1

Chemicals & Materials

Business Scope

Chemicals are the cornerstone of Hanwha’s business. By taking on bold investments and challenges, Hanwha is fulfilling its global ambitions while also contributing to sustainable development and the future of communities around the world.

Hanwha built its chemical business through vertical integration and value-added products such as refined chemicals, basic chemicals, raw materials, synthetic raw materials, and advanced materials. Hanwha is particularly focused on R&D to increase the number of value-added products that the company can produce independently. Additionally, the company is growing as a leader in the global chemical industry through cross-affiliate synergy, value-added products, and cost competitiveness and is using its financial resources to establish production bases in major markets around the world.

Hanwha is committed to developing and using technology for sustainability. It is continuously reducing its greenhouse gas emissions and adopting more sustainable practices while also researching eco-friendly technologies for the “circular economy.” Hanwha has been particularly successful in reducing its carbon footprint by disclosing its carbon management data to global financial institutions and the general public.

Total chemical sales: KRW 19 trillion/USD 16.4 billion (as of 2019, globally #18)

Annual ethylene production capacity: 3.32 million tons

Annual polyethylene (PE) production capacity: 1.73 million tons

Annual polypropylene (PP) production capacity: 720,000 tons

Annual purity terephthalic acid (PTA) production capacity: 2 million tons

70% global market share for lightweight composite materials for motor vehicles, including

glass mat thermoplastics (GMT) and lightweight reinforced thermoplastics (LWRT) (globally #1)

Supplying global automotive companies with lightweight composite materials for battery

housings

Major Affiliates

Major Products andServices

Hanwha Solutions’ Chemical Division

Hanwha Solutions’ Q CELLS Division

Hanwha Solutions’ Advanced Materials Division

Hanwha General Chemical

Hanwha Total Petrochemical

Hanwha Energy

Petrochemical raw materials

Chlorine and caustic soda

Synthetic resins and synthetic raw materials

Lightweight materials for automobiles, electronics, and photovoltaics

Polysilicon, solar cells, and solar modules

Solar engineering, procurement, and construction (EPC)

Electricity retail, system solutions

Power generation project development and O&M (operations & maintenance)

Energy (oil)

Hanwha

Main Business Areas

2

Energy

Business Scope

With its world-class energy technologies and products, Hanwha continues to stay on top in major global solar-energy markets such as Germany, the UK, South Korea, Japan and the US (residential market). Hanwha is actively pursuing businesses in major global markets by producing cells and modules in the midstream sector and securing downstream value chains, including building and operating power plants and electricity retailing.

Hanwha sets the standard in solar technology through its global network of four state-of-the-art R&D centers located in Germany, South Korea, China, and Malaysia. Already operating a global production network spanning South Korea, China, and Malaysia, Hanwha opened its newest solar module production plant in Dalton, Georgia in the US in 2019.

In addition to solar energy, Hanwha is investing in and spurring the expansion of other eco-friendly energy sources, including hydrogen fuel cell power plants. Through its global technology leadership and strong global business network, Hanwha will continue to drive the expansion of the global green energy market.

World-class solar module production capacity of 11.3 gigawatts (GW) per year

Produced a total of 15 GW worth of high-efficiency Q.ANTUM solar cells, as of 2019 Q2

Awarded Top Brand PV Europe Seal seven years in a row and Top Brand PV Australia Seal five

years in a row by EuPD Research

Awarded Top Performer Recognition four years in a row by DNV GL

Solar-module market leader in Germany, the UK, Italy, South Korea and Japan

Residential solar-module market leader in the US

Research and sales network spanning more than 40 countries in Europe, Asia, and North

America

102.5MW of Q CELLS solar modules has been installed and commissioned in Facebook Data

Centers as Facebook’s first solar project in the state of Georgia, United States.

Began construction of the world’s first 50-megawatt (MW) hydrogen-fuel-cell power plant

(powered solely by hydrogen extracted as a byproduct of chemical refining) in 2018

Major Affiliates

Hanwha Solutions’ Chemical Division

Hanwha Solutions’ Q CELLS Division

Hanwha Solutions’ Advanced Materials Division

Hanwha General Chemical

Hanwha Total Petrochemical

Hanwha Energy

Hanwha

Main Business Areas

Major Products andServices

Petrochemical raw materials

Chlorine and caustic soda

Synthetic resins and synthetic raw materials

Lightweight materials for automobiles, electronics, and photovoltaics

Polysilicon, solar cells, and solar modules

Solar engineering, procurement, and construction (EPC)

Electricity retail, system solutions

Power generation project development and O&M (operations & maintenance)

Energy (oil)

3

Mechatronics, Aerospace

Business Scope

With its cutting-edge aircraft engine technology and industrial precision machinery solutions, Hanwha is targeting the global aerospace market by increasing its competitive capabilities. It is also investing in future aerospace growth engines such as air taxis and personal air vehicles. The company is also emerging as a world-class security solutions provider through its high-quality optics, manufacturing capabilities, and image-processing technologies.

In the aircraft engine industry, Hanwha participates in the development of new products and technologies as a key partner of major manufacturers such as GE, Pratt & Whitney, and Rolls-Royce. Hanwha’s competitiveness in the industry was strengthened when it acquired EDAC, a US aircraft engine component manufacturer, in 2019 and renamed it Hanwha Aerospace USA.

Additionally, driven by long-term profitability, Hanwha is upgrading its production technology and facilities. Its Vietnamese aircraft engine manufacturing plant, which began mass production in 2018, will serve as a bridgehead in Hanwha’s global expansion in the aerospace industry.

Hanwha has been contributing to the Korean space program since 2014 after the successful launch of Naro, Korea’s first carrier rocket. The company is producing rocket components for the Nuli rocket (KSLV-II), which is scheduled to launch in 2021 for the first time.

In the precision machinery industry, Hanwha is supporting the innovation of industrial plants in the Fourth Industrial Revolution through automated logistics systems, collaborative robots, and smart factory solutions.

Supplies engine components, totaling more than KRW 25.7 trillion/USD 21.5 billion in value, to

global aircraft-engine manufacturers (as of 2020)

Assembled and delivered more than 8,000 aircraft engines over 37 years as of 2016

Strategically invested KRW 30 billion/USD 25 million in Overair, a US aeronautics company that

develops electric aircraft, air taxis, and personal air vehicles

Korea’s leading video-security solutions provider

Fast-growing player in the global-security industry with next-generation technologies such as

deep learning and AI

Major Affiliates

Major Products andServices

Hanwha Corporation

Hanwha Aerospace

Hanwha Systems

Hanwha Techwin

Hanwha Precision Machinery

Hanwha Power Systems

Aircraft engines and engine components

Aerospace sensors and electronic systems

Industrial equipment, machinetools, and collaborative robots

Factory and warehouseautomation

Security cameras, surveillance system management, and video analysis solutions

Hanwha

Main Business Areas

4

Finance

Business Scope

Hanwha, one of Korea’s leading non-banking financial companies with more than USD 123 billion in assets, offers a complete financial service platform including insurance, securities, asset management, and banking products.

A pioneer in fintech, insurtech and digital asset management, with a significant presence in Asia, Hanwha pursues tailored digital business models by converging finance and technology with AI, big data, and blockchain. As part of its global digital progress, Hanwha launched Pinetree Securities, which offers digital investment opportunities, and also plan to launch a fintech company in Vietnam.

In addition, Hanwha’s global startup accelerator program serves as an innovation hub to nurture young entrepreneurs. Through partnerships and investments with a range of tech companies, Hanwha is quickly responding to digital transformation and helping to create the future of global finance while making a positive social impact.

Korea’s 2nd largest non-banking financial solutions provider

Hanwha Life (data as of 2019)

- Total assets: KRW 122 trillion/USD 99.4 billion (2nd largest in Korea)

- Life insurance premium income: KRW 14 trillion/USD 11.8 billion

Launched Carrot, Korea’s first digital non-life-insurance company, in collaboration with SK

Telecom and Hyundai Motor Company in 2019

Launched Pinetree Securities in Vietnam, which offers digital investment opportunities

Established Data Analytics Lab, Korea’s first big data-analytics company

Led USD 31.2 million investment in Lightnet, a Bangkok-based fintech company offering global

remittance service using blockchain technology

Hanwha Asset Management

- Assets under management (AUM): KRW 95 trillion/USD 80.1 billion (3rd largest in Korea)

Major Products andServices

Major Affiliates

Insurance

Securities

Savings, corporate and personal credit

Asset management

Hanwha Life

Hanwha General Insurance

Hanwha Investment & Securities

Hanwha Asset Management

Hanwha Savings Bank

Hanwha

Main Business Areas

5

Construction

Business Scope

From community-building infrastructure projects to cutting-edge manufacturing facilities as well as affordable housing that brings families and communities together, Hanwha is helping to enrich the lives of people around the globe.

Based on its accumulated know-how, Hanwha is leaping forward as a comprehensive construction company with projects such as building Bismayah New City, the largest urban development in Iraq’s modern history, which is expected to include 100,000 residential units.

Hanwha is a leader in metropolitan developments that combine culture, leisure, business, and commercial facilities. It is currently working on the Gwanggyo Development Project in Suwon, South Korea, where it is going beyond residential facilities by constructing a comprehensive urban experience that includes department stores, hotels, aquariums, and multipurpose buildings.

In addition, the company has established itself as a leader in eco-friendly construction through the development of building-integrated photovoltaic (BIPV) systems and zero-emission solar housing (ZESH) technology.

Through its recognized capabilities, Hanwha will continue carrying out responsible business practices to contribute to social development in the global construction market.

Cumulative orders in excess of KRW 11.9 trillion/USD 10 billion due to the construction of

Bismayah New City

Building power and chemical plants in the Middle East and North Africa

Constructed Saudi Arabia’s Yanbu Phase 2 Expansion MED Seawater Desalination Plant, which

produces 15 million gallons of fresh water per day

Major Products andServices

Major Affiliates

Petrochemical plants,refineries,and power plants

Environmental and industrial plants

Housing and infrastructureconstruction

Urban and industrial development

Department stores and fashion

Resorts, hotels, and leisureservices

Transit-oriented commercialdevelopments

Comprehensive real estateservices

Road, tunnel, and port construction

Hanwha Engineering & Construction

Hanwha City Development

Hanwha Hotels & Resorts

Hanwha Galleria

Hanwha Galleria Timeworld Hanwha Estate

Hanwha

Main Business Areas

6

Leisure & Lifestyle ServicesAs a trendsetter in the leisure and lifestyle sectors, Hanwha provides unique, premium services by focusing on a core set of high-end businesses.

Hanwha offers more than 5,200 condominium-like rooms across 14 resorts in Korea. Hanwha also operates THE PLAZA, a boutique hotel in Seoul featuring sophisticated designs and high-quality service. The company is expanding its hospitality holdings throughout Korea with resorts set to open in Yeosu and Yangyang by 2020. Additionally, Hanwha leads the Korean leisure industry by operating five golf courses (108 holes in total), four eco-friendly aquariums, a water park, an arboretum, and a racecourse for horse racing.

Beyond Korea, Hanwha operates resorts and golf courses in Saipan and Nagasaki, Japan. Hanwha plans to develop premium resorts in locations across the world to showcase its luxurious and exquisite services.

In the shopping sector, Hanwha operates four luxury department stores in Korea, each housing the world’s leading luxury brands. In 2020, Hanwha created a new Korean landmark through the development of a retail/leisure complex in the city of Gwanggyo.

Looking to the future, Hanwha will continue introducing new premium services and distinctive lifestyle products to deliver improved customer satisfaction.

Major Products andServices

Major Affiliates

Petrochemical plants, refineries,and power plants

Environmental and industrial plants

Housing and infrastructureconstruction

Urban and industrial development

Department stores and fashion

Resorts, hotels, and leisureservices

Transit-oriented commercialdevelopments

Comprehensive real estateservices

Road, tunnel, and port construction

Hanwha Engineering & Construction

Hanwha City Development

Hanwha Hotels & Resorts

Hanwha Galleria

Hanwha Galleria Timeworld Hanwha Estate

Hanwha

Main Business Areas