2012. 4. 27

1

This presentation contains forward-looking statements with respect

to financial conditions, results of operations and business of SK Innovation,

and plans and objectives of the management of SK Innovation.

Statements that are not historical facts, including statements about

SK Innovation’s beliefs and expectations, are forward-looking statements.

Such forward-looking statements involve known and unknown risks,

uncertainties and other factors which may cause the actual results or

performance of SK Innovation to be materially different from any future

results or performance expressed or implied by such forward-looking

statements.

Financial results for 1Q12 are subject to change according to the outside

independent auditors’ review.

2

1Q12 Financial Performance

1Q12 Divisional Analysis

Q&A

Appendix

3

4

(Unit: bn KRW) 1Q11 4Q11 1Q12 QoQ YoY

Sales 17,068.4 16,931.1 18,851.2 11% 10%

Operating Profit 1,192.0 336.7 925.7 175% -22%

EBITDA 1,324.1 472.4 1,045.7 125% -21%

Non-Operating

Profit 11.2 -6.6 -26.0 N/A N/A

Pre-Tax Income 1,203.2 330.1 899.7 173% -25%

5

(Unit: bn KRW) 1Q11 4Q11 1Q12 QoQ YoY

Net Interest

Expense -84.6 -56.9 -59.8 N/A N/A

Net F/X Gains 64.5 -7.5 -33.6 N/A N/A

Equity-Method

Earnings 29.8 75.6 68.4 -10% 130%

Others 1.5 -17.8 -1.0 N/A N/A

Net Non-

Operating Profit 11.2 -6.6 -26.0 N/A N/A

6

(Unit: bn KRW) End of 2011 End of 1Q12 YoY(amount)

Assets 35,026.8 36,146.3 1,119.5

- Cash & Cash Equivalents 4,567.1 4,289.1 -278.0

Liabilities 20,195.2 20,997.4 802.2

- Debt 8,853.3 8,839.5 -13.8

(Net Debt) (4,286.2) (4,550.4) (264.2)

Shareholders’ Equity 14,831.6 15,148.9 317.3

- Paid-in Capital 468.6 468.6 0

Debt/Equity 136% 139% 3%p

7

8

(Unit: bn KRW) SK

Innovation

SK

Energy

SK

Global Chemical

SK

Lubricants Total

Sales 292.6 14,379.7 3,441.5 737.4 18,851.2

Operating Profit 69.0 574.8 181.9 100.0 925.7

Non-Operating Profit 17.8 -49.8 -7.2 13.2 -26.0

Pre-tax Income 86.8 525.0 174.7 113.2 899.7

※ Excluding inter-company transactions

9

Gasoline margins improved from tightened global supply on Asian regular maintenance and low utilization/rationalization of European refineries

Despite regional capacity increase, Diesel/Kerosene margins maintained steady levels owing to power/industrial demand

Healthy refining margins sustained owing to steady global demand

1Q Crude Oil : Strong 1Q Refining Margin : Improved

Source : JBC, Company

Dubai Crude Oil Diesel/HSFO

Gasoline/HSFO

($/Bbl)

Continued strong oil prices from tight global crude oil stocks due to geopolitical risks in Iran and M.E. production troubles, including Syria, Yemen

2012 crude oil prices expected at $110~120 reflecting

steady actual demand in the Asian region

U$/B (average) 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 QoQ

Dubai 78.1 73.9 84.3 100.5 110.7 107.1 106.5 116.1 9.6

Gasoline/HSFO 16.9 14.6 20.1 22.2 22.1 21.3 12.3 21.4 9.1

Diesel/HSFO 18.9 18.4 22.5 28.5 29.8 24.2 22.4 16.8 -5.6

0

50

100

150

08-03 08-09 09-03 09-09 10-03 10-09 11-03 11-09 12-03

0

20

40

60

80

08-03 08-09 09-03 09-09 10-03 10-09 11-03 11-09 12-03

($/Bbl)

10

Operating profit increase from inventory gains and dissipation of one-off expenses

Higher Gasoline demand from U.S. driving season and steady regional petroleum product demand expected

Regular maintenance schedule

- HOU 3/19~4/25(38 days)

1Q12 Analysis Outlook

Dissipation of pension plan-related one-off expenses

Increased inventory-related gains on rising oil prices

715.4

97.4 254.1

174.7

574.8

12,242.2 12,012.9 12,589.6 12,556.2

14,379.7

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0

200

400

600

800

1,000

1,200

1,400

1Q11 2Q11 3Q11 4Q11 1Q12

Operating Profit Sales (OP : Bn KRW) (Sales : Bn KRW)

11

Source : ICIS, Platts, Company

(US$/Ton)

Ethylene spreads improved due to tight supply from

regional regular maintenance

Weak polymer spreads due to higher feedstock cost and

sluggish downstream demand

Despite weak downstream demand including

polyester, PX spreads remained steady on regular

maintenance and facility troubles in the region

1Q Olefin Market Conditions 1Q Aromatic Market Conditions

U$/Ton 2Q11 3Q11 4Q11 1Q12 QoQ

Naphtha 992 965 888 1,020 +14.9%

Ethylene-

Naph 299 185 190 213 +12.1%

PE-Naph 378 434 433 342 -21.0%

PX-Naph 518 662 569 570 +0.2%

SM-Naph 415 498 411 413 +0.5% 0

100

200

300

400

500

600

700

800

900

1000

'10 1Q '10 2Q '10 3Q '10 4Q '11 1Q '11 2Q '11 3Q '11 4Q '12 Jan. '12 Feb. '12 Mar.

Ethylene-Naph PE-Naph

SM-Naph PX-Naph

Improved base chemicals spreads on regional regular maintenance and facility troubles

12

OP increase from improved base chemicals spreads and dissipation of one-off expenses

242.9

132.9

306.3

92.2

181.9

3,891.4 4,186.3

3,621.3 3,356.1 3,441.5

0

1,000

2,000

3,000

4,000

5,000

0

100

200

300

400

500

600

1Q11 2Q11 3Q11 4Q11 1Q12

Operating Profit Sales

Olefin spreads expected to improve on expectations of

easing of Chinese monetary policies

PX prices/spreads expected to weaken on low PTA

utilization from delayed recovery of Chinese polyester

demand

1Q12 Analysis Outlook

Improved base chemicals prices/spreads due to

reduced supply from regular maintenance and troubles

at regional units

Dissipation of the previous quarter’s one-off expenses

related to pension plan amendment

(OP : Bn KRW) (Sales : Bn KRW)

13

160.1 131.4 120.4

82.4 126.6

277.8 245.2 260.9 252.0 251.4

0

50

100

150

200

250

300

350

1Q11 2Q11 3Q11 4Q11 1Q12

Operating Profit Sales

Main factor for operating profit increase

- Dissipation of previous quarter’s one-off

impairment loss

2012 Exploration Plans

- Colombia CPO-4 and SSJN-5 blocks

Higher operating profits from the dissipation of one-off expenses

1Q Average Daily Production Major Issues

1,000

BOE/D Total

Oil

Portion

Peru

88

Vietnam

15-1

Peru

56

Yemen

LNG

1Q12 63 29% 21 4 24 12

4Q11 63 30% 22 5 26 10

(bn KRW)

14

Slight increase in OP on inventory-related gains despite temporary base oil margin decline

Temporary decline in base oil margins on production cost increase from rising oil prices and off-season demand decrease

Slight increase in operating profits owing to inventory-related gains at overseas subsidiaries, despite lower base oil margins

1Q12 Analysis Outlook

Base oil margins expected to improve due to the effect of passing on higher crude oil prices

87.3

130.6

198.5

91.3 100.0

611.1

672.9 694.3 730.8 737.4

0

250

500

750

0

50

100

150

200

250

300

350

1Q11 2Q11 3Q11 4Q11 1Q12

Operating Profit Sales

(OP : Bn KRW) (Sales : Bn KRW)

15

16

1. Utilization Rate – Petroleum/Petrochemical Plants

2. Product Sales – Petroleum/Petrochemical

3. Maintenance Schedule

Petrochemical

Petroleum

17

Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

NCC 72% 77% 77% 77% 77% 77% 77% 63% 96% 99% 100% 98% 100%

PE 94% 100% 97% 98% 98% 86% 97% 77% 95% 95% 95% 100% 100%

PP 93% 100% 100% 98% 100% 98% 100% 81% 100% 100% 95% 100% 100%

PX 98% 98% 74% 86% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Unit 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

CDU 82% 72% 69% 71% 74% 80% 75% 83% 81% 78% 76% 80% 78%

Ulsan 94% 80% 77% 83% 88% 91% 87% 96% 93% 88% 91% 92% 88%

Incheon 42% 47% 44% 35% 30% 44% 39% 44% 46% 47% 30% 36% 46%

HOU 100% 73% 98% 100% 100% 98% 99% 99% 81% 100% 99% 97% 85%

#1 RFCC 100% 100% 100% 100% 100% 99% 100% 100% 83% 74% 100% 98% 100%

#2 RFCC 100% 100% 100% 100% 100% 97% 69% 100% 100% 100% 100% 98% 100%

18

(Unit : kBbl)

(Unit : kTon)

Product Domestic Export Sub-Total Product Domestic Export Sub-Total Product Domestic Export Sub-Total

Gasoline 6,168 5,202 11,370 Gasoline 6,672 6,229 12,901 Gasoline 6,203 6,774 12,977

Kerosene 3,303 288 3,591 Kerosene 2,273 264 2,537 Kerosene 2,164 324 2,488

Diesel 11,408 16,873 28,281 Diesel 12,568 17,812 30,380 Diesel 10,656 17,627 28,283

Fuel Oil 8,271 4,448 12,719 Fuel Oil 3,889 3,847 7,736 Fuel Oil 4,870 3,686 8,556

Jet Oil 451 6,859 7,310 Jet Oil 484 7,369 7,853 Jet Oil 414 9,296 9,710

Other 5,453 5,199 10,652 Other 6,716 8,285 15,001 Other 6,077 4,886 10,963

Total 35,054 38,869 73,923 Total 32,602 43,806 76,408 Total 30,384 42,593 72,977

4Q11 1Q121Q11

Product Domestic Export Sub-Total Product Domestic Export Sub-Total Product Domestic Export Sub-Total

Ethylene 42 58 100 Ethylene 38 45 83 Ethylene 37 48 85

PX 58 450 508 PX 60 582 642 PX 71 299 370

SM 38 218 256 SM 4 228 232 SM 19 122 141

PE/PP 106 126 232 PE/PP 65 110 175 PE/PP 75 86 161

BTX 101 938 1,039 BTX 5 789 794 BTX 68 674 742

Other 313 376 689 Other 281 327 608 Other 319 348 667

Total 658 2,166 2,824 Total 453 2,081 2,534 Total 589 1,577 2,166

1Q11 4Q11 1Q12

※ Numbers exclude sales between SK Energy, SK Global Chemical and SK Lubricants

Petrochemical

Petroleum

19

Petrochemical

Petroleum

Capacity 2010 2011 2012

Olefins #1 NCC (200 kTon/yr) - - -

#2 NCC (660 kTon/yr) 10/4~11/4 (32 days) - -

Polymers

#1 PE (220 kTon/yr) 10/12~11/4 (24 days) - -

#2 PE (190 kTon/yr) 10/20~11/5 (17 days) - -

#1 PP (183 kTon/yr) 10/18~11/2 (16 days) - -

#2 PP (193 kTon/yr) 10/20~11/4 (16 days) - -

EPDM (20 kTon/yr) 10/18~11/26 (40 days) - Oct.~Nov.(29 days)

Aromatics

#2 PX (348 kTon/yr) - - 10/4~11/2(30 days)

NRC (28.0 MB/D) - - 10/4~11/2(30 days)

#1 PX (410 kTon/yr) - - -

NAC (45.0 MB/D) - - -

NRP (45.0 MB/D) 6/21~7/25 (35 days) - 3/20~4/24(36 days)

Lubricants

Site Capacity (b/d) 2010 2011 2012

Ulsan CLX

#1 CDU (60,000) 5/11~5/26 (15 days) 9/15~10/11 (27 days) -

#2 CDU (110,000) 5/12~5/23 (12 days) - 10/11~11/9 (30 days)

#3 CDU (170,000) 6/28~7/26 (29 days) - -

#4 CDU (240,000) - 3/10~3/17 (8 days) 3/20~4/22 (34 days)

#5 CDU (260,000) - 5/8~6/8 (32 days) -

HOU (45,000) - 3/7~3/22 (16 days) 3/19~4/25 (38 days)

#1 RFCC (57,000) - 5/9~6/6 (29 days) -

#2 RFCC (70,000) 6/28~8/3 (37 days) - -

Incheon CLX

#1 CDU (75,000) - - -

#2 CDU (200,000) - 6/13~7/24 (42 days) -

Capacity (b/d) 2010 2011 2012

Ulsan # 1 LBO (12,300) - 3/7 ~ 3/27 (21 days) 3/19~4/25 (38 days)

Ulsan # 2 LBO (12,000) - - 3/22~4/24 (34 days)

DUMAI LBO (9,000) 4/27 ~ 5/9 (13 days) 10/8 ~ 10/29 (22 days)