Technology-driven Global Energy Company

August 2011

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.

These materials are not an offer for sale in the United States of the securities of SK Innovation or any of its subsidiaries or affiliates.

No such securities may be offered or sold in the United States absent registration or an exemption from registration under the U.S.

Securities Act of 1933, as amended, and at present there are no intentions to register any offering of such securities in the United States

or to conduct a public offering of such securities in the United States.

I. Corporate Transformation

III. 2Q11 Financial Performance

IV. New Growth Momentum

V. Appendix

P. 3

P. 13

P. 27

P. 36

II. Industry Dynamics & Business Strategy P. 6

Tech Enabled

Global Energy

Company

3

Enhancing

Accountability

& Transparency

“Company in Company”

Management System

Maximizing Biz Potentials,

Enhancing Value Chain

Through Restructuring

Holding

Company

(2007)

CIC

(2008)

Independent

Management

(2011)

E&P R&D

※ As of January 1, 2011

The corporate transformation is a turning point for strengthening the competitiveness

of SK Innovation and each subsidiary company

Challenges

Vision

Changes in the Global

Industry Landscape

Tech Enabled Global

Energy Company

Strengthen

Core

Competitiveness

Transform

Corporate

Culture

Enhance

Expertise

of Biz

Value

Maximization

4

Industry Dynamics

Business Strategy

Mid-term Vision Strategy

II. Industry Dynamics & Business Strategy

Global oil demand : Underpinned by „Asia-Pacific Region‟ demand growth

Growth in „Asia-Pacific Region‟ supports global oil demand

- Recently, Global oil demand forecast decreased to 1.2 MM B/D (-0.2MM B/D) from initial forecast of 1.4 MM B/D,

due to weakness in OECD economies

- However, Asian demand growth showing solid trend (+2.4 MM B/D, 2011~2012)

6

[Oil Demand Growth 2009 ~ 2012] [Global Oil Demand Outlook]

-2.0

1.0 -0.020.3

2009 2010 2011 2012

0.8

1.8

1.2 1.2

2009 2010 2011 2012

<Americas/ Europe/ FSU>

<Asia/ Middle East/ Africa>

Source : IEA Global Oil Market (’11. July)

(MM B/d)

Source : IEA Global Oil Market (’11. July)

80

82

84

86

88

90

92

94

Volume

(MM B/d)

84.9 Mil B/d

91.0 Mil B/d

Regional capacity additions : Moderate / Refining Margin : Solid trend

(MM B/d)

[Global Capacity Additions]

(Source: IEA, Medium-Term Oil & Gas Markets, ’11. June)

7

0

2

4

6

8

10

Singapore Complex GRM

Source : Bloomberg, Macquarie, Company (’11. Jan)

($/Bbl)

[Singapore Refining Margin Outlook]

“The Golden Age”

0

1

2

3

2009 2010 2011 2012 2013 2014 2015 2016

Europe Amercia

M.E. FSU & Others

Asia Asia (trend)

“Need to consider

Shutdowns&

closures”

Global Capacity Additions

- In ‟12, IEA reports +1 Mil B/d from America, FSU, etc ( However, Shutdowns & Closures status must be considered)

- After ‟09, Capacity additions within Asian region displays moderate trend, especially from China

Singapore Refining Margin Outlook : Solid trend throughout the medium-term

8

Resilient fundamentals, despite uncertainties in global economy

[ Asia PX/PTA Growth Outlook]

(KTA)

[Asia Ethylene Spread Trend]

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

PX Growth

PTA Growth

(Source : PCI PX WSD Report 2010, Nov)

0

100

200

300

400

500

600

700

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 202002 2003 2004 2005 2006 2007 2008 2009 2010

Upturn Cycle

Rebound from

down-cycle &

economic crisis

“uncertainties, Opportunities”

($/MT)

2011 (E) ~

Source : CMAI, DataStream, Company

※ Spread = Ethylene FOB Korea - Naphtha NEA CFR

Asia Ethylene Spread Trend

- Strong rebound from down-cycle & global economic crisis in 2008 ~ 2009

- Expectation of resilient spreads, despite recent economic uncertainties

PTA Growth in Asia-Pacific : Exceeding PX growth by „double‟ from 2012 ~ 2016

Accelerating global expansion through JV partnership

[ LBO Global Expansion][ New PX Project ]

PX 1,000KTA BZ 560KTA

PX Adsorption

Isomerization

Toluene Disproportionation

Toluene

Mixed Xylene

C9+Aro

0

20,000

40,000

60,000

80,000

100,000

계열 1 계열 2 계열 3 계열 5 계열 6

#1/2 LBO

24,300B/D

(Ulsan)

#3 LBO

9,000B/D

(Dumai)

#4 LBO

13,300B/D

(Spain w/ Repsol)

#5 LBO

26,000B/D

Being progressed• • •

(b/d)

Pursing Regional Leading PX Player

Enhancing product portfolio mix

JV partnership with JX Energy (SK 50%)

PX 1 mil MT/A, CAPEX \960bn, Start-up: 1Q14

Solidifying Leadership in Group III Base Oil

Targeting environment-friendly premium market

“Global Top-tier

Lubricants Company”

JV partnership with JX Energy (SK 72%)

26,000B/D, CAPEX \350bn, Start-up: 2Q12

9

“Operatorship”

Mid-term E&P Aspiration : Global Leading Independent E&P Company

0

20,000

40,000

60,000

80,000

100,000

120,000

09.1Q 09.2Q 09.3Q 09.4Q 10.1Q 10.2Q 10.3Q 10.4Q 11.1Q Mid-term

YLNG Others

Brazil Vietnam

PERU534 Mil BOE P1

(End of 2010)100,000 B/D

Production

(BOE/D)

11. 2Q

Mid-term Target

1 Bil BOE (P1)

Global Leading

Independent E&P Company

Farm-out of high-risk

exploration blocks

M&A (Production blocks)

Houston Tech. Center

Develop Niche Tech.

with SKI’s R&D Center

Portfolio Rebalancing

Competitive Technology

[Mid-term Aspiration for E&P Business]

Pursuing “Global Leading Independent E&P Company” with operatorship capabilities

- Portfolio Rebalancing Strategy / M&A options on production blocks

- HR & Technical Excellence through Houston E&P Technical Center

10

2011

Sales 44 trn

2012

Sales 56 trn

2015

Sales 70 trn

2020

Sales 113 trn

Technology Driven Company

Creating New Growth Momentum

Biz-Model Innovation

Focusing on Green Growth

: Battery, Green Biz, New Energy

Tech-based Globalization &

Global Leading E&P Player

Targeting Global Market &

Strategic Partnership

As-is

To-be

11(Unit: KRW)

2010 Financial Highlights

2Q11 Financials

2Q11 Business Analysis

III. 2Q11 Financial Performance

Exploration & Production

Oil equivalent reserves (P1) : 534 mn BOE

2011 Production (E) : 60,000 BOE/D

SK Energy *

Korea’s No. 1 energy provider

Asia’s No.4 CDU capacity of 1.1 mn b/d

SK Global Chemical *

Strategic product mix with Olefin & Aromatic

Ethylene: 860,000 ton/yr

Propylene: 980,000 ton/yr

B/T/X: 4,018,000 ton/yr

SK Lubricants **

World No.1 Group III Base Oil Producer

Base Oil: 26,000 B/D

Lubricant: 5,800 B/D

Grease: 6,000 ton/yr

* Spin off into SK Energy and SK Global Chemical as of Jan. 1, 2011

** Spin off into SK Lubricants as of Oct. 1 2009

Research & Development

I/E Materials : LiBS, TAC Film, FCCL

HEV, PHEV, EV Battery

Green Energy : GreenPol, GreenCoal, Biofuel

13

5 Year Revenue Profile

5 Year Operating Profit Trend

23,652

27,788

45,737

35,828

43,863

0

10,000

20,000

30,000

40,000

50,000

2006 2007 2008 2009 2010

(bn KRW)

1,165

1,480

1,820

908

1,714

0

500

1,000

1,500

2,000

2,500

2006 2007 2008 2009 2010

(bn KRW)

※ 2010 Operating Profit is KRW 2.0 trillion including SK Lubricants

(KRW bn)

Sales 52,606.4 43,679.1 53,706.4 17,068.4 17,177.9

Operating Profit 2,028.6 1,186.1 2,231.5 1,192.0 451.3

- SK innovation 240.6 329.8 328.4 146.4 94.3

- SK energy 1,409.5 109.9 1,109.1 715.4 97.1

- SK global chemical 124.1 683.8 468.3 242.9 129.4

- SK Lubricants 254.4 62.6 325.7 87.3 130.5

Non-Operating Profit -1,028.8 -309.2 -694.5 11.2 -43.4

Pre-Tax Income 999.9 876.9 1,537.0 1,203.2 407.9

EBITDA 2,518.3 1,962.8 2,933.4 1,324.1 583.4

※ 2011 based on K-IFRS

1) 2008~ 2010, SK Energy Consolidated

2) Operating profit breakdown: Standalone basis

2008 2009 2010

14

1Q11 2Q11

1) Net debt = Interest bearing debt – Cash & Cash equivalents

2) 2008~2009, SK Energy Consolidated

3) 2010~2011.1H based on K-IFRS

(KRW bn)

Assets 24,942.8 24,667.3 29,405.4 30,913.1

- Cash & Cash Equivalents 4,067.4 2,827.7 3,072.8 2,091.8

Liabilities 17,274.1 16,559.8 17,854.0 18,408.8

- Debt 11,370.7 9,298.6 10,818.8 9,499.0

(Net Debt) 7,303.4 6,470.9 7,746.0 7,407.2

Shareholders‟ Equity 7,668.7 8,107.5 11,551.4 12,504.3

- Paid-in Capital 468.6 468.6 468.6 468.4

Net Debt to EBITDA 2.9 (x) 3.3(x) 2.7(x) -

Net Debt to Equity 95% 80% 67% 59%

2008 2010

15

1H112009

※ 2008 numbers reflect the SKICO merger as of Feb. 1, 2008

2009 numbers reflect the spin-off of SK Lubricants as of Oct. 1, 2009

16

Facility Investment 988.2 623.1 273.4 335.0

- Refining 680.2 270.4 126.9 64.6

- Petrochemical 223.6 258.3 113.7 6.4

- Lubricants 4.6 12.4 - 73.6

- Others 79.8 82.0 32.8 190.4

Marketing Investment 119.4 81.9 40.9 27.0

E&P 451.4 315.9 395.7 128.0

R&D, etc. 99.9 73.7 96.6 28.2

Sub-Total 1,658.9 1,094.6 806.6 518.2

Equity Investment 106.0 64.4 128.3 140.3

Total 1,764.9 1,159.0 934.9 658.5

(KRW bn) 2009 2010 1H112008

※ 2008 numbers reflect the SKICO merger as of Feb. 1, 2008

2009 numbers reflect the spin-off of SK Lubricants as of Oct. 1, 2009

17

EBITDA 2,518 1,963 2,933 1,908

Dividends Income 44 28 29 10

Asset Disposals 114 366 278 260

CAPEX 1,659 1,095 807 518

Equity Investment 106 64 128 140

Interest Expense 400 413 334 164

Dividend Payout 195 195 195 195

Corp. Tax 70 140 273 150

Free Cash Flow 246 450 1,503 1,011

(KRW bn) 2009 2010 1H112008

18

Strong crude price and healthy middle distillate demand led to favorable refining margin

Refining Margin Trend : Strong Dubai Crude Oil : Strong

Dubai Crude Oil ($/Bbl) ($/Bbl)

Due to Japan earthquake and electricity shortage

issues in China, Middle Distillates displayed strength

Gasoline margins remained stable owing to strong

trends in Asia and M.E. despite weakness in U.S.

Despite weak demand from U.S., healthy trends from

emerging economies contribute to strong crude price

Brent displays ongoing high mark due to supply

disruption from Libya

- Oil prices under the influence of ‘supply risk premium’

0

20

40

60

80

100

120

140

07-10 08-02 08-06 08-10 09-02 09-06 09-10 10-02 10-06 10-10 11-02 11-06

Diesel/HSFO

Gasoline/HSFOSingapore Simple Margin

-20

0

20

40

60

80

07-10 08-02 08-06 08-10 09-02 09-06 09-10 10-02 10-06 10-10 11-02 11-06

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

Dubai 75.8 78.1 73.9 84.3 100.5 110.7 10.2

Gasoline/HSFO 16.9 16.9 14.6 20.1 22.2 22.1 -0.1

Diesel/HSFO 13.2 18.9 18.4 22.5 28.5 29.8 1.3

Singapore Simple △0.60 △1.71 -0.46 -1.03 -0.09 1.67 1.76

Source : JBC, Company

19

Despite favorable margin trend, Operating profit sharply declined owing to one-off items

336.4

154.9

369.7

715.4

97.1

7,832.1 7,127.5

8,616.3

12,242.2 12,012.9

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0

200

400

600

800

1,000

1,200

1,400

2Q10 3Q10 4Q10 1Q11 2Q11

Operating Profit Sales (Sales : Bn KRW)

2Q11 Analysis (QoQ) Major Issues

(OP : Bn KRW)

IEA release Strategic Petroleum Reserve (June 23rd)

- 28 member nations to release 60MM b/d in 1 month

China‟s diesel import duties/ New diesel specs

- Diesel import duties: 6% 0% (’11.Jul 1 ~ ’11.Dec 31)

- Tighter quality specifications (As of ’11.Jul 1)

Higher refining margins / Regular maintenance

One-off items

- Domestic price discount (3months, 100won/liter)

- Fine imposed by Fair Trade Commission

Diminishing effect of 1Q inventory gain

- End of March 108.7$/B vs. End of June 107.8$/B

※ 2010 : K-GAAP, 2011 : K-IFRS

20

Reduced spreads on China‟s tightening monetary policy and end of regional maintenance

Ethylene spreads decline from slowing downstream

demand and end of 2Q regional maintenance

Weak Polymer spreads on China‟s monetary policy

and power shortage etc.

Bearish PX spreads owing to normalization of Japan

earthquake hit facilities, regional capacity additions

and delayed purchase by PTA producers in anticipation

of lower PX price trend

SM spreads decreased on slow downstream demand

Olefin Spread : Weak Aromatics Spread : Bearish

Source : ICIS, Platts, Company

(US$/Ton)

0

100

200

300

400

500

600

700

800

900

1,000

'10/1 2 3 4 5 6 7 8 9 10 11 12 '11/1 2 3 4 5 6

PE-Naph PP-Naph

SM-Naph PX-Naph U$/Ton 2Q10 2010 1Q11 2Q11 QoQ

Naphtha 708 723 915 995 9%

PE-Naph 468 482 420 359 -15%

PP-Naph 594 573 616 601 -2%

PX-Naph 260 278 712 516 -28%

SM-Naph 446 468 491 415 -16%

21

149.7

76.6 8.8

242.9

129.4

3,207.7 2,767.4

3,291.3

3,891.4 4,186.3

-

1,000

2,000

3,000

4,000

5,000

-

100

200

300

400

2Q10 3Q10 4Q10 1Q11 2Q11

Operating Profit Sales

Olefin spreads to improve on 3Q regional maintenance

plans and increased downstream utilization on easing

power shortages in China and peak seasonal demand

* Cracker Maintenance : Singapore Shell, Shanghai SECCO,

CPC, Formosa etc. (3.6 mn MT)

Aromatic spreads to recover on regional troubles and

advent of the petrochemical peak season, despite

continued concerns on China‟s monetary policy

2Q11 Analysis (QoQ) 2H 2011 Outlook

Strong Naphtha price on rise in oil price: QoQ 9%↑

Slowing downstream demand on China‟s monetary

tightening policy and power shortage

Increased regional supply from completion of 2Q

maintenance season, new PX capacity additions and

Japanese earthquake recovery

Bullish Butadiene prices on increased automobile

sales and strong demand in US and Europe

- 2Q11 Butadiene Spread: $2,412/MT (QoQ 69%↑)

(OP: bn KRW) (Sales: bn KRW)

KRW 129.4 bn operating profit from weak spreads and reduced sales volume QoQ

※ 2010 : K-GAAP, 2011 : K-IFRS

22

99.6 110.9 122.1

160.1 131.4

187.6 206.0

220.5

277.8

245.2

0

50

100

150

200

250

300

2Q10 3Q10 4Q10 1Q11 2Q11

Operating Profit Sales

Brazilian government approval for sale of SK do Brasil

- Approval date: July 12, 2011

- Final deal closing : July 21, 2011

(bn KRW)

Major Issues

BOE/D TotalOil

Portion

Peru

88

Vietnam

15-1Peru

56

Yemen

LNG

2Q11 64,664 32% 21,564 5,299 24,166 12,078

1Q11 63,175 36% 20,324 6,639 21,847 12,383

2Q Average Daily Production

※ 2010 : K-GAAP, 2011 : K-IFRS

2H11 Exploration activity plans

- Colombia CPO(since July)

- Vietnam 15-1/05(since June)

- Vietnam 123(scheduled in August)

Decreased operating profit due to reduced sales volume from delayed loading

2011 average daily production to reach 60,000 BOE/D

56%60%

63%

75%

78% 76%70%

65%56% 47%

47%

47%

-

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 2011E

Peru Vietnam Brazil Others YLNG Oil Ratio

Yemen LNG

Start-up

4Q09

(BOE/D)

24,00026,000

36,000

40,000 40,40040,500

41,70044,022

73,815

66,785

51,764

60,000 *

Peru LNG

Start-up

3Q10

Vietnam 15-1

Sutuvang field

& Peru 56

Start-up 4Q08

23,000

23* Reflects Brazil asset sale to Maersk Oil as of Jan. 1, 2011

Sale of

Brazil

BM-C-8

* Gas 378 mn boe = 2.27tcf (trillion cubic feet)

Oil Gas Total

Peru 88&56

Vietnam

Peru 88&56

YLNG515 mn bbl

Others Others 19 mn bbl

128 mn bbl 406 mn boe* 534 mn bbl

400440

500 520 503

534

300

500

2005 2006 2007 2008 2009 2010

(Mn BOE/D)

Oil & Gas Ratio534 Million Barrels (P1) Breakdown

Proven Reserve By RegionProven Reserve Growth (P1)

* As of the End of Dec 2010

Gas76%

Oil24%

* As of the End of Dec 2010

LatinAmerica78.1%

MiddleEast

19.1%

Africa 0.4%

SE Asia 2.5%

24

25

Increased operating profit from strong base oil earnings owing to crude oil price stabilization

2Q11 Analysis (QoQ) Major Issues

Stable earnings to continue on healthy base oil price

- Increasing demand for environmental friendly engine oil

Lubricants plant to be completed in China

- Construction Period : May 2010 ~ Dec. 2011

- Plant Capacity : 80,000 Ton/Yr

No.4 LBO JV with Repsol well under way

- Expected start-up : End of 2013

- Plant Capacity : 650,000 Ton/Yr

59.8

112.8

75.5 87.3

130.5476.3

582.1 534.5

611.1

672.9

-

100

200

300

400

500

600

700

0

50

100

150

2Q10 3Q10 4Q10 1Q11 2Q11

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

※ 2010 : K-GAAP, 2011 : K-IFRS

Increased earnings due to healthy market demand

- Higher sales volume and earnings owing to

increased base oil spreads and sales price

- Continued tightness in base oil market conditions

due to strong demand and limited supply growth

Lithium-ion Battery Technology

I/E Materials : LiBS / FCCL / TAC

Green Tech : Geen Pol / Green CoalTM / Biofuel

IV. New Growth Momentum

26

No.1 Production Line No.2 Production Line

Location SK Innovation R&D Center Seosan Industrial District

Completion May 2010 2012

Capacity (MWh) 100MWh 500MWh

Capacity (# of Vehicle)

HEV 70,000 ~ 100,000 350,000 ~500,000

EV 5,000 25,000

Proven Lithium-ion Battery and advanced packing technology

2002 2009

Started manufacturing LIB for electronic devices

2005

Launched Large Format LIB project for xEV application

Launched project for EV

2010

Full automation of large format

LIB production

2012

• Commercial Production

• Supply to MFTBC

• Awarded HMC

EV Project

• Partnership with

MFTBC

20122011

• Supply to HMC

• Awarded Daimler‟s

EV Project

20102009

Milestone

Contracts

27

Multiple technology areas in works for a wide range of potential applications

Applications

Energy Storage System

Automotive

Key Technology

Areas

e

Electrode

Separator

Cell/Pack

BMS

Higher Power Less Number of Cells Lower Cost

Key Competitiveness

• Thin Electrode Coating

• Highly Permeable LiBS

• Proprietary Electrolyte Additives

28

Location Line Capacity Operation Usage

ChungJoo #1~#3 58 ‘05~’09

IT

Materials

Jeung

Pyoeng

#4~#5 72 ’10

#6~#7 72 ‘12xEV

Battery

Total 202 by ‘12

SK Innovation‟s LiBS Capacity

(unit: Mn m2 /year)

Becoming a Global Top 3 player in premium LiBS market (1st in Korea)

Producing world-class low-shrinkage/heat resistant products and ultra-thin film

with superior strength and permeability

Securing global market share through capacity expansion

Anode (Positive)

Cathode (Negative)

Separator

29

Pre-marketing activities from current Demo Line

Develop continuous curling technology using infrared rays

Commercial production in 2012

2010 2011 2012

Mass productionCommercial Test

Mechanical Completion

Capacity Location

#1 Line 4.0Jeung

Pyoeng

[unit: bn USD]

Display

Mobile IT

1.50

0.88

0.46

2008 2015

0.72

Construction Start-up

SK Innovation‟s FCCL Capacity

(unit: Mn m2 /year)

( Source : Displaybank )

30

2010 2015

1.25

2.13 1.79

3.31

High-performance TAC Film for globally dominant Korean LCD makers

Growing demand for high-performance optical films

Commercial production in 2012

Mass production

Mechanical Completion

Construction Start-up

TAC Film Application

Domestic

Global

(Unit: bn USD)

( Source : Displaybank )

2010 2011 2012

Commercial Test

31

Propylene Oxide

(56%)

CO2 (44%)SK Innovation‟s

Proprietary Catalyst

Converting CO2 into value added polymer products through Green Pol™

Producing environment friendly polymer products using breakthrough technology

GreenPolTM

Clean burning with no soot or toxic gas

Superior optical properties

Enhanced barrier properties(O2/H2O)

Less expensive to make than conventional polymer products

Advantages of Green Pol™

Commercial production

Commercial Plant Construction

Market Development

2010 2011 2013

Commercial Test

2012

32

2010 ~ 2011 2012 ~ 2013 2014 ~

Technology Development

• Lab-scale Test/

• Pilot Plant Operation

Scale-up Verification

• Demo Plant Construction

and Operation

Commercialization

• Commercial Plant

Construction and Operation

Breakthrough Green Coal™ technology with reduced CO2 emission and low cost

Chemical

Products

Electricity

Synthetic

Petroleum

Current

Tech.

CO+H2

1,500℃

1,000℃

Advanced

Tech.

High Quality

Low Quality

ProductsGasifyCoal

※ Participated in Korean government-sponsored project with POSCO, government aid of 25bn KRW (’11~’12)

33

Developing bio fuel tech. to produce clean energy from marine-based biomass

Focusing on Biobutanol as another alternative energy source using catalyst tech.

Low production cost compared to Bioethanol

Current Tech.

Marine-based

Biomass

Fermentation

Advanced Tech.

Fermentation

Catalyst

Technology

Biobutanol

34

Korea Refining & Petrochem Landscape

Utilization Rate

Maintenance Schedule

E&P Blocks

Holding Company Structure

V. Appendix

35

36

* The total number of service stations in Korea is 12,862 which includes 370 other service stations (End of 4Q09)

(K b/d for refining / K ton/yr for petrochem)

Ulsan CLX Incheon CLX SK Energy GS Caltex S-Oil Hyundai Total

CDU 840 275 1,115 840 580 390 2,925

Mkt Share - - 34% 31% 13% 14%

Service Stations - - 4,561 3,537 1,880 2,371 12,349

De-sulfurizer 542 161 703 313 309 189 1,514

% CDU 65% 59% 63% 37% 53% 48% 52%

Naphtha/Gasoline 82 65 147 123 40 58 368

Diesel/Kerosene 268 96 364 190 121 131 806

HSFO 192 - 192 - 148 - 340

Cracker 172 - 172 215 149 58 594

% CDU 20% - 15% 26% 26% 15% 20%

RFCC 127 - 127 93 73 - 293

HOU 45 - 45 120 73 27 265

Coker - - - - - 31 31

Ethylene 860 860 860

Propylene 980 980 980

BTX 2,720 1,045 3,765 2,800 1,000 7,565

PX 758 758 1,200 1,600 3,558

*

37

SK Global Chemical

SK Energy

* #1 NCC shutdown: Nov. 2008~Nov. 2010

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

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

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

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

HOU 100% 73% 98% 100% 100% 98% 99% 99% 81% 100%

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

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

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

NCC* 72% 77% 77% 77% 77% 77% 77% 63% 96% 99%

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

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

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

38

SK Global Chemical

SK Lubricants

SK Energy

Capacity 2009 2010 2011

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) -

Aromatics

#2 PX (348 kTon/yr) 8/15~9/28 (45 days) - -

NRC (28.0 MB/D) 8/10~9/23 (45 days) - -

#1 PX (410 kTon/yr) 11/2~11/30 (29 days) - -

NAC (45.0 MB/D) 11/2~11/30 (29 days) - -

NRP (28.0 MB/D) - 6/21~7/25 (35 days) -

Capacity (b/d) 2009 2010 2011

# 1 LBO (12,300) 4/2~4/27 (26 days) - 3/7 ~ 3/27 (21 days)

# 2 LBO (12,000) 4/2~4/27 (26 days) - -

# 3 LBO (9,000) 11/11~12/2 (22 days) 4/27~5/9 (13 days) 10/8 ~ 10/29 (22 days)

Site Capacity (b/d) 2009 2010 2011

Ulsan Complex

#1 CDU (60,000) - 5/11~5/25 (15 days) 9/15~10/11 (27 days)

#2 CDU (110,000) 6/1~7/4 (34 days) 5/12~5/24 (13 days) -

#3 CDU (170,000) - 6/28~7/25 (28 days) -

#4 CDU (240,000) 8/26~9/28 (34 days) - 3/10~3/17 (8 days)

#5 CDU (260,000) - - 5/8~6/10 (34 days)

HOU (45,000) 4/2~4/27 (26 days) - 3/7~3/22 (16 days)

#1 RFCC (57,000) - - 5/10~6/5 (27 days)

#2 RFCC (70,000) - 6/28~7/31 (34 days) -

Incheon Complex

#1 CDU (75,000) - - -

#2 CDU (200,000) - - 6/13~7/25 (43 days)

Region (Oil & Gas)Ownership

(%)Participation

Initial

ProductionContract Period Operator

Egypt/North Zaafarana (O) 25.0 Jun. 1989 1994 Jun.1989 ~ Jan. 2013 PICO

Peru/Block 8 (O) 8.33 Jul. 1996 1996 May. 1994 ~ May. 2024 Pluspetrol

Cote d Ivoire /CI-11(O&G) 12.96 Jan. 1997 1997 Jan.1993 ~ Jul.2019 Afren

Vietnam/15-1 (O) 9.0 Oct. 1998 2003 Oct. 1998 ~ Oct. 2023 Cuulong JOC

Libya/NC-174 (O) 8.33 Feb. 2000 2004 Feb. 1990 ~ Dec. 2015 Eni N.A.

Peru/88 Camisea (O&G) 17.6 Dec. 2000 2004 Dec. 2000 ~ Dec. 2040 Pluspetrol

Algeria/Issaouane (O) 8.5 Nov. 1991 1998 Jun. 1996 ~ Jun. 2011 Repsol-YPF

Peru/56 (O&G) 17.6 Sep. 2004 2008 Sep. 2004 ~ Aug. 2044 Pluspetrol

※ Offshore block names are bold and italicized

LNG ProjectOwnership

(%)Participation

Initial

ProductionContract Period Operator

Yemen LNG 6.9 1997 Oct. 2009 Dec. 2008 ~ Dec. 2033 Total(39.62%)

Peru LNG 20.0 2003 Oct. 2010 Dec. 2000 ~ Aug. 2044 Hunt(50%)

Oman LNG 0.8 1996 - - Shell(30%)

Qatar LNG 0.4 1999 - - ExxonMobil(24%)

39

※ Offshore block names are bold and italicized

Region Block Ownership (%) Participation Operator (%)

Kazakhstan Zhambyl 6.75 Jan. 2009 Kaz Munai Gas(73)

U.K

North Sea

P1077 (9/2b & 9/2c) 30 Jun. 2006 Nautical (35)

P1575 (9/6 & 9/7b) 30 Jul. 2009 Nautical (35)

Indonesia NE Madura I 37.5 Oct. 2003 KNOC (50)

Vietnam15-1/05 25 Apr. 2007 PVEP (40)

123 20 Jun. 2008 Santos (50)

Cote d’lvoire Cl-01 15 1995 Afren (65)

Madagascar Majunga 10 Jun. 2006 ExxonMobil (50)

Australia

WA34R 10 Aug. 1998 ENI (39)

WA-425-P 30 Feb. 2009 Hunt (30)

WA-431-P 30 Apr. 2009 Hunt (30)

U.S.A Iberia North 70 Oct. 2004 CSV

Peru Z-46 60 Jul. 2007 SK Innovation

Equatorial GuineaArea D 9.4 1995 Marathon Oil (84.6)

Block S 25 Dec. 2009 CNOOC (45)

Colombia

CPE-5 28.6 Sep. 2008 BHP (71.4)

CPO-4 50 Dec. 2008 SK Innovation

SSJN 5 50 Dec. 2008 SK Innovation

VIM-2 100 2010 SK Innovation

SSJS-1 30 2010 Ecopetrol (70)

40

1) SK C&C IPO on Nov. 11, 2009

2) SK Holdings ownership over SK Innovation changed from 17% to 31% after the tender offer by SK Holdings in Oct. 2007

and increased again to 33% after additional acquisition of SK Innovation shares (Oct. 2008~Jan. 2009)

3) SK Lubricants spun off on Oct. 1, 2009

4) Corporate name changed to SK Innovation & new subsidiaries SK Energy and SK Global Chemical spun off on Jan. 1, 2011

100 % 4) 100 % 3)

39.1%

83.1%23.2%

94.1% 42.5%

40.0%

33.4% 2)

31.8% 1)

SK Encar 87.5%

Netruck 67.3%

etc.

SK Petrochemical 100 %

etc.100 %

38.3 %

50 %

etc.

100 % 4)

41

SK Innovation Investor Relations

Tel: +82-2-2121-5061~5, 5451~8

Fax: +82-2-2121-5698

E-mail: ir@sk.com

www.SKinnovation.com

End of Document