I주I솔믹스 소개

2007년 주요 이슈

경영실적 분석

참고자료

Introduction of Solmics

2007, Main Issue

Analysis of Business Performance

References

Chap.1 Introduction of Solmics

Solmics @ a Glance

Using “Example”

Business Area

Introduction of Main Products

4

0

10,000

20,000

30,000

40,000

50,000

'02 '03 '04 '05 '06(E)

High growth & profit company with 29.8% yearly average growth rate and more than 15% operating profit

(Unit: hundred million won, %)

SalesSales

Rate

CAGR

(’02~’06)Major Customers

Al2O3 16,941 45.9 36.1<Major Domestic Customers>

• Samsung Electronics(semiconductor, LCD)

• Hynix Semiconductor

• Samsung Electro-mechanics Co.,Ltd

• LG Philips LCD

• Fairchild Korea Semiconductor

• ULVAC Korea, D.N.S. Korea

<Major Overseas Customers>

• JAPAN : Sony, Toshiba, Matsushita, Fujitsu

• U.S.A & Europe : IBM, TI, Micron, Infineon

• CHINA : Hynix, BOE, HHNEC, KEC, ASMC

• TAIWAN : UMC, AU, CMO, TSMC, PROMOS,

MOSEL

• SINGAPORE : HP, STMicro, Chartered, HSS,

SSMC

Si 9,089 24.6 19.8

Si-SiC 3,001 8.1 -

AlN 1,015 2.7 -

Other 4,829 13.1 11.8

Cleaning 2,046 5.5 -

(hundred million won)

Supplying fine ceramic spare parts for Semiconductor and LCD manufacturers in Samsung, and Hynix as Global Market Leader.

Al2O3(Alumina) has been a leading role in sales growth and profit improvement after YR 2002, achieved 38.9 Million US, 17.92% operating profit

Solmics @ a Glance

14,34113,013

23,580

27,158

36,921

5

No Name Material Life Time

1 View Port Quartz -

2 Baffle Si-SiC 0.5 ~ 1 year

3 Electrode Si 500 hours

4 Upper Ring Si-SiC 500 hours

5Upper

Confinement RingAl2O3 300 hours

6Lower

Confinement RingAl2O3 300 hours

7 Hot Edge Ring Si 200 hours

8 Insulator Pipe Al2O3 5,000 hours

9 Inner Focus Ring Al2O3 6 months

10 Outer Focus Ring Al2O3 6 months

11 Lift Pin Al2O3 3 months

12 Heater Block* Metal, AlN 1 year

13 Bottom Insulator Al2O3 -

Cover

< Chamber Component>

1

2

3

4

56

7

89

10

11

12

13

Fine Ceramics Using“Example”

Fine Ceramics Using “Example”in Semiconductor

* Mecharonics is pruducing Metal Heater Block

6

Materials

(powder)

Basic

materialsProcessing

Fine

ceramic

parts

Al2O3

Si (since 2007)

Si-SiC

AlN

Quartz

Others

(Only purchasing and processing basic

materials, being low value-added)

(Producing and processing basic materials into high value-

added material units)

Domestic and overseas

semiconductor/LCD

equipment manufacturers

Supplying parts

for replacement

(After the expiration of the warranty

period for the equipment manufacturers)

Business Area

Producing products made of fine ceramic materials and supplying semiconductor and LCD element manufacturers

with consumable parts for replacement and equipment manufacturers with parts to be newly installed

Completed car

manufacturers

Cold spray

coating(Auto parts)

Domestic and overseas

semiconductor/LCD

equipment manufacturers

Supplying parts to

be newly

installed

Cleaning fine ceramic parts

New strategic business

Transforming from a “process-centered company” that purchased and processed basic materials in the past

to a high value-added enterprise and a “material-centered company” through significant equipment investments.

Anticipating a solid, high growth period through profit enhancement and customer/product area expansion.

Production Process and Business Area

Solmics’ Core Business Components

7

Characteristics of Materials Main UseMarket Size

(Overseas/Domestic)

Main

Competitors

Share of the

Domestic

Market

(As of 2006)

Al2O3

• Excellent performance for the price

• Excellent wear-resistance thanks to precision and high degree of

hardness

• Excellent resistance to heat and chemicals

• Excellent insulation resistance at high temperatures and excellent

insulation strength for high voltage

Consumable parts

for

semiconductor/LCD

equipment (Dry

Etcher, CVD process)

10,000 / 1,500

Kyocera

WonikQuartz

13.0%

Si

• Stable supply of materials thanks to rich resources

• Physical and mechanical characters stable during temperature

fluctuations.

• Purification process ensures highest degree of purity.

• Easy to control electrical resistance through single crystallization and

adjustment of the added amount of impurities

Consumable parts

for

semiconductor/LCD

equipment (Dry

Etcher, CVD process)

13,500 / 1,800Coors

Worldex 6.0%

Si-SiC

• Very stable chemical characterictics

• Insulator at normal temperature, but electrical/mechanical

characteristics may change depending on the kind/amount of

impurities

• If CVD-coated, the surface film becomes more precise, thus

preventing the diffusion and emission of impurities and the

corrosion-resistance against acid solutions also increases.

8,000 / 1,000Toshiba

Ceramics

Asahi3.0%

AlN• High resistance against thermal conductivity and thermal shock

• Low thermal expansion coefficient

• High corrosion-resistance against fluorine and chlorine gases

7,000 / 1,000Kyocera

Ceradyne 1.5%

Quartz• Having the characteristics of the material quality of ultra high purity

• Low expansion and gas content thanks to excellent electrical

insulation ability

6,000 / 1,300

WonikQuartz

Youngshin2.0%

Introduction of Main Products

Characteristics of Each Product(Unit: hundred million won)

•The market sizes and shares shown here are from the internal data of Solmics, and the

market sizes are just confined to the business area (products) of Solmics.

Chap.2 2007, Main Issue

2007 Inaugural Year of the Material

Enterprise

Advancement of Sales Portfolio

Full-Scale Advance into Overseas Markets

EDITDA vs. CAPEX

Favorable Business Environment

Business Management Plan for 2007

9

2007, Inaugural Year of the Material Enterprise

Materialization rate of 89.0% for sales thanks to the successful materialization of Si products in 2007

→ this year’s operating profit margin is expected to reach 23.2%, an increase of 5.3% over last year

Materialization rate

0

20

40

60

80

100

'03 '04 '05 '06(E) '07(E)

0

10

20

30

40

소재화비율(좌)

영업이익률(우)

Successful materialization of all products except quartz products as a result of successful materialization of Si (silicon) products in 2007, following the

materialization of Si-SiC (silicon carbide) and AIN (aluminum nitride) in 2005 and 2006, respectively

Completed transformation from a process-centered company into a “material-centered company,” thus 2007 is the inaugural year of the material enterprise

Established a high profit structure that characterizes the material industry. Secured stable cost competitiveness by directly and efficiently purchasing raw

materials

Si-SiC (material)

Quartz (processing)

Si (processing)

Al2O3 (material)

AlN (material)

’03 ’05 ’07 ’09

Si (material)

Si-SiC (processing)

AlN (processing)

Materialization of Si from 2007

•The calculation of the materialization rate is exclusive

of the sales of cleaning products.

17.9%

23.2%

Changes in operating profit margin

56.8%

’06

89.0%

’07

(%) (%)

Materials

for parts

Materialization rate (Left)

operating profit margin (Right)

10

2007, Inaugural Year of the Material Enterprise – Si Ingot Grower Business

Solmics’ advance into the Si ingot grower business line is projected to increase profits, secure greater

cost competitiveness, and provide a variety of business opportunities.

Advance into the Si ingot grower business line with a total of 9.8 billion won investments over two years →prospects of 66 billion won in sales for three years in the Si sector / operating profit of 16.5 billion won

Continued expansion of transactions is expected thanks to Samsung Electronics support of 2.75 billion won.

Solmics expects to hold the largest market share among the Si parts suppliers for Samsung Electronics.

Current status of the Korean Si market Comparison of the cost price structures before and after Si materialization

Rapid rise in the prices of raw Si materials and the

pressure to reduce the unit prices of related products

Worsening profitability on the part of material

processing-centered Si product manufacturers

- Impossible to offer competitive prices to client companies

Emergence of the necessity of materializing Si products

(advancing into the Si ingot grower business line)

In Case of

Material Processing

In Case of

Materialization

Processing Si-Ingot

after purchasing it

from overseas

Purchasing Si-Poly from overseas

Utilizing Si-Ingot Grower equipment

Processing Si-Ingot after manufacturing it

Portion

accounted

for by raw

materials

42%

22%

20%

1. Enhancement of profitability

2. Securing cost competitiveness

= increasing sales

- Enhanced ability to effectively

respond to unit price decrease

- Possible to compete with overseas

companies

3. Securing cost competitiveness

- Recyclable materials

- Enhanced purchasing power for

raw materials

Selling

prices of

products

11

0

5,000

10,000

15,000

20,000

25,000

Advancement of Sales Portfolio

Rapidly progressing trends of the decreasing sales concentration for Al2O3, the increasing sales portion of

“Si, Si-SiC, and AlN,” and profitability enhancement

QuartzSiAl2O3 Si-SiC AlN

Changes in Sales by product (2006 vs. 2007)

(Opera

ting p

rofi

t m

arg

in,%

) 30

20

10

10 20 30 40 50

0607

06

07

06

07

Si-SiC+AlN

Si Al2O3

Si-SiC: Mass production due to yield rate stabilization and positive adoption of new equipment into FAB for 2007 by Samsung

Electronics, Hynix, etc. are expected.

AlN: Shifting from production of the existing small products to actual production of plate products, which are in a high price

range

Changes in sales proportions and profitability by product (2006 vs. 2007)

16,941

20,630

(21.8%)

9,089

16,200

(78.2%)

3,001

4,800

(59.9%)

1,015

2,000

(97.0%) 2,760

3,000

(8.7%)

(Sales percentage,%)

* Resolution of the sales concentration problem and rapid enhancement of profitability

1

2

(Unit: million won)

Sales portion

10.9% 13.0%

12

Full-scale Advance into Overseas Markets

The export increase rate of 40.6% is expected in 2007, about 2.4 times higher than the average annual export

increase since 2001 of 16.8%.

Sales plans in overseas markets

USA China

Taiwan

Singapore

Overseas subsidiary

Overseas sales agent

Major customers

Sales in 2006 / Sales in 2007

(Increase/decrease rates)

Sony, Toshiba

2,813 / 3,580

(27.3%)

Hynix, BOE

1,239 / 2,220(79.2%)

UMC, AU

495 / 720

(45.5%)

HP, STMicro

576 / 940

(63.2%)

IBM, TI

2,247 / 2,900 (29.1%)

3,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,5004,6004,7004,8004,9005,0005,1005,2005,3005,4005,5005,6005,7005,8005,9006,0006,1006,2006,3006,4006,5006,6006,7006,8006,9007,0007,1007,2007,3007,4007,5007,6007,7007,8007,9008,0008,1008,2008,3008,4008,5008,6008,7008,8008,9009,0009,1009,2009,3009,4009,5009,6009,7009,8009,90010,00010,10010,20010,30010,40010,50010,60010,70010,80010,90011,000

`06(E) `07(E)

40.6%

Taking advantage of the quality of products recognized by Samsung Electronics and Hynix and the price competitiveness of 20%

to actively advance into the Chinese and Taiwanese markets that have recently started making investments in new large-scale

FAB projects

Utilizing the opportunities arising from domestic equipment suppliers’ advance into overseas markets and making active inroads

into the overseas equipment supplier market

(Unit: million won)

7,370

10,360

Japan

13

EBITDA vs. CAPEX

Completion stage of investments in equipment and facilities following active investments

for the past four years → projected 75 billion won in sales

EBITDA vs. CAPEX Detailed investment plan

0

4,000

8,000

12,000

16,000

20,000

'01 '02 '03 '04 '05 '06(E) '07(E)

CAPEX

EBITDA

(million won)

(Unit: million won) ’05 ’06(E) ’07(E) Total Remarks

Al2O3 617 248 800 1,665

Si 3,276 4,231 - 7,507Intensive investment in Si

Ingot Grower

Si-SiC 622 1,313 510 2,445

AlN 750 715 410 1,875Utilizing state-supported

fundsQuartz - - - -

Coating - - 120 120

Measuring

instruments281 543 90 914

Cleaning 61 - 119 180

Land/buildings 836 1,340 - 2,176Land/buildings related to Si

Ingot Grower

Others - - 526 526

Total 6,443 8,390 2,575 17,408

Focusing on enhancing productivity and yield rather than making investments in equipment and facilities from 2007, following

an investment peak of 8.39 billion won in 2006

EBITDA is expected to significantly surpass CAPEX from 2007.

14

Favorable Business Environment

The environment of the frontline industry is favorable for material and equipment suppliers, therefore

technological strength and price competitiveness are the keys to success.

Solmics Value-Chain

Semiconductor

/LCD industry

Semiconductor Cycle

Crystal Cycle

Domestic companies’ share

of the world market

Investment in equipment

and facilities

Buying power for

semiconductor/LCD equipment

Buying Power

Evolution of semiconductor/LCD

Rate of equipment

domestication

Foreign companies’ warranty

Changes in main materials

Market share

Technological strength

Production capacity

Finding overseas markets

Deciding factors

in the supply

and demand

for materials

for component parts

Continuous prosperity

of D-RAM

Increasing supply

of NAND

Continuously increasing

demand for LCD

Domestic companies’ share

of the world market

unchanged

The importance of materials

growing due to high integration

of semiconductors and

enlargement of the LCD size

Rate of equipment domestication

increasing steadily

Domestic companies’ advance

into overseas markets speeding

up

Material-centered

companies’ competitiveness

advantage on the progress

Growing importance of the

ability to effectively

respond to unit price

decrease

Production of a variety of

products

Business

Environment

Conversion to a “material-centered company” means to hold technological strength and the ability to effectively respond to

unit price decreases.

It is important to establish a relationship of mutual life-bettering cooperation through joint technology development, etc. with

material suppliers. (For example, Solmics received a supportive fund of 2.75 billion won from Samsung Electronics for

the Si Ingot Grower business.)

Prices of raw materials

Rate of domestication

of raw materials

Si prices growing

steadily

The proportion of raw

material production in

Korea is increasing.

Materials suppliersSemiconductor

/LCD equipment suppliersParts materials suppliers Raw materials suppliers

15

Business Management Plan for 2007

FY2005

4,042Operating profit

FY2006

6,615

FY2007E

12,016

%YoY

81.6

(Unit: million won)

4,137Ordinary profit 6,349 11,367 79.0

3,585Net profit 4,817 9,082 88.5

27,158Sales 36,918 51,800 40.3

13,457

6,217

769

-

4,626

2,087

Al2O3

Si

Si-SiC

AlN

Others

Cleaning products

16,941

9,089

3,001

1,015

4,826

2,046

20,630

16,200

4,800

2,000

5,470

2,700

21.8

78.2

59.9

97.0

13.3

32.0

“Operating profit of 10 billion won or more” + “sales increase rate of 40.3%” < operating profit increase rate

of 81.6% = continued high growth and high profit

21,962

5,195

Domestic

Export

29,548

7,370

41,440

10,360

40.2

40.6

Sales of Al2O3 exceeding 20 billion won and successful materialization of Si resulting in rapidly increasing sales; the enhancement

of profitability is the key point of Solmics’ business plan for 2007.

Although the sales size of Si-SiC and that of AIN are small at present, the sales proportions of Si-SiC and AlN are expected to

increase gradually following their entry into mass production.

Chap.3 Analysis of

Business Performance

Summary of Business

Performance for 2006

Sales Analysis 1

Sales Analysis 2

Profit Analysis

17

Summary of Business Performance for 2006

Business performance for 2006: sales increase of 35.9%, operating profit increase of 63.6% over the

previous year. Al2O3 plays an absolutely important role in growth and profit enhancement.

As for the business performance for the fourth quarter, both the sales increase rate and the operating profit increase rate

fall short of the annual overall performance due to the temporary slowdown in sales of Al2O3.

However, rapidly increasing sales as a result of successful mass production of Si-SiC and AIN serve as a positive sign in favor

of stronger business performance for 2007.

(Unit: million won, %) 4Q ’06 3Q ’06 %QoQ ’06 ’05 %YoY

Domestic

Export

Domestic sales 8,087 7,294 10.9 29,548 21,962 34.5

Export 2,143 1,796 19.3 7,370 5,195 41.9

Sales by

product

Al2O3 3,973 4,047 1.8 16,941 13,457 25.9

Si 2,828 2,321 21.8 9,089 6,217 46.2

Si-SiC 1,385 629 120.2 3,001 769 290.2

AlN 411 267 53.9 1,015 - -

Others 1,086 1,314 17.3 4,826 4,626 4.3

Cleaning products 548 513 6.8 2,046 2,087 2.0

Total 10,230 9,091 12.5 36,918 27,158 35.9

Operating profit

(operating profit margin)1,757

(17.2%)

1,804

(19.8%)

2.6

(2.6%p )

6,615

(17.9%)

4,043

(14.9%)

63.6

(3.0%p )

Non-operating revenue and expenditure -368 -527 - -265 987 -

Ordinary profit

(ordinary profit margin)1,388

(13.6%)

1,275

(14.0%)

8.9

(0.4%p )

6,349

(17.2%)

5,030

(18.5%)

26.2

(1.3%p )

Net profit

(net profit margin)855

(8.4%)

1,032

(11.4%)

17.1

(3.0%p )

4,817

(13.0%)

4,120

(15.2%)

16.9

(2.2%p )

18

0

2,000

4,000

6,000

8,000

10,000

12,000

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

(million won)

0

1,000

2,000

3,000

4,000

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

Samsung Hynix LPLExport others

(million won)

`04 `05 '06(E) `04 `05 '06(E)

Sales Analysis 1

Solmics recorded sales in the 10 billion won range for the first time

in the fourth quarter; sales for 2006 increased by 35.9% compared

to the previous year.- Sales for the fourth quarter increased by 12.5% compared to the previous

quarter and by 30.9% compared to the corresponding period of the previous year.

- Sales have been growing for 8 consecutive quarters since the first quarter of 2005;

sales are on a steady increase with no seasonal downturns.

Sales to Samsung Electronics increased by 25.9% and sales

to Hynix by 102.8% compared to the previous year.

- Sales of replacement parts for Al2O3 are steadily increasing due to

the expansion of semiconductor and LCD FAB facilities.

- Sales and the proportion of sales to Hynix increased thanks to

the prosperity of the D-RAM market and improved business performance.

35.9%

Changes in sales Changes in sales by customer

23,580

27,158

36,918

3,530

2,443

2,208

1,696

356

11,442(25.9%)

10,880(25.9%)

7,370(41.9%)

5,748(102.8%)

1,417(1.3%)

7,818

9,091

10,230

30.9%

9,086

8,644

5,195

2,834

1,399

19

(million won)

0

1,000

2,000

3,000

4,000

5,000

6,000

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

Al2O3 Si Si-SiC AlN Others Cleaning products

0%

20%

40%

60%

80%

100%

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

Al2O3 Si Si-Sic AlN Others Cleaning products

`04 `05 '06(E)

`04 `05 '06(E)

Sales Analysis 2

Changes in sales by product Changes in the proportion of sales by product

The sales decrease of Al2O3 for consecutive quarters was

due to the decreased demand in the LCD sector.

- Sales of Si have rapidly increased since the fourth quarter of 2005 together

with the start of actual sales of new items such as Si-SiC and AIN.

- The sales increase of Si is expected to have a great influence on the

overall enhancement of profitability after materialization in 2007.

The sales portfolio is stabilizing due to the sales

increase of new items.

- The sales proportions of Al2O3, Si-SiC and AIN, highly profitable products

(materialization completed), are increasing (52.4%56.7%).

- The increasing sales proportion of Si, which will be materialized in 2007,

also serves as a positive sign for the enhancement of profitability.

3,973

2,828

1,385

1,085

548411

13,457

6,217

4,626

2,087

769

16,941(25.9%)

9,089(46.2%)

4,826(4.3%)

3,001(290.2%)

2,046

1,015

6.54.4 6.4

6.9 13.5

49.645.9

22.924.6

2.8 8.1

2.7

20.222.2

22.6

25.5

27.6

50.4

52.1

49.344.5

38.8

20

Profit Analysis

(million won)

0

400

800

1,200

1,600

2,000

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Operating profitoperating profit margin

-600

-400

-200

0

200

400

600

800

1,000

1Q04 2Q 3Q 4Q 1Q05 2Q 3Q 4Q 1Q06 2Q 3Q 4Q

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%Non-operating revenueand expenditureOrdinary profit

net profit margin

(million won)

0

2,000

4,000

6,000

`04 `05 '06(E)

0.0%

1000.0%

2000.0%

0

100

200

300

400

500

600

700

800

900

1,000

1,100

`04 `05 '06(E)

0.0%

500.0%

1000.0%

1500.0%

2000.0%

2500.0%

Changes in operating profit (margin) Changes in net profit (margin) by quarter

The operating profit for 2006 increased by 63.6%, and

the operating profit margin was 17.9%, up 3.0%.

- Profitability was enhanced due to the increased sales proportion

of a highly profitable group of products (Al2O3, Si-SiC and AIN).

- The decreased operating profit margin for the fourth quarter was due to

the decreased sales proportion of highly profitable products as a result of

the sales slowdown of Al2O3.

Net profit margin decreased due to a deficit recorded in the

non-operating revenue and expenditure account as a result of

the loss on the equity method valuation.

- The equity method loss of 503 million won for the third quarter was

attributable to the influence of goodwill amortization without any cash

outflows due to capital increase with consideration by an affiliate company.

- The equity method loss of the affiliate company is expected to be resolved

in or after 2007.

970

1,804

1,757

17.2

19.8

12.4

17.9

14.9

15.9

3,748

4,043

6,615

13.0

15.215.2

390

987

-265

63.6%

81.1%

571

-527

-332

14.711.3

8.4

Chap.4 References

Company Summary

Business Index

Investment Index

Balance Sheet

Income Statement

22

Company Summary

• 00. 04 Company name changed(SNT Co.,ltd)

• 00. 11 Moved to current location(Pyeongtaek)

• 01. 05 Est Ceramic R & D Fab(20011684)

• 01. 09 Est Japan office in Yokohama

• 01. 12 Listed in KOSDAQ

• 02. 05 Registered venture company by Gov

• 02. 08 Started precision cleaning business

• 02. 10 Est U.S.A office in Austin, TX

• 03. 02 Introduced CIP forming facilities

• 03. 08 Mass production for SiC facilities

• 03. 10 Rights offering(Capital 3.68 M)

1990~ 2000~ 2004~

• 90. 06 Est Sang-Boo Precision(Private)

• 95. 08 Transferred to corporation

• 96. 12 Registered cooperation company

(Samsung, Hyundai Electronics)

• 97. 10 Appointed high tech company from Gov

• 99. 08 Acquired ISO 9002 Certification

• 99. 10 Received a prize from Samsung Electronics

• 04. 03 Awarded a minister prize by Gov

• 04. 09 Received a prize by SEMI(SEDEX 2004)

• 04. 11 Acquired ISO 14001, OHSAS 18001, ISO 9001

• 05. 02 Mass production for Ceramic Cold Spray Coating

• 05. 11 Received a prize for 3M US$ by Gov

• 06. 02 Est China office in Shanghai

• 06. 04 Company name changed from SNT to Solmics

• 06. 11 Completed Si-Ingot factory construction

• 06. 12 Acquired Inno-Biz certification

Company Solmics Co.,Ltd

CEO Jae Hong Lee

Date of

Est(Corp)Aug. 1995

Listed Date Dec. 2001

Capital 4,210 million won (Stocks : 8,420,999)

Business

Specialties

Al2O3, Silicon, Si-SiC, AlN, , Quartz, Precision

Cleaning, Cold Spray Coating Etc

Address(H.Q)624 Jangdang-Dong Pyeongtaek-City

Kyeonggi-Do Korea, 459-020

Number of

Employee216

Web-site www.solmics.com

Company Overview

History

(Based Feb.21. 2007)

23

Business Index

“Enter high growth period for the growth of

forward industry and products enlargement”

“Settled high profit structure after

material specialized company”

“Hold a source of revenue for the company growth

Maintain two digits liabilities ratio and three digits

reserve ratio”

Growth

(% YoY) FY02 FY03 FY04 FY05 FY06 FY07(E)

Increased ratio

of sales revenue-13.8 10.2 64.4 15.2 35.9 40.3

Increased ratio

Of sales profit-27.1 -38.8 127.3 7.9 63.7 82.9

Increased ratio

of net profit-0.2 -60.4 282.0 14.9 16.9 79.9

Increased ratio

of total assets50.0 3.2 28.6 34.5 10.8 30.2

Profitability

(%) FY02 FY03 FY04 FY05 FY06 FY07(E)

Sales Profit

Ratio20.7 11.5 15.9 14.9 17.9 23.2

Net profit ratio

of current term18.2 6.5 15.2 15.2 13.0 17.5

ROE 17.1 6.3 20.1 18.2 16.9 25.1

ROA 11.2 3.6 11.9 10.4 10.0 16.8

Stability

(%) FY02 FY03 FY04 FY05 FY06 FY07(E)

Floating ratio 600.7 236.5 203.4 194.4 216.8 255.5

Liabilities ratio 83.6 62.5 72.4 76.0 61.1 46.5

Ratio of dependence

on Payable34.9 25.8 26.4 30.3 22.4 17.0

Reserve Ratio 564.9 427.7 525.5 584.1 705.4 907.7

24

Investment Index

EPS (won) EBITDA per share (won) BPS (won) SPS (won)

487

165

512573

630

1,083

FY02 FY03 FY04 FY05 FY06 FY07(E)

FY02 FY03 FY04 FY05 FY06 FY07(E)

Capital Stock (billion won) 2,430 3,500 3,500 3,817 3,909 4,210

shares outstanding (thousand) 4,860 7,000 7,000 7,633 7,817 8,420

WA number of shares outstanding (thousand ) 4,860 5,681 7,000 7,192 7,640 8,387

EPS (won) 487 165 512 573 630 1,083

EBITDA per share (won) 755 634 961 999 1,277 2,089

BPS (won) 2,851 2,308 2,797 3,382 3,965 4,719

SPS (won) 2,677 2,524 3,369 3,776 4,831 6,177

PER (X) 7.5 10.5 4.0 8.2 10.6 7.8

PBR (X) 1.3 0.8 0.7 1.4 1.7 1.8

755634

961 999

1,277

2,089

FY02 FY03 FY04 FY05 FY06 FY07(E)

2,851

2,308

2,797

3,382

3,965

4,719

FY02 FY03 FY04 FY05 FY06 FY07(E)

2,677 2,524

3,3693,776

4,832

6,177

FY02 FY03 FY04 FY05 FY06 FY07(E)

25

Balance Sheet

(million won) FY03 FY04 FY05 FY06

Current Assets 11,972 14,430 18,207 20,342

Quick Assets 7,834 7,685 9,699 10,132

Cash and Cash Equivalents, Etc 3,905 3,409 4,409 3,553

Inventories 4,139 6,745 8,508 10,209

Non-Current Assets 14,283 19,333 27,221 29,977

Investment 1,085 1,914 4,706 4,439

Property, Plant & Equipment 13,130 17,409 22,224 25,301

Intangible Assets 67 10 291 237

Assets 26,255 33,763 45,428 50,319

Current Liabilities 5,062 7,094 9,367 9,381

Shot-term Borrowings 951 2,579 4,921 3,055

Current Portion of Long-term Non-trade Payables 2,306 1,393 219 896

Non-Current Liabilbties 5,035 7,089 10,246 9,620

Long-term Borrowing 3,087 4,552 8,633 7,346

Liabilities 10,097 14,182 19,613 19,090

Capital Stock 3,500 3,500 3,817 3,909

Additional Paid-in and Other Capital 7,339 7,339 7,647 84,84

Retained Earnings 7,631 11,053 14,647 18,899

Capital Adjustments -2,311 -2,311 -296 -64

Total Stockholders' Equity 16,158 19,580 25,815 31,228

Total Liabilities & Stockholders' Equity 26,255 33,763 45,428 50,319

26

Income Statement

(million won) FY04 FY05 FY061Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Sales 23,580 5,194 6,984 7,162 7,818 27,159 8,554 9,043 9,092 10,230 36,918

Cost of Goods Sold 15,910 2,405 4,743 5,073 7,096 19,316 6,105 6,119 6,032 6,845 25,102

Depreciation Expenses 2,608 538 634 796 858 2,826 682 661 732 814 2,889

Gross Profit 7,670 1,494 2,242 2,089 2,018 7,842 2,448 2,924 3,060 3,385 11,817

Selling and Administrative Expenses 3,922 883 899 971 1,047 3,800 1,107 1,210 1,256 1,628 5,201

Salaries Expenses, Etc 1,914 385 371 445 471 1,672 538 588 535 500 2,161

Depreciation Expenses 370 92 75 68 78 313 56 61 70 66 253

Operating Income 3,748 611 1,343 1,118 971 4,043 1,341 1,714 1,803 1,757 6,615

Non-Operating Revenues 1,061 413 241 258 1,030 1,942 303 1,215 239 115 1,861

Interest Revenues 126 31 26 28 24 109 14 47 26 27 114

Gains On Foreign Currency Transaction, Etc 523 94 134 72 330 630 24 61 30 55 197

Equity Income on Investments - - - - 142 142 73 870 123 -59 170

Non-Operating Expenses 671 197 114 184 459 954 392 496 766 483 2,127

Interest Expenses 327 80 75 95 115 366 123 123 112 110 468

Losses On Foreign Currency Transaction, Etc 188 64 20 11 42 209 96 59 52 44 243

Equity Losses on Investments - - - - - - 80 281 503 52 916

Gain Before Extraordinary

/Losses and Income Taxes4,138 827 1,470 1,192 1,542 5,031 1,252 2,433 1,275 1,388 6,349

Extraordinary Losses - - - - - - - - - - -

Income Beforx Income Tax Expenses4,138 827 1,470 1,192 1,542 5,031 1,252 2,433 1,275 1,388 6,349

Income Tax Expenses 553 131 320 67 392 910 348 406 244 533 1,531

Net Income 3,585 696 1,150 1,125 1,150 4,120 904 2,027 1,032 855 4,817

624 Jangdang-Dong Pyeongtaek-City Kyeonggi-Do Korea, 459-020

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