Scope & Milestone - Category/Supplier/Schedule - CONFIDENTIAL Scope & Milestone - Category/Supplier/Schedule - 2009.09

Operating Management Plan 1 Target Scoping 2 Operating Management Plan 3 Implementation Schedule 4 R&R (Operating Team & CPO)

1. Target Scoping 1) Survey Result In order to define the scope of application for procurement policy, project team conducted survey and interview with operating team Survey Summary Survey Result Objective In order to Understand & Analyze Procurement Contract, Operation and Approval Parties for each Service Define Target Scope of Applying Procurement Policy Survey Result Conduct Survey Final Consensus Service Long term Lease/ Dry Dock Repair/ Feeder/ Trucking/Bulk Agent/ Terminal/Depot & CY/ M&R/Fuel & Lube/ Barge/Bulk Loading/ CNTR Agent/New Van/ Master Lease/ Ship Maintenance & Engineering/ Spare & Store Parts/ Legal Affairs & Insurance/ General Administration Schedule Service Supplier Survey ▷ Survey Distribution & Gathering : - 1st) ’09/07/03 ~ 07/08 - 2nd) ’09/07/09 ~ 07/10 Interview & Consensus Meeting - ’09/07/13 ~ ’09/07/15 Survey Analysis - ’09/07/16 Workshop - ’09/07/17 Self Managed Terminal In progress Survey Remarks Survey : 12 Operating Teams * Incl. RHQ and Subsidiaries (If needed) Operating Direction and Scope will be reviewed during the project term

1. Target Scoping 2) Total According to scoping result, AHQ has the largest portion of procurement spend and the most numbers of suppliers in target scope, which is 10.1% and 17.2% each (excl. HQ) HMM Procurement Policy Scope Spend (by Organization) Suppliers (by Organization) Amount :142 (4%) Supplier : 5,073 (85%) CHQ (85/2.3%) EHQ (109/2.9%) EHQ (50/5.8%) SHQ (51/5.9%) HK Sub. (63/1.7%) UAE Sub. (21/2.4%) SHQ (137/3.7%) German Sub. (42/1.1%) CHQ (55/6.4%) HK Sub. (20/2.3%) AHQ (373/ 10.1%) AHQ (148/17.2%) Amount : 3,700 (96%) Supplier : 859 (15%) HQ (2,730/73.8%) HQ (397/46.2%) Service : 18 Services Total Spend : 3,841,900,710 USD Supplier : 5,932 Suppliers Spend in Scope by Organization HQ (1) / RHQ (4) – 92.8% Subsidiary(18)/Others(13)–7.2% Suppliers in Scope by Organization HQ/RHQ : 701 (81.6%) Sub./Others : 158 (18.2%) * Unit : 1,000,000 USD **Term : ’08~ ’09(1st Half) *** Excluding Self Managed Terminal (Supplier)

1. Target Scoping 3) By Service (1/2) Service Spend # of Suppliers Amount in Scope # of Supplier in Scope Organization New Van 20 4 20 (100%) 4 (100%) Long Term Lease 16 14 16 (100%) 14 (100%) Dry Dock Repair 20 7 20 (100%) 7 (100%) Purchasing Team Fuel & Lube 2,445 28 2,445 (100%) 28 (100%) Spare & Store Parts 47 169 41 (87%) 44 (26%) Legal Affairs & Insurance 30 20 28 (95%) 6 (30%) Legal Affairs & Insurance Team General Administration 17 55 17 (100%) 55 (100%) General Administration Team Ship Maintenance & Engineering 7 206 6 (80%) 38 (18%) Ship Maintenance & Engineering Team Master Lease 15 22 15 (98%) 11 (50%) Equipment Team *Unit : 1,000,000 USD

1. Target Scoping 3) By Service (2/2) Service Spend # of Suppliers Amount in Scope # of Supplier in Scope Organization Trucking 230 1,595 183 (80%) 84 (5%) Depot / CY 61 691 49 (80%) 101 (15%) Equipment Team M&R 13 430 10 (80%) 34 (8%) Barge 29 162 23 (80%) 29 (18%) Terminal 641 112 614 (96%) 76 (68%) Marine Contract & Coordination Team C. Feeder 188 179 167 (89%) 40 (22%) Bulk Loading 22 556 21 (92%) 112 (20%) Bulk Business Planning & Development Team Bulk Agent 7 446 5 (67%) 134 (30%) Bulk Business Planning & Development Team Container Agent 32 1,237 21 (66%) 46 (4%) Liner Business Development Team *Unit : 1,000,000 USD

2. Operating Management Plan 1) Monitoring Applying procurement policy is to enhance procurement information visibility & ensure fairness of supplier selection Purpose Procurement Information Visibility Enhancement : Ensuring Integrated Visibility (Service Contract Status/Spend/Portion) Fairness of Supplier Selection Evaluation : Managing Supplier Evaluation, Selection & Contract Standard (incl. Competitive Bidding) Coverage All Org. Level (HQ, RHQ, Subsidiary, Branch, Oversea & Liaison Office) Operates & Manages Suppliers on defined Scope Monitoring Indicators I Spend Ratio (Supplier Evaluation) II Competitive Bidding III Supplier Evaluation Maintain Cost Competitiveness by Defined Procedures for Supplier Selection (incl. Competitive Bidding) Securing Procurement Visibility (Meet Target Scope : 80%) Periodical Supplier Capability & Performance Evaluation for ensuring Supplier Competitiveness “Evaluated Supplier' Spend compared to Total Spend” “# of Competitive Bidding Case Compared to Total # of Contract” “# of Evaluated Supplier Compared to # of Suppliers in Scope” Monthly Spend Data Set (Various by Service) Policy Monitoring Check List / Operating Template / Contract / Quotation / Related Approval Documents

2. Operating Management Plan 2) Indicators For Suppliers in scope, spend ratio & competitive bidding will be monitored monthly, supplier evaluation will be monitored yearly Scoping M+1 M+2 M+3 M+4 M+5 M+6 M+7 M+8 M+9 M+10 M+11 M+12 Spend Ratio (Supplier Evaluation) I “Monthly Based Monitoring” II Competitive Bidding Monitoring Monthly Spend of Evaluated Suppliers & Competitive Bidding Portion Feed Back Monitoring Monthly Supplier Evaluation & Competitive Bidding Result Indicate Scope Adjustment Guideline (If Needed) M+1 M+2 M+3 M+4 M+5 M+6 M+7 M+8 M+9 M+10 M+11 M+12 Supplier Evaluation III Supplier Evaluation Warning “Yearly Based Monitoring” Yearly Monitoring Result Managing Monthly Service/Regional Evaluation Result (Progress Ratio) Improve Supplier Evaluation Ratio operating 3 Months Advanced Notice Prior to End Period of Evaluation * Defined Supplier Scope will be effective by end of 2010 * The Subject of Supplier for 2011 will be Scoped in 4Q.2010

2. Operating Management Plan 3) Managing Structure Management hierarchy (Org. level) for policy monitoring is following. Policy Monitoring Management Structure CPO Result by Service Operating Team ‘A’ Operating Team ‘B’ Operating Team ‘C’ HQ Result by RHQ Result by RHQ Result by Sub. The Service Contract & Management By HQ Operating Team Result by RHQ Regional CPO AHQ EHQ SHQ CHQ Result by Sub. RHQ (Subsidiary /Branch/ Others) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary CPO Regional CPO Operating Team (HQ/RHQ/Sub./Branch) Select monitoring indicators / Managing / Reporting Responsibility for Managing Indicators Monitoring & Feed Back Managing & Reporting Monitoring Indicators Responsibility for Managing Indicators (Regional) Managing Monitoring Indicators Gathering Monitoring Result Sharing Monitoring Result (Internally)

2. Operating Management Plan 4) Executing Regarding procurement policy monitoring, internal & external work for operating team is following Procurement Policy Monitoring Supplier ‘A’ President/SVP A Check List Template Contract Quotation Approval B Supplier ‘B’ EXTERNAL Monitoring Mgmt. INTERNAL Monitoring Mgmt. Team Lead Pertinent Operating Team Supplier ‘C’ Part Lead External Monitoring Management Internal Monitoring Management A B Check List* Reasons for Approval Potential Supplier Evaluation Quotation I Competitive Bidding Approval Documents Operating Template* Contract Exceptional Disqualification Case Exceptional Bid Case Check List* II Supplier Evaluation Operating Template* Extension of Valid Period of Contract and Renewal *Document per Supplier

3. Implementation Schedule 1) Milestone Implementation & rollout will be taken for 12 Weeks. The target starting point for HQ will be 3rd week of September and global will be 3rd week of October July & August September October November 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28 10/5 10/12 10/19 10/26 11/2 11/9 11/16 11/23 11/30 Main Schedule Design Implementation Stabilization Go Live HQ CPO 1 Detailed Plan W/S W/S Training Migration Monitoring Event Management Issue Management (Issue Watch List / Log) Operating Team 2 Template Model Process Workflow R&R Translation Global Go Live CPO 1 Remote Support Migration Monitoring Event Management Issue Management (Issue Watch List / Log) W/S (1st) Training(1st) Operating Team 2 W/S(2nd) Training (2nd) * CPO → RHQ * RHQ → 법인/지사

3. Implementation Schedule 2) Design During first 5 weeks, detailed operational rule, implementation plan, and schedule will be defined & set up Main Schedule July August 27 28 29 30 31 3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 Detailed Plan W/S Template Model Process Workflow R&R Translation Task Detailed Implementing Plan W/S Preparation Template Guide Document Operating Template (Operating Team) Revise Template Finalize Template Analyze As-Is Operation (Evaluation Term/ Suppliers) Interview & Meeting Design Operating Model/ Process/Workflow Monitoring Operating Area, Rules and Detailed Implementation Schedule

3. Implementation Schedule Implementation will be conducted with dual implementation plan for HQ and Global. Only one rollout Phase for HQ, 2 separate rollout phases for RHQ and subsidiaries. Go Live Go Live Main Schedule September October 31 1 2 3 4 7 8 9 10 11 13 14 15 16 17 18 21 22 23 24 25 28 29 30 5 6 12 3W 4W November 1W 2W 5W W/S (1st) Training(1st) W/S Training Migration* Monitoring Event Management Issue Management (Issue Watch List / Log) Remote Support Migration* Monitoring Event Management Issue Management (Issue Watch List / Log) W/S(2nd) Training (2nd) Task W/S Training Migration Go-Live & Change Management 1 W/S & Training (CPO ↔ RHQ) W/S & Training Remote Support (CPO) AHQ 2 W/S & Training (RHQ ↔ Sub./Branch) Migration Go-Live & Change Management EHQ SHQ Subsidiary CHQ Branch Rollout I. : CPO → RHQ Rollout II. : RHQ → Subsidiaries/Branches

4. R&R (Operating Team & CPO) Subject Plan Task Details Responsibility OP. Team CPO Preparation Implementation Schedule Define Implementation & Rollout Milestone & Work Plan Procurement Policy Rollout Workshop Conduct Consensus Meeting with Operating Team Request Cooperation Case Operating Template Document Operating Template Guideline Document Operating Template Revise & Finalize Operating Template Suppliers in Scope (Org.)* Finalize Scope (Supplier List) Evaluation Period* Survey & Settle Evaluation Period Operating Model/Process/R&R Define Monitoring Operating Model, Process, R&R Monitoring Execution W/S & Training Train Operating Team (HQ & RHQ) Train Operating Team (Subsidiary/Branch) Migration Document & Inform Previous Evaluation Result Procurement Policy Monitoring Execution Change Management Issue Report Report Monitoring Issue Trouble Shooting Receipt & Resolve Issue Report * Template & Guide will be Provided