INVESTOR PRESENTATION 50 Investor Presentation Publication SK Report Production Global Investment Team Contact wonseuk.jang@sk.com Design SUNYOUNG CREATIVE 2 2 2 Important Information to Recipients Neither SK (hereinafter “the Group”) nor any of its applicable affiliates makes any representations or General Notes on IRR Calculation warranties, express or implied, as to the accuracy or completeness of the information in this pres- IRR calculations are estimated, unaudited and subject to adjustment. The IRRs set forth herein entation (this “Presentation”), other than the historical financial
performance set forth herein. The are based in part on current valuations of unrealised investments or the unrealised portion of Presentation speaks as of the date hereof. SK and its respective affiliates, members, partners, stock- any partially realised investments and such valuations have not been audited on an individual holders, managers, directors, officers, employees and agents do not have any obligation to update basis. There can be no assurance that such investments will ultimately be realised at their any part of this Presentation. Performance and other information herein about
selected past SK in- current valuations. All IRR figures shown for SK investments gross IRRs based on cash flows vestments is intended to illustrate SK’s experience making investments. The past investments pre- denominated in US Dollars. The IRR calculations treat each investment as having been made sented herein were selected by SK on the basis of subjective criteria, and different persons might on the last day of the SK fiscal year in which the investment was made and treat any proceeds reach different conclusions as to individual investments’ relevance and about which investments to related
to a realisation event as having been received on the last day of the SK fiscal year in include in such selection. which the applicable realisation event occurred. Such gross IRR figures reflect actual or esti- mated investment-level performance (aggregated where relevant), excluding fund-level items Certain information herein refers to certain trends in the technology and related industries. There can such as management fee, carried interest, operational expenses and unconsummated deal be no assurance that such trends will continue. The investments included in this Presentation are not,
costs. Past performance is not necessarily indicative of future results. and do not purport to be, representative of all investments, or all types of investments, previously made by SK . The performance of these selected investments is not indicative of future performance. The investment performance information included herein is as of 30 Dec 2021. An update of the Unrealised Investments investment performance information herein, including to reflect any changes to the market value The IRRs set forth in this Presentation are based in part on current valuations of unrealised in- of any publicly
traded securities, may produce different performance numbers. Nothing contained herein should be relied upon as a guarantee, promise, forecast or representation as to the future. vestments or the unrealised portion of any partially realised investments and such valuations have not been audited on an individual basis. There can be no assurance that such invest- Past performance is not necessarily indicative of future results. Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of terms such as “may”, ments will ultimately be realised
at their current valuations. “will”, “should”, “expect”, “project”, “estimate”, “intend”, “continue”, “target” or “believe” (or the nega- tives thereof) or other variations thereon or comparable terminology. In particular, this Presentation Composite Performance contains certain information regarding SK ’s expected organization, operations and activities in the future. This information has been set out for illustrative purposes only, and does not constitute fore- Aggregate, composite and cumulative investment performance data herein represents aggre- casts. gate data of multiple SK
investments. However, SK investments were made during different economic cycles and any such performance reflects neither a specific SK investment nor a group of investments managed as a single portfolio. It should not be assumed that any indi- This Presentation has been prepared based on SK ’s current view in relation to future events and vari- ous assumptions, including assumptions with respect to events that have not occurred, any of which vidual investor has received the investment performance indicated by such aggregate, com- may prove incorrect. While based on assumptions that SK
believes are reasonable under the circum- posite or cumulative performance data. stances, they are subject to uncertainties, changes (including changes in economic, operational, polit- ical, legal, tax and other circumstances) and other risks, including, but not limited to, broad trends in business and finance, tax and other legislation affecting SK , all of which are unknowable and beyond Subsequent Events (Post-30 December 2021 Realisations) SK ’s control and any of which may cause SK ’s organization, operations or activities to be materially An update of the investment performance
information herein, including to reflect any chang- different from those described in this Presentation. Nothing contained in this Presentation may be es to the market value of any publicly traded securities, may produce different performance relied upon as a guarantee, promise or forecast or a representation as to the future. Recipients should numbers and, in some cases, different selections of investments. not rely on any forward-looking statements. 2 2 2 3 3 3 To Potential Investors, 4 SK is South Korea’s 2nd largest conglomerate with U$246 SK invests in high-growth sectors adjacent to its
new busi- billion assets globally, and it has grown through a series ness for value chain integration (semiconductor and EV of M&As and successful turnarounds, including Korea car battery materials, bio/CMO), and local leading players Oil Corporation in 1980 and Korea Telecom 1994, and in high growth sectors/regions to value-up through SK’s world’s #2 semiconductor chip maker Hynix in 2012. By resources and capabilities that are readily available to our far, SK is the only conglomerate in Korea operating both investee companies. the Country’s most basic and fundamental infrastructure
businesses (energy and telecom) and world-class semi- As a result, unlike traditional PE/VC firms, SK has unique conductor business under one umbrella. strengths to identify attractive investment opportunities early, validate targets’ competitiveness using its own in- Based on these underlying businesses, SK has actively ex- ternal expertise and know-how (without relying on exter- panded investments in global high-growth sectors such nal advisors), and value-up investee companies based as EV car battery, bio, and hydrogen business for more on internal resources and capabilities for fundamental
than U$11 billion since 2015, leading to a 2.3x increase transformation bottom-up. in its combined market capitalization from 2015 to 2021, and 70% of which is comprised of new growth business. To leverage our investment expertise and unique strengths as a Strategic Investor, SK invites external in- In particular, SK has recorded stable yet high investment vestors to join our Global Investment Fund platform and returns based on its unique capabilities as a Strategic enjoy stable yet high investment returns along with SK Investor. Group’s global journey for growth. Warmest regards, 4 5 Contents
01 Our Group 09 Introduction to SK 10 Key Business Areas 11 Growth Trajectory 6 02 03 Our Investment Our Fund Appendix 13 Investment Team 28 Overview Deal Pipelines 15 Differentiated Approach 29 Investment Strategy Biographies 16 Track Records 34 Key Structure 17 Selected Case Studies 37 Fund Investment Team ※ To be provided separately for discussion 6 7 Our Group 01 Our Group Our Investment Our Fund P A R T 8 8 Our Group Introduction to SK SK is South Korea’s 2 largest conglomerate by asset size and market cap, which has grown steadily and consistently nd over the past two decades largest
conglomerate #2 USD 246bn total assets (21.3Q) 2 total revenue (20.4Q LTM) USD 106bn 97th Fortune 500, 2020 1 307 affiliates/ branches around the globe 7% of Korea’s GDP produced 3 Market Cap of Top 10 Conglomerates in Korea (2009~2021) US$ Billion 2009 2015 2021 CAGR (‘09~21) 1 Samsung 179 1 Samsung 297 1 Samsung 629 11.00% 2 LG 68 2 Hyundai Motors 97 2 180 15.30% 3 Hyundai Motors 61 3 69 3 LG 142 6.40% 4 36 4 LG 75 4 Hyundai Motors 134 6.80% 5 Lotte 17 5 Lotte 23 5 Kakao 70 New entry 6 Hyundai Heavy 14 6 POSCO 17 6 POSCO 42 New entry 7 Doosan 13 7 GS 16 7 Lotte 22 2.10% 8 GS 9 8 Hanwha 11 8
Doosan 21 3.90% 9 Kumho Asiana 7 9 Hyundai Heavy 8 9 CJ 21 New entry 10 Hanjin 4 10 Hanjin 4 10 Hanwha 19 New entry 407 617 1,281 10.00% Source : Company information, Korea Fair Trade Commission data, KOSIS, HIS market research Note : Measured by revenue; Based on total assets; Korea nominal GDP of USD 1,642Bn in 2019 per OECD; 1 2 3 8 8 9 9 Our Group Key Business Areas Based on strong competitive positions in traditional anchor businesses, SK is expanding to high growth areas including EV battery, Advanced Materials, Bio/CMO and Green Business New Growth Businesses Traditional Anchor
Businesses Sector Areas Competitive Positions Sector Areas Competitive Positions EV Battery · World’s top 5 EV battery manufacturer EV Battery · E&P · Operates Korea’s first overseas E&P project Materials Separator · World’s No. 1 Tier 1 separator (LiBS) manufacturer Refining · Asia’s biggest refinery operator (840kb/d) Sales : $5.6bn · Started Korea’s first naphtha cracker in 1972 Copper Foil · World’s No. 1 copper foil manufacturer Chemicals Korea’s biggest petrochemical complex in Ulsan Energy · with world-class facilities and operations · World’s No. 1 NF3 provider with 40% m/s Chemicals
Lubricants · World’s No. 1 base oil manufacturer Advanced · Global top tier provider of specialty gas and high-end Semiconductor Materials semiconductor materials Sales : $38bn LPG · Korea’s No. 1 LPG provider, with world’s largest LPG Materials storage facilities and nationwide network Sales : $2.2bn · World’s top 5 silicon wafer manufacturer and the only · Korea’s first private integrated LNG player across natural Wafer supplier in Korea LNG gas production, liquefaction plant, terminal and power plants · Acquired DuPont’s SiC Wafer business in ‘20 in both domestic and global markets ·
Korea’s only pharmaceutical company with FDA/EMA City Gas · Korea’s No. 1 city gas provider New Drugs approved new drugs, operating globally Bio · CMO · Korea’s No. 1 telecom provider with 45% m/s · Global CMO (Contract Manufacturing Organization) Mobile/Internet CMO company with facilities in US, Europe and Korea Telecom · ICT · World’s first 5G service commercialization Sales : $0.8bn · Korea’s leading vaccine maker that signed licensing Sales : $44bn Vaccine Semiconductor · World’s No. 2 memory chip maker agreement with AZ/Novavax for COVID-19 vaccines · Acquired Intel’s NAND business in
‘20 for $9bn · Korea’s top tier construction company Distribution · Korea’s No. 1 mobile device distributor Logistics · Green Green (infrastructure, housing, architecture and plants) Service Rental · Korea’s No. 1 household equipment rental service Sales : $6.4bn infrastructure · Korea’s biggest fuel cell manufacturing plants, and & Clean Tech Sales : $8.4bn dominant waste management facilities operator Rental car · Korea’s No. 1 rent-a-car Source: Company information 10 Growth Trajectory SK has invested more than U$11bn into high growth sectors and regions since 2015, leading to a significant
increase in market capitalization from $69bn in 2015 up to $180b
