investor relations 2018

INDUSTRIES

Investor Relations 2018

Disclaimer

ü The forward-looking statements are subject to changes in business environment and involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward looking statements.

ü The contents in this presentation may change without any prior notification. None of the Company nor any of its respective officers assume legal responsibility for any damages or losses that may have occurred from the use this presentation, including errors and other mistakes that may be included in this presentation.

ü This presentation does not constitute or form a part of an offer or solicitation to purchase or subscribe for securities for sale, and any information included in this presentation may not be used as a basis for related contracts, subscriptions or investment decisions.

Contents

1. Company Outlook1

2 2. Business Outlook

2-1. Film Business2-2. Chemical Business2-3. Shoes Business

1. Company Outlook

Stock Outline

Largest Shareholders33.6%

[범주이름]20.1%

[범주이름]26.9%

[범주이름]18.8%

Treasury Stock0.6%

Total Shares55,320,000

1. Market Cap :₩ 463.6KRW (in billions)

2. Stock Type: Registered Common Stock

3. The Largest Shareholder : Hyun Seok Ho and 4 others

4. Face Value : ₩ 500 KRW

Composition : End of December, 2017

1. Company Outlook

History

Pungyoung HwaseungFounded

(10billion dollar day for exports)

National Merit of Export IndustryReward Awarded

Asan Film Factory Completion

Hwaseung VinaAcquisition

Environment Management System Certification

Acquired

Hwaseung Enterprise listed on

Korean Securities(BOPP 1,2 Unit)

1. Company Outlook

1969 1977 1990 2006 2009 2016

Global Outline

HSPTACANG, CHINA

HS VINADong Nai, Vietnam

HSSSHANGHHAI, CHINA

COATWELL FINE CHEMICAL CO., LTDANHUI, CHINA

HSDDALIAN, CHINA

P.T HS IndonesiaJawa Tengah, Indonesia

Seoul OfficeSeoul, Seocho

Asan FactoryChungnam Asan

Head OfficeBusan – Yeonje

Yangsan FactoryGyeongnam Yangsan

1. Company Outlook

In the film industry, demand is steadily maintained in the basic industry sector, and its usage is increasing for various purposes ranging from general industrial use to cutting-edge materials.

2. Business Outlook

FilmBusiness

The world's largest shoe factory Hwaseung Vina and HSD are selected as Big 5 suppliers of Adidas Group and aim at achieving a production volume of 9 million pairs/month by 2020

ShoesBusiness

To respond to the needs from the production spot, Hwaseung put continuous technological development and has been positioned as a recognized brand not only in Korea but also overseas

ChemicalBusiness

2-1. Business Outlook_Film Business

food packaging and industrial packaging, medicines and chemicals, synthetic paper, label printing, etc.OPP/PET Film

special packaging (Transparent deposition), optics, gift packaging, semiconductor packaging, etc.Evaporated Film

for solar cellsEVA Sheet

Used for everything from shoe adhesives to automotive coatings

2-2. Business Outlook_Chemical Business

Water/oil adhesive and pretreatment agent, hot melt adhesiveAdhesive for Shoes

Automotive, packaging, neoprene rubber adhesiveIndustrial Adhesive

Glass run, sponge coating, other weather strip productsAutomotive Coatings

PU skin resin, 2-pack PU binder, silver layer PU resin, impregnation PU resinSynthetic LeatherPolyurethane Resin

2-3. Business Outlook_Shoes Business


-

5,000

10,000

15,000

2012 2013 2014 2015 2016 2017

Footwear

Apparel

Hardware

•

•

•

•

•

Sales of first half of 2018)


SMS(Sales Sample)


NEO

adidas coreadidas core

adidasneo label adidascore

HWASEUNG Enterpriseproductionlevelexpansion


8.4%

12% 15% ↑


• “Core-FTW(Footwear) Project”[adidas Group’s core strategy, the Speed Program

• “Manufacturing premium boost running shoes”

• Expanding sales from the adidas Core brand

• Expanding production for the adidas Running, Reebok, Reebok Royal brands, etc.


Achieve annual sales of $ 1.5 billion in 2020 and secure production capacity worth 1.6 trillion won

High production efficiency

adidas Group 2nd place

vendor

The world's unique

co-location strategy

Secured quantity of

shoes


Profitability


investor relations 2018

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