Oct. 2007Oct. 2007

Poongsan CorporationPoongsan Corporation

CONTENTSCONTENTS

- 1 -

Company in General

Financial Overview

I s s u e

Appendix

Company in General

- 2 -

Company Overview Non-Ferrous Products Defense Products Domestic Plants Domestic Affiliates Overseas Affiliates Share Structure

Company Overview

- 3 -

• Established : October. 22, 1968

• Listed : July 1988

• Representative : Mr. Jin Ryu, Chairman & CEO

• Employees : 3,561 (as of Dec. 31, 2006)

• Capital : W 166bn

• Total Assets (’06) : W 1,678bn

• Total Sales (’06) : W 1,750bn

• Affiliates : Domestic – 7 Affiliates Overseas – 8 Affiliates

Pipe & Tube50,000M/T

Sheet & Strip130,000M/T

Rod & Wire40,000M/T

Coin Blanks30,000M/T

Stainless20,000M/T

Semi-conductor Computer Electronics Transportation Construction

Non-Ferrous Products

※ Others 30,000M/T - 4 -

Military ammunition, Commercial ammunition Ammunition Components & Semis

SportingAmmunition

MilitaryAmmunition

PropellantsCones &

Rotating BandsForgings

Defense Products

- 5 -

7

Domestic Plants

Bupyung Plant

Head Office

Onsan Plant

Angang Plant

Dongrae Plant

▶ Stainless steel strips Precious-metal coin blanks

▶ Completion in 1969.12

▶ Copper & copper alloy sheets, strips, tubes, rods,wires,coin blanks

▶ Completion in 1980. 7

▶ Ammunition for arms & sporting use, Precision-forgings

▶ Completion in 1973. 3

▶ Ammunition for small arms & sporting guns

▶ Acquired in 1982. 1

- 6 -

85

Domestic Affiliates

▶ Titanium Tube, Stainless Steel Tube

▶EDM wire

▶Leadframe,Connectors, Precision Ddies & Tools

▶Copper & Alloy Tube Fittings, Scrap Machinery, Gauge & Jig Engineering Service

Poongsan Valinox

Poongsan FNS

PNP Tech

P N T

Poongsan Microtec

Poongsan Industrial Co.

▶Military Fuse, Sensor, Precision parts

▶Tin-plated Strip

Poongsan MetalService

▶ Copper & Copper Alloy Slitting

- 7 -

PMX Industries, Inc

• Copper Strips• Strips for Coins

Siam Poongsan Metal Co., Ltd.

• Copper Strips• Coin Blanks

Poongsan(H.K) Ltd.• Copper Ssheets, Strips• Importing raw materials

Poongsan(M) SDN BHD

• Copper Sheets, Strips

Poongsan (Shanghai) Co.,

Ltd.• Copper Sheets, Strips

Taiwan Office

Poongsan Microtec. Philippines, Inc.

• Leadframe for Semiconductor

Poongsan Metal Plant (Dongguan)

• Ccopper strips

Tongling Poongsan Sanjia Microtec.

* Leadframe for Semiconductor

Poongsan Japan• Copper Ssheets, Sstrips

Poongsan America Corporation

• Trading

- 8 -

Overseas Affiliates

13.10(4,191,597)

70.95

13.12%

2.83%

(Foreign Investors 15.57%)

(as of Jul.31 2007)

29.65%

Share Structure

Jin Ryu(Chairman & CEO)

Related Party

Treasury Stock

Free Float

● Total issued shares : 32million shares (166bn won)

※ Cancellation : 1.2mil. shares

- 9 -

Financial Overview

- 10 -

• Sales Breakdown

• Profit & Loss

• Liabilities Financing

Sales Breakdown ( )Ⅰ

- 11 -

Unit : Mil. KRW

2005 2006 Variation Growth

Sheets & Strips 482, 742 718, 977 236, 235 49%

Pipes & Tubes 187, 487 234, 602 47, 115 25%

Bars,Rods&Wires 92, 697 129, 470 36, 773 40%

Coin Blanks 135, 674 182, 690 47, 016 35%

Stainless 63, 279 66, 297 3, 018 5%

Others 83, 733 106, 776 23, 043 28%

1, 045, 612 1, 438, 812 393, 200 38%

235 226 -9 -4%

311, 996 311, 673 -323 0%

1, 357, 608 1, 750, 485 392, 877 29%

Non-FerrousMetal

Q'ty (thousand M/T)

T o t a l

Sub-Total

Defense Product

Sales Breakdown ( )Ⅱ

- 12 -

Unit : Mil. KRW

2006 1H 2007 1H Variation Growth

Sheets & Strips 316, 921 392, 331 75, 410 24%

Pipes & Tubes 124, 774 134, 207 9, 433 8%

Bars,Rods&Wires 61, 215 72, 992 11, 777 19%

Coin Blanks 93, 453 110, 457 17, 004 18%

Stainless 30, 991 42, 123 11, 132 36%

Others 46, 906 45, 944 962- -2%

674, 260 798, 054 123, 794 18%

119 117 -2 -2%

86, 146 116, 792 30, 646 36%

760, 406 914, 846 154, 440 20%

Non-FerrousMetal

Q'ty (thousand M/T)

T o t a l

Sub-Total

Defense Product

Unit : Mil. KRW

2005 2006 Variation Growth

Total Sales 1,357,608 1,750,485 392, 877 29%

Gross Profit 146,259 191,390 45, 131 31%

Operating Profit 91,465 128,395 36, 930 40%

Recurring Profit 78,921 188,524 109, 603 139%

Net Profit 48,840 144,092 95, 252 195%

※ Principal Non-Operating Profit and Loss

2005 2006 Variation Growth

Foreign Currency Transaction Gain 3,442 10,892 7, 450 216%

Hedge Gain 1,322 41,009 39, 687 3002% Equity Method Gain -8,359 25,902 34, 261 -410%

Profit & Loss ( )Ⅰ

- 13 -

Unit : Mil. KRW

2006 1H 2007 1H Variation Growth

Total Sales 760,406 914,846 154, 440 20%

Gross Profit 96,007 49,966 -46,041 -48%

Operating Profit 67,662 20,307 -47,355 -70%

Recurring Profit 125,189 8,615 -116,574 -93%

Net Profit 96,432 7,354 89, 078- -92%

※ Principal Non-Operating Profit and Loss

2006 1H 2007 1H Variation Growth

Foreign Currency Transaction Gain 6,013 543 -5,470 -91%

Raw Material Hedge Gain 30,431 10,225- -40,656 -134%

Equity Method Gain 29,689 6,955 -22,734 -77%

Profit & Loss ( )Ⅱ

- 14 -

Liability FinancingUnit : Mil. KRW

2005 2006 Growth

Short-term Liabilities 199,205 221,029 21,824

(Short-term) 62,500 52,500 -10,000

(Usance) 69,321 76,586 7,265

※ Capital of Purchase 67,384 91,943 24,559

Long-term Liabilities 170,360 230,916 60,556

(Long-term) 50,360 80,916 30,556

(Corp. Bond) 120,000 150,000 30,000

Total 369,565 451,945 82,380

Liability Ratio 60% 68% 8%

※ Long-term Liabilities : Including Current Portion of Liabilities

- 15 -

I S S U E

- 16 -

World Leading Fabricator

Nonferrous Metals Company High Value-Added Products Copper Price & O/P Trend Domestic Plant Sites Future Strategy of Poongsan

World Leading FabricatorNonferrous Metals Company

1000M/T

- 17 -

800

500450

400 400

310

0

100

200

300

400

500

600

700

800

900

KME

Luvata

Poongsan

Olin+Chase

Wieland

Mueller

- 17 -

High Value-Added Products

Poongsan

15%

12%

12% 4%

18%

39%

Electronics Common Coin Blanks

Transportation Construction Machinery

World

23%

14%

11%

9%43%

※ Reference : IWCC

- 18 -

- 19 -

Copper Price & O/P Trend

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1998 1999 2000 2001 2002 2003 2004 2005 2006

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

O/P Copper Price(U$/MT)(100Mil.Krw)

Domestic Plant Sites

- 20 -

BupyungBupyung

OnsanOnsan

AngangAngang

DongraeDongrae

Hyosung-dong,Gyeyang-gu,Incheon / 79,445 ㎡Book-Value : 48,747mil.krw

Declared Land-Value : 60,864mil.krw

Hyosung-dong,Gyeyang-gu,Incheon / 79,445 ㎡Book-Value : 48,747mil.krw

Declared Land-Value : 60,864mil.krw

Plant NamePlant Name

Daejung-ri,Onsan-eup,Ulju-gun / 345,370 ㎡Book-Value : 38,174mil.krwDeclared Land-Value : 41,484mil.krw

Daejung-ri,Onsan-eup,Ulju-gun / 345,370 ㎡Book-Value : 38,174mil.krwDeclared Land-Value : 41,484mil.krw

Sandae-ri,Angang-eup,Gyeongju / 4,264,345 ㎡Book-Value : 85,270mil.krwDeclared Land-Value : 53,385mil.krw

Sandae-ri,Angang-eup,Gyeongju / 4,264,345 ㎡Book-Value : 85,270mil.krwDeclared Land-Value : 53,385mil.krw

Banyeo-dong,Haeundae-gu,Busan / 1,411,076 ㎡Book-Value : 178,419mil.krwDeclared Land-Value : 137,656mil.krw

Banyeo-dong,Haeundae-gu,Busan / 1,411,076 ㎡Book-Value : 178,419mil.krwDeclared Land-Value : 137,656mil.krw

Value of Real EstateValue of Real Estate

Future Strategy of Poongsan1. Strengthen Core Competence

Non-FerrousMetal

Sheet & Strips / Coin Blanks Capacity Expansion & Increase High Value-Added Products

Expand SSC to satisfy Customers’ needs

Strengthen our position as the World Leading Coin Blank Company

DefenseProducts

High-tech Ammunitions Secure essential technology for precise high-tech ammunitions (Smart Ammunition)

Participate in developing next generation high-tech defense products (Navigation System, Sensor)

2. Enter into New Business

M&A R&D for New ItemCooperation withAdvanced Corp.

3. Maximize Efficiency and Rearrange Company Real Estate

- 21 -

A P P E N D I X

- 22 -

Recent 5 years Sales Breakdown Recent 5 years Profit & Loss PMX Industries Inc. Siam Poongsan Metal Co., Ltd. P/L of Domestic Affiliates P/L of Overseas Affiliates

Recent 5 years Sales Breakdown

- 23 -

Unit : Mil. Krw

2002 2003 2004 2005 2006

Sheets & Strips 340,662 349,907 461,239 482,742 718,977

Pipes & Tubes 154,817 125,848 168,635 187,487 234,602

Bars, Rods &Wires

59,095 63,215 78,038 92,697 129,470

Coin Blanks 101,117 68,597 85,791 135,674 182,690

Stainless 42,351 49,360 66,124 63,279 66,297

Others 50,049 39,096 79,352 83,733 106,776

748,091 696,023 939,179 1,045,612 1,438,812

228 226 234 235 226

220,083 232,207 234,213 311,996 311,673

968,174 928,230 1,173,392 1,357,608 1,750,485

Non-FerrousMetal

Q'ty(thousand M/T)

T o t a l

Sub-Total

Defense Product

Unit:Mil.Krw

2002 2003 2004 2005 2006

Total Sales 967,174 928,230 1,173,392 1,357,608 1,750,485

Cost of Goods Sold

813,595 804,370 1,030,897 1,211,349 1,559,095

Gross Profit 154,580 123,860 142,495 146,259 191,390

Selling andAdministrative

44,372 45,670 53,267 54,794 62,994

Operating Profit 110,208 78,190 89,228 91,465 128,395

Non-operating Revenues

48,373 33,927 74,457 56,669 133,265

Non-operatingExpenses

48,916 56,480 44,777 69,213 73,136

Recurring Profit 109,665 55,637 118,908 78,921 188,524

Net Profit 78,939 32,343 91,462 48,840 144,092

Recent 5 years P/L

- 24 -

PMX Industries Inc. Incorporated : Nov. 1989

Operation Started : Apr. 1992

Location : Cedar Rapids, Iowa, USA

Products & Production Capacity :

Copper & Copper Alloy Sheets & Strips, 130,000M/T pa

Total Sales (’06) : U$518mil.

Total Assets (’06) : U$404mil

No. of Employees : 478

The second largest producer in North America

(Share in US strip market : 20%)

The largest supplier to US Mint

(Share in US coin strip : 55%)

The largest producer of clad metal for coin in the world.

- 25 -

Siam Poongsan Metal Co., Ltd.

Incorporated : Oct. 2000

Operation Started : Feb. 2002

Location : Chonburi, Thailand

Products & Production Capacity :

Copper & Copper Alloy Sheets & Strips, Coin Blanks, 16,000M/T pa

Total Sales (‘06) : U$ 80mil

Total Assets (’06) : U$ 56mil

No. of Employees : 250

The sole manufacturer of copper & copper alloy sheets & strips and coin

blanks in Southeast Asia

- 26 -

P/L of Domestic Affiliates

Poongsan

Microtec

Poongsan

Industrial

Poongsan

FNS PNT

Poongsan

Valinox

PNP

TECHTotal

Total Sales‘06 798 1,432 156 76 233 10 2,705

‘05 676 954 146 75 196 5 2,052

Recurring

Profit

‘06 -118 71 15 1 83 1 53

‘05 -21 43 14 6 30 -1 71

Total Assets ‘06 697 853 172 70 223 25 2,040

Total

Liabilities‘06 106 296 110 17 97 1 627

Stock holder's

Equity

(Equities)

‘06591

(174)

557

(163)

62

(7)

53

(20)

127

(60)

24

(25)

1,354

(449)

(Unit : 100Mil.Krw)

- 27 -

(Unit : 100Mil.Krw)

PMXSiam

PSPHK

Shang-hai

Malay-sia

Japan LA Total

Total

Sales

‘06 4,956 768 541 511 136 379 1,170 8,461

‘05 3,779 492 361 372 84 266 588 5,942

Recurring

Profit

‘06 142 86 51 19 12 4 4 318

‘05 -164 30 22 19 3 1 4 -85

Total Assets ‘06 3,715 520 354 277 20 175 112 5,173

Total

Liabilities‘06 2,810 328 235 227 68 163 88 3,919

Stock holder's

Equity

(Equities)

‘06905

(2,451)

192

(137)

119

(10)

51

(10)

20

(5)

12

(8)

25

(20)

1,324

(2,641)

P/L of Overseas Affiliates

- 28 -

Thank You.

- 29 -