce the discharge of harmful chemicals by improving facility efficiencies, and maintaining production facilities in their optimal condition. In addition, we keep close track of chemical uses and facility conditions through the SFC Environment, Safety, Health System (SES), a system to manage the use and disposal of chemical materials.

Safety-first Culture

To maintain its growth sustainable amid an unpredictable economic environment and to grow into a global leading company, SFC makes efforts aiming at improving profitability based on competitiveness in safety and manufacturing capability. One of these efforts is ‘SFC No.1’, which means ‘Safety-First, Competency No.1’, representing our will to turn safety into our most competitive advantage for another leap to the next level. .

SFC conducts diverse activities with purpose of cultivating a corporate culture, in which safety is part and parcel of the company; a safety environment conference is held every other month, in which the CEO shares his safety-first philosophy with executives and employees; a discussion session is held once a week, in which executives and section chiefs exchange their opinions on how to improve work safety; and a monthly gathering with safety experts from other institutions. In addition, we keep the speed limit in all production sites to 19 km/h, and all vehicles are required to turn on emergency lights while driving within worksites, thereby completely eliminating auto accidents in 2014.

40

ENVIRONMENtAL MANAGEMENt

Mindful of environment and a right way of growing, SFC practices green management as a true eco-friendly corporate citizen.

Green ManagementThe Samsung Group pursues a new green management vision based on its long history of green management. The ‘Samsung Safe Environment Vision 2020’ consists of three areas of activity—1. resource conservation, and energy/CO2 reduction, 2. global green management standards and market lead, and 3. environmental safety accidents prevention and business continuity preservation—and two values—pursuit of sustainable growth and social responsibility. The objective is to achieve the green management vision through fulfillment of the two values in the three areas. In step with the Group’s green management vision, SFC has established and operates a strict environment management system and put it in transparent operation. As a result, we were renamed ‘Green Company in 2014.

Green Management Activities Environmental Investment

SFC has been expanding its environmental investment in the environmental area, both in terms of the nominal amount and the ratio of investment to total revenue. Our green management investments for 2014 numbered 32 cases and amounted to KRW 8.3 billion, equivalent to 0.69% in investment-to-sales ratio. To save energy and cut greenhouse gas emissions, for example, we set up a comprehensive system of monitoring electricity usage at production facilities and replaced all lighting systems with lED bulbs. For the prevention of chemicals-related accidents, old piping and other facilities were replaced, and fire and accident monitoring systems were upgraded. KRW 20.4 bil l ion has been earmarked for green management investment in 2015.

Compliance with Industry Environmental Regulations

For systematic management of chemical materials and prevention of chemical accidents, the Korean government introduced the Act on Registration, Evaluation, and etc. of Chemical Substances and the Chemical Control Act, both effective in 2015. In response to these, SFC has newly imported an advanced system of managing chemical materials and strengthened the guidelines for handling

all chemical materials. To comply with the guidelines for operating facilities that emit arsenic acid, we are in the process of constructing a leak detection and repair (lDAR) system.

Management of ContaminantManagement of Air Pollutants

Having replaced bunker-C oil with lNG for fuel uses in 2011, SFC adopted the use of third-party-supplied steam as a source of energy in 2012, thereby cutting its emission of air pollutants by about 480 tons. Aiming to cut pollutant emissions 16% by 2017 from the 2012 level, we plan to bring the emission of SOX and NOX to zero by outsourcing all the steam we use.

Management of Water Pollutants

SFC has reduced the concentration of pollutants in its waste water discharge through the use of the waste water treatment facility constructed in 2013. We also have focused on the treatment of drain water by replacing old drain pipes and improving the rain water drainage. In 2015, we plan to further reduce our waste water discharge by recycling waste water for cooling and fire extinguishing purposes.

Management of Waste

We manage all of our waste through an on-line system and set up a disposal plan in order to reduce waste. In addition, we have been land-filling all waste water sludge since December 2013, and as a result, the recycling rate of waste water sludge rose from 0% to 20.7%, thereby increasing the recycling rate of all waste by 283% compared with 2013.

Management of Hazardous Chemicals

SFC keeps a very close track of all chemical materials we handle throughout the whole process from arrival and testing to commercial production and final delivery. A system has been upgraded of managing hazardous materials during their entire lifecycle, and a chemicals management system (CMS) has revamped to improve work efficiencies through a systematic management of the information of chemicals.

41

SFC aspires to be a ‘Great Company,’ a company that people find great to work and creative partnership is well established based on good communication and deep trust among its members.

HuMAN RESOuRCES MANAGEMENt

Recruitment, Compensation, BenefitsSFC pursues being a great company through realization of a great workplace with the philosophy that success of a corporation lies in the satisfaction and happiness of employees. In line with this, SFC strives to maintain a fair and progressive personnel and compensation system aiming at equal employment and diversity.

SFC also offers a variety of benefit programs helping its employees and their families lead decent lives. The company provides scholarship support to employees with children, helps them secure stable housing through loan support, and operates employee health benefit programs.

HR Development ProgramSFC runs diverse HR development programs by rank and area of specialty: from basic training for new recruits and the newly assigned to leadership and management skill enhancement programs for managers and higher-ups. Through operation of function-specific training programs, we help employees gain job-related knowledge and skills. Also included in the programs are MBA, regional specialist courses, and a foreign language immersion center for core talents selected as potential leadership of the company as well as financial support for those studying foreign languages to help them develop global competitiveness.

Creative Corporate CultureSFC Culture for Empathy

SFC believes innovation requires “emptying out” as well as “filling in”. Which is why we promote ‘SFC Culture for Empathy’, an art cultural program helping our employees take a break from the routine and instead feel the joy of emptying their mind through experience of cultural and arts inspirations. This SFC-unique program, operated in cooperation between labor and management, has brought many events to employees and their family members, including ‘Ballerina who loved a B-boy’ in 2011, ‘Big Band’ in 2012, ‘Spring Classics’ and ‘Jump’ in 2013, and ‘50th Anniversary SFC Culture for Empathy’ in 2014. In addition, we run ‘SFC Day’ promoting cultural communication, ‘Cinema Day’ screening popular movies, and other programs, all developed to the characteristics of different business sites, promoting an open and dynamic corporate culture.

Flexible Office Hours

SFC practices a flexible office hours system that allows sales and R&D personnel to organize their own work schedule. This intends to help employees better concentrate on their jobs while maintaining the balance between work and life.

42

SFC dreams of a happy change, in which children grow bright, local communities prosper, and the environment sustains.

Social Contribution SystemUnder a social contribution slogan of ‘Fine Change’, SFC operates volunteer groups at its business sites, assisting them in their social contribution activities reaching out to the socially marginalized, protecting the environment, and carrying out various volunteer activities, all in efforts to grow together with local communities.

Major Social Contribution Activitiesurban Box Farms Campaign

‘Urban Box Farms’ is an eco-friendly campaign operated with an active participation of Ulsan citizens. Through this campaign launched in 2009, SFC has helped to keep Ulsan City green together with over 3,000 citizens. As part of the campaign, SFC has installed solar-powered street lights and given away flower pots made of its bio-degradable plastic to the citizens.

up-keeping taehwa River Eco Park

SFC has been up-keeping the Taehwa River Eco Park together with Ulsan Metropolitan City, civic organizations, and volunteer groups since 2005. Key activities include the annual fertilization of bamboo trees and the protection of bamboo shoots in May and June.

Volunteer Groups’ Major Activities

SFC’s employees have organized various volunteer groups and carried out many activities in partnership with local children’s centers helping children nurture dreams and hopes for their future. Some of the actives include helping with their school work, taking to cultural events and field trips, and birthday party, bath service and cash donation.

SOCIAL CONtRIButIONS

Supports for Multi-cultural Families

SFC has been sponsoring or conducting diverse programs for multi-cultural families since 2009. Starting with simple cultural events and job-creation efforts, SFC has expanded such efforts to include activities deemed necessary for the families. One example is the sponsorship of ‘Swings’, a baseball club established in September 2014 in Ulsan City, exclusively for children from multi-cultural families, a first of its kind in the City. Other noteworthy events include the invitation of multi-cultural families to the event celebrating the 50th anniversary of SFC and proceeds raised through the event were donated to Swings. In addition, SFC sponsors ‘Ulsan little Rainbow Orchestra’ consisting of children from multi-cultural families.

Old Big tree Protection

SFC has been fertilizing and looking after 100-year and older trees in the Ulsan area in cooperation with ‘Ulsan Forest of life’, a local conservation group, since 2006.

Support Activities for Sister Villages

SFC has formed sisterhood ties with two local villages near Ulsan City, conducting a monthly care program for village elders living alone. We supply them with rice-planting equipment during planting and harvest seasons and hold volunteering activities around holiday seasons. In 2014, SFC held a bazar and a one-day open market, as part of our 50th anniversary events, to help the villages sell their produce and earn extra income.

year-end Good Neighbor Campaign

‘SFC Santa’s Great Operation’ is one of the good neighbor campaigns our executives carry out at every year-end. In 2014, we delivered gifts to 200 children with disability.

43

FutuRE CHANGE

Future Generation

Change for a future that nurtures children’s dreams and hopes

Corporate social contribution is an important force that makes a society healthy and changes it into a happy place to live in. It is also a wise strategy for the company looking to nurture sustainable growth because it creates the virtuous cycle that gives back positive energy to the company to grow further, setting in motion ‘Fine Change’.

My dad is a firefly. He volunteers to make

dark places bright for needy friends.

He says he also builds places to study for kids who

need a helping hand. He brings a gift of light.

Isn’t he great?

Da In Choi (Child of Hwan Kyu Choi, Senior Technician at SFC)

44

Local Community

Change that promotes happiness through communication with a community

HAPPy CHANGE

The joy and reward of volunteer service doubles

if done together. My experience of helping farmers

together with students from sisterhood school

has turned into a big hope based upon which

we can build a happier future.

Hwan Kyu Choi, Senior Technician at SFC

45

ECO CHANGE

Environment

eco-friendly change for a sustainable future

I thought chemistry was boring and difficult,

but it is actually cool and fun. I was told that

the flower pot I got at the ‘ECO Share Festival’ was

made of plastic that dissolves into water and air.

I will look after it to see a tree grow in it.

Min Hwan Han (Child of Young Il Han, Senior Technician at SFC)

SFC is well aware of the importance and the need for ‘Fine Change’ that we can bring about through our corporate social responsibility (CSR) activities. Accordingly, pursuing the virtuous cycle of creating the energy that sustains all, we gear up our social contributions for future generations, environment and local communities. In addition, by carrying out CSR activities promoting communication and mutual growth through cooperation of labor and management, SFC puts forward ‘Fine Solutions’ to a better tomorrow.

46

Employee

Change that promotes the spirit of sharing through employee participation

WItH CHANGE

47

Please scan this QR code to review SFC’s 2014 Audited Financial Statements

Samsung Fine Chemicals sees a bigger picture.

To us, where we should be in years ahead is more important

than how well we performed today. With foresight to see the day

of a centennial celebration, we will continue to innovate to become

a ‘World-leading chemical company of advanced materials’.

evenstronger

for the future48

FInanCIal revIeW

49

50

Management’s Discussion & Analysis

54

Independent Auditor’s Report

55

Consolidated Financial Statements

63

Independent Auditor’s Report

64

Separate Financial Statements

Introduction Samsung Fine Chemicals Co., ltd. (SFC) was founded on August 27, 1964, for the purpose of producing chemical fertilizers and related materials. Its product line-up can be categorized into fine chemicals, general chemicals and electronic materials. With the vision of the ‘World-leading chemical company of advanced materials’, SFC is expanding its business range to include eco-friendly energy materials. Its subsidiaries include S-EnPol, STM, Samsung Fine Chemicals Europe GmbH, and Samsung Fine Chemical Engineering Trading(Shanghai).

The financial statements of SFC are made in accordance with Korean International Financing Reporting Standards (K-IFRS), Korea’s accounting principle based on the International Accounting Standards Board (ISAB) standard.

The 2014 financial statements of SFC are based on the results of the company’s business operations from January 1 to December 31 of the year. The following Management’s Discussion & Analysis (MD&A) is based on SFC’s 2014 consolidated financial statements. Included in the MD&A are not only the company’s financial performances of the past but also evaluations of its current financial and business conditions, economic and forecasts, which are based on internal business environment analyses and market expectations. They are subject to change due to unpredictable nature of economic and business developments. For this uncertainty, the performance forecasts contained in this MD&A may differ from the company’s actual performance results of the future. Accordingly, SFC neither assures nor guarantees the accuracy or completeness of the information contained in the MD&A.

Market SummaryThe world economy grew by 3.1% in 2014, thanks to the gradual economic recovery in major economies including the U.S. Due to economic and political uncertainties mainly fueled by a slowing Chinese economy and crises in Ukraine and the Middle East, however, the growth was rather suppressed.

In the domestic market, the Gross Domestic Product (GDP) growth rate was 3.3%, which was up from 3% recorded in 2013, but below the expectation made at the beginning of the year. This was mostly attributable to sluggish growth in both exports and domestic demand. In particular, the nation’s economy recorded a private consumption growth rate of 1.7%, the lowest since the 2009 financial crisis.

To briefly review the state of SFC’s major downstream industries in 2014, the construction industry, which began to recover from the 4th quarter of 2013, made more construction investments than the year before. And the pharmaceutical industry, in contrast, continued to languish due to falling drug prices and challenging business environment. The petroleum chemical industry also remained sluggish affected by falling demand, while the semiconductor market maintained a healthy supply and demand flow thanks to the rising demand for mobile devices and growing albeit limited supply of DRAM following restructuring of the industry, which bolstered the oligopolistic structure.

Major Business Performance

1. Analysis of Operating Performance

Business Performance

At the end of 2014, SFC recorded KRW 1,210.5 billion in sales, a 7.9% decrease from the year before. It was mainly attributable to a dwindling industry demand for ammonia and depressed sales of electronic materials despite the sales expansion owing to the increased volume of chlorine and cellulose products sold.

The operating income showed signs of recovery following the increased volumes sold of chlorine and cellulose products whose production was expanded during the year, but the company recorded KRW 24.4 billion in operating loss mainly due to the occurrence of a one-time expense following the restructuring of the business structure. Net income increased from the previous year to stand at KRW 58.7 billion, reflecting gains from the sale of share holdings in joint ventures and assets.

MANAGEMENt’S DISCuSSION & ANALySIS

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

50

Performance by Product

Chlorine/Cellulose SegmentThe sales of chlorine and cellulose segment amounted to KRW 620.1 billion, up 15.2% from 2013. The sales of MECEllOSE® rose 15.5% year-on-year on the back of an increase in the volume sold following a continued production expansion and a gradual enlargement of the business. The sales of ECH also benefited from a production expansion, recording a 40.7% year-on-year increase, and sales of caustic soda rose 24.0% year-on-year thanks to increased exports.

Electronic Materials SegmentThe sales of electronic materials products decreased 12.8% year-on-year despite the steady growth in sales of color laser printer toners and the introduction of lithium nickel cobalt manganese oxide, an active material for rechargeable batteries. The decreased sales can be ascribed mainly to the discontinuation of the barium titanate powder and liquid crystal polymer operations which had been nearing their growth limits.

Ammonia SegmentThe sales of ammonia products decreased 26.1% year-on-year owing to dwindling global prices and the falling operating ratios of downstream industries.

(Unit: KRW billion, %)

　 2014 2013 Change Change (%)

Sales 1,210.5 1,314.1 (103.6) (7.9)

Chlorine/Cellulose 620.1 538.1 82.0 15.2

Electronic Materials 111.4 127.7 (16.3) (12.8)

Ammonia 479.0 648.3 (169.3) (26.1)

Cost of sales 1,093.7 1,205.8 (112.1) (9.3)

Gross profit 116.8 108.3 8.5 7.8

Selling and administrative expenses 107.2 102.0 5.2 5.1

logistics expenses 34.0 26.6 7.4 27.8

Operating income (loss) (24.4) (20.3) (4.1) n/a

Operating income margin (%) (2.0) (1.6) (0.4)%p

Net income 58.7 3.3 55.4 1,678.8

Net income margin (%) 4.9 0.25 4.65%p

2. Analysis of Financial Structure

As of the end of 2014, SFC’s assets amounted to KRW 1,846.0 billion, 2.9% less than the year before, while liabilities recorded KRW 650.2 billion, down 16.0% year-on-year. To improve its financial structure and cash flows, SFC sold some of its shares in PPG-SSC, Samsung life and SMP, and liquidated its idle properties including the housing units and dormitory at the Ulsan plant, and with the capital generated, the company paid off long-term borrowings and other liabilities. As a result of these efforts, the capital adequacy ratio improved 5.5%p year-on-year to 64.8% as of the end of 2014.

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

51

(Unit: KRW billion, %)

　 2014 2013 Change Change (%)

Assets

Current assets 472.0 506.8 (34.8) (6.9)

Cash and cash equivalents 97.1 87.0 10.1 11.6

Accounting receivables on other receivables 196.4 212.2 (15.8) (7.5)

Inventories 159.2 198.3 (39.1) (19.7)

Others 19.3 9.3 10.0 107.5

Non-current asset held for sale 125.0 - 125.0 100.0

Non-current assets 1,249.0 1,393.3 (144.3) (10.4)

Investments 277.4 414.9 (137.5) (33.1)

Property, plant, and other equipment 927.4 929.0 (1.6) (0.2)

Others 44.2 49.4 (5.2) (10.5)

Total assets 1,846.0 1,900.1 (54.1) (2.9)

Liabilities

Current liabilities 184.4 201.9 (17.5) (8.7)

Accounting payables on other payables 114.2 174.7 (60.5) (34.6)

Short-term borrowings 41.9 9.7 32.2 332.0

Others 28.3 17.5 10.8 61.7

Non-current liabilities 465.8 571.7 (105.9) (18.5)

long-term borrowings 88.7 183.4 (94.7) (51.6)

Debentures 299.3 299.1 0.2 0.1

Others 77.8 89.2 (11.4) (12.8)

Total liabilities 650.2 773.6 (123.4) (16.0)

Equity

Equity attributable to owners of the Parent 1,186.7 1,126.5 60.2 5.3

Capital stock 129.0 129.0 - -

Capital surplus 302.9 302.9 - -

Retained earnings 622.1 567.1 55.0 9.7

Others 132.7 127.5 5.2 4.1

Non-controlling interest 9.1 - 9.1 100.0

Total equity 1,195.8 1,126.5 69.3 6.2

Total liabilities and equity 1,846.0 1,900.1 (54.1) (2.9)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

52

3. Analysis of Cash Flows

In 2014, the cash and cash equivalents of SFC increased 11.6% year-on-year to KRW 97.1 billion. SFC generated KRW 23.9 billion from operating activities and KRW 95.6 billion from investing activities through the sale of its shares in SMP and PPG-SSC and its idle properties including the housing units and dormitory at the Ulsan plant. In addition, the company recorded a cash outflow of KRW 109.4 billion through the repayment of long-term borrowings.

Business Outlook for 2015 In 2015, the world economy is expected to be on a slow ascending slope on the backs of declining global product prices, following the fall of oil prices, and the easing of the U.S and other advanced nations’ austerity policies. The domestic economy is also expected to inch up its growth rate from the year before on the expectation that a recovering world economy will boost Korean exports. However, competition among corporations is more than likely to escalate as a growing foreign exchange volatility and the instability of global oil prices will continue to fuel uncertainties and sustain the low-growth trend.

As a confluence of opportunities and obstacles is predicted to shape the business environment of 2015, SFC will secure a new turning point that will lead the company toward being a centennial business. Based on the progress SFC made through the rationalization of the business structure and the strengthening of product competitiveness, the company will focus on bolstering its competencies in generating new incomes and securing future growth engines. In line with this, SFC will focus on strengthening the marketing competitiveness of its core businesses, while continuing to pursue production expansion and enhance productivity of active materials for rechargeable batteries, in an effort to expand its operations into a mid-to large-sized battery materials business.

Through such efforts, SFC will solidify the foundation for sustainable growth in eco-friendly energy materials, and will also fulfill globally competitive economies of scale in the MECEllOSE®, AnyCoat® and ECH businesses. This will lead SFC to take a step further, to grow into a “Total Solution Provider” in the area of next-generation materials.

(Unit: KRW billion, %)

　 2014 2013 Change Change (%)

Cash flows from operating activities 23.9 70.6 (46.7) (66.2)

Cash flows from investing activities 95.6 (360.3) 455.9 -

Cash flows from financing activities (109.4) 333.0 (442.3) -

Net increase in cash and cash equivalents 10.1 43.3 (33.2) (76.7)

Cash and cash equivalents at the beginning of year 87.0 43.7 43.3 99.1

Effects of foreign exchange rates on cash and cash equivalents

- - - -

Cash and cash equivalents at the end of year 97.1 87.0 10.1 11.6

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

53

INDEPENDENt AuDItOR’S REPORt

We have audited the accompanying consolidated financial statements of Samsung Fine Chemicals Co., ltd. and its subsidiaries (the “Group”), which comprise the consolidated statements of financial position as of December 31, 2014 and 2013, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Samsung Fine Chemicals Co., ltd. and its subsidiaries as of December 31, 2014 and 2013, and their financial performance and cash flows for the years then ended in accordance with the Korean IFRS.

Other mattersThe consolidated financial statements of the Group as of and for the year ended December 31, 2013, were audited in accordance with the previous Korean Standards on Auditing.

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries.

to the Shareholders and Board of Directors of Samsung Fine Chemicals Co., Ltd.

This report is effective as of March 5, 2015, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

English Translation of a Report Originally Issued in Korean

March 5, 2015Seoul, Korea

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

54

CONSOLIDAtED StAtEMENtS OF FINANCIAL POSItION

December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

2014 2013

Assets

Current assets

Cash and cash equivalents ￦ 97,140,938,322 ￦ 86,969,045,285

Held-to-maturity financial assets 27,885,000 161,625,000

Derivative financial assets 10,589,973 31,573,454

Trade receivables 181,833,623,161 199,140,555,599

Other current financial assets 14,599,326,400 13,213,289,334

Other current assets 19,130,776,327 8,954,573,623

Inventories 159,179,042,544 198,345,187,675

471,922,181,727 506,815,849,970

Non-current assets held for sale 125,018,120,178 -

Non-current assets

long-term financial instruments 34,108,168 36,108,168

Held-to-maturity financial assets 226,620,000 302,055,000

Other non-current financial assets 4,346,357,352 3,919,912,406

Available-for-sale financial assets 244,478,207,364 234,682,935,377

Investments in joint ventures 32,733,276,072 179,929,402,960

Property, plant and equipment 927,365,615,529 928,966,892,316

Intangible assets 37,721,216,736 42,616,439,567

Other non-current assets 95,345,914 1,172,023,566

Deferred income tax assets 2,019,431,854 1,675,892,114

1,249,020,178,989 1,393,301,661,474

Total assets ￦ 1,845,960,480,894 ￦ 1,900,117,511,444

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

55

2014 2013

Liabilities

Current liabilities

Trade payables ￦ 80,227,441,066 ￦ 118,570,795,791

Other current financial liabilities 45,402,172,272 67,830,875,756

Short-term borrowings 28,070,930,064 9,677,478,875

Current portion of long-term borrowings 13,833,120,000 -

Derivative financial liabilities 97,400,197 74,188,041

Other current liabilities 3,802,896,000 4,980,600,536

Current income tax liabilities 12,912,270,885 748,473,477

184,346,230,484 201,882,412,476

Non-current liabilities

Other non-current financial liabilities 1,638,279,750 137,000,000

Other long-term employee benefits liabilities 4,862,237,917 4,759,116,826

long-term borrowings 88,733,600,000 183,406,000,000

Debentures 299,284,790,941 299,074,180,381

Retirement benefit obligations 31,297,821,823 45,308,003,590

Deferred income tax liabilities 39,996,766,719 39,050,135,244

465,813,497,150 571,734,436,041

Total liabilities 650,159,727,634 773,616,848,517

Equity attributable to owners of the Parent

Capital stock 129,000,000,000 129,000,000,000

Capital surplus 302,905,129,440 302,905,129,440

Other components of equity 18,801,886,687 19,260,873,292

Accumulated other comprehensive income 113,885,878,306 108,178,750,918

Retained earnings 622,085,660,148 567,148,769,848

Non-controlling interest 9,122,198,679 7,139,429

Total equity 1,195,800,753,260 1,126,500,662,927

Total liabilities and equity ￦ 1,845,960,480,894 ￦ 1,900,117,511,444

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

56

CONSOLIDAtED StAtEMENtS OF COMPREHENSIVE INCOME

2014 2013

Revenue ￦ 1,210,498,128,559 ￦ 1,314,058,359,335

Cost of sales (1,093,667,503,133) (1,205,780,369,861)

Gross profit 116,830,625,426 108,277,989,474

Selling and administrative expenses (107,144,792,822) (102,044,999,343)

Distribution costs (34,041,222,013) (26,576,616,534)

Operating loss (24,355,389,409) (20,343,626,403)

Other income 135,216,525,883 39,028,139,796

Other expenses (35,188,426,884) (18,022,203,085)

Finance income 2,584,126,464 2,885,914,789

Finance costs (19,169,486,046) (6,987,709,127)

Share of profit of joint ventures 11,334,454,743 3,731,657,770

Profit before income tax 70,421,804,751 292,173,740

Income tax benefit (expense) (11,739,287,973) 3,048,318,717

Profit for the year ￦ 58,682,516,778 ￦ 3,340,492,457

Other comprehensive income (loss)

Items that will not be reclassified to profit or loss:

Remeasurements of net defined benefit liabilities ￦ 1,413,255,581 ￦ 1,932,113,107

Remeasurements of net defined benefit liabilities of joint ventures

8,526,999 (30,710,515)

Items that may be reclassified subsequently to profit or loss:

Changes in value of available-for-sale financial assets 5,723,205,365 (15,513,023,429)

Share of other comprehensive income of joint ventures (15,682,500) (34,329,500)

Currency translation differences in foreign operations (395,477) 5,663,900

7,128,909,968 (13,640,286,437)

Total comprehensive income (loss) for the year ￦ 65,811,426,746 ￦ (10,299,793,980)

Years Ended December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

57

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

2014 2013

Profit attributable to:

Owners of the parent ￦ 61,174,998,783 ￦ 3,340,942,595

Non-controlling interests (2,492,482,005) (450,138)

Comprehensive income attributable to:

Owners of the parent 68,284,612,688 (10,299,343,842)

Non-controlling interests (2,473,185,942) (450,138)

Earnings per share

Basic earnings per share ￦ 2,402 ￦ 131

Diluted earnings per share ￦ 2,402 ￦ 131

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

58

Attributable to equity holders of the Company

Non-controlling

Interest

total EquityCapital

StockCapital Surplus

OtherComponents

of Equity

AccumulatedOther

Comprehensive Income

RetainedEarnings

total

Balance at January 1, 2013 ￦129,000,000,000 ￦302,905,129,440 ￦ 19,260,873,292 ￦123,720,439,947 ￦ 578,461,047,161 ￦ 1,153,347,489,840 ￦ 7,589,567 ￦1,153,355,079,407

Comprehensive income

Profit for the year - - - - 3,340,942,595 3,340,942,595 (450,138) 3,340,492,457

Change in value of available-for-sale financial assets

- - - (15,513,023,429) - (15,513,023,429) - (15,513,023,429)

Remeasurements of the net defined benefit liability

- - - - 1,932,113,107 1,932,113,107 - 1,932,113,107

Remeasurements of the net defined benefit liability of joint ventures

- - - - (30,710,515) (30,710,515) - (30,710,515)

Share of other comprehensive income of joint ventures

- - - (34,329,500) - (34,329,500) - (34,329,500)

Currency translation differences in foreign operations

- - - 5,663,900 - 5,663,900 - 5,663,900

Total comprehensive income - - - (15,541,689,029) 5,242,345,187 (10,299,343,842) (450,138) (10,299,793,980)

Dividends - - - - (16,554,622,500) (16,554,622,500) - (16,554,622,500)

Total transactions with equity holders of the Company

- - - - (16,554,622,500) (16,554,622,500) - (16,554,622,500)

Balance at December 31, 2013 ￦129,000,000,000 ￦302,905,129,440 ￦ 19,260,873,292 ￦ 108,178,750,918 ￦ 567,148,769,848 ￦ 1,126,493,523,498 ￦ 7,139,429 ￦1,126,500,662,927

CONSOLIDAtED StAtEMENtS OF CHANGES IN EQuIty

Years Ended December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

Transactions with equity holders of the Company:

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

59

Attributable to equity holders of the Company

Non-controlling

Interest

total EquityCapital

StockCapital Surplus

OtherComponents

of Equity

AccumulatedOther

Comprehensive Income

RetainedEarnings

total

Balance at January 1, 2014 ￦129,000,000,000 ￦302,905,129,440 ￦ 19,260,873,292 ￦ 108,178,750,918 ￦ 567,148,769,848 ￦ 1,126,493,523,498 ￦ 7,139,429 ￦1,126,500,662,927

Comprehensive income

Profit for the year - - - - 61,174,998,783 61,174,998,783 (2,492,482,005) 58,682,516,778

Change in value of available-for-sale financial assets

- - - 5,723,205,365 - 5,723,205,365 - 5,723,205,365

Remeasurements of the net defined benefit liability

- - - - 1,393,959,518 1,393,959,518 19,296,063 1,413,255,581

Remeasurements of the net defined benefit liability of joint ventures

- - - - 8,526,999 8,526,999 - 8,526,999

Share of other comprehensive income of joint ventures

- - - (15,682,500) - (15,682,500) - (15,682,500)

Currency translation differences in foreign operations

- - - (395,477) - (395,477) - (395,477)

Total comprehensive income - - - 5,707,127,388 62,577,485,300 68,284,612,688 (2,473,185,942) 65,811,426,746

Dividends - - - - (7,640,595,000) (7,640,595,000) - (7,640,595,000)

Exercise of stock options - - (432,614,437) - - (432,614,437) - (432,614,437)

Changes in shares of subsidiaries

- - (26,372,168) - - (26,372,168) 856,932,968 830,560,800

Changes in scope for consolidation

- - - - - - 10,731,312,224 10,731,312,224

Total transactions with equity holders of the Company

- - (458,986,605) - (7,640,595,000) (8,099,581,605) 11,588,245,192 3,488,663,587

Balance at December 31, 2014 ￦129,000,000,000 ￦302,905,129,440 ￦18,801,886,687 ￦113,885,878,306 ￦622,085,660,148 ￦1,186,678,554,581 ￦9,122,198,679 ￦1,195,800,753,260

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

Transactions with equity holders of the Company:

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

60

CONSOLIDAtED StAtEMENtS OF CASH FLOWS

Years Ended December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

2014 2013

Cash flows from operating activities

Cash generated from operations ￦ 28,125,376,104 ￦ 76,262,009,469

Interest received 2,214,498,360 1,702,058,647

Interest paid (18,986,021,806) (3,820,849,671)

Dividend received 14,243,640,419 7,256,837,500

Income tax paid (1,695,635,380) (10,855,189,948)

Net cash generated from operating activities 23,901,857,697 70,544,865,997

Cash flows from investing activities

Disposal of long-term financial instruments 2,000,000 794,476

Disposal of held-to-maturity financial assets 210,036,715 5,735,000

Disposal of available-for-sale financial assets 89,117,142,234 1,274,093,560

Disposal of investments in joint ventures 176,660,739,206 -

Disposal of property, plant and equipment 45,450,863,463 20,084,853,791

Disposal of intangible assets 218,491,758 -

Increase in government grants 422,553,496 -

Reversal of other non-current financial assets 2,480,834,054 1,793,179,352

Disposal of held-for-sale non-current assets 29,501,794,000 -

Acquisition of held-to-maturity financial assets - (14,090,000)

Acquisition of long-term financial assets (2,720,000) -

Acquisition of available-for-sale financial assets (95,715,360,000) -

Acquisition of investments in joint ventures (78,050,000,000) (63,500,000,000)

Acquisition of property, plant and equipment (76,066,502,774) (319,608,438,626)

Acquisition of intangible assets (1,829,827,283) (695,875)

Increase in other non-current financial assets (406,000,000) (312,456,965)

Changes in scope for consolidation 3,615,408,691 -

Payment of liquidating dividends (7,184,263) -

Net cash provided by (used in) investing activities ￦ 95,602,269,297 ￦ (360,277,025,287)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

61

2014 2013

Cash flows from financing activities

Proceeds from short-term borrowings ￦ 8,293,874,488 ￦ (990,379,357)

Proceeds from long-term borrowings 39,994,000,000 151,139,000,000

Proceeds from debentures - 199,325,000,000

Paid-in capital increase 830,560,800 -

Exercise of stock options 23,895,000 -

Repayment of current portion of long-term borrowings (833,280,000) -

Repayment of long-term borrowings (150,000,000,000) -

Dividends paid (7,640,595,000) (16,554,622,500)

Receipt of government grants - 96,000,000

Net cash provided by (used in) financing activities (109,331,544,712) 333,014,998,143

Net increase in cash and cash equivalents 10,172,582,282 43,282,838,853

Cash and cash equivalents at the beginning of year 86,969,045,285 43,681,673,634

Exchange gains (losses) on cash and cash equivalents (689,245) 4,532,798

Cash and cash equivalents at the end of year ￦ 97,140,938,322 ￦ 86,969,045,285

SAMSuNG FINE CHEMICALS CO., LtD. AND SuBSIDIARIES (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

62

INDEPENDENt AuDItOR’S REPORt

We have audited the accompanying separate financial statements of Samsung Fine Chemicals Co., ltd. (the “Company”), which comprise the separate statements of financial position as of December 31, 2014 and 2013, and the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the separate financial statements present fairly, in all material respects, the financial position of Samsung Fine Chemicals Co., ltd. as of December 31, 2014 and 2013, and its financial performance and cash flows for the years then ended in accordance with the Korean IFRS.

Other mattersThe separate financial statements of the Company as of and for the year ended December 31, 2013, were audited in accordance with the previous Korean Standards on Auditing.

Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries.

to the Shareholders and Board of Directors of Samsung Fine Chemicals Co., Ltd.

This report is effective as of March 5, 2015, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

English Translation of a Report Originally Issued in Korean

March 5, 2015Seoul, Korea

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

63

2014 2013

Assets

Current assets

Cash and cash equivalents ￦ 96,072,042,417 ￦ 84,724,877,634

Held-to-maturity financial assets 27,885,000 161,625,000

Derivative financial assets 10,589,973 31,573,454

Trade receivables 183,020,614,852 199,179,337,874

Other current financial assets 13,983,630,528 13,179,799,961

Other current assets 18,755,950,432 8,847,973,641

Inventories 148,950,855,796 196,665,772,605

460,821,568,998 502,790,960,169

Non-current assets held for sale 125,018,120,178 -

Non-current assets

long-term financial instruments 31,108,168 33,108,168

Held-to-maturity financial assets 226,620,000 254,505,000

Other non-current financial assets 4,232,269,352 3,843,544,406

Available-for-sale financial assets 244,478,207,364 234,682,935,377

Investments in subsidiaries and joint ventures 65,650,252,030 201,287,374,708

Property, plant and equipment 861,421,111,270 923,131,497,778

Intangible assets 32,631,900,665 39,128,260,562

Other non-current assets 94,135,818 1,164,070,978

1,208,765,604,667 1,403,525,296,977

Total assets ￦ 1,794,605,293,843 ￦ 1,906,316,257,146

SEPARAtE StAtEMENtS OF FINANCIAL POSItION

December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

64

2014 2013

Liabilities

Current liabilities

Trade payables ￦ 82,903,098,392 ￦ 118,683,761,887

Other current financial liabilities 42,543,817,711 67,250,952,129

Short-term borrowings 9,713,303,774 8,817,478,875

Current portion of long-term borrowings 10,500,000,000 -

Derivative financial liabilities 97,400,197 74,188,041

Other current liabilities 3,750,717,805 4,785,108,606

Current income tax liabilities 12,897,228,828 738,604,978

162,405,566,707 200,350,094,516

Non-current liabilities

Other non-current financial liabilities 1,518,846,000 1,000,000

Other long-term employee benefits liabilities 4,862,237,917 4,759,116,826

long-term borrowings 59,500,000,000 183,406,000,000

Debentures 299,284,790,941 299,074,180,381

Retirement benefit obligations 30,622,109,256 45,001,346,542

Deferred income tax liabilities 39,131,105,890 38,528,002,725

434,919,090,004 570,769,646,474

Total liabilities 597,324,656,711 771,119,740,990

Equity

Capital stock 129,000,000,000 129,000,000,000

Capital surplus 302,905,129,440 302,905,129,440

Other components of equity 18,828,258,855 19,260,873,292

Accumulated other comprehensive income 135,528,011,550 108,227,413,626

Retained earnings 611,019,237,287 575,803,099,798

Total equity 1,197,280,637,132 1,135,196,516,156

Total liabilities and equity ￦ 1,794,605,293,843 ￦ 1,906,316,257,146

SAMSuNG FINE CHEMICALS CO., LtD. (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

65

2014 2013

Revenue ￦ 1,211,718,026,267 ￦ 1,313,929,674,666

Cost of sales (1,090,012,547,185) (1,204,421,517,102)

Gross profit 121,705,479,082 109,508,157,564

Selling and administrative expenses (104,501,429,762) (100,957,794,980)

Distribution costs (34,013,936,624) (26,589,795,062)

Operating loss (16,809,887,304) (18,039,432,478)

Other income 117,228,205,675 42,984,568,976

Other expenses (38,493,661,705) (18,005,664,011)

Finance income 2,530,625,685 2,876,791,234

Finance costs (18,118,122,418) (6,964,398,181)

Profit before income tax 46,337,159,933 2,851,865,540

Income tax benefit (expense) (4,835,955,535) 4,184,989,304

Profit for the year ￦ 41,501,204,398 ￦ 7,036,854,844

Other comprehensive income (loss)

Items that will not be reclassified to profit or loss:

Remeasurements of net defined benefit liabilities ￦ 1,355,528,091 ￦ 1,871,157,650

Items that may be reclassified subsequently to profit or loss:

Changes in value of available-for-sale financial assets 27,300,597,924 (15,513,023,429)

28,656,126,015 (13,641,865,779)

Total comprehensive income (loss) for the year ￦ 70,157,330,413 ￦ (6,605,010,935)

Earnings per share

Basic earnings per share ￦ 1,629 ￦ 276

Diluted earnings per share ￦ 1,629 ￦ 276

SEPARAtE StAtEMENtS OF COMPREHENSIVE INCOME

Years Ended December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

66

Capital Stock

Capital Surplus

OtherComponents

of Equity

AccumulatedOther

ComprehensiveIncome

RetainedEarnings

total Equity

Balance at January 1, 2013 ￦ 129,000,000,000 ￦ 302,905,129,440 ￦ 19,260,873,292 ￦ 123,740,437,055 ￦ 583,449,709,804 ￦ 1,158,356,149,591

Comprehensive income

Profit for the year - - - - 7,036,854,844 7,036,854,844

Remeasurements of net defined benefit liability

- - - - 1,871,157,650 1,871,157,650

Change in value of available-for-sale financial assets

- - - (15,513,023,429) - (15,513,023,429)

Total comprehensive income (loss) - - - (15,513,023,429) 8,908,012,494 (6,605,010,935)

Dividends - - - - (16,554,622,500) (16,554,622,500)

Total transactions with equity holders of the Company

- - - - (16,554,622,500) (16,554,622,500)

Balance at December 31, 2013 ￦ 129,000,000,000 ￦ 302,905,129,440 ￦ 19,260,873,292 ￦ 108,227,413,626 ￦ 575,803,099,798 ￦ 1,135,196,516,156

Balance at January 1, 2014 ￦ 129,000,000,000 ￦ 302,905,129,440 ￦ 19,260,873,292 ￦ 108,227,413,626 ￦ 575,803,099,798 ￦ 1,135,196,516,156

Comprehensive income

Profit for the year - - - - 41,501,204,398 41,501,204,398

Remeasurements of net defined benefit liability

- - - - 1,355,528,091 1,355,528,091

Change in value of available-for-sale financial assets

- - - 27,300,597,924 - 27,300,597,924

Total comprehensive income (loss) - - - 27,300,597,924 42,856,732,489 70,157,330,413

Dividends - - - - (7,640,595,000) (7,640,595,000)

Exercise of stock options - - (432,614,437) - - (432,614,437)

Total transactions with equity holders of the Company

- - (432,614,437) - (7,640,595,000) (8,073,209,437)

Balance at December 31, 2014 ￦ 129,000,000,000 ￦ 302,905,129,440 ￦ 18,828,258,855 ￦ 135,528,011,550 ￦ 611,019,237,287 ￦ 1,197,280,637,132

SEPARAtE StAtEMENtS OF CHANGES IN EQuIty

Years Ended December 31, 2014 and 2013

(in Korean won)SAMSuNG FINE CHEMICALS CO., LtD.

Transactions with equity holders of the Company:

Transactions with equity holders of the Company:

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

67

2014 2013

Cash flows from operating activities

Cash generated from operations ￦ 42,211,294,140 ￦ 77,071,088,144

Interest received 2,161,745,101 1,701,550,332

Interest paid (17,942,571,255) (3,801,915,962)

Dividends received 14,243,640,419 7,256,837,500

Income tax paid (1,679,527,528) (10,821,548,208)

Net cash generated from operating activities 38,994,580,877 71,406,011,806

Cash flows from investing activities

Disposal of long-term financial instruments 2,000,000 794,476

Disposal of held-to-maturity financial assets 161,625,000 5,735,000

Disposal of available-for-sale financial assets 89,117,142,234 -

Disposal of investments in subsidiaries 711,242,128 -

Disposal of investments in joint ventures 176,660,739,206 -

Disposal of property, plant and equipment 45,449,663,463 20,084,853,791

Disposal of intangible assets 218,491,758 -

Increase in government grants 413,037,496 -

Reversal of other non-current financial assets 2,465,834,054 1,782,679,352

Disposal of held-for-sale non-current assets 29,501,794,000 -

Acquisition of held-to-maturity financial assets - (14,090,000)

Acquisition of available-for-sale financial assets (95,715,360,000) -

Acquisition of subsidiaries (8,584,836,000) -

Acquisition of joint ventures (78,050,000,000) (63,500,000,000)

Acquisition of property, plant and equipment (69,136,460,348) (319,361,636,017)

Acquisition of intangible assets (244,877,283) -

Increase in other non-current financial assets (391,000,000) (310,876,965)

Net cash provided by (used in) investing activities ￦ 92,579,035,708 ￦ (361,312,540,363)

SEPARAtE StAtEMENtS OF CASH FLOWS

Years Ended December 31, 2014 and 2013

SAMSuNG FINE CHEMICALS CO., LtD. (in Korean won)

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

68

2014 2013

Cash flows from financing activities

Proceeds from short-term borrowings ￦ 796,248,198 ￦ (1,850,379,357)

Proceeds from long-term borrowings 36,594,000,000 151,139,000,000

Proceeds from debentures - 199,325,000,000

Exercise of stock options 23,895,000 -

Repayment of long-term borrowings (150,000,000,000) -

Dividends paid (7,640,595,000) (16,554,622,500)

Net cash provided by (used in) financing activities (120,226,451,802) 332,058,998,143

Net increase in cash and cash equivalents 11,347,164,783 42,152,469,586

Cash and cash equivalents at the beginning of year 84,724,877,634 42,572,408,048

Cash and cash equivalents at the end of year ￦ 96,072,042,417 ￦ 84,724,877,634

Sam

Su

ng

Fin

e C

he

miC

alS

a

nn

ua

l R

ep

oR

t 2

01

4

69

PRODuCt LISt

Chlor-Alkali Derivatives

Cellulose Ethers

Eco-friendly Energy Materials

Ammonia Derivatives

70

71

Key Products

Category Product Name Abbreviation Chemical Formula CAS No. Characteristic/Purity Packing Application Note

Chlor-Alkali Derivatives

Sodium Hydroxide (Caustic Soda Solution)

NaOH 1310-73-2Liquid, 25%, 50% ap. Solution

Tank lorry, Bulk vessel Chemical agent, Pulp & Paper processing

Sodium Hypochlorite HYPO NaOCl 7681-52-9Colorless or slightly yellow liquid, 12% Solution

Tank lorry Bleaching agent, Disinfectant Domestic Only

Hydrogen H2 1333-74-0 Gas, 99.99% Pipe Hydrogen peroxide raw material, Hydrodesulfurization Domestic Only

Hydrochloric acid HCl 7467-01-0 Liquid, 35% aq. Solution Cylinder, Tank lorry Agrochemicals, Pharmaceuticals Domestic Only

Methyl Chloride MC CH3Cl 74-87-3Colorless, Liquefied gas, 99.9% min.

940Kgs Cylinder Agrochemicals, Organic synthesis, Quaternary ammonium salt

Methylene Chloride MCL CH2Cl2 75-09-2Colorless, clear, volatile liquid, 99.9% min.

250Kgs Steel drum, 20MT ISO-Tank, Tank lorryElectronic material processing, Pharmaceuticals, Metal cleanser, Urethane foaming

Chloroform CFM CHCl3 67-66-3Colorless, clear, volatile liquid, 99.9% min.

250Kgs Steel drum, 20MT ISO-Tank, Tank lorry Pharmaceuticals, Solvents, Fluorocarbon refrigerants (R-22)

Epichlorohydrin ECH C3H5OCl 106-89-8 Colorless liquid, 99.9% min. 240Kgs Steel drum, ISO-Tank, Bulk vessel Epoxy resin, Synthetic glycerin, Water treatment chemicals EU REACH Registered

S-Quata®

(3-chloro-2-hydroxy PropylTrimethyl Ammonium Chloride)

PTAC C6H15Cl2NO 3327-22-8Colorless liquid, 65% min. (S-Quata 885), 69% min. (S-Quata 889)

230Kgs PE Drum, 1.1MT IBC, Flexibag, Tank lorryAdditives for starch, High-quality pulp, Personal care product, Texttile, Raw materials for surface active agent

EU REACH Registered

Cellulose Ethers

MECELLOSE®

MC 9004-67-5

White or yellowish powder

20kg: Paper bag with PE inner liner350kg: PP Jumbo bag with PE inner liner

Tile adhesives, EIFS/ETICS, Plasters & Renders,Ceramic & Cement extrusion, Joint compounds, Paints & Coatings

HPMC 9004-65-3

HEMC 9032-42-4

HECELLOSE™ HEC 9004-62-025kg: Paper bag with PE inner liner450kg: PP Jumbo bag with PE inner liner

Paints & Coatings, Personal care, Joint compounds, Oil field, Emulsion polymerization, Detergents, Construction applications

AnyCoat® HPMC 9004-65-3

20kg, 25kg: Fiber drum with PE double inner bagFilm coating, Binder, Sustained release, Formulation, Capsule making

Certificate: Kosher, ISO9001, DMF

HPMC-P 9050-31-1 Enteric coating, Solid dispersion

AnyAddy®

MC 9004-67-5

20kg, 25kg: Fiber drum with PE double inner bag, Paper bag with PE double inner liner

Foods, Dietary supplementsCertificate: FSSC22000(GFSI)

HPMC-P 9050-31-1

HPMC 9004-65-3

Ammonia Derivatives

Monomethylamine MMA CH3NH2 74-89-5Colorless liquid, 40% min. (aq. Solution)

170KGs Steel drum, 20MT ISO-Tank (aq. Solution)Pharmaceuticals, Alkylalkanolamines (MDEA), Soli fumigant, Pesticide, Properllants

Dimethylamine DMA (CH3)2NH 124-40-3Colorless liquid, 50%, 60% min. (aq. Solution)

160Kgs Steel drum, 19MT ISO-Tank (aq. Solution)Agrochemicals, Surface active agent, Water treatment, Rubber vulcanization accelerator

EUROx® (Aq. Urea solution)

(NH2)2CO 57-13-6Colorless Urea Solution 32.5% and 40%

10L PET, 200L Drum, 1000L IBC, Bulk vessel Selective catalytic reduction (De-Nox) in diesel engine

Ammonia (Anhydrous ammonia)

NH3 67-56-1 Colorless liquid 99.5% min. Tank lorry or Pipe Urea, Caprolactam, Acrylornitrile, Hydrazine

Tetramethyl Ammonium Chloride TMAC (CH3)4NCl 75-57-0 Colorless solution 58% min. 20MT ISO-Tank TMAH raw material, Oil & Gas industry

Tetramethyl Ammonium Hydroxide

TMAH (CH3)4NOH 75-59-2Colorless solution 50% or 58% min.

190Kgs Steel drum, 20MT ISO-Tank Photoresist development, Anisortropic etchant

Eco-friendly Energy Materials

Bio-degradable Plastics

EnPolPBAT 55231-08-8

White Pellet25Kgs paper bag with PE & aluminum inner liner1MT bulky bag with PP & aluminum inner liner

Film & package, Coating, Medical supplies, Architecture & Civil engineering, Reforming, Fiber fishing net & tools, Injection molding

PBS 67423-06-7

Active Materials for Rechargeable Batteries

CelexTM SN3 Series NCM111 LiNi0.333Co0.333Mn0.333O2 346417-97-8

Black powder

465kg bulky bag with PP & aluminum inner liner

Active materials for rechargeable batteriesCelexTM SN5 Series NCM523 LiNi0.5Co0.2Mn0.3O2 346417-97-8 450kg bulky bag with PP & aluminum inner liner

72

Chlor-Alkali Derivatives

tel +82-31-8061-3254

Fax +82-31-8061-3147

E-mail chem.sfc@samsung.com

Cellulose Ethers

tel +82-31-8061-3405

Fax +82-31-8061-3148

E-mail cellulose.sfc@samsung.com

Ammonia Derivatives

tel +82-31-8061-3254

Fax +82-31-8061-3147

E-mail chem.sfc@samsung.com

ECO-FRIENDLy ENERGy MAtERIALS

Bio-degradable Plastics

tel +82-31-8061-3283

Fax +82-31-8061-3147

E-mail yumy.yeom@samsung.com

Active Materials for Rechargeable Batteries

tel +82-31-8061-3624

Fax +82-31-8061-3805

E-mail kyusik.yum@samsung.com

About Our Products

Category Product Name Abbreviation Chemical Formula CAS No. Characteristic/Purity Packing Application Note

Chlor-Alkali Derivatives

Sodium Hydroxide (Caustic Soda Solution)

NaOH 1310-73-2Liquid, 25%, 50% ap. Solution

Tank lorry, Bulk vessel Chemical agent, Pulp & Paper processing

Sodium Hypochlorite HYPO NaOCl 7681-52-9Colorless or slightly yellow liquid, 12% Solution

Tank lorry Bleaching agent, Disinfectant Domestic Only

Hydrogen H2 1333-74-0 Gas, 99.99% Pipe Hydrogen peroxide raw material, Hydrodesulfurization Domestic Only

Hydrochloric acid HCl 7467-01-0 Liquid, 35% aq. Solution Cylinder, Tank lorry Agrochemicals, Pharmaceuticals Domestic Only

Methyl Chloride MC CH3Cl 74-87-3Colorless, Liquefied gas, 99.9% min.

940Kgs Cylinder Agrochemicals, Organic synthesis, Quaternary ammonium salt

Methylene Chloride MCL CH2Cl2 75-09-2Colorless, clear, volatile liquid, 99.9% min.

250Kgs Steel drum, 20MT ISO-Tank, Tank lorryElectronic material processing, Pharmaceuticals, Metal cleanser, Urethane foaming

Chloroform CFM CHCl3 67-66-3Colorless, clear, volatile liquid, 99.9% min.

250Kgs Steel drum, 20MT ISO-Tank, Tank lorry Pharmaceuticals, Solvents, Fluorocarbon refrigerants (R-22)

Epichlorohydrin ECH C3H5OCl 106-89-8 Colorless liquid, 99.9% min. 240Kgs Steel drum, ISO-Tank, Bulk vessel Epoxy resin, Synthetic glycerin, Water treatment chemicals EU REACH Registered

S-Quata®

(3-chloro-2-hydroxy PropylTrimethyl Ammonium Chloride)

PTAC C6H15Cl2NO 3327-22-8Colorless liquid, 65% min. (S-Quata 885), 69% min. (S-Quata 889)

230Kgs PE Drum, 1.1MT IBC, Flexibag, Tank lorryAdditives for starch, High-quality pulp, Personal care product, Texttile, Raw materials for surface active agent

EU REACH Registered

Cellulose Ethers

MECELLOSE®

MC 9004-67-5

White or yellowish powder

20kg: Paper bag with PE inner liner350kg: PP Jumbo bag with PE inner liner

Tile adhesives, EIFS/ETICS, Plasters & Renders,Ceramic & Cement extrusion, Joint compounds, Paints & Coatings

HPMC 9004-65-3

HEMC 9032-42-4

HECELLOSE™ HEC 9004-62-025kg: Paper bag with PE inner liner450kg: PP Jumbo bag with PE inner liner

Paints & Coatings, Personal care, Joint compounds, Oil field, Emulsion polymerization, Detergents, Construction applications

AnyCoat® HPMC 9004-65-3

20kg, 25kg: Fiber drum with PE double inner bagFilm coating, Binder, Sustained release, Formulation, Capsule making

Certificate: Kosher, ISO9001, DMF

HPMC-P 9050-31-1 Enteric coating, Solid dispersion

AnyAddy®

MC 9004-67-5

20kg, 25kg: Fiber drum with PE double inner bag, Paper bag with PE double inner liner

Foods, Dietary supplementsCertificate: FSSC22000(GFSI)

HPMC-P 9050-31-1

HPMC 9004-65-3

Ammonia Derivatives

Monomethylamine MMA CH3NH2 74-89-5Colorless liquid, 40% min. (aq. Solution)

170KGs Steel drum, 20MT ISO-Tank (aq. Solution)Pharmaceuticals, Alkylalkanolamines (MDEA), Soli fumigant, Pesticide, Properllants

Dimethylamine DMA (CH3)2NH 124-40-3Colorless liquid, 50%, 60% min. (aq. Solution)

160Kgs Steel drum, 19MT ISO-Tank (aq. Solution)Agrochemicals, Surface active agent, Water treatment, Rubber vulcanization accelerator

EUROx® (Aq. Urea solution)

(NH2)2CO 57-13-6Colorless Urea Solution 32.5% and 40%

10L PET, 200L Drum, 1000L IBC, Bulk vessel Selective catalytic reduction (De-Nox) in diesel engine

Ammonia (Anhydrous ammonia)

NH3 67-56-1 Colorless liquid 99.5% min. Tank lorry or Pipe Urea, Caprolactam, Acrylornitrile, Hydrazine

Tetramethyl Ammonium Chloride TMAC (CH3)4NCl 75-57-0 Colorless solution 58% min. 20MT ISO-Tank TMAH raw material, Oil & Gas industry

Tetramethyl Ammonium Hydroxide

TMAH (CH3)4NOH 75-59-2Colorless solution 50% or 58% min.

190Kgs Steel drum, 20MT ISO-Tank Photoresist development, Anisortropic etchant

Eco-friendly Energy Materials

Bio-degradable Plastics

EnPolPBAT 55231-08-8

White Pellet25Kgs paper bag with PE & aluminum inner liner1MT bulky bag with PP & aluminum inner liner

Film & package, Coating, Medical supplies, Architecture & Civil engineering, Reforming, Fiber fishing net & tools, Injection molding

PBS 67423-06-7

Active Materials for Rechargeable Batteries

CelexTM SN3 Series NCM111 LiNi0.333Co0.333Mn0.333O2 346417-97-8

Black powder

465kg bulky bag with PP & aluminum inner liner

Active materials for rechargeable batteriesCelexTM SN5 Series NCM523 LiNi0.5Co0.2Mn0.3O2 346417-97-8 450kg bulky bag with PP & aluminum inner liner

73

GLOBAL NEtWORK

Europe GmbH

T/S Center

Tokyo OfficeSamsung Fine Chemicals

Trading(Shanghai) CO., ltd.

Suwon Office

Advanced Materials Research Institute

Incheon Plant

Ulsan Plant

Samsung Fine Chemicals trading(Shanghai) CO., Ltd.

Rm 1515, Shanghai Int’l Trade Center, No. 2201, West Yan’An Road, Shanghai, China, 200336

tel +86-21-6270-3936

Fax +86-21-6270-3933

Europe GmbH

Am Kronberger Hang 6, 65824 Schwalbach TS., Germany

tel +49-6196-66-6102

Fax +49-6196-66-6109

t/S Center

C/O KIST Europe Campus E 7.2 66123 Saarbreucken, Germany

tel +49-681-9382-374

Fax +49-681-9382-319

tokyo Office

Shinagawa Grand Central Tower 9F, 2-16-4, Konan, Minato-ku, Tokyo, Japan

tel +81-3-6369-6493

Fax +81-3-6369-6494

Overseas

ulsan Plant

Yeocheon-ro 19, 217 beon-gil, Nam-gu, Ulsan, South Korea

tel +82-52-270-6114

Fax +82-52-272-7925

Suwon OfficeAdvanced Materials Research Institute

Samsung Fine Chemicals, Samsung Materials Research Complex, Samsung-ro 130, Yeongtong-gu, Suwon-si, Gyeonggi-do, South Korea

tel +82-31-8061-3100

Fax +82-31-8061-3146

Incheon Plant

Namdong-daero 79, 47 beon-gil, Namdong-gu, Incheon, South Korea

tel +82-32-899-0800

Fax +82-32-816-4501

Domestic

74

CONtACt INFORMAtION

http://mecellose.samsung-cellulose.com

http://hecellose.samsung-cellulose.com

http://anycoat.samsung-cellulose.com

http://www.eurox.co.kr

http://www.s-enpol.com

http://www.sfc.samsung.co.kr

http://www.facebook.com/samsungfinechem

http://www.twitter.com/samsungfinechem

Samsung Fine Chemicals Communication team

Address Samsung Fine Chemicals, Samsung Materials Research Complex, Samsung-ro 130, Yeongtong-gu, Suwon-si, Gyeonggi-do, South Korea

tel +82-31-8061-3164 Fax +82-31-8061-3146E-mail ir.sfc@samsung.com

About this Report

SFC Links

Brand Links

To c

onse

rve

reso

urce

s an

d lim

it en

viro

nmen

tal i

mpa

ct, t

his

prin

ted

repo

rt h

as b

een

prin

ted

on e

co-f

riend

ly p

aper

.