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3. 2 CONTENTS 4. VISION 1. About Company 2. Management Strategy for Year 2002 3. Mid-and Long-Term Management Strategy

4. 3 1.History of Growth 2.Market Position 3.Restructuring 4.Operational Performance 5.Financial Condition About Company

5. 4 1954 ~ 1970 ’ s 1980 ’ s 1990 ’ s 2000 ’ s History of Growth Sales in FY2001 : W1,736bn Textile 1954. Founded 1995. Established Local Textile Company in Tianjin, China Fashion 1983. Started Fashion Biz 1999. Took over Apparel Biz from Samsung Corporation Chemicals 1989.Completed ABS and PS Plant 1997.Launched the Artificial Marble Biz Electronic Chemical Materials 1996.Put EMC on the Market 1999. Developed 9 New Products 2002.Completed Gumi IT Production Plant About Company Successful Transformation W209bn(12%) W747bn (43%) W740bn (43%) W40bn (2%)

6. 5 Market Position (2001) TextileFashionChemicals Electronic Chemical Materials  World’s largest textile maker (18mn m/year) Korea’s best total fashion company Second largest maker in Korea Special product-oriented business structure Korea’s largest business structure in electronic chemical materials Status About Company High Level M/S 36% for Monitor (#1) 46% in FR ABS for Monitor (#1) 12% for Color TV (#2) 12% for Refrigerator (#2) 10% in Artificial Marble (#3) Global M/S 12% in business suits textile in USA 13% in business suit textile in Japan (#1) 40% in high quality business suits (#1) ‘Bean Pole’ : best-known traditional casual brand in Korea 23% in all ABS products (#2) 50% in Cellular Phone Resin (#1) 36% in Artificial Marble(#1) 53% in business suits textile (#1) 38% in EMC (#1) 40% in EMS for cellular phone (#1) Domestic M/S

7. 619972001 Restructuring Employee Reduction Sound Financial Condition through Sale of Assets Business Structure Reform Take over of Fashion Biz from Samsung Corp. - 41% 3,727 2,197 Employees - 186%p 108 % D/E Ratio 294 % Build-up of stable basis for making profits through synergy effect Profit-making in all biz and brands Closure of Non-Profitable Biz Separation of Part of Production Lines and Sales units Risk management through minimization of fixed costs About Company Successful Restructuring

8. 7 Operational PerformanceSales ( \bn ) Record Best Performance for Two Consecutive Years계 9,721 9,72113,218 16,607 16,60717,360 RP (margin) ( \bn ) ECM Chemicals Fashion Textile ’ 98 ’ 99 ’ 00 ’ 01 About Company ’ 98 ’ 99 ’ 00 ’ 01 (5%) (4%) (5%) (-5%) Increasing Sales of High Value Added products Successful Restructuring

9. 8 Increased Profitability Sound Financial Condition Financial Condition Borrowings ( \bn ) D/E Ratio (%) ’ 98 ’ 99 ’ 00 ’ 01 ’ 98 ’ 99 ’ 00 ’ 01 About Company

10. 9 1.Sales 2.Operating Profit 3.Recurring Profit 4.Management Strategy by Divisions Management Strategy For Year 2002

11. 10 Sales ( \bn ) Management Strategy for Year 2002 ’ 99 ’ 00 ’ 01 ’ 02(E) ECM 90 (5%) Textile 200 (11%) Fashion 760 (41%) Chemicals 800 (43%) Sales by Division (Ratio) Sales Growth : 7%

12. 11 Operating Profit ( \bn ) ’ 99 ’ 00 ’ 01 ’ 02(E) ECM 19 (21%) Textile 42 (21%) Fashion 87 (11%) Chemicals 72 (9%) OP by Division (Margin) Management Strategy for Year 2002 Operating Profit Growth : 25%

13. 12 Recurring Profit ( \bn ) ’ 99 ’ 00 ’ 01 ’ 02(E) ECM 15 (17%) Textile 17 (9%) Fashion 42 (6%) Chemicals 46 (6%) RP by Division (Margin) Management Strategy for Year 2002 Recurring Profit Growth : 46%

14. 13 E C M Chemicals Management Strategy by Divisions Stabilization through Sales Growth (Sales Plan: \90bn ) Increase in Sales of Present products (EMC, Electrolyte, EMS, Paste, OPC, Ink) Early Sale of New Products (CMP Slurry, CR) Increase in Exports by Reinforcing Overseas Marketing Activities Strategic Alliance with Leading Foreign Makers Strengthening of Profit-oriented Biz Structure (Sales Plan: \800bn) Increase in Sales of High Value Added Products (FR, Extrusion, Transparent ABS, etc.) Strengthening of Cost Competitiveness through Reinforcement of Production power by improving Work Process Increase in Exports to China Increase in Exports to USA by Reinforcing Marketing Activities in USA Maintaining No. 1 M/S in Korea Strengthening of Sales Power through Extension of Related Biz Management Strategy for Year 2002

15. 14 Fashion Textile Profit-oriented Business Structure (Sales Plan: \760bn ) Brand Value-First Management Weight Increase in Casual Wear Business Regularized Overseas Market Entry of Independent Brands - Establishment of Sales Company in China Expansion of Non-discounted Brands Entry into New Markets through Line Extension of Core Brands Build-up of Overseas Sourcing Base of Design and Production Business Structure with Stable Profitability (Sales Plan: \200bn) Expansion of High Quality Products Diversification of Markets as Expanding shares in Japanese Market Specialization of Production by Gradually Moving Local Production Lines to China (Gumi Plant: High Quality Products, Tianjin Plant: Medium Quality Products)` Management Strategy for Year 2002 Management Strategy by Divisions

16. 15 Mid-and Long-term Management Strategy 1.Electronic Chemical Materials 2.Chemicals 3.Fashion 4.Textile

17. 16 Leading Business in 21C Mid-and Long-term Management Strategy EMC, Liquid Encapsulant, CMP Slurry, PR, Low-K CR, PI, ACF Polarizer Films, Organic EL, FCCL Electrolyte, Active Material EMS, Paste, OPC, INK Semiconductor Materials Display Materials Secondary Li-ion Battery Materials Functional Materials \ 150bn \ 80bn \ 50bn \ 140bn 2005 Sales Plan Cultivation of High Growth & High Profit Biz Sales in FY2005 : W420bn E C M

18. 17 Active material Electrolyte Paste E M S CMP Slurry C R PDP Paste O P C INK Alignment Layer PI Polymer Electrolyte Wave Guide Digital Printing INK Low-k FED Paste Organic E L LCD PR Films P R Liquid Encapsulant EMC Business Start Future Plan Mass Production Color Printing Display Devices Semiconductors Secondary Li-ion Batteries Functional & Optical Devices 1996~ 2000~ 2003~ Mid-and Long-term Management Strategy E C M ECM Business Line-up

19. 18 Elecrtronic Products US$ 500bn Market Size Related to Cheil Related to CheilIndustries US$ 10bn Mid-and Long-term Management Strategy E C M Global Market Semiconductor US$ 22bn Display US$ 15bn US$ 12bn PCB Materials US$ 13bn Total US$ 73bn Others US$ 11bn Electric Components Materials Sales Realization of 8 items in 2002

20. 19 Japanese Majors : Shin-etsu, Sumitomo, Mitsubishi, Toray, TOK, Hitachi, Chisso, JSR Global Market Others Japanese Maker Japanese Makers Hold 80% M/S Korean Market ( \bn, as of 2001) (75%) (60%) (70%) (57%) ※ Figures indicate the markets into which Cheil Industries has entered. Mid-and Long-term Management Strategy E C M Present ECM Market

21. 20 Compared to Growth of IT Business, Basis of Local ECM Business is Weak  Japanese Makers Control Global Market Increasing of Needs to Develop ECM Business by Samsung Group Level  Basic Technology to Develop IT and Electronic Business is Required Today Concentrating All the Company’s Investment Abilities on the Business  Investment of 140bn Won for Coming 4 Years Reinforcing of R&D  Concentrating Manpower & Investment in Development of Core Technology, Obtaining Advanced Technology (Scouting Foreign Experts)  Co-R&D with Samsung Affiliates Strategy Growing into Korea’s No. 1 Integrated ECM Maker  sales: 420bn Won, Recurring Profit : 100bn Won in 2005 Holding More Than 10% Global M/S in Major Products  CMP Slurry, Electrolyte, EMS, PI, etc. Tomorrow Mid-and Long-term Management Strategy E C M Making it Korea’s largest ECM Business

22. 21 Mid- and Long-term Investment plan Patents USA 9, Japan 9, Taipai 22085Registration 85 65 OverseasCountry basisDomestic(case) USA 19, Japan 18, Taipai 9, China 7, the others 12 320 Application Total405 R & D Personnel 107 R & DRatioTotal(person) No. of Employees23047% 59.7 40.0 19.7 2004 105.7 76.0 29.7 200520032002(\bn) 14.310.4R&D Total Capex. 21.2 10.8 42.8 28.5 ( \bn ) Mid-and Long-term Management Strategy E C M Aiming for World’s Best Technology

23. 22 No. 1 Global M/S in High Value Added ABS, PS High Value Added Business Structure Chemicals Extension of Artificial Marble Business No. 1 Domestic M/S Global M/S of 30% Concentration on Specialty Products Expansion of Transparent ABS Increase in Sales in Sheet ABS, FR PS Development of Next Generation Technologies & Products Reinforcing of R&D Investment Sale of Revolutionary New Products Dramatic Increase in Productivity No. 1 Global M/S in 3 Products (FR ABS, FE PS, Extrusion ABS) Improved Competitiveness Maximization of Profit Mid-and Long-term Management Strategy

24. 23 Brand Value-First Management  Expansion of Non- Discounted Brand  Expansion of Core Brand Business Fashion Build-up of Global Business System Overseas Market Entry of Independent Brands  Rise in Cost Competitiveness through Global Out-sourcing Active Coping with Fashion Trend Build-up of Optimal Business Structure by Weight Increase in Casual Wear Business Mid-and Long-term Management Strategy Growing into a Top Class Total Fashion Maker

25. 24 Textile World Best Woolen texitile Producer (Quality,Profitability & Capability) Specialization of Production by Plant Gumi Plant : high quality products for domestic demand Tianjin Plant: medium quality products for export World’s Largest Production (18mn m/year) Achieving World’s No. 1 Quality Raising quality to the level of Loropiana & E.Zegna Technology Manpower Complimentary System Special hiring of world’s top quality technical experts Increasing profitability 10% in RP to sales ratio Mid-and Long-term Management Strategy Reinforcing its Position as Global Woolen Textile Maker

26. 25 VISION 1.Core Strategy 2.Cheil Industries in the Future 3.Goal of Income 4.Financial Structure

27. 26 Textile  World’s No. 1 in Production  World’s No. 1 Quality & Productivity  RP Margin : 10% Fashion  Korea’s Largest Fashion Maker  40% M/S in High Quality Business Suits  Making its Brands World-level  Making ‘Bean Pole’ Total Family Brand Chemicals  World’s Top FR product Maker  Korea’s Second Largest ABS ㆍ PS Maker  Growing into World’s Top #5 ABS Maker with Production Capacity of 0.5mn ton/year  30% Global M/S in Artificial Marble (#2) ECM  Only One Integrated ECM Maker in Korea  Achieving 10% Global M/S in CMP, Electrolyte, EMS, PI Present Status Future Plan (Year 2005) VISION Core Strategy Developing World’s Top Class Products by Businesses

28. 27 Cheil Industries in the Future ( \bn ) Sales D/E Ratio Recurring Profit (Margin) Operating Profit (Margin) VISION Successful Change of the Company 1,736 177 (10%) 82 (5%) 108% FY2001 Chemical Materials & Total Fashion 2,100 286 (14%) 180 (9%) 87% Hi-Tech Chemicals & Total Fashion FY2003 2,620 418 (16%) 300 (12%) 65% Global Top Class ECM & Total Fashion Maker FY2005

29. 28 209200 747 840 740 200 1,000 880 40 180 420 200120032005 Profit (\bn) Goal of Income Operating Profit Margin 16% Recurring Profit Margin 12% Maximization of Profitability with High Value Added Business Structure Total 1,7362,1002,620 ECM Chemicals Fashion Textile Sales (\bn) (10%) (14%) (16%) (5%) (9%) (12%) VISION

30. 29 Financial Structure VISION Strong Financial Condition

31. 30 Cheil Industries serves for Customers all over the World IR Team, Cheil Industries TEL : 82-2-527-2042~3 Web Site : www.cii.samsung.com/ir/eng E-mail : ircii@samsung.com