Investor Relations 2012

Balanced product mix among petrochemicals such as PE/PVC/CA

2

Shareholders & Business Portfolio

HanwhaGroup42.7%Floating

Shares53.5%

Foreign Ownership

15.73% (as of jun, 2012)

◎ Shareholder Structure

◎ Business Portfolio by Product (as of Dec. 2011) (as of Dec.2011)

OP Contribution by Product

PE 38.2%, PVC 26.7%, CA 41.3%,

Others -6.2%

3

Sites & Product Flowchart

(as of Dec. 2011)

(1,000 tons/yr)

Seoul HQ

Daejeon R&D Center

Ulsan Plant

Yeosu PlantYeochun NCC

90385247305176194

8075

530M

W

• LDPE/EVA• EDC • VCM • PVC/PSR• Chlorine• NAOH• PLZ• PA• MA• PV Cell

327355

1,106350297123645710

8025

• LDPE• LLDPE• EDC• VCM• PVC• OA• Chlorine• NAOH• HCL• ECH

(as of Dec. 2011)

760

Chlorine

NaOH

Electrolysis

EDC

Salt

Water

Pyrolysis

VCM

Polymerization

PVC

Ethylene

YNCC

PolymerizationPE

EVA

W & C

Compounding

Naphtha

◎ Site Location & Products ◎ Product Flowchart (Full Integration of Vinyl Chain)

Unique Business Structure via Vertical Integration

Hanwha L&C

4

Business Affiliates & Capacity

Vertical Integration from Upstream to Downstream

Chlor-Alkali(CA)

Polyvinyl chloride(PVC)

LDPE (EVA 140) LLDPE

EDC VCM PVC/ PSR PLZ OA

Naphtha Cracker

Ethylene 1,910

Propylene 970

BTX 792

SM 290

BD 240

1,491597600

160123

453

355

821904

25

Yeochun NCC (YNCC) Hanwha Chemical Hanwha L&C

(1,000 tons/yr)

(1,000 tons/yr)

Chlorine NaOHECH

Plastic Processing

(as of Dec. 2011)

(Asian No. 2 NCC, 50% stake) (Plastic processing, 100% stake)

Floorings

PVC Tiles

Automotive Parts

Artificial Marble

Solar EVA Sheets

Polyethylene(PE)

5

◎ Ethylene/Propylene Capacity

(1,000 tons/yr, Korea Petrochemical Industry Association)

◎ EVA/LDPE Capacity

Hanwha

LG chemical

Honam

453

280

110

100 Samsung Total

◎ LLDPE Capacity

Honam

SK Energy

290

125

70

Samsung Total

LG Chemical

180

904

◎ Chlor-Alkali Capacity (Caustic Soda)

Hanwha

LG Chemical210

Samsung Fine190

Others165

355 Hanwha

Honam

Samsung Total

YNCC*

(*50% owned by Hanwha Chemical)

LG Chemical

SK Energy

1,530

1,860

2,630

2,800

2,880

Strong Presence in the Korean Petrochemical Industry

Economies of Scale

6

Saudi Arabia / Jubail

EVA/LDPE plant under construction

(200,000 tons/yr)

China / Ningbo

PVC plant (300,000 tons/yr)

Thailand / Bangplee

ASR plant (10,000 tons/yr)

China / Qidong

Hanwha SolarOne(Ingot/Wafer 400MV/yr

Cell 500MV, Module 900MV)

Aggressively pursuing global expansion since 2008

Global Operations

Performance Summary of 2011

Income Statement

2009 2010 2011 2012 1H

Revenues 3,034 3,628 3,970 1,768

OP 411 483 472 96

Pre-tax profit

418 367 546 178

Net profit 343 284 412 143

Balance Sheet

2009 2010 2011 2012 1H

Total assets

4,818 5,731 6,234 6,451

Total liab. 2,149 2,582 2,771 2,935

SHE 2,669 3,149 3,463 3,517

(KRW bn)

(KRW bn)

7

Financial Summary

◎ Parent-only Results

Income Statement

2009 2010 2011 2012 1H

Revenues 5,343 6,341 7,943 3,047

OP 583 655 326 77

Pre-tax profit

469 706 281 4

Net profit 354 487 167 28

Balance Sheet

2009 2010 2011 2012 1H

Total assets

7,184 10,977 11,854 12,077

Total liab. 4,364 6,275 7,056 7,405

SHE 2,820 4,702 4,798 4,671

(KRW bn)

(KRW bn)

◎ Consolidated Results

(Numbers in 2008 and 2009 based on K-GAAP, and numbers in 2010 and 2011 based on K-IFRS)

8

Profitability & Financial Soundness

◎ Consolidated Operating Profit

◎ Parent-only Operating Profit

◎ Liabilities-to-Equity Ratio

◎ Interest Coverage

Financial Status

9

Raw Material Price Trend

◎ Crude Oil ◎ Naphta / Ethylene

Oil, Naphtha & Ethylene Price

($/ton)($/ton)

‘12/07

10

Product Price Trend (PE)

◎ LDPE & Spread ◎ LLDPE & Spread

PE PRICE

($/ton)($/ton)

11

Product Price Trend (PVC/CA)

◎ Caustic Soda ◎ PVC Price & Spread

Caustic Soda & PVC

($/ton)($/ton)

12

Core Business Selection & Intensification

Dedicated to increasing profit and maintaining our position as the market leader in the PE, CA and PVC industries by enhancing our global competitiveness

Expanding into New Future Businesses

Pursuing continuous growth and stable profit by expanding our business into solar, bio, battery materials, nano and other promising industries of the 21st century

Global Chemical Leader 2015

Management Strategy

13

Specialty Maker

EVA W&C Compound Alkali-Soluble Resin

HCC is one of the top 3 in ASR industry and is the only player based in Asia

HCC provides a broad range of choice to customers by offering 4 grades of standard ASR and 5 grades of specialty ASR

Environmentally friendly products have been developed to replace organic solvents in ink, paints and varnishes

Wire and cable compound is a polyolefin-based material added to functional polymers. It is highly functional, with a combination of electrical and mechanical characteristics, as well as strong processing capabilities

HCC is one of the top 3 in W&C compound industry and has been in the business since the early 80’s

HCC possesses in-house developed technology and offers full range of W&C compound facility design capability

In 1986, HCC began to produce EVA based on its own technology. HCC now produces various EVA grades, covering a wide range of vinyl acetate content with a melt index that meets the most stringent requirements of its clients

HCC is one of the very few in the industry with technology and experience to manufacture ultra clean & high VA content(above 30%) EVA grades for PV cell encapsulation, lamination coating, and hot melt adhesives application

Key Supplier of Specialty Products

14

PE Business Strategy

(1) Higher Contribution of Specialty Products

◎ Average Export Price by Product Type

◎ Sales Volume by Product Type

◎ Contribution Margin by Product Type

◎ Sales Volume Increase of Specialty Products

* Specialty Products : EVA, W/C, HS LLD, Blend

* Commodity Products : LDPE, LLDPE(commodity contribution margin per ton in 2008 = 100)

(1,000 tons) (KRW/ton)

15

◎ Company Overview

PE Business Strategy

(2) JV in Saudi Arabia to Secure Low-cost Feedstock

▶ Company Name : International Polymers Co. (IPC)

▶ J/V Structure : HCC 25%, Sipchem 75%

▶ Capacity : EVA/LDPE 200 kilotons/yr

▶ Feedstock : Ethane based ethylene (tolled by SABIC)

▶ Project Status : Signed JVA – July 2009 Awarded EPC contractor – Dec. 2010 Plant operation – 3Q 2013

Very tight supply due to shortfall in capacity and rapid increase in global demand driven by China and India

New demand in solar EVA sheet magnifying the supply shortage

◎ EVA Supply and Demand

16

◎ Asian No. 3 & Global Top 10 CA Maker through Capacity Expansion in 2010

CA Business Strategy

Strong Global Competitiveness & Advanced Cost Structure

Capacity expansion in Yeosu Plant (Caustic Soda: 130, Chlorine: 120, EDC: 150 kilotons/yr)

Chlorine is a product showing tendency for regional monopoly. Balanced supply/demand is expected through long-term contracts with BASF Korea, KPX Fine Chemical, Kumho Mitsui and LG-DOW.

Emerged as global top 10 maker in 2010 with production capacity of 900,000 tons of caustic soda and 820,000 tons of chlorine

772

902

2009 2010

NaOH (Caustic Soda)

701

821

2009 2010

(1,000 DMT)16.6%

17.1% 1,3411,491

2009 2010

EDC

11.2%

Cl (Chlorine)

(1,000 MT) (1,000 MT)

17

PVC Business Strategy

Wholly Independent PVC Plant in China

560

860

2009 2011

597

897

2009 2011VCM

PVC

(1,000 MT)

50.3%

53.6%

◎ Strategic Significance of China PVC Plant

Outstanding ROI compared to carbide process PVC plant

Boost in PVC chain profits via increased sales portion of CA/PVC from 2011

First global project of Hanwha Chemical

Stronger vinyl chain competitiveness : Emerge as a global PVC player

Maximize profitability through link with MDI business

Production Capacity : Oxy EDC 500, VCM 300, PVC 300 kilotons/yr

Location & Land Area : Zhejiang, Ningbo, 250,000 ㎡ S/T & Capex : Feb. 2011, KRW 360 bn

Feedstock : Anhydrous hydrochloric acid (long term contract with Wanhua)

◎ China PVC Plant Overview

◎ Effectiveness of China PVC Plant

◎ Capacity Expansion in 2011

(1,000 MT)

18

Solar Business

Global Leader in Solar Business by 2015

◎ Business Overview

Aggressively expanding Solar business as the new growth driver of Hanwha Chemical

Planning Polysilicon investment - Capa. & location : 10,000 tons/yr, Yeosu - Capex : KRW 1 trillions - Plant operation : 2H 2013

◎ Acquisition of Hanwha SolarOne in 2010

Ingot/wafer

Cost competitive manufacturing base

Accomplishing economies of scale : Ingot/Wafer 800MV / Cell 1.3GW / Module 1.5GW (by late 2011)

Qualified R&D & management talents

Core customers in Europe & America

Listed in NASDAQ (HSOL)

Cost competitive manufacturing base

Accomplishing economies of scale : Ingot/Wafer 800MV / Cell 1.3GW / Module 1.5GW (by late 2011)

Qualified R&D & management talents

Core customers in Europe & America

Listed in NASDAQ (HSOL)

400MW 500MW 900MW

19

Cell Material & Bio Businesses

Global Presence based on Cathode Material

Completed in-house development of LiFePO4 production technology (patent registered )

Finished construction of a Semi- commercial plant with a capacity of 1,000 tons/yr

Product testing in process with EV & rechargeable battery makers

Developing anode & separator material

BioProduct

BatteryMaterial

Foundation for Bio Business through Antibody Therapeutics

Developing Biosimilar & new medicine (HD203 in phase III of clinical trial)

Commercial plant in construction with scheduled commercial production from 2013

Sales contract signed with Turkish pharmaceutical company in late 2010

Preparing a contract with a global major

20

Bio Business Update

BioProduct

Business Tie-up with Global Major Company

Partner : Merck (MSD) ☞ Contract signed on Jun.10 of 2011

Product : HD203 (Biosimilar of Enbrel®(etanercept))

Hanwha will receive an upfront payment and additional payments

associated with milestones for technology transfer and regulatory

progress as well as tiered royalties on sales

Merck will conduct clinical development, manufacturing and

commercializing of HD203 in global markets (except in Korea &

Turkey)

Clinical trial

Clinical trial

2007 2008 2009 2010 2011 2012201

32014 2015 2016Diseases

21

Bio Business Schedule

Bio Product R&D Pipelines

Rheumatoidarthritis

Breast cancer

Rectum cancer

R&D Preclinical trial Appr.

R&D Preclinical trial Clinical trial

R&DPreclinical

trialClinical trial CommercializationAppr.

R&D Preclinical trial CommercializationAppr.

R&DPreclinical

trialClinical trial

New DrugsNew DrugsNew DrugsNew Drugs

Bio-similarBio-similarBio-similarBio-similar

Rheumatoidarthritis

R&DPreclinical

trialClinical trial

Asthma

Rheumatoidarthritis

HD203

HD201

HD204

HD205

HD101

HD104

HD105 R&D Preclinical trial Clinical trialSolid tumors

22

Major Subsidiaries-Financial Results

◎ Yeochun NCC (Equity Method)◎ Hanwha L&C (Consolidation)

2007 2008 2009 2010

Total assets 2,173 2,098 2,204 2,508

Total liab. 1,174 1,537 1,312 1,288

SHE 999 561 892 1,220

Revenues 4,468 6,008 4,832 6,317

OP 296 (270) 344 538

NP 171 (238) 233 388

2007 2008 2009 2010

Total assets 849 968 886 1,046

Total liab. 505 602 475 633

SHE 344 366 411 413

Revenues 919 1,016 1,035 1,080

OP 42 40 49 26

NP 37 8 (8) 3

2007 2008 2009 2010

Total assets 1,022 1,064 1,416 1,532

Total liab. 589 631 663 749

SHE 433 433 753 783

Revenues 250 285 312 320

OP 35 38 47 31

NP 12 0.4 13 31

2007 2008 2009 2010

Total assets 1,082 1,127 1,328 1,526

Total liab. 706 750 791 1,027

SHE 376 377 537 499

Revenues 373 399 489 690

OP 22 17 32 3

NP 11 8 3 (16)

◎ Hanwha Galleria (Consolidation) ◎ Hanwha Hotels & Resorts (Equity Method)

(KRW bn) (KRW bn)

(KRW bn) (KRW bn)

This material contains forward-looking statements regarding the Company’s financial conditions,

operating performance and business plans that do not relate to historical facts or events. These

statements relate to events and depend on circumstances that may or may not occur in the future.

Forward-looking statements can be identified by the use of forward-looking terminology, including the

terms “estimates,” “expects,” “plans,” and “anticipates” or other variations of the terms or

comparable terminology.

Forward-looking statements involve inherent risks and uncertainties which may cause the actual

results or performance of the Company to be materially different from any future results or

performance expressly stated or implied in the forward-looking statements. The information herein is

based on the Company’s plans, estimations and assumptions regarding the operating environment

based on conditions as of the day of the presentation. Such plans and estimates may be modified due

to changes in the Company’s strategy and the operating environment.

The Company undertakes no responsibility to update or revise the forward-looking statements. The

Company and the Company’s executives do not assume any liability for losses resulting from the use

of the information herein (including losses caused by error). This document does not constitute an

invitation or recommendation to invest or otherwise deal in, or an offer to sell or the solicitation of an

offer to buy or subscribe for, any security. The information contained herein shall not serve as the

basis or grounds for related deals and agreements or investment decisions.