The Stock Exchange of Thailand

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1 April 1, 216 Subject: Attn: Connected Transaction regarding on entering into Cash Pooling Management President The Stock Exchange of Thailand Due to the resolution of POSCO-Thainox Public Company Limited s Board of Directors Meeting No. 1/216 held on February 24, 216 at 11. a.m. at CRC Tower, All Season Place, 31 st Floor, Wireless Road, Lumpinee, Pathumwan, Bangkok to consider and approve the Cash Pooling Management by depositing its fund and receipt of loan through the Cash Pooling Management among POSCO Group ( Connected Transaction ). The Company would like to inform all shareholders with regard to the connected transaction with further details as follows: 1. Date of Transaction The transaction will start after shareholders approval within May 216 (expected). 2. Details of the Transaction General characteristic of Cash Pooling Cash Pooling is the liquidity management of two or more companies; each company agrees to make a deposit or loan transaction between the parties (whether through a bank or an intermediary or not). The parties will determine the deposit and loan rates and the allocation of benefits received from the transaction. Cash Pooling procedures (1) Companies that agree to participate in the Cash Pooling will make the agreement of deposit or loan from the net balance of all companies ( Pool ), which is similar to common funds of companies. The Pool will be managed and responsible by a company assigned by the Pool s members. (2) Initially, when any company makes a deposit, such company will receive interest income. On the other hand, when one company takes on loan, it is obliged to pay interest to the Pool. Both cases apply deposit rates or loan rates at the Child Account Rate.

2 (3) After the deposit or loan transaction, if the Pool has a net amount, whether positive or negative, the procedure will be as follows: (3.1) If the net amount is positive, the remaining will be deposited with the bank. The bank will pay interest on deposit at the Parent Account Rate (3.2) If the net amount is negative, the Pool will loan from the bank and bring to companies that demands for loan. The bank will set the interest at the Parent Account Rate. (4) If the Pool benefits from the deposit or loan, whether from Child Account or Parent Account Pool, the benefits will be allocated to the companies in the Cash Pooling project. Example of Cash Pooling Specifies the Interest rate on Deposit / Loan as follow: Parent Account Rate Deposit interest rate 3. % Loan interest rate 4. % Child Account Rate Deposit interest rate 3. % Loan interest rate 4. %

3 Company A Company B Company C Loan (3) million baht Interest (12) million baht Total Interest 6 million baht Net Notional Balance 3 million baht Interest for Net Notional Balance 9 million baht Deposit 5 million baht Interest 15 million baht Deposit 1 million baht Interest 3 million baht Calculate using Child Account Rate Calculate using Parent Account Rate Pool Benefit* = 9 million baht 6 million baht = 3 million baht The Pool benefit will be further allocated to participated companies. * Pool Benefit refers to the benefits from participating in the Cash Pooling Management calculated from interest for Net Notation Balance, minus separated account total interest. 7% of benefit will be allocate to companies, which have deposit status, 3% will be allocated to companies, which have loan status. In case there are more than one deposit or loan status companies, benefit will be allocate at the proportion of deposit or loan amount at the end of the day. In summary, participating companies will be entitled to receive benefits from deposits equal to the interest rate of Child Account combining with Pool Benefit (calculated in proportion to the deposit). The Effective Rate may be higher than the deposit rates of financial institution or investment in capital market or money market. In the case of loan, even loan companies are obliged to pay interest on loans at Child Account Rate, but the companies shall be entitled to Pool Benefit, which allocated from the Cash Pooling project. The Effective Rate may be lower than loan rates from financial institutions or other sources of fund. The Cash Pooling Procedure of the Company The Company will enter into the Cash Pooling Management with companies within POSCO group and other companies within POSCO group which will participate in the future and process through Bank of America Merrill Lynch (BAML) by (1) Deposit its funds with BAML to be a loan limit THB for companies within the POSCO group at the amount not over 1, Million Baht and limit US Dollar not over 1 Million Baht. (2) Loan from BAML not exceed 1, Million Baht

4 The transaction will be process through Liquidity Management System Cash Pooling, which conducted by BAML in cooperation with established networks both currencies, Thai Baht and U.S. dollar. Details are as follows: Deposit funds with BAML The Company may deposit its funds with BAML as loan limit to companies within POSCO group at an limit amount in THB not over 1, Million Baht and limit amount in US Dollar not over 1 Million Baht through Cash Pooling system, which conducted by BAML. The interest will be calculating at the end of each day and pay every month. The Company will be entitled to receive interest from such deposit at higher return rate than market rate of deposit with commercial banks. The deposit rates are calculated depend on deposit amount, plus an additional 7% benefits from participating Cash Pooling*. Details of deposit rates are as follows: Deposit interest rate (Thai baht currency) Outstanding net balance of all participating companies account (Parent Account) Deposit Amount Interest Rate Below 1 million baht.1% Above 1 million baht.5% Outstanding balance of each company participating in the project (Child Account) Deposit Amount Interest Rate No limit 1.% Deposit interest rate (U.S. dollar currency) Outstanding net balance of all participating companies account (Parent Account) Deposit Amount Interest Rate No limit 1 M LIBOR.15% =.28%

5 Outstanding balance of each company participating in the project (Child Account) Deposit Amount Interest Rate No limit 1 M LIBOR +.25% =.68% *As of approval date 1M LIBOR =.43%* (1 M LIBOR = Average 1 Month London Interbank Offered Rate, Interest rate between Bank in London, UK) Loan from BAML The Company will borrow from BAML at the amount not exceed 1, Million Baht through the Cash Pooling which conducted by BAML. Such loan from the Pool is similar to an overdraft loan from a bank and the Company shall be obliged to pay interest on the loan to Bank minus 3% of the benefits from participation in the Cash Pooling. Details of loan rates are as follows: Loan interest rate (Thai baht currency) Outstanding net balance of all participating companies account (Parent Account) Loan Amount Interest Rate No limit O/N BIBOR + 1.2% = 2.7% Outstanding balance of each company participating in the project (Child Account) Loan Amount Interest Rate No limit O/N BIBOR +.75% = 2.25% *As of approval date O/N BIBOR = 1.5%* (O/N BIBOR = Overnight Bangkok Interbank Offered Rate, Interest rate between Bank in Thailand)

6 Loan interest rate (U.S. dollar currency) Outstanding net balance of all participating companies account (Parent Account) Loan Amount Interest Rate No limit 1 M LIBOR +.25% =.68% Outstanding balance of each company participating in the project (Child Account) Loan Amount Interest Rate No limit 1 M LIBOR +.25% + alpha* =.68% *alpha means additional interest rate in case of the Net Notional Balance is negative which will be calculated by weighted average between interest rate premium of Child Account (.25%) weighted by the total deposit amount in Child Account and BAML s O/D interest rate weighted by the Net Negative Notional Balance in Parent Account minus total deposit amount in Child Account. The alpha will fluctuate by the amount of the Net Notional Balance in Parent Account. Participation in the liquidity management, the Cash Pooling has no expiration of the contract until the Customer Liquidity Agreement was terminated by BAML or the Company gives not less than 3 days notice in advance to Bank desired to terminate the agreement. Due to a deposit or loan fund from the networks through the Cash Pooling is serves as an alternative option for the Company to manage its liquidity. After the meeting of shareholders of the Company approved the transaction, the Company will consider the transaction and compare to other alternatives with the Company are entitled to deposit/lender or borrowing its funds. It is the Company s right whether or not to participate in Cash Pooling. The criteria for determining the deposits or loan are as follows: (1) Considering on liquidity of the Company at that period of time and do not make a deposit or loan to be a burden or affect the liquidity of the Company for both Thai Baht and U.S. Dollars. (2) Study and compare the benefits between deposit or loan through Cash Pooling and deposit or loan with financial institution or other funding sources and consider alternative option that are useful for the Company the most. (3) Monitoring business and financial status of companies participating in the Cash Pooling closely (4) To reduce the risk to the Company, the Company will deposit Thai Baht in an amount not exceed 1, Million Baht. For U.S. dollars, the Company will deposit at maximum of 1 Million Baht to limit risk. (5) POSCO Asia Ltd. agrees to indemnify any loss of deposit balance of the Company by issue Letter of Guarantee as a result of the occurrence of default incurred by participated in Cash Pooling for Thai baht and U.S. dollar Pool.

7 Summary of the Draft Agreement, Which Will Occur BAML has prepared a draft agreement, Customer Liquidity Agreement, that the Company and other companies in POSCO Group will participate in Cash Pooling are signed with BAML. The agreement specifies that POSCO S.A. represents all companies in Thai baht Pool and POSCO Asia Ltd. represents all companies in U.S. dollars Pool. Both Companies are responsible to manage and follow the interest payment, and to do the report and plan the money withdrawal or borrow the money only. The Company has reserved the right to appoint the representative to conduct or perform any act on behalf of the company in special transaction that required the approval from the Board of Directors and/or the approval from the shareholders meeting including disclose the transaction. Furthermore, in case one company in the Pool is default, BAML has the right to seize only the deposit account of the defaulted company. BAML has no right to seize other companies deposit accounts. But the Company still has the liability for that default since the Company joins the program together with other companies. However, POSCO Asia Co., Ltd. agrees to indemnify any loss of deposit balance of the Company as a result of the occurrence of default incurred by participated in Cash Pooling for Thai baht and U.S. dollar but the Company may suffered indirectly from receiving higher borrowing rate or lower deposit rate as a result from defaulted company and decreasing pool benefit. 3. Total Transaction Value Deposit of funds Transaction size = (Deposit amount + (1 year maximum interest rate that can be obtained)) / Net tangible assets The transaction size compared to net tangible assets of the Company based on the financial statements of the Company as of December 31, 215 Transaction size = (1,,, + (1,,, x 1.88 %*)) / 8,687,633,841 = 11.73% of the Company s net tangible assets Loan from BAML Transaction size = (1 year interest) / Net tangible assets The transaction size compared to net tangible assets of the Company based on the financial statements of the Company as of December 31, 215 Transaction size = (1,,, x 2.7 %*) / 8,687,633,841 =.31% of the Company s net tangible assets

8 The transaction regarding on entering into Cash Pooling Agreement by deposit and borrow funds from the POSCO s networks is considered as a connected transaction according to Notification of the Capital Market Supervisory board No. Tor. Jor. 21/2551 Re: Rules of Entering into Connected Transaction and the Notification of the board of Governors of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Connected Transactions, 23. ( Rules on Connected Transaction ) The transaction size is higher than 3 percent of the Company s net tangible assets; therefore, the Company is duty-bound to prepare a report and disclose the transaction to the SET and to seek approval of the transaction from the shareholders meeting with a required vote of at least threefourths of the total number of votes of shareholders who attend the meeting and have the right to vote, excluding shareholders who have beneficial interest. * The maximum 1-year deposit rates calculated from the case that the amount of deposit and loan amount are equal. The maximum loan rates calculated from the case that there is no depositor. 4. The Parties Involved and Their Relationship with the Listed Company POSCO is the major shareholder in INOX amount of 6,62,532,219 shares, representing 84.92%. POSCO is the major shareholder in the companies above that will participate in the Cash Pooling and POSCO have sent 4 representatives as the Board of Directors from a total of 9 persons. Company Name Share Holding of POSCO Direct Indirect Total Posco Thainox Public Company Limited 84.92% % List of companies participating in Cash Pooling, U.S. dollars (2-17) and Thai baht (1-3) 1. POSCO Coated Steel (Thailand) Co., Ltd. 1.% - 1.% 2. POSCO (Thailand) Co., Ltd % 14.38% 1.% 3. POSCO-South Asia Co., Ltd. 1.% - 1.% 4. POSCO Asia Ltd. 1.% - 1.% 5. POSCO Australia PTY LTD. 1.% - 1.% 6. POS-GC PTY LTD. - 1.% 1.% 7. POS-CD PTY LTD. - 1.% 1.% 8. POS-NP PTY LTD. - 1.% 1.% 9. POSCO Canada Limited - 1.% 1.% 1. MOTTA Resources Indonesia, PT 65.% - 65.% 11. POSCO Philippine Manila Processing Center 1.% - 1.% 12. Daewoo International Singapore PTE LTD. 1.% - 1.% 13. POSCO America Corporation 99.45%.55% 1.%

9 Company Name Share Holding of POSCO Direct Indirect Total 14. POSCO America Alabama Processing Center Co., Ltd. 1.% - 1.% 15. POSCO MAPC Co., Ltd. 8.% 2.% 1.% 16. POSCO MPPC Co., Ltd % 95.% 17. POSCO MVWPC Co., Ltd % 1.% 66.75% 5. Characteristics and Scope of Interests of Connected Persons POSCO is the major shareholder of participating companies consists of INOX by holding 84.92% and holding 1.% of paid up capital in POSCO.TH, POSCO-TCS and POSCO S.A. 6. Opinion of the Board of Directors Concerning a Decision to Enter into a Transaction The Board of Directors considered that such connected transaction is appropriate because entering the Liquidity Management System Cash Pooling will benefit the Company by improve the flexibility and efficiency in liquidity management. The Company will receive return on investment higher than market rate of deposit with commercial banks and loan rates lower than normal loan rates of commercial banks. Moreover, such agreement is serving as an alternative for the Company to manage its liquidity. Therefore, the Company can compare the optimal benefit, which the Company may receive from other alternatives as well. 7. Opinion of the Company s Audit Committee and/or Directors Which Are Different from the Opinion of the Board of Directors - None - Mr. Kyung Hwa Song, Mr. Yeong-Hwan Han, and Mr. Chung Hwan Jeong are the directors that represent POSCO, considered having conflict of interest on the transaction. They did not attend and vote in the meeting. *Mrs. Ho Jin Chae, a director that represents POSCO, resigned from the Company effective on 23 February Significant material legal disputes or claims. As of 31 December 215, the Company has significant legal proceeding as follow; During year ended 31 December 215, a company limited has filed a case against the Company claim the Company to repay the overpaid money from selling and purchasing of non-production lands and assets transaction in year 211, plaintiff claims that the payment was not conformed to the resolution of the Extraordinary General Shareholders Meeting No.1/211, demand the Company to repay the overpaid of 89.7 Million Baht with interest of 22.9 Million Baht, total case claim amounting to Million Baht and

10 interest on the principle amount at the rate of 7.5 % per annum until the payment has been fully paid. Currently, the case is in the first court proceeding. In 212, the Company was sued by former employees on unfair dismissal ground, claim amounting to 4.7 Million Baht and such case currently in the Supreme Court proceeding. 9. Corporate Profile and Nature of Business POSCO-Thainox Public Company Limited is backed up with a strong foundation by the joint venture, dating back on 3 July 199, of the world s leading steel industry groups from France, Japan, Italy and Thailand. The company s cold-rolled stainless steel manufacturing facility - regarded as the first of its kind in Thailand - is located on 13 rai (51 acres) of land in Rayong Industrial Park. Since September 211, the company has been synergized into the Global POSCO family, a South Koreabased leader in the global steel and stainless steel industry. Being a part of Global POSCO enhances POSCO-Thainox s competitiveness and operation efficiency, ensuring that the company successfully executes its strategic growth plan, and controls the largest share of the domestic market with full-fledged production capacity and a wide range of different stainless steel grades. In addition, Global POSCO s strong distribution network contributes significantly to the effective penetration of products into worldwide markets. Nature of Business INOX is the only producer of cold-rolled stainless steel in Thailand and the market leader of premiumquality cold-rolled stainless steel products in ASEAN. The Company began its operation in INOX produces and sales various grades of cold-rolled stainless steel sheet in roll, sheet and strip form. Products can be divided into two main types according with microstructure of the Company, including (1) Cold Rolled Austenitic Stainless Steel and (2) Cold Rolled Ferritic Stainless Steel. Both types of stainless steel are the most commonly used, accounting for about 9 percent of current stainless steel consumption. The cold-rolled stainless steel of the Company has various thickness depends on the customer requirements. Company Product Stainless Steel is a general term used to refer steel with corrosion resistance, which contain chromium at least 1.5 percent. Chromium create protection film that acts as a shield against the corrosion, in order to make the steel surface unable to react with oxygen in the air to form an oxide film on the steel surface which caused the steel surface weathering, also known as rust. INOX produces and sales various grades of cold-rolled stainless steel sheet in roll, sheet and strip form. Products can be divided into two main types according with microstructure of the Company, including (1)

11 Cold Rolled Austenitic Stainless Steel and (2) Cold Rolled Ferritic Stainless Steel. Both types of stainless steel are the most commonly used, accounting for about 9 percent of current stainless steel consumption. Cold-rolled stainless steel of the Company has a thickness ranging from.3 mm to 3.mm and width ranging from 3 mm to 1,265 mm. 1. Management and the top 1 major shareholders The Management As of 11 March 216, the management team are as follows; Item Name Position 1. Mr. Kyung Hwa Song President 2. Mr. Yeong Hwan Han Chief Financial Officer 3. Mr. Hyoung Mok Kim Director of Marketing Division 1 4. Mr. Chung Hwan Jeong Director of Marketing Division 2 5. Mr. Seung Yong Han Director of Production As of 11 March 216 (recent update), the list of top 1 shareholders are as follows; Item Name Share amount % of Shareholding 1. POSCO 6,62,532, % 2. Mr. Chalermchai Mahagitsiri 789,57, 1.13% 3. Nippon Steel & Sumikin Stainless Steel Corporation 22,127,1 2.59% 4. Mr. Suthee Limatibul 77,57, 1.% 5. Mrs. Wansiri Numpitakchaikul 12,3,6.15% 6. Mr. Chanchai Numpitalchaikul 9,,.12% 7. Mrs. Nontaya Apinothai 6,65,9.8% 8. Mr. Sawas Pothikumjohn 5,7,.7% 9. Mr. Nopadol Anurukchaivit 4,35,.6% 1. Mr. Peera Patamawarakulchai 4,78,.5% Total number of shares of major shareholders 7,73,978, % Other shareholders 64,73,281.83% Total outstanding shares 7,795,79,1 1.%

12 11. The benefit or transaction between the Company and directors and the holders of the shares owned either directly or indirectly 1 percent or more. As of 31 December 215, the Company s connected transaction with companies and person who may have conflict of interests and related companies. Summarized as follows: transaction between the Company and Shareholders and related companies Parties POSCO (South Korea) Daewoo Corporation International Co., Ltd. POSCO Asia Co., Ltd. POSCO Vietnam Processing Centre Ltd. Nature of relationships Parent company, 84.92% shareholding Transaction (2) Purchase of raw material (3) Trade (4) (5) Other service fee (2) (3) Trade Payable (4) Purchase of raw material (1) (2) Purchase of raw material (3) Trade Payable (2) Purchase of Year ended 31 Dec 215 2,16,191 8,134,946 16, , ,51 1,379,585 83, ,95 4,46 147,377 27,757 Year ended 31 Dec 214 2,411,566 6,613,692 24,75 285,622 4,486 1,861,25 64,528 5,262,335 42,746 2,844 Unit: thousand Baht Nature of transaction Accrued raw material Purchase of raw material Accrued sale of scrap Sale of scrap Other service fee Accrued sale of goods Accrued purchase of raw material Purchase of raw material Purchase of raw materials Accrued purchase of raw material Accrued purchase of raw materials Purchase of raw

13 Parties POSCO ICT Co., Ltd. POSCO Venture Capital Co., Ltd. POSCO Group University POSCO VST Co., Ltd. POSCO South Asia Co., Ltd. POSCO Thailand Co., Ltd. POSCO Japan Corporation Nature of relationships Transaction raw material (3) (4) Trade (1) Other (2) Purchase of asset (3) Service fee (1) Other service fee (1) Other (2) Other service fee (1) (2) Purchase of goods (1) Other (2) Service fee (2) (3) Purchase of goods (2) Year ended 31 Dec 215 1,487 Year ended 31 Dec 214 5,115 5,121 3,452 Nature of transaction material Accrued sale of goods Accrued purchase of asset and other service fee Purchase of asset 17,711 2,285 Communication expense Risk protection expense ,136 9, ,149 4, , ,922 21,186 Training expense Purchase of raw material Accrued service fee Technical assistance expense Accrued sale of goods Purchase of raw materials Accrued sale of goods

14 Parties POSCO P& S POSCO LED POSCO Research Institute POSCO Processing and Service NS Thainox Auto Co., Ltd. Nippon Steel & Sumikin Bussun Corporation Nippon Steel & Sumikin Bussun (Thailand) Nature of relationships Associate, 49% shareholding with NSSC with NSSC Transaction Year ended Year ended Nature of 31 Dec Dec 214 transaction 6,87 Accrued sales of goods (2) 25, ,122 Accrued purchase of goods (2) Purchase of 5,262 3,224 Purchase of equipment equipment (1) Training fee 284 Training and seminar expense (2) Purchase of goods (3) Trade (4) (2) (2) Purchase of raw material (3) Trade (4) (2) (3) Sale of scrap (4) Purchase of raw material 2,44 2,39 12,254 26,68 156,91 35, ,992 2,377 38,919 24,323 14,947 99, , ,355 45,735 1,729 34,934 44,68 Accrued sale of goods Accrued sale of goods Accrued purchasing of raw material Purchase of raw material Accrued sales of goods Accrued sale of goods Sale of scrap Purchase of raw material

15 Parties Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) Sumitomo Corporation (Japan) Key Management personnel Nature of relationships Direct minority shareholders and direct shareholders of the associated company. As of 11 March 216, 2.6% shareholding with NSSC Persons having authority and responsibility for planning directing and controlling the activities of the entity, directly or indirectly, including and director (whether executive or otherwise) of the Company. Transaction (5) Trade (6) Commission fee (1) Accrued expense (2) Technical assistance expense (2) Purchase of raw material Key Management personnel Compensation Year ended 31 Dec Year ended 31 Dec , Nature of transaction Accrued purchasing of raw material Promotion service fee Accrued Technical assistance expense Technical assistance expense -1,329 12,296 Accrued Purchase of raw materials Purchase of raw material 15,46 97,267 Actual paid Key management personnel compensation includes bonuses, which determined by resolution of the general meeting of shareholder

16 12. Summary of Financial Statement and analysis of operating results and financial status Financial Statement Unit: Baht Consolidated Statement of financial position 31 Dec Dec Dec 215 Assets Current assets Cash and cash equivalents ,33.24 Temporary investments 1, Trade accounts 1, ,96.1 1, Trade from debt restructuring due within 1 year Inventories 3, , ,14.95 Other current assets 3, Total current assets 7, , ,94.76 Non-current assets Investment in associate Other long-term investments Trade from debt - restructuring Property, plant and equipment 4, Non-tangible assets - Net Other non-current assets Total non-current assets 4, , , Total assets 11, , , Liabilities and equity Current liabilities Short-term loan from financial institution Trade accounts and notes 3, ,91. 2, Current portion of long-term loans from financial institutions due within 1 year Other current liabilities

17 Consolidated Statement of financial position 31 Dec Dec Dec 215 Total current liabilities 3, , ,4.87 Non-current liabilities Long-term loans from financial institution Deferred tax liabilities Employee benefit obligations Total non-current liabilities Total liabilities 3, ,69.4 2, Equity Share capital: Authorized share capital 7, , , Issued and paid-up share 7, capital 7, , Additional paid in capital: Premium on ordinary shares Retained earnings Appropriated Legal reserve Deficit (372.77) (139.98) Other components of equity Total equity 8, , , Total liabilities and equity 11, , , Income Revenue from sale of goods 1, , ,75.39 Cost of sales of goods (1,446.29) (12,996.7) (11,184.97) Gross profit Other income (287.28) Selling expenses (13.4) (21.88) (187.36) Administrative expenses (462.11) (323.6) Finance costs (13.4) (8.97) (1.52) Share of profit of associate (3.44) Profit before income tax (287.19) Income tax (29.16)

18 Consolidated Statement of financial position 31 Dec Dec Dec 215 Other comprehensive income (loss) (316.36) Other comprehensive income (loss) for the year, net of tax (5.51) (15.26).45 Total comprehensive income for the year (321.87) Earnings per share Basic earnings per share (.4) Financial Ratios Financial Ratios As at 31 Dec Dec Dec 213 Liquidity ratio Current ratio (times) Quick ratio (times) Cash from Operating ratio(times) (.19) (.24).5 Receivable turnover ratio(times) Collection period (days) Inventory turnover ratio (times) Averaged Number of Days Sales Account turnover ratio (times) Payment Days Cash cycle (days) Profitability ratio Gross profit margin (%) Operating profit margin (%) (1.57) Other profit margin (%) (.52) Quality of Earnings (%) (294.59) , Net profit margin (%) (2.65) Return on equity (%) (3.33) Efficiency ratio Return on assets (%) (2.26) Return on fixed assets (%) (5.8)

19 Financial Ratios As at 31 Dec Dec Dec 213 Assert turnover (times) Financial policy ratio Debt to equity ratio (times) Interest coverage ratio (times) (52.58) (93.82) Leverage Ratio (times) (.92) (.5).99 Financial Position and Operating Performance Analysis Assets As of December 31, 215, the Company s total asset was at 11,172.4 Million Baht, decreased 1,9.8 Million Baht or 8.3% compared to December 31, 214 due to, Cash & cash equivalents and temporary Investments were 1,864.7 Million Baht increased 866. Million Baht or 86.7% compared to Million baht at December 31, 214. Accounts Receivable (net) was 1,992.7 Million Baht, decreased 13.4 Million Baht or 4.9%. Inventory was 3,15. Million Baht, decrease 1,198.4 Million Baht or 28.4% compared to 4,213.3 Million Baht end of 214. Property, Plant and Equipment was 4,86.7 Million Baht, decreased by Million Baht or 7.6% compared to 4,421.2 Million Baht end of 214, mainly due to depreciation expense Million Baht and investment in fixed asset 89.2 Million Baht. Liabilities As of December 31, 215, the Company s total liability was at 2,479.3 Million Baht, decreased 1,13.1 Million Baht or 31.3% compared to 3,69.4 Million Baht end of 214 due to, Accounts totally 2,398.7 Million Baht, decreased 52.3 Million Baht or 17.3% due from payment of raw material. Short term borrowings from financial institutions decreased 596. Million Baht due from repayment of borrowing during the period.

20 Revenue The company recognized 11,75.4 Million Baht revenue from sale of cold rolled stainless steel (169,59 tons with average selling price of 69,55 Baht per ton), which is lower than the sale in the year 214 amounting to 13,647.4 Million Baht (185,386 tons with average selling price of 73,616 Baht per ton) by 1,942. Million Baht or decreased by 14.2%, due to sale volume decreased 15,876 tons and average selling price decrease 6.2% Net gain on exchange rate equal to 83.4 Million Baht, increased 2.7 Million Baht or 3.3% compared to the year of 214 which made profit 8.7 Million Baht. Interest income in the year of 215 was 12.9 Million Baht, decrease 1. Million Baht or 43.6% compared to the year of 214. Gross profit Gross profit Margin totally 52.4 Million Baht or 4.4% to sale compared to the year of 214 which made profit margin Million Baht or 4.8% to sale. Expenses In 215, the Company had total expense amounted to Baht 11,76.44 million decreased from 214 which had total expenses of Baht 13,669.4 million by Baht 1,962.6 million or a decrease of % due to following reasons Cost of Sales for the year of 215 totally 11,185. Million Baht, decreased 1,811.1 Million Baht or 13.9% compared to the year of 214, due to the decrease in sale volume. Selling and Administrative expenses in the year of 215 decreased 153. Million Baht compared to the year of 214 mainly due to loss from debt restructuring from customer in the year of 214. Corporate income tax for the year of 215 decreased 77.9 Million Baht. Net loss Net profit for the year of 215 was Million Baht, decreased 99.8 Million Baht or 45.4% compared to the year of 214 was net profit Million Baht mainly from decrease of gross profit margin 13.9 Million Baht, Selling and administrative expenses decreased 153. Million Baht and corporate income tax decreased 77.9 Million Baht.

21 13. Detail of Connected Persons who not entitled to have the voting right The company s shareholders who are related persons and persons having a conflict of interest, not entitled to having the voting right to approve such transaction, are as follows. Item Connected persons Shareholding Proportion (as of 11 March 216) Number of shares % 1. POSCO 6,62,532, % Board of Directors certified that the above information is correct and complete. No information could lead to the misunderstanding of the essence and not exposed significant information that should be disclosed. Sincerely Yours, (Mr.Yeong Hwan Han) Director