Songwon Industrial Group announces Financial Results for Q3/2014

Ulsan, Korea - November 14, 2014 - Songwon Industrial Group (www.songwon.com) today announced its audited financial results for Q3. The Group achieved sales of 164,868 Mil. KRW.

When compared to sales in Q3/2013 (Mil. KRW 175,800), revenue declined by 6.2%.

In Million KRW Q3 YTD September 2014 2013* ∆% 2014 2013* ∆% Sales 164,868 175,800 -6.2% 500,675 523,102 -4.3% Gross profit 25,944 31,292 -17.1% 70,197 95,800 -26.7% Gross profit margin 15.7% 17.8% 14.0% 18.3% Operating profit 5,530 10,600 -47.8% 6,018 32,865 -81.7% EBIT 9,990 3,901 156.1% 7,730 36,297 -78.7% EBIT-margin 6.1% 2.2% 1.5% 6.9% Profit for the period 2,978 8,309 -64.1% -8,627 16,548 -152.1%

* 2013: Restated for capacity variance disclosure

Strong price competition together with a slow start to the year resulted in lower revenues for the polymer stabilizers business compared to the previous year.

In the area of polymer stabilizers, there continues to be an oversupply of standard AOs in the market resulting from a general weak demand along the value chain.

In Q3 Songwon saw strong recovery in profitability after resolving the production issues that occurred at the beginning of the year.

The gross profit margin increased by 1.9% to 15.7% points compared to Q2/2014 (13.8%).

Economic performance continued modestly over Q3/2013 and going into Q4/2014, the economic outlook is stable. Despite the challenging economic environment, Songwon is well-positioned to reliably deliver the high quality products and services our customers have come to expect.

The Q3 Report can be downloaded at: www.songwon.com/en/investors/financialresults.

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Songwon Industrial Co., Ltd.
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8500 Frauenfeld
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+41 52 635 0000

marketing@​songwon.com

www.songwon.com