The 1st quarter business performance figures presented in this press release may differ slightly from the audit and review processes conducted by the external auditors as they have not yet completed their audit and review. These figures are _ base_d on K-IFRS consolidated financial statements. Your understanding is solicited as they differ from the operating income amount previously disclosed because they are now _ base_d on operating income in line with the amendments to K-IFRS No. 1001 ‘Presentation of Financial Statements’.


● Following the transfer of the Polyol business to MCNS, which was founded in July 2015, sales decreased by 17.0% to 566.4 billion won while the operating income decreased by 24.5% to 43.1 billion, compared to the same period in the preceding year. However, the company posted a stable operating income ratio of 7.6% as its operating income increased by 12.2% over the preceding quarter.

● Net profits amounted to 26.6 billion won, i.e. a 15.2% increase over the same period in the preceding year, as profitability recovered due to the restructuring of subsidiaries, while the chemical business line posted stable earnings.

[Chemical business]

ㅁ 1st quarter sales of 182.1 billion won, operating income of 31.8 billion won, operating income ratio of 17.5%
Despite the slow recovery of global business, the unit posted a sound performance as the price of PO (Propylene Oxide) declined and stable sales growth was recorded, sales of the high-margin product PG (Propylene Glycol) increased, and the ratio of global giant customers increased.
Operating income is expected to increase over the preceding quarter as the sales of high margin PG products are set to increase, while the market supply status is likely to be tight in the upcoming peak season due to the periodic repairs of major PO manufacturers in the region.

[Film business]

ㅁ 1st quarter sales of 174.4 billion won, operating income of 5.0 billion won, operating income ratio of 2.9%
The unit posted a solid performance through its efforts to enhance its product portfolio and improve the profitability and sales of its highly functional products, including film for photo-voltaic applications, although its downstream industries including display and mobile products experienced slow business growth.

[Subsidiaries]

ㅁ 1st quarter sales of 209.9 billion won, operating income of 6.3 billion won
The performance of SKC’s subsidiary companies improved following their business normalization in 2015.
SK Telesys posted operating income of 2 billion won, which represents an increase of 100% over the same period in the preceding, while SKC Solmics posted a net profit as its semiconductor chip material line maintained a high rate of profitability.
They are expected to further accelerate the growth of their profits in the 2nd and later quarters by selectively concentrating on BHC (Beauty & Health Care) and electronic appliance materials.

Note 1. Comparison of quarterly performance _ base_d on consolidated financial statements
(Unit: 0.1 billion won, %) 

Note 2. Quarterly performance by business line
(Unit: 0.1 billion won) 

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