USA-KOREA CONFERENCE 2012, LA, SK Innovation. Present and Future. Dr. Sangho Lee

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1 USA-KOREA CONFERENCE 2012, LA, SK Innovation Present and Future Dr. Sangho Lee 1

2 SK Group Revenue Revenue (billion U.S. dollars) Information & Telecommunication 13.4% 132 Energy & Chemical 59.3% SK Innovation 50.1% Marketing & Logistics 27.3% 86 $132 billion FY2011 Revenue 63 Exchange rate used : 1,100 KRW / USD

3 SK Innovation Revenue & Operating Profit Revenue (billion U.S. dollars) Operating Profit (billion U.S. dollars) 70 Exchange rate used : 1,100 KRW / USD 62 6 Lubricants 18% Petroleum 44% Electronic Matls, etc E&P 11% $2.6 billion FY2011 Operating Profit Petrochemical 27% 3 3

4 SK Innovation s Corporate Evolution SK Corp. (1995) Korea Oil Corp. (1962) [KOSPI : ] SK Energy (2007) E&P Battery Materials R&D Engineering SK Innovation (2011) SK Energy 100% 100% 100% SK Global Chemical SK Lubricants Tech-based Global Energy Company 4 4

5 New Growth Strategy 5

6 SK Innovation R&D Center Campus: 145 acres (580,000 m 2 ) 2012 budget: $ 380 million Laboratories Pilot Plant (Coal Gasification) Dormitory Welfare Facilities (Cafeteria, Gym, Shop) Pilot Plant and Demo Plant Area Administration Building 4 Buildings for Laboratories 6

7 Technology Spectrum for New Growth Petroleum Premium Fuel Opportunity Crude Process Polymer Modified Asphalt Petrochemicals Aromatics & Olefins Specialty Chemicals Novel Catalysts & Processes Polymers Specialized PE/PP Premium PE New Energy Biofuel Clean Coal Solar Cell Hydrogen & Fuel Cell New Materials Lithium-ion Battery Separator FCCL Optical Film (TAC) CO 2 Polymer (GreenPol) Batteries Battery for EV Battery for ESS Smart Grid System New Pipeline Energy & Materials Technology-Driven Global Energy Company Lubricants Group III Base Oil Premium Lubricants Special Base Oil Products Exploration & Production E&P Technologies Enhance Competitive Advantage Deliver New Growth Shape the Future 7

8 New Growth through Open Innovation External Idea & Tech. Sourcing Idea In-house Idea Generation Tech. Tech. Limited Ideation Idea Idea Support of IP experts and Biz Developer Business Filtering Ideas from everywhere Open Innovation Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Concept Feasibility Research Develop Incubation Go Go Go Go G2 G3 G4 G5 Stop Stop Stop Stop What to Do How to Do 8

9 Technology Scouting & Investment What Tech. Providers Tech. Areas Development Status Investment Who works Who decides Screening Criteria Scout breakthrough technologies (with Investment) to Joint-develop or/and commercialize with SK innovation Worldwide Scientists, Engineers, Inventors & Entrepreneurs Focus areas are Energy and Materials 1. Energy: New and Renewable Energy, Energy Efficiency, Energy Storage, and Resources Exploitation 2. Materials: Energy Materials, Information and Electronic Materials, Electric Vehicle Materials, Water Treatment Materials and Biomedical Materials [Early Stage] Lab to Pilot [Mid Stage] Pilot to Commercialization [Early Stage] less than $ 5 million / project [Mid Stage] less than $ 100 million / project Two or three projects / year [Tech] Breakthrough Technology Group [Biz] New Biz Development Office [Advisor] Science Advisory Board Directly report to BT Committee (including CEO) 1. Dramatic Financial Impact 2. Disruptive Technology (Sustainable Competitiveness) 3. Commercial Application 9

10 SK Innovation is Looking for Breakthrough Technology SK Innovation has capacity and capability to make an idea into business opportunity with speed and flexibility. SK Innovation provides you a chance to realize your breakthrough technology with our accumulated technology know-how and business experience. SK Innovation would like to invite you to join us. Click Open Innovation 10

11 We are actively looking to partners. What can We do Together? Further more information, visit 11