-1-

www.ikolon.com

March 07, 2011

KOLON Industries, Inc.

-2-

Company Overview

1. Performance Results

2. Major Products

- Industrial Materials

- Chemical

- Films/Electronic Materials

- Fashion

3. Changing KOLON

4. Divisional Mid-term Strategies

-3-

51

48

-419

66

82

-6

52 62

61

1. Performance Results

※ KOLON Industries acquired FnC KOLON, now a part of its Fashion division, on August 1, 2009

(Wbn)

① Sales Breakdown

509

405

287 436

578

Industrial Materials Chemical Films Others ※Fashion

672

501

702561

806

413 522

448607

Sales

2008 2009 2010

-9

36

33

65

26%

31%23%

21%

52%

27%

29%

20%

26%

23%

13%

18%

17%

25%

21%

22%

15%

25%

24%33%

21%Operating

Profits

37%

28%

27%

11%

1,990 2,215 3,241

125 180 251

-4-

■ Sales and Operating Profits ■ Pre-tax Profits

1. Performance Results ② Overview of 4Q (Net) ‟10 Results

(Wbn)(Wbn)

716.1

732.1804.0

777.4

927.7

48.7

44.7

63.6

71.1 71.9

200.0

400.0

600.0

800.0

1,000.0

4Q '09 1Q '10 2Q '10 3Q '10 4Q '10

Sales

OP

14.3

37.6

66.5 66.0

58.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

4Q '09 1Q '10 2Q '10 3Q '10 4Q '10

Sales increased 30% (YoY) and 19% (QoQ) on the effects of

capacity expansion and the business recovery.

Operating profit increased 48% (YoY) due to expansion of

high value-added line, overall industry growth, and P-Mix

improvements, however there is no significant difference (QoQ)

due to raw material price increases (TPA/EG, Naphtha) and

bonus payments.

1Q ‟11 earnings are forecast to match that of 4Q „10 on

the back of a decrease in one-off expenses, despite raw

material price increases (TPA/EG, Naphtha) and the strong

Korean won.

Pre-tax income increased 310% (YoY) on the back of an

increase in OP and the steadily improving performance

of the subsidiaries, but decreased 11% (QoQ) due to

one-off expenses, such as bonus payments of the subsidiaries

in 4Q ‘10.

Pre-tax income is forecast to increase slightly on the back of

ongoing OP in 1Q ‘11 and a decrease in one-off expense of

the subsidiaries.

-5-

2-1. Major Products - Industrial Materials

Product Applications Customers Competitors

Tire Cord Tires Goodyear, Bridgestone, Michelin,

Continental, Kumho, Hankook

Hyosung

Car airbag

(fabric)

Automobiles Hyundai Mobis, Autoliv,

KSS, S&T Daewoo Ind.

Technical Yarn Automobiles Seatbelt, Tarpaulin and

Conveyer belt makers

Hyosung

Aramid Bulletproof weaves,

Automobiles, Cables

Car brake, Gasket and MRG makers

Defense industry / Optical fiber cable

Dupont, Teijin

① Overview

Inner liner

Carcass

Belt

Capply

(Nylon, Aramid)

(Rubber)

(Steel)

Sales (Wbn)

446476

522

436

561

2006 2007 2008 2009 2010

• Tire cord- Global top 3 with 13% market share - Strong brand recognition in the tire industry

• Airbags, Seatbelts and PET Spunbonds- Airbags : 85% market share in Korea.- Seatbelts : 60% market share in Korea - PET Spunbonds : 60% market share in Korea

* Expansion in China - Tire cord/Airbag plant (2004)

• Aramid - Launch of Aramid business in 2005 (4Q)- Aramid plant was expanded in Jan. 2010

• Chamude- Third largest production capacity in the world- Gateway into high-end markets

* Watch cases, Cloth linings for bags* Car seat covers

9.6% 9.7% 12.5% 15.1% 11.1%

OP Margin

-6-

Sales continued to increase on the back of growing demand for automobile materials and the increasing

utilization ratio of aramid.

OP decreased temporarily due to rising raw material price (TPA/EG), the strong Korean won, and bonus payments,

despite the sales increase.

☞ 1Q „11 sales are expected to decrease slightly during the off-peak season of the automobile

industry, but OP is expected to increase slightly due to a decrease in one-off expense.

② 4Q (Net) ‟10 Results2-1. Major Products - Industrial Materials

■ Sales (Wbn) ■ Operating Profit (Wbn)

120.3 124.2

137.6 142.4

156.3

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

14.4 12.4

15.5

18.6

15.8

11.9%

10.0%

11.3%

13.1%

10.1%

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

OP

OP Margin

-7-

2-2. Major Products - Chemical

Product Applications Customers Competitors

Hydrocarbon

ResinsAdhesives,Paint, Tires,Hot-melt road marking

Henkel, Bostik, H.B.Fuller, 3M,DaeHwa Paint

Exxon, Eastman

Phenol &

Electronic

Epoxy Resins

Electronic materials,

Automotive industry,

Tires, Paint

Antech, Hempel,

Shinsai Shokai,

Hyosung, Hankook Tire,

Eko International

Kangnam Chem,

Kukdo Chem,

※ KOLON Industries acquired KOLON Chemical,

now a part of its chemical division, on June 1, 2007

• Hydrocarbon Resins

- Capa. : 100,000MT/Year (Domestic 70%, Export 30%)

<Except for by-product : Domestic 30%, Export 70%>

• Phenolic Resins

- Capa. : 60,000MT/Year (Domestic 55%, Export 45%)

- Launch of epoxy resins in Dec. 2007(12,000MT/Year)

• GRP Pipe

- Capa. : 3,000MT/Year (Domestic 100%)

- Launch of GRP pipe in Dec. 2007

Hydrocarbon

Resin

Phenolic

Resin

Glass

Reinforced

Plastic

Pipe

Epoxy

Resin

① Overview

Sales (Wbn)

479 504607 578

806

2006 2007 2008 2009 2010

5.7% 5.9% 5.9% 8.4% 7.6%

OP Margin

218

286

-8-

Sales continued to grow on the back of the selling price due to rising naphtha prices and of the increased

by-product, despite regular overhaul.

OP decreased slightly due to bonus payments although price spread improvements were implemented in 4Q ‘10.

☞ OP is forecast to increase through epoxy expansion and ongoing price spread

improvements in 1Q „11.

2-2. Major Products - Chemical ② 4Q (Net) ‟10 Results

■ Sales ■ Operating Profit (Wbn)(Wbn)

141.3

192.3 201.5 203.6 208.7

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

9.2

12.1

16.2

18.4

14.2

6.5% 6.3%

8.0%

9.0%

6.8%

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

OP

OP Margin

-9-

2-3. Major Products - Films/Electronic Materials ① Overview

Film Product Applications Customers Competitors

Base

Film

Packing

FilmFood packing

Shrinkable filmYoulchon Chem. SKC, TAMK

Optical

Film

DFR, LDF, Prism

Reflection film

Release film

Solar protect film

Shinwha, SBK, LGE, LGC,

LMS, Keiwa, MN-tech

NittoDenko, SKC-Haas,Tohcello

Toyo Aluminum, Krempel, Coveme

SKC, TAMK

IT

materials

DFRPCB, PDP

Semiconductors

3M, SEMCO, Daeduck Elec,

LGE, Anam Semicon,

Samsung Techwin, Samsung SDI

Asahi, Hitachi

Prism, etc TFT-LCD LGD, SEC MN-tech

• World-class technology and production capacity

* PET film: 5th in the world (production capacity)

* Nylon film: 3rd in the world

• Investment focused on value-added films for IT industry

* From DFR film to films for LCDs, PDPs and semiconductors

• Launch of optical thick film

- Optical thick film launched in June. 2006

- 1 line was expanded in Nov. 2009

Sales (Wbn)

316375

448509

672

2006 2007 2008 2009 2010

-1.9% 3.3% 7.4% 10.0% 12.2%

OP Margin

-10-

Sales increased (QoQ) on the back of strong sales of high value-added products, such as solar and touch screen,

and of the sales increase of high value-added packaging films, despite a LCD sales decline.

OP achieved an excellent margin by maintaining the selling price of LCD and due to the sales increase of

high value-added films (for solar, touch screen and packaging uses), despite bonus payments.

☞ Sales and OP are forecast to increase slightly in 1Q „11 on the back of recovering LCD demand and

P-Mix improvement.

2-3. Major Products - Films/Electronic Materials ② 4Q (Net) ‟10 Results

■ Sales ■ Operating Profit (Wbn)(Wbn)

138.8 147.2

168.0 179.3 177.7

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

12.5

13.4

19.4

24.6 24.8

9.0%9.1%

11.5%

13.7% 14.0%

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

OP

OP Margin

-11-

2-4. Major Products - Fashion ① Overview

Brand Segment Competitors

Outdoor

& Sports

KOLON Sport OutdoorThe North Face, K2, Columbia,

Black Yak

Head Sports Fila, EXR, K-Swiss, Puma

Golf

& Casual

Elord Golf Wolsey, Daks, Bean Pole-golf, Superior, Renoma, Munsingwear

Henry Cotton‟s TD casual Hazzys, Bean Pole, Lacoste, Club Monaco, Ben Sherman, CP

DistributionActiv

Distribution

(Home shopping) -

Luxury brands -

• Leading fashion company

* Well balanced brand portfolio

* Various distribution channels

- Dept., Disc., Agency, Direct, Outlet

• Focused on “Sports”

* Outdoor & Sports has shown consistent high growth

(averaged 19% YoY)

* Sales from KOLON Sport, Head, and Jack Nicklaus

Acc.ount for more than 60% of total sales

Sales (Wbn)

365430

477

599

702

2006 2007 2008 2009 2010

8.1% 8.9% 7.6% 6.6% 7.4%

OP Margin

312

287

-12-

Sales increased 22.4% (YoY) due to the peak seasonal demand and the cold weather.

OP increased by a large margin due to the sales increase of high value-added products, such as Out-Door products,

despite bonus payments.

☞ Sales and OP increased temporarily during the peak season in 4Q „10, however they are forecast to decrease

in 1Q ‟11 due to off-peak seasonal demand.

■ Operating Profit■ Sales

2-4. Major Products - Fashion ② 4Q (Net) ‟10 Results

(Wbn)(Wbn)

205.6

148.8

175.1

126.1

251.6

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

14.5

9.4

14.4

8.9

19.0

7.1% 6.3%

8.2%

7.1% 7.6%

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

OP

OP Margin

-13-

① Earnings: J-Curve3. Changing KOLON

‟02 ‟03 ‟04 ‟05 ‟06 ‟07 ‟08

1) Opposition of

labor union;

Restructuring

delayed

3) Deterioration in

the film market

‟09

2) Investments in

new businesses

(Aramid, PI film,

Thick film, IT materials, etc.)

9) Switching to a

holding company

8) Merger with

FnC KOLON

6) Refine business structure

(spin-off of fiber biz, high value-

added film biz

7) New businesses

contributing to earnings

(aramid, IT materials)

5) Merger with

KOLON Chemical

4) Stabilization

of relations btw

labor and

management

Jumping up to global material company,

Korea’s first fashion company.

‟10

10) implementation

of right issue for

securing future

growth

‟11

11) Merger with

Cambridge KOLON

-14-

1,081

33.8 101

1,486

70.3 160.9

1,990

125.2 216.6

2,215

179.9 282.9

3,241

251.3382.5

2006 2007 2008 2009 2010

Sales

OP

EBITDA

② Earnings trend3. Changing KOLON

CAGR

31.6%

39.5%

65.1%

-15-

③ Non-operating Gains & Losses trend3. Changing KOLON

■ Net Interest Cost ■ Net equity method gains ■ Net FX gains(Wbn) (Wbn) (Wbn)

(Wbn) OP continued to increase quarter by quarter

and steady pre-tax profit achieved from strong

performance of subsidiaries, but OP slightly

decreased due to the one-off expenses of the

subsidiaries in 4Q ‘10.

1Q ‘11 is expected to see an increase in equity

method profit due to a decrease in one-off

expenses, despite the weakening performance

of the subsidiaries (during the off-peak season

of the automobile and fashion industries).

(Wbn) 4Q ‘09 2009 1Q „10 2Q „10 3Q „10 4Q „10 2010

OP 48.7 179.9 44.7 63.6 71.1 71.9 251.3

Interest

cost-20.8 -73.9 -20.1 -20.8 -20.6 -19.6 -81.1

Equity

method-8 -7 13 27.7 18.2 13.9 72.8

FX gains 0.2 0.6 -0.7 0.1 -0.3 0.2 -0.7

etc -5.9 0.9 0.7 -4.2 -2.3 -7.7 -13.5

Total -34.4 -79.5 -7 2.8 -5.1 -13.2 -22.5

Pre-tax

income14.3 100.4 37.6 66.5 66 58.6 228.8

-8.0

13.0

27.7

18.2 13.9

4Q'09 1Q'10 2Q'10 3Q'10 4Q'10

0.2

-0.7

0.1

-0.3

0.2

4Q'09 1Q'10 2Q'10 3Q'10 4Q’10

-16-

④ Changes in the financials3. Changing KOLON

Debt decreased sharply with the right issue and

the capital reduction payment of SKC-KOLON PI

in 4Q ‘10.

Debt is forecast to increase slightly due to facility

investments, but the net debt/EBITDA multiple will

continue to decrease due to a steady increase

in EBITDA

■ Changes in Debt (Wbn)

■ Changes in Net debt/EBITDA*

(Wbn)

Total Debt

Net Debt

Net Debt Ratio

Corporate bond Grade A

Zone7.5

5.45.7

54.3 4

2.29

3.4

0

200

400

600

800

1,000

1,200

1,400

2003 2004 2005 2006 2007 2008 2009 2010

0

1

2

3

4

5

6

7

8Net debt

EBITDA

Net debt / EBITDA

(Wbn)

Financials

Holding Structures of Subsidiaries

Share trading of subsidiaries

Recent Dividends

-18-

96.6%35.0%(33.5%)

75.2%

20.0%

18

KOLONIndustries

KOLON Corp

EFMCKOLONI-net

KOLONLife Science

KOLONPharm

NEOVIEWKOLON

CambridgeKOLON

KOLON Glotech

KFM

KPL

32.0%(29.5%)

31.7% 45.1%60.0% (54.5%)

19.6%

75.2%

80.9%

100%

KOLONE&C

36.3%

TissueGeneKOLONBENIT

Sweet Meal

57.1%

Chairman & etc

52.4% (47.9%)

(Feb 18, 2011)

Holding structure of subsidiaries

-19-

Holding structure of subsidiaries

Business

Manufacture of car seat,

Sales of Imported car

Men’s wear,

Women’s wear, etc

Manufacture of N/F, P/F

yarn

and fabric

Engineering,

Manufacture of plastic

Manufacture of PI film

Manufacture of T/C, airbag

Manufacture of Phenolic

Resin

Manufacture of packing

film

Sales 894.0 418.2 516.2 166.7 111.6 110.9 26.2 92.6

OP 40.2 12.9 24.0 11.6 34.4 9.6 0.9 14.5

Net income

34.1 6.3 17.3 9.8 25.5 8.4 0.9 16.3

Equity method profit

22.4 2.7 10.1 9.6 12.4 8.2 0.7 -

32.0%

52.4%

75.2% 75.2% 80.9% 100% 50% 100% 78.6% 78.8%

Chairman, etc

Kolon Corp.

Kolon Industries

KolonGlotech

KINKOLON-GPKNCSKC KOLON

PIKPLKFMCambridge

Kolon

(Equity: Febuary 18, 2011 Common share based)

(Amount: 2010 accumulation based, Wbn)

-20-

Share trading of subsidiaries

KOLONCorp

KOLONInd

CambridgeKOLON

KOLONGlotech

KOLONE&C

GreenNarae

KFM

KOLONI-net

KeP

32.0%

72.8%6.4%

100%

11.7%

2.1%

62.6% 67.1%

0.3%

18.4%

13.8%

KOLONPharm

0.9%

33.5%

31.7% 45.0%

(Wbn) Transferor Ratio amount transferee

KFM KOLON Glotech 13.8% 27.4 KOLON Ind

Cambridge KOLONKOLON Glotech 2.1% 1.3

KOLON IndKOLON I-net 0.3% 0.2

KOLON GlotechKOLON E&C 11.7% 30.4

KOLON IndKOLON Pharm 1.0% 2.3

KePKOLON E&C 18.4% 8.5

KOLON I-netKOLON Ind 6.4% 3.0

Green Narae KOLON E&C 100% 92.7 KOLON Glotech

■ Share Holding Structure (Before share trading) ■ Share Holding Structure (After share trading)

Plan to merger

KOLONCorp

KOLONInd

KOLONI-net

KOLONE&C

KOLONGlotech

KFM

GreenNarae

33.5%

32.0%

19.1%

100%75.2%

KeP

52.2%

27.4%

After Merger

KOLONPharm

31.7%

45.0%

100%

-21-

Recent Dividends

(Wbn) 2007 2008 2009 2010

(New Corp.)

Net income 10.8 94.4 98.1 211.1

Total payout 0 5.3 2.8 28.1

Dividend payout ratio 0% 5.66% 2.84% 14.97%

Dividend yield 0% 1.0% 1.1% 1.7%

* Payout ratio and dividend yield are based on common stocks

Appendix

Balance Sheet

Income Statement

-23-

Balance Sheet

(Wbn)

2009 2010

Total Assets 1,768 1,927 2,523 3,056

Current Assets 443 409 732 1,039

Quick assets 226 223 402 656

Inventory 217 187 330 383

Fixed Assets 1,325 1,518 1,790 2,018

Investment assets 345 653 650 832

Tangible assets 981 866 1,078 1,108

Intangible assets (1) (1) 14 23

Other assets 48 55

Liabilities 1,214 1,313 1,790 1,732

Current liabilities 742 1,028 1,086 1,004

Long-term liabilities 472 284 704 728

Total Equity 554 614 733 1,324

Capital stock 107 107 98 131

Capital surplus, etc 447 508 635 1,193

New Corp.2007 2008

-24-

4Q '08 2008 1Q '09 2Q '09 3Q '09 4Q '09 2009 1Q '10 2Q '10 3Q'10 4Q '10 2010

455 1,990 415 479 604 716 2,215 732 804 777 928 3,241

Industrial Materials 129 522 102 106 108 120 436 124 138 142 156 561

Chemical 129 607 126 146 165 141 578 192 202 204 209 806

Films 112 448 103 127 140 139 509 147 168 179 178 672

Fashion 0 0 0 81 206 287 149 175 126 252 702

Others 85 413 85 100 110 110 405 120 122 126 133 501

39 121 44 41 47 49 180 45 64 71 72 251

Industrial Materials 21 65 21 16 15 14 66 12 16 19 16 62

Chemical 9 31 12 13 14 9 48 12 16 18 14 61

Films 11 33 11 13 14 13 51 13 20 25 25 82

Fashion 4 15 19 9 14 9 19 52

Others -2 -9 0 -1 -1 -2 -4 -3 -2 1 -2 -6

6 -46 -29 8 -24 -34 -80 -7 3 -5 -13 -23

Net Interest cost -17 -61 -17 -17 -19 -21 -74 -20 -21 -21 -20 -81

Net FX gains -5 -21 -3 2 1 0 1 -1 0 0 0 -7

Net equity method gains 17 25 -6 11 -4 -8 -7 13 28 18 14 73

Others(Net) 10 11 -3 11 -1 -6 1 1 -4 -2 -8 -14

45 80 14 48 23 14 100 38 67 66 59 229

32 94 13 41 18 28 100 36 57 69 49 211

Non-operating Gains / Losses

Pre-tax Profi t

Sales

Operating Profi t

Net income

Income Statement

(Wbn)