1. 2009. 6 2009 Conference in ASIA www.kangwonland.com

2. Contents Business Performance 23 1 Business Overview Summarized Financial Statements

3. Only casino where Korean nationals can enter Only casino with integrated resort destination Only casino with ski resort in Asia KWL’s Business Overview - Only one 2000~ 2005~ 2006~ 2011~ Casino & Hotel golf Ski & Condo Hotel & convention

4. SKI Golf Hotel & Condo Hotel & Condo Casino Condo Water Park & Spa Hotel & Convention 4 Season Family Resort Expansion Plan KWL’s Business Overview

5. Main Hotel 477 Condominium 403 High1 Hotel 197 Table VIP 20 MASS 112 Slot Machine Video Type 630 Reel Type 330 Public 18 Holes, Par 72 500 Hectares, 18 Slopes 3 Gondolas 6 High-Speed Lifts 1 T-bar Lift KWL’s Business Overview Facilities

6. Shareholder Structure 100% Private Sector 49% Public Sector 51% Mine Reclamation Co. (MoKE) 36% 4 Local Governments 8.4% Gangwondo Development Co. 6.6% KWL’s Business Overview Public Sector Private Sector Foreign Investors 22.9% Domestic Retail 8.9% Domestic Institutions 13.6% Treasury Stock 3.6% [as of 31st December 2008]

7. Mass Table Slot Machine VIP Table OP margin(%) Non-Gaming KWL’s Business Overview Sales Structure 2006 2007 2008

8. KWL’s Business Overview Cost Structure Tourism Tax 9.23 Abanded Mining Tax 8.64 Income Tax 11.91 Labour 12.49 Net Earnings 26.91 (%) Net Non- operating Exp 2.14 Taxes Tourism Tax - 10% of Casino Sales Abanded Mining Tax - 20% of EBIT Depreciation 3.19 Comp&Loss 11.70 Other Cost 13.78

9. 2 13 Business Overview Business Performance Summarized Financial Statements

10. OP Margin OP Margin ’03 ’04 ’05 ’06 ’07 ’08 48.9 49.8 49.2 37.5 39.2 41.0 KWL’s Business Performance Revenue ’03 ’04 ’05 ’06 ’07 ’08 677 764 847 870 1,066 1,149 OP Profit OP Profit ’03 ’04 ’05 ’06 ’07 ’08 331 381 416 326 418 471 03’ 04’ 05’ 06’ 07’ 08’ 1,548 1,785 1,882 1,794 2,915 2,452 (Bn KRW) (Thousand Persons) (%) Casino Visitors Casino Visitors

11. (Billion KRW, %) Sales CoGS SG&A Operating Profit 295.6 128.9 48.1 118.6 4.7% - 6.3% 8.2% 15.3% FY08 4Q 267.8 117.7 45.9 104.2 15.6% 2.7% 13.3% 31.2% FY09 1Q Condensed Results KWL’s Business Performance 1Q Sales : Up by 4.7% YoY as growing for casino business by increasing number of visitors 1Q Operating Profit : increased 15.3% YoY thanks to top line growth and saving casino cost 1Q Sales : Up by 4.7% YoY as growing for casino business by increasing number of visitors 1Q Operating Profit : increased 15.3% YoY thanks to top line growth and saving casino cost FY09 1QFY08 1QYoY (%) QoQ (%) 309.6 120.8 52.1 136.7 (A) (B) (C) (A – B – C)

12. (Billion KRW, %) KWL’s Business Performance FY09 1Q Cost Analysis Net Profit : Increased 5.6% YoY thanks to saving CoGS - 6.3% 120.8 95.7 25.1 - 0.4% - 7.8% 8.2% 52.1 139.2% 13.2 Decreased Casino Loss 97.2%(YoY), as amounted 14.1 billion won 19.1% 40.4 Occurred 5.6 billion won loss for stocks and bonds Decreased depreciation and F/B cost 128.9 103.7 25.2 48.1 5.5 33.9 93.9 Casino cost Non-Casino cost CoGS SG&A Non operating Cost Income Tax Net Profit 88.9 5.6% Increased Mining Tax as growing pre tax profit ’09.1Q (YoY) Remarks ’08.1Q

13. TotalTotal OthersOthers Hotel Expansion Condo Expansion Completion For FY2009 Total Capex ItemItem 259 128 346 84 2,586 156 72 52 379 NOV. 2010 Casino Expansion (Billion KRW) E-cityE-city KWL’s Business Performance CAPEX Reserve Capex 229 127 331 83 1,260

14. Dividend Trend KWL’s Business Performance Dividend Policy Payout Ratio(%) Dividend/Share (KRW) Gradually increased Payout Ratio

15. Summarized Financial Statements Summarized Financial Statements 3 12 Business Performance Business Overview

16. (Billion KRW) Balance Sheet Summarized Financial Statements FY08FY07FY06 Current Asset616583665 Fixed Asset1,4601,4391,047 Total Asset2,0762,0221,712 Current Liabilities403416296 Long-term Liabilities423733 Total Liabilities445453329 Total Equity1,6311,5691,383

17. Cash Flow Statement FY08FY07FY06 Operating Cash Flow380433335 Investment Cash Flow(168)(341)(204) Financing Cash Flow(189)(110)(125) Changed in Cash23(17)5 Key Financial Ratio FY08FY07FY06 Current Ratio [%]152.9140.2225.1 Debt Ratio [%]27.328.923.8 Return on Equity [%]19.319.818.8 Earnings per Share [KRW]1,4461,3691,159 (Billion KRW) Summarized Financial Statements

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