2

Disclaimer

This presentation is for informational purposes only, contains preliminary financial and other

information about Korean Air Lines Co., Ltd. and is subject to updating, revision, amendment and

completion. This presentation does not and is not intended to constitute or contain any offer of

securities for sale or a solicitation of an offer to purchase any securities of Korean Air Lines Co., Ltd.

or any other company and neither this presentation nor anything contained herein shall form the

basis of any contract or commitment. Certain statements contained in this presentation may be

statements of future expectations and other forward-looking statements or trend information that are

based on management's current views and assumptions and involve known and unknown risks and

uncertainties that could cause actual results, performance or events to differ materially from those in

the forward-looking statements in this presentation. In addition to statements which are forward-

looking by reason of context, including without limitation, statements referring to risk limitations,

operational profitability, financial strength, performance targets, profitable growth opportunities, and

risk adequate pricing, the words "may, will, should, expects, plans, intends, anticipates, believes,

estimates, predicts, or continue", "potential, future, or further", and similar expressions are intended

to identify forward-looking statements. Korean Air Lines Co., Ltd. assumes no obligation to update

or revise any such statements or any other information contained herein to reflect events or

circumstances that may arise after the date of this presentation.

3

Financial Position (Consolidated)

(billion KRW)

2015 2014 Changes Rate

Current Assets 3,289 4,948 -1,659 -33.5%

Cash & Cash equivalent 968 797 171 21.5%

Non-Current Assets 20,891 18,518 2,374 12.8%

Aircraft related assets 14,106 12,398 1,707 13.8%

Investment in associates 520 468 52 11.2%

Total Assets 24,180 23,466 715 3.0%

Financial Liabilities 16,198 16,368 -171 -1.0%

Current 6,041 5,362 678 12.7%

Non-current 10,157 11,006 -849 -7.7%

Other Liabilities 5,484 4,896 588 12.0%

Total Liabilities 21,681 21,265 417 2.0%

Total Equity 2,499 2,201 298 13.5%

4

Income Statement (Consolidated)

4Q15 4Q14 Changes 2015 2014 Changes

Sales 2,915 2,950 -1.2% 11,545 11,910 -3.1%

Operating Expense 2,509 2,797 -10.3% 10,662 11,514 -7.4%

Operating Profit 406 153 165.4% 883 395 123.4%

Non Operating Profit -97 -685 -1,370 -837

Foreign currency related

loss, net232 -353 -613 -266

Interest Expense, net -82 -95 -331 -372

Equity method income, net -72 -9 18 7

Income Before Tax 310 -532 -486 -442

Net Income 232 -427 -563 -613

(billion KRW)

5

Income Statement (Non-consolidated)

4Q15 4Q14 Changes 2015 2014 Changes

Sales 2,846 2,894 -1.7% 11,308 11,680 -3.2%

Operating Expense 2,445 2,742 -10.8% 10,449 11,308 -7.6%

Operating Profit 400 152 163.4% 859 373 130.7%

Non-Operating Profit -26 -688 -1,358 -915

Foreign currency related

loss, net233 -354 -614 -267

Interest expense, net -82 -95 -328 -373

Income Before Tax 374 -536 -499 -542

Net Income 290 -405 -408 -361

(billion KRW)

6

Borrowings (Non-consolidated)

※ Increase of total borrowing in KRW due to F/X effect- FX Rate as of Dec. 31st, 2014 : 1USD / 1,099.2KRW - FX Rate as of Dec. 31st, 2015 : 1USD / 1,172.0KRW

Balance

(billion)Ratio

Balance

(billion)Ratio

Balance

(billion)Rate

USD 8.9 68.2% 8.2 61.9% 0.7 7.8%

KRW 3,360 21.9% 3,840 26.2% -480 -12.5%

Others

EUR/JPY/HKD

in USD

1.3 9.9% 1.6 11.9% -0.3 -17.8%

Total

(KRW)15,390 100% 14,630 100% 760 5.2%

(As of the) End of 2015 End of 2014 Changes

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Revenue Composition (Non-consolidated)

4Q15

( 2,846 billion KRW)

4Q14

(2,894 billion KRW)

Domestic

Passenger

4.2%

International

Passenger

54.0%

Cargo

23.1% Others

11.5%

Aerospace

7.2%

Domestic

Passenger

4.0%

International

Passenger

52.2%

Cargo

27.6%Others

9.1%

Aerospace

7.1%

8

Passenger Traffic

4Q15 4Q14 YoY 4Q15 4Q14 YoY

Capacity (Mil ASK) 22,719 21,808 4.2% 902 847 6.5%

OCT 7,667 7,477 2.5% 331 300 10.4%

NOV 7,206 6,863 5.0% 291 276 5.4%

DEC 7,846 7,468 5.1% 280 271 3.4%

Traffic (Mil RPK) 17,331 16,099 7.6% 678 565 20.2%

OCT 6,017 5,621 7.0% 275 218 25.7%

NOV 5,334 4,887 9.2% 215 188 14.2%

DEC 5,979 5,591 6.9% 189 158 19.7%

L/F (%) 76.3% 73.8% 2.5%p 75.2% 66.6% 8.5%p

Yield (KRW) 88.3 93.8 -5.8% 175.5 199.1 -11.9%

Yield (US Cent) 7.6 8.6 -11.7% 15.2 18.4 -17.4%

International Domestic

Passenger Revenue by Route Operations

Domestic

7%

Japan11%China

13%

SEA19%

Oceania5%

America29%

Europe16%

4Q15

0

200

400

600

800

Domestic Japan China SEA Oceania America Europe

4Q15 4Q14

+6%+7%

+1%

+3%

0%

+1%0%

[billion KRW]

Korea

52%

Japan

7%

China

9%

SEA

8%

America

18%

Europe

6%

4Q15

[Revenue : Routes] [Revenue : Regional Sales]

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10

Passenger Business Overview

4Q Business Summary

Traffic(RPK) Changes : China 11%↑ Europe 10%↑, Oceania 10%↑,

SEA 9%↑, Japan 8%↑, America 4%↑

Number of Passengers Carried : 10%↑(Korea Outbound 24%↑, Overseas 3%↓)

2016 Business Plan

Estimating +6.9% growth of global passenger demand (Source : IATA)

Expecting improved performance due to the recovery from MERS in 2015 and increasing number of Korea outbound tourists

Providing flexible capacity and enhancing fleet competitiveness by introducing fuel-efficient aircrafts to San Francisco / New York / Seattle / London

New Route : Pusan-Taipei (1Q)

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Cargo Traffic

4Q15 4Q14 YoY

Capacity (Mil AFTK) 2,691 2,740 -1.8%

OCT 902 895 0.8%

NOV 917 964 -4.9%

DEC 872 880 -1.0%

Traffic (Mil FTK) 2,093 2,200 -4.9%

OCT 708 716 -1.1%

NOV 707 783 -9.7%

DEC 678 702 -3.3%

L/F (%) 77.8% 80.3% -2.5%p

Yield (KRW) 283.4 333.7 -15.1%

Yield (US Cent) 24.5 30.7 -20.3%

Cargo (International + Domestic)

Cargo Revenue by Route Operations

Domestic

1%Japan

4%China10%

SEA12%

Oceania 1%

America44%

Europe28%

4Q15

0

100

200

300

400

Domestic Japan China SEA Oceania America Europe

4Q15 4Q14

-11%-22%

-15%

-18%

-25%

-13%

-13%

[billion KRW]

Korea

26%

Japan

7%

China

28%

SEA

14%

America

14%

Europe

11%

4Q15

[Revenue : Routes] [Revenue : Regional Sales]

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13

Cargo Business Overview

4Q Business Summary

Traffic(FTK) Changes : China 12%↑, Oceania 9%↑, Europe 2%↑,

SEA 4%↓, Japan 5%↓, America 11%↓

Total Tonnage of Carried : 1%↓ (Korea Outbound 2%↓, Overseas 1%↓)

2016 Business Plan

Expecting +3% growth for global air cargo demand (Source : IATA)

Improving Profitability by transporting high-yield cargo (air mail, fresh goods and Pharmaceutical products)

Increasing fuel-efficient new freighters (B777F and B747-8F)

Exploring new market opportunity : Colombia, Ecuador and Iran

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Aerospace Business

2010 2011 2012 2013 2014 2015

Revenue 343 394 498 638 796 914

Operating

Profit12 12 22 21 93 120

OP Margin 3.6% 3.1% 4.4% 3.3% 11.7% 13.1%

(billion KRW)

12 12 22 21

93

120

0

20

40

60

80

100

120

140

0

200

400

600

800

1,000

1,200

'10 '11 '12 '13 '14 '15

Revenue (L)

OP (R)

(bil. KRW) (bil. KRW)

항공기 부품 제조63%

Revenue growth in 2015 Revenue Composition

Military MRO

22%

Civil Aviation

MRO 12%

Unmanned

A/C

12%

A/C Manufacturing 54%

(2015)

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Operating Expense Breakdown

Fuel

17%

Labor

19%

Depreciation

17%

Others

20%Airport

related

12%Maintenance

5%

In-flight

Service

4%

Commission

3%

Rentals

3%

영업수익 x억원4Q15

( 2,445 billion KRW)

4Q14

(2,742 billion KRW)

Fuel34%

Labor15%

Depreciation14%

Others16%

Airport related10%

Maintenance

2%

In-flight

Service

4%

Commission

3%

Rentals

2%

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Key expenses

(billion KRW)

Amount Ratio

Fuel 406 924 -517 -56.0%

Labor1) 458 421 37 8.8%

Depreciation 422 392 30 7.6%

Airport related 292 271 21 7.7%

In-flight Service 107 98 9 9.5%

Commissions 78 80 -2 -2.3%

Maintenance2) 113 47 66 138.9%

Rentals 64 44 19 43.9%

Others 506 466 40 8.6%

Total 2,445 2,742 -297 -10.8%

4Q15 4Q14Changes

1) 2015 wage increase included (11.2 billion)2) Periodical maintenance for B777-300ER Engines concentrated in 4Q

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2016 Business Plan

Financial Goals

Operating Revenue

Operating Expense

Operating Profit

2016

12,030

11,260

770

(Unit) 2015 2016

Fuel WTI $/BBL 49 55

FX Rate KRW/USD KRW 1,131 1,200

Interest

Rate3M Libor % 0.3 1.0

Key Assumptions

※ Non-consolidated

(billion KRW)

18

6

7

8

9

2015 2016

50

55

60

65

70

75

80

2015 2016

2016 Plan YoY

Capacity

(mil. Km) 96,999 4.1%

Traffic

(mil. Km) 75,215 5.0%

L/F 77.5% 0.6%p

Capacity

(mil. Ton Km) 10,856 2.3%

Traffic

(mil. Ton Km) 8,664 4.8%

L/F 79.8% 1.9%p

Passenger

Cargo

Passenger Traffic

Cargo Traffic

+5.0%

+4.8%

(billion Km)

(billion Km)

2016 Capacity & Traffic Plan

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Fleet Status

Type Numbers of aircrafts Delivery(Month)

A380 10

A330 29

A3001) 3

B747-400 11

B747-8I 4 ①⑤⑥

B777 37 ⑤⑥

B7372) 39 ③⑥

Passenger Total 133 7

B747F 17

B747-8F 6 ⑧

B777F 5 ⑧⑨⑩⑫

Cargo Total 28 5

Total 161 12

1) Registration cancelled (Not operating)2) Scheduled to sublease 2 aircrafts(B737) to Jin Air

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