Operational results - IT REPORT WORLD

Investor Relations
2 nd factory
Mar. 31, 2012
www.tkbend.co.kr
Connecting the world
Connecting the future.
The World’s Best Fitting Maker
Head office & 1 st factory

Contents
1 TK Corp
• About TK Corp
• Product introduction
• Shorten the production process to automate
• Modernized facility / Highest Quality
• Business breakdown / Exports by region
• Sales by steel type / Product price
• Expanding Global Marketing
2
Financial Highlights
• Operational results
• Quarterly Operational results
• Monthly orders / shipments
• A high growth company
• Business performance
3
Appendix
• Business goals & strategy
• Shareholding structure / financial indicators
2

About TK Corp.
Company
CEO
Established 1965.5
Number Of
Employees
TK Corp (www.tkbend.co.kr)
Mr. Sung-Duk Yoon
397
- Noksan Plant (Head office & 1st factory) : 56,817m2
Plants
- Hwajeon Plant (2 nd factory) : 89,164m2
- Seoul Office (Sales Office)
Subsidiary Houston, United States : Established in August 2009
3

Product introduction
Product Photos Products for Product uses
ELBOW
L-shaped pipe
connectors
TEE
T-shaped pipe
connectors
REDUCER
The big pipe and
a small pipe
connectors
CAP, Etc.,
At the end of the
pipe sealant, etc,.
Seamless
pipe
The pipe used to
transport fluid or gas
(Power generation,
Petrochemical, gas,
sector)
4

Shorten the production process to automate
Elbow 48” more
Elbow 48” below
1. receiving
inspection
2. cutting 3. forming 4. end
5.welding
cutting
1. receiving
inspection
2. cutting
3. forming
4. sizing
6. heat
treatment
7. sizing 8. shot blasting 9. beveling 10. coating
& cleaning
5. heat
treatment
6. shot blasting
& cleaning
7. beveling
8. coating
Tee 48” more
Tee 48” below
1. receiving
inspection
2. cutting 3. forming 4. end
5.welding
cutting
1. receiving
inspection
2. cutting
3. forming
4. heat
treatment
6. heat
treatment
7. sizing 8. shot blasting 9. beveling 10. coating
& cleaning
5. shot blasting
& cleaning
6. beveling
7. coating
5

Modernized facility / Highest Quality
Tee Bulging Press 20,000 Ton
CNC Boring Machine
Sml’s Heat Treatment Furnace
Hot Forming Elbow Machine
5,000 Ton Hydraulic Press
Solution Heat Treatment Furnace
Sml’s Pipe Extrusion Machine
ISO9001 (Fitting) OHSAS 18001 ASME (Nuclear power) JIS (Japan) PED (Europe) GOST (Rusia) China Nuclear 6

Business breakdown / Exports by region
Business breakdown
Shipbuilding,
Offshore
Industrial
segments
Petrochem,
Petroleum, Gas
Power plant,
Desalination
Shipbuilding,
Offshore
Petroleum, Petrochemical
67%
Others 4%
Shipbuilding
15%
Power Plant
14%
Nuclear,Thermal-Plant
Desalination Plant
’11
Refinary Plant, Oil-Gas Plant,
GTL Plant, LNG Plant,
Petrochemical Plant
‘08 ’09 ‘10 ’11 ’12(E)
63% 63% 68% 67% 66%
16% 15% 14% 14% 15%
17% 17% 13% 15% 15%
Exports by region
1.89%
3.50%
2.50% 2.50% 3.60% 3.79% 2.83%
3.53%
1.77%
2.79%
2.90% 3.60%
3.91%
4.30%
9.10%
6.29%
12.10%
14.52% 16.41%
12.40%
21.20%
61.20%
Trend change in trading companies
83
27
33.20%
43.90%
116
45
36.95%
36.96%
138
52
23.53%
53.82%
168
48
24.73%
50.28%
'07 '08 '09 '10 '11
Exporter Countries
177
47
Africa
Oceania
Europe
America
Asia
Middle
East
Overseas
companies
Others 4% 5% 5% 4% 4%
Total 100% 100% 100% 100% 100%
70
88 78
34 38
'07 '08 '09 '10 '11
Domestic
companies
7

Sales by steel type / Product price
Product price
Sales by steel type
Products
(Unit : W)
2009 2010 2011
Elbow 159,192 126,891 121,186
Tee 231,501 158,617 145,183
Reducer 147,836 106,583 107,768
Etc 74,995 54,622 47,591
Average 157,574 121,436 108,310
Material
(Unit : %)
2009 2010 2011
Carbon 53.66% 59.15% 64.15%
Stainless 32.70% 31.64% 24.65%
Alloy, etc 13.64% 9.21% 11.20%
Total 100% 100% 100%
(Unit : W ‘000)
250
200
150
100
50
159
127
121
232
159
145
148
107
158
121
108 108
100%
80%
60%
40%
20%
13.6% 9.2% 11.2%
31.6% 24.7%
32.7%
53.7%
59.2% 64.2%
0
Elbow Tee Reducer Average
0%
2009 2010 2011
2009 2010 2011
Carbon Stainless Alloy etc
8

Expanding Global Marketing
2010 TOP INT’L CONTRACTOR ENR 225
Industrial Facilities
Petrochemicals
No Company nation No Company nation
1 FLUOR US 1 SAIPEM IT
2 BECHTEL US 2 TECHNIP FR
3
DANIELI &
C SPA
IT 3 BECHTEL US
4 BILFINGER GER 4 PETROFAC UK
5 TECHINT IT 5 FLUOR US
6 GRUPO ACS SP 6
CHINA
PETROLEUM
CH
7 VINCI FR 7 JGC JP
8
CHINA
METALLURGICAL CH 8 SAMSUNG KR
9 STRABAG SE AU 9 FOSTER US
10 TAIKISHA JP 10
TECHNICAS
REUNIDAS
SP
Major clients and key competitors
▶ The world's major customers (EPC) regional diversity
Global Leader !
• Strengthen market dominance by capacity increase
• Secure additional profit with early delivery
• Secure major overseas clients
• High-end product portfolio
- Continuous up-turn of downstream Industries
9

Operational results
Item
(Unit : Wbn)
2005 2006 2007 2008 2009 2010 2011
Sales 96.4 155.2 250.4 343.2 262.2 215.9 258.9
OP 8.8 18.8 52.4 98.6 41.2 0.3 36.9
OP(%) 9.1% 12.1% 20.9% 28.7% 15.7% 0.1% 14.3%
Pre-tax profit 17.9 24.9 57.3 113.2 58.8 2.5 37.7
Net profit 13.7 19.1 44.9 82.2 44.4 1.5 27.6
EPS (W) 73.7 966 2,271 3,967 1,958 68 1,182
EBITDA 21.0 29.5 60.0 103.6 45.6 5.2 40.7
400
350
300
250
200
150
100
50
0
(Unit : Wbn)
28.7%
400
250
343
20.9%
350
300
262
259
15.7% 216
250
14.3% 200
155
9.1% 12.1%
150
96
99
100
9 19
52
42
37.7
50
0.3
0.1%
0
'05 '06 '07 '08 '09 '10 '11
Sales Operating profit OP Margin
(Unit : Wbn)
67.4%
75.4%
112
72.5%
62.7%
63.5% 63.2%
64
92
98 59
231
195
57
49.7%
164 157
158
48
99
48
'05 '06 '07 '08 '09 '10 '11
Export Domestic Export portion
10

Quarterly Operational results
Item
(Unit : Wbn)
2009 2010 2011
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Sales 93.9 71.4 50.5 46.5 46.4 47.0 54.1 68.3 57.5 57.4 61.2 82.8
Gross Profit 31.7 20.0 10.5 1.1 -0.1 3.1 6.1 7.0 6.2 8.3 18.6 24.3
Gross profit (%) 33.7% 28.0% 20.8% 2.4% -0.3% 6.6% 11.3% 10.3% 10.7% 14.4% 30.5% 29.4%
OP 24.9 15.6 5.4 -4.7 -3.8 -0.6 1.8 3.0 2.1 3.0 13.8 18.0
OP(%) 26.5% 21.9% 10.8% -10.1% -8.3% -1.4% 3.3% 4.3% 3.7% 5.3% 22.5% 21.7%
Backlog 187
100
90
80
70
60
50
40
30
20
10
0
Backlog 140
26.5% Backlog 60
22.5% 21.7%
94
21.9%
83
71
68
10.8%
61
54
58 57
5.3%
51
47
4.3% 3.7%
46 47
3.3%
-1.4%
-8.3%
-10.1%
1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4Q '10 1Q '11 2Q '11 3Q '11 4Q '11
Sales
OP
11

Monthly new orders/sales
45
40
35
30
25
20
15
10
Monthly new sales
’10 average monthly revenue : 18.0
’11 average monthly revenue : 21.6
24
19 19
15
13 13 14 13
14
10
9
31
12
19
38
10
14
34
11
16
31
14
20
28
20
23
40
400
350
300
250
200
150
100
Annual sales
(Unit : Wbn)
343
262 259
216
5
50
0
45
40
35
30
25
20
15
10
'09/10 '09/12 '10/02 '10/04 '10/06 '10/08 '10/10 '10/12 '11/02 '11/04 '11/06 '11/08 '11/10 '11/12
350
Monthly new orders
’10 average monthly orders : 22.9
’11 average monthly orders : 26.6
29
25
21
22 24
19
23 23
17
13
38
36
35 34
32
29
27
25
26 26 27 26
23
22 23 24
20
0
300
250
200
150
100
50
2008 2009 2010 2011
Annual orders
(Unit : Wbn)
319
298
275
231
5
0
0
'10/01 '10/03 '10/05 '10/07 '10/09 '10/11 '11/01 '11/03 '11/05 '11/07 '11/09 '11/11 '12/01 '12/03
2008 2009 2010 2011
12

A high growth company 2001-2011
Sales OP Capex Depreciation
343
33.5
(Unit : Wbn)
250
262
22.3
259
216
155
6.4
38
2.8
1
53
1.1
2.1
17
65
4.1
2.5
6.7
79
6.3
3.3
11.9
96
8.5
3.6
8.8
8
5.1
18.8
7.4
52.4
5.7
98.6
4.9
41.2
4.4
7.8
4.9
0.3
5
36.9
4.2
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
Total capex
ITEM
(Unit : Wbn)
‘08 ’09 ’10 ’11 ’12(E)
Land 28.7 12.5 - 0.2 -
Building 0.1 7.1 2.3 0.6 3.0
Equipment 4.7 2.7 5.5 4.2 7.0
TOTAL 33.5 22.3 7.8 5.0 10.0
Total depreciation
ITEM
(Unit : Wbn)
‘08 ’09 ’10 ’11 ’12(E)
Building 0.4 0.5 0.8 0.7 1.0
Equipment 4.5 3.9 4.1 3.5 4.0
TOTAL 4.9 4.4 4.9 4.2 5.0
13

Business performance
(Unit : Wbn)
Balance Sheet 2007 2008 2009 2010 2011
343.2
(Unit : Wbn)
86.5
• Assets 228.7 330.7 342.8 376.0 422.5
Current assets
Inventories
Trade Accounts
Non current
assets
• Liability
Debt
• Stockholders
Equity
Statement of
Income
2007 2008 2009 2010 2011
• Sales 287.0 343.2 262.2 215.9 258.9
Gross Profit
(%)
SG&A
(%)
• OP
OP margin (%)
• Net Profit
185.6
89.4
80.8
43.1
65.2
0
75.3
(26.2%)
21.0
(7.3%)
54.2
(18.9%)
44.9
(15.6%)
243.4
111.0
94.5
87.3
87.0
0
123.5
(36.0%)
24.9
(7.3%)
98.6
(28.7%)
82.2
(24.0%)
258.4
86.4
58.4
84.3
53.9
0
63.3
(24.1%)
22.0
(8.4%)
41.2
(15.7%)
44.4
(17.0%)
247.9
108.1
94.5
128.1
51.0
7.6
16.1
(7.5%)
15.8
(7.3%)
0.3
(0.1%)
1.5
(0.7%))
292.2
160.1
105.3
130.3
70.1
0
163.4 243.7 288.9 325.0 352.3
(Unit : Wbn)
57.4
(22.2%)
20.9
(8.1%)
36.9
(14.3%)
27.6
(10.7%)
• EPS (W) 2,271 3,967 1,958 68 1,182
68.4
250.4
262.2
47.7
37.3
40.4
155.2
30.1
26.9
27.1
19.1
11.2 9.8 15.6 11.6
65.3
258.9
215.9
28.1
25
45.5
17.9
'06 '07 '08 '09 '10 '11
Sales Products Raw Material WIP
• 2006 ~ 2007 TKSCT Included
- ’08.1.2 TKSCT Split 343.2 28.7%
287
262.2
18.9%
191.5
13.7%
98.6
54.2
26.3
258.9
215.9
15.7%
14.3%
41.2
36.9
0.3
0.1%
'06 '07 '08 '09 '10 '11
Sales Operating profit OP Margin
14

Business goals & strategy
600
500
Sales
(Unit : Wbn, Ton ’thd)
Capa
World-class
Product
Of Korea
The global
Financial
crisis
Hwajeon Plant
Facility
Expanson
160
Capa
180
165
450
190
200
550
200
150
400
300
200
100
Capital
Increase
22.7 Wbn
32
30
Noksan Plant
Facility
Expanson
38
35
53
40
Iraq
War
65
45
79
50
Capital
Increase
16.0 Wbn
96
60
155
80
343 130
100 115
250
262
216
259
350
100
50
0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12(E) '13(E) '14(E)
0
Future Strategy
• Larger market share : the world's No. 1 market share of 12% → 20% or more (by 2015)
• New factory (Hwa-jeon Industrial Park) to maximize production capacity over the company
: By 2014 compared to 2007 production capacity of 2x (200,000 tons)
• Maintain the appropriate op margin through continuous investment and Improve productivity
: Despite the ongoing revenue rise, TK Corp. will continue to maintain appropriate operating profit (over 20%)
15

Shareholding structure / financial indicators
• Shareholding structure (As of Dec. 31, 2011)
► Shares outstanding: 23,575,628
► Stock face value: W500
► Major shareholders
- Daeshin Int’l: 24.23%
- SD Yoon: 8.62%
- Daeshin Inc.: 6.55%
Foreigners 23.6%
Domestic institutional & retail
29.9%
Major shareholders
46.5%
(Unit : W)
Financial
indicators
2007 2008 2009 2010 2011
EPS (W) 2,159 3,967 1,958 68 1,182
31.6%
22.0%
40.4%
29.4%
11,854
12,728
12,793
15,179
BPS (W) 7,913 11,854 12,728 12,793 15,179
ROE 31.63 % 40.38% 16.69% 0.50% 8.62%
ROA 21.95 % 29.39% 13.20% 0.50% 7.33%
PER 13.68 5.56 17.77 393.88 20.36
7,913
16.7%
13.2%
8.6%
3,967
0.5%
7.3%
2,159
1,958
68
0.5%
1,182
'07 '08 '09 '10 '11
EPS BPS ROE ROA
16