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Global B2B eGlobal B2B e--Marketplace LeaderMarketplace Leader

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Ⅰ. Who We AreⅠⅠ. Who We Are. Who We Are

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iMarketKorea, the best B2B e-marketplace enhancing procurement efficiency

of MRO based on the biggesttrade volume, technology & purchase know-how

KRW 2.4 trillion of trade volume, 349 clients, 285employees in 2006

What is MRO?

MRO refers to materials needed for maintenance, repair, and operation used in

companies. Domestic companies’ average purchase of materials amounts to

more than 66% of revenue,of which MRO takes up 9% of the total purchase.

iMarketKorea was established with funding from 10 Samsung affiliates in 2000

to cut cost in purchasing consumable and MRO materials of Samsung Group

iMarketKorea at a glance

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Purchase Agent of RawMaterials

e-CatalogueStandardization

Strategic PurchaseConsulting Service

The #1 Korean B2B e-Marketplace for MRO Materials

B2B Auction Service

Business Model

Core ServiceCore ServiceCore Service AdditionalService

AdditionalAdditionalServiceService

Cut direct purchase cost through

outsourcing across overall purchase

Cut indirect purchase cost through

process improvement

Cut cost in system establishment &

management

Selective MRO shopping mall for SMEs

Experience cost cutting effect enjoyed

by large sized companies

For LargeCompanies

For SMEs(Wmall)

PurchaseAgent

Apply various auction and electronic bidding tactics

Cut cost, enhance work convenience, and secure

fairness

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History

Attracted KRW 5 billion of investment from Korea Development Bank.

Honored with the Minister of Information & Communication award in e-Commerce.

Dec.

Offered PDA utilized mobile e-Marketplace service for the first time in Korea.

Nov.

Honored with the Minister of Commerce, Industry, Energy Award in e-Commerce.Performed B2B network pilot test in the APEC region for MOIC.

Feb.

Initiated export for the first time among e-Marketplace in Korea

Oct.

Initiated corporate auction service for the first time in Korean B2B history.

July

Launched MRO & construction materials procurement service.Jan.

iMarketKorea.,Inc. EstablishedDec.2000

2001

2002

2003Developed MOCIE e-Catalogue automatic mapping system (industry-academia cooperation].)

Dec.

Won “USD 10 million Export Tower,” first in e-marketplace history.

Nov.

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History

2004

2005

2006

2007

Sep.

Opened logistics center (LC) in 5 zones nationwide.

Developed ‘Sourcing Decision Making Support System (Wise-

I),’ first in history.

Developed ‘Supplier Evaluation Management System (Smart-I)]

& new auction system.

Apr.

Sep.

Launched 6Sigma management project (3-year plan).

Established strategic partnership with Samsung Amer

ica Inc. (U.S.).

Signs MOU with Sumitomo Corporation, Japan.

Supplied administrative use materials to the Public Procurement Service.

Developed Smile-I, a VOC system.

Jan.

Oct.

Mar. Expanded and moved metropolitan LC, nationwide collection & delivery service.

Apr. Selected as an MRO outsourcing company for CJ Group.

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Feb.

Dec.

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Sales & Customer

Continuous increase in annual trade volume and clients

Increase in Client Base

(2001~2007)

49

2001 2002 2003 2004 2005 2006 2007

50

100

150

200

250

300

350

400

(of customers))

106

178205 216

263

349

Increase in Trade Volume

[2001~2006)

2tril

1tril

0

2.4tril

0.9tril

1.3tril

1.6tril

2.1tril2.2tril

2001 2002 2003 2004 2005 2006

CAGR 27%

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Products

MRO materials are classified into materials for machines/parts and electricity/communication, common

materials, construction materials, facilities materials, paper, maintenance items, office/computer supplies,

etc.

Machines/ Parts Electricity/Communication Common Materials Construction Materials Facilities

Paper Maintenance Office/computer supplies Education Raw Materials

Household items Anti pollution facilities Engineering Material Fire Fighting Prints

Tool, test/measure/gauging machine, welding machine, pump, transport/unloading machine, automatic machine, metal processing machine, power generators, compressors, construction machines, used machines

Wire control machine, wired & wireless communication machine, broadcasting signal guarding machine, illuminator, electric wire cable, battery, insulation material, wire facility, electric & electrical parts, electric pole

Adhesive, brush, nonferrous metal, bolt/nut/screw, rolled steel, timber, steel sheet, lumber, shielding metal, remicon, aggregate, steel pipe, cement, construction & compound materials

Window paper, pigment, heat insulator, tile, brick, waterproof materials, materials for roof/ floor, glass, block, plastering, stone, prefabricated board, veneer board

Pipe, valve, HVAC, sanitary facilities, heating/cooling materials, boiler/burner, kitchen appliances, duct, water-purifier tanks, tanks, scales

For copies, reports, special use, packing, prints, silver tissue, other papers

Items for cleaning, safety, detergents, sanitation/medicine, musical instruments, signboard/advertisement, facilities for the disabled, clothing

Office furniture/fixtures, office items, computer/components, office machines

A/V equipment, physio-chemistry equipment, educational equipment

Tools, packing material, mineral products, recycling materials, textile, fabric, leather

Industrial products, processed goods, agro-livestock & fishery products

Anti air pollution facility, water processing site, environmental degradation analysis machine, contaminated water purifier, oscillation & noise prevention facilities, waste water treatment plant, incinerator, recycling facilities

For road, fence, arbor,

landscape gardening,

waterway, others,

bridge/river/harbor,

engineering casket,

stake, block, fragmented

paper

Fire extinguisher, fire hydrant, other fire fighting equipment

Prints

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Key Customers

Manufa

ctu

ring S

ecto

r

Reta

il Secto

r

Fin

ancia

l Secto

r

Govern

ment

affa

irs

Univ

ers

ity

Sam

sung G

roup

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A day in iMarketKorea

• Number of buyers (Excluding

repetitions): 20,000 buyers

• Buyer visits to website (including

repetitive access): 135,000 hits

• Supplier (excluding repetitions):

5,500 companies

• Supplier visits to website

(including repetitive access)

: 130,000 hits

Supplier Buyer• Orders received: 170,000

• Goods received : 165,000

• Goods delivered : 162,000

• Quotations : 42,000

• Contracts : 71,000

May Statistics

100% On-line operation from requisition to payment

※ As of May 2007

Daily transaction of iMarketKorea in May 2007

•Number of visits: 4,300

•Quotations : 2,539

•Contracts : 3,992

•Goods delivered: 5,400

•Number of visits : 4,500

•New product registration

requests: 700

•Orders : 5,600

•Goods received : 5,510

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Global Expansion

• 01: Pioneered into Asia

• ’05: Pioneered into

Latin America

• ’03: Pioneered into Europe

’ ’07 revenue estimate:

USD 68.5 million

IMK

Export

Status

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Pursue global trading based on partnerships

Asia sourcing network with global purchase strategy consulting firm

- Established strategic partnership system by region.

- Samsung America Inc. (U.S.), Sumitomo Corporation (Japan), iMarketChina (China)

- Pursued global sourcing & pioneered overseas market for superior domestic products.

- Established teaming agreement with A.T.Kearney.

- Currently engaged in LCC Sourcing and Deutsche Telekom Project.

Presence in 12 nations (28 regions)

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Ⅱ. Our CompetitivenessⅡⅡ. Our Competitiveness. Our Competitiveness

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Sourcing Decision Making Support System

Wise-iSupplier Relation Management System

Smart-i

e-catalogue Cooperation Tool

i-Catch

VOC System Smile-i

Competitiveness-System

Realize a integrated System for Cooperative e-Commerce

A system that selects the optimal

supplier by establishing

evaluation criteria by sourcing

group and item

A system that enables systematic

management of supplier

performance and strategic

purchase based on SRM (Supply

Chain Management)

A system that enhances customer

satisfaction by swiftly responding

to customer claim and vitalizing

feed back

An e-Catalogue maintenance

system that updates accurate

product information swiftly

through real time cooperation

with suppliers

1. Perform strategic analysis

2. Expand outstanding supplier pool

3. Evaluate supplier & induce

continuous improvement

4. Maximize customer satisfaction by VOC integrated management

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Competitiveness-Service

SpeedEfficiency/Process Innovation

SmartIntelligence

SensitiveProactive/

Customer Satisfaction

IMK Strategic Direction

SRM

Logistics CRM

CustomerSatisfaction

CustomerCustomerSatisfactionSatisfaction

-3S (Speed, Smart, Sensitive) :

- A service that finds customers’ needs at a speed and quality exceeding expectations

Deliver Customer Satisfaction through 4 Major Services Based on 3S

• Enhance competitiveness of client’s value chain by establishing mutual growth relationship with suppliers.

• Secure stable & integrated

supply base.

• Strategic alliance with the

integrated supplier

• Secure a logistics center

by region.

• Operate a hub center of

product supply network.

• Focus on MRO purchase agent

service.

• Expand scope of total MRO

outsourcing business.

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Competitiveness-Logistics

Gyeongnam LC

Gyeongbuk LC

Gwangju LC

Chungcheong LC

- Secured nationwide logistics

network via Yongin,

Cheongan/Asan, Gwangju, Gumi,

Gimhae LC

- Established Massive Logistics

Service System

Metropolitan LC

Services ProvidedLogistics Center(LC)

Deliver Value through Logistics Innovation

Chungcheong LC

Gwangju LC

Gyeongnam LC

Gyeongbuk LC

Metropolitan LC

■ Nationwide collection & delivery service for 800 clients and 4,000 suppliers

■ Maximization of customer satisfaction with next day delivery service

■ Diversification of articles handled: available for heavy (over 0.5 ton), massive,

dangerous, and costly articles

Nationwide collection & delivery

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Ⅲ. Our ValueⅢⅢ. Our Value. Our Value

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Value by iMarketKorea

IMK’s Advanced Purchase System

Win-WinSupplier Buyer

Establish mutual win-win relationship through differentiated supplier management and customer satisfaction-oriented management

• Work efficiency

• Revenue growth

• Stability

• Cost cutting

• Enhancement of

purchase expertise

• Work Efficiency

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Value for customers

Qualitative Effect

- Budget control in advance

- Share demand estimate &

production plan

- Trade transparency and

account settlement report

Purchase Budgeting

/Information

- Manage vendors/simplify

administrative work

-Considerable decrease

in purchase related work

(Decreased by 20~35% in

average)

Purchase AdministrationRelated Work

- Shortened by an

average of 5 days

DeliveryLead Time

-Streamlined purchase

steps (2 57 steps)

Purchase Process

Effect of ImprovementContent

Source : Fastenal Company 2006, 9th ISM MRO Conference Material

Clients

55%

Before After

30%

15%

49%

8%

12%

프로세스비용

재고비용

제품비용

■ 270 large sized companies, 2,252 SMEs – a total of 4,114 business sites in 2,522 companies

■ Delivers tangible & intangible cost cutting effect worth 30% of annual purchase related cost.

Quantitative Effect

Cost cut utilizing MRO marketplace

Create31%

of added value

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Value for Suppliers

1976323

3559

45189

seoul

5 137

2

Gangwon

24429

320

11 30

Chungchung

901

194

4365

10060

Kyungki

612

61

2261

41 24

Pusan

13 1

64

2

Junbuk

12214164

1 9

Junnam

11

Jeju

320

41

1981

18 35

Daegu Wholesaleservice

manufacturing

Offer

Retail

CategoryWholesale4393

Offer 723

Retail 249

Manufacturing13162

Service 664

Suppliers

■ Win-win support:

- Contribute to revenue growth of suppliers through integrating quantity, achieving product standard, enhancing

unit price competitiveness, supporting export and logistics, serving as marketing agent, holding joint technology

seminar & education, and nurturing programs such as a supplier selection decision making system.

■ 233 large sized companies, 18,958 SMEs

Suppliers by Industry Supplier by Region

72313,1622496644,393

Offer Manufacturing

RetailServiceWholesale

※offer: Export & Import Agent, trade business

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iMarketKorea

60-1 Geukdong Bld 15F, Chungmuro 3 ga, Jung-gu, Seoul

www.imarketkorea.com

Tel: 02-3708-5678

Fax: 02-3708-5597