Balance Sheet 6th Fiscal Year (as of Dec. 31 2006) 5th Fiscal Year (as of Dec. 31 2005) 6th year 5th year ASSETS I. CURRENT ASSETS 501,121,703,544 514,731,203,929 (1) Quick assets 400,439,958,565 446,840,327,827 1. Cash and cash equivalents 111,886,796,742 191,372,286,678 State subsidy (-)392,729,453 111,494,067,289-191,372,286,678 2, Short-term financial instruments 80,000,000,000 70,000,000,000 3. Available-for-sale 500,000,000-4. Trade receivable 201,476,705,662 174,754,285,503 (Allowance for bad debts) (-)2,400,540,976 199,076,164,686 (-)2,125,954,190 172,628,331,313 5. Non-trade receivables 4,328,855,986 3,335,128,317 (Allowance for bad debts) (-)11,736,595 4,317,119,391 (-)33,349,937 3,301,778,380 6. Accrued revenues 394,731,507 324,457,408 7. Prepaid payments 327,057,548 8,629,496,429 8. Advance payments 1,916,696,155 138,029,483 9. Current portion of estimated warranty asset 750,434,005 445,948,136 10. Current portion of long-term obligations under financing loan 110,603,396-11. Current portion of deferred income tax liabilities 1,553,084,588 - (2) Inventories 100,681,744,979 67,890,876,102 1. Merchandises 2,372,489,846 1,884,782,410 2. CKD parts 103,262,258,074 66,006,093,692 Valuation allowance (-)4,953,002,941 98,309,255,133-66,006,093,692 II. FIXED ASSET 255,366,877,934 169,147,221,525 (1) Investments 141,450,935,289 94,912,022,113 1. Long-term financial instrument 8,500,000 8,500,000 2. Available-for-sale 9,891,517,188 7,985,262,189 3. Securities under equity method 119,111,289,248 83,148,950,328 4. Long-term loans 242,092,927-5. Leasehold deposits 1,473,579,395 518,280,077 6. Estimated warranty assets 2,619,650,790 1,146,723,778 7. Other investment assets 8,104,305,741 2,104,305,741 (2) Tangible assets 107,808,597,646 69,423,330,639 1. Land 50,049,638,982 41,595,124,492 2. Buildings 35,754,083,929 14,454,362,384 Accumulated depreciation (-)2,470,140,443 33,283,943,486 (-)1,122,554,157 13,331,808,227 3. Structures 8,475,891,233 4,069,933,426 Accumulated depreciation (-)665,475,301 7,810,415,932 (-)322,543,924 3,747,389,502 4. Machinery 5,035,800,000 1,700,690,000 Accumulated depreciation (-)1,232,940,652 3,802,859,348 (-)674,295,651 1,026,394,349 5. Vehicles 8,175,269,237 6,202,640,605 Accumulated depreciation (-)4,439,208,949 3,736,060,288 (-)3,164,384,271 3,038,256,334 6. Tools 472,390,500 370,684,500 Accumulated depreciation (-)197,079,101 275,311,399 (-)110,948,431 259,736,069 7. Office equipment 8,825,305,415 6,321,927,936 Accumulated depreciation (-)3,744,321,029 5,080,984,386 (-)2,293,559,710 4,028,368,226 8. Construction in-progress 3,769,383,825 2,396,253,440
(3) Intangible asset 6,107,344,999 4,811,868,773 1. Goodwill 1,170,835,333 1,886,669,866 2. Industrial property 80,866,486 97,900,638 3. Development costs 3,277,249,675 1,627,066,340 4. Other intangible assets 1,578,393,505 1,200,231,929 TOTAL ASSETS 756,488,581,478 683,878,425,454 LIABILITIES I. CURRENT LIABILITIES 285,606,376,478 288,078,232,553 1. Trade payable 226,406,019,080 177,520,444,309 2. Short-term borrowings - 41,900,000,000 3. Non-trade payable 17,337,557,160 12,121,479,108 4. Advances from customers 25,665,551,205 40,524,041,564 5. Withholding 5,877,194,519 1,831,397,489 6. Deposits provided 1,304,000,000 1,184,000,000 7. Accrued expenses - 692,108,319 8. Current portion of long-term debts 110,603,396-9. Income tax payable 7,833,402,539 11,634,157,803 10. Current portion of estimated warranty debts 1,072,048,579 637,068,766 11. Current portion of deferred income tax liabilities - 33,535,195 II. LONG-TERM LIABILITIES 32,415,880,285 21,051,752,403 1. Non-current loan payable 242,092,927-2. Provision for severance benefits 5,859,563,407 3,608,325,284 (Deposits for severance benefits) (-)3,498,104,804 (-)2,158,097,885 (Contribution to national pension plan) (-)7,845,500 2,353,613,103 (-)11,541,200 1,438,686,199 3. Provision for product warranties 3,742,358,271 1,638,176,826 4. Deferred income tax liabilities 26,077,815,984 17,974,889,378 TOTAL LIABILITIES 318,022,256,763 309,129,984,956 STOCKHOLDER'S EQUITY I. CAPITAL STOCK 18,750,000,000 18,750,000,000 1. Common stock 18,750,000,000 18,750,000,000 II. CAPITAL SURPLUS 153,618,863,259 153,618,863,259 1. Paid-in capita in excess of par value 153,618,863,259 153,618,863,259 III. RETAINED EARNINGS 260,609,909,743 200,480,207,601 1. Legal reserve 2,012,500,000 1,450,000,000 2. Reserve for business development 5,616,911,762 5,616,911,762 3. Voluntary reserve 150,000,000,000 75,000,000,000 4. Unappropriated retained earnings from prior year 102,980,497,981 118,413,295,839 (Net income : this year : 66,686,923,769 prior year : 79,965,646,030) IV. CAPITAL ADJUSTMENTS 5,487,551,713 1,899,369,638 1. Gain on valuation of equity 7,062,508,828 2,790,807,297 2. Loss on valuation of equity (-)1,574,957,115 (-)891,437,659 TOTAL STOCKHOLDER'S EQUITY 438,466,324,715 374,748,440,498 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 756,488,581,478 683,878,425,454
Income Statement 6th Fiscal Year (Jan. 1 2006 ~ Dec. 31 2006) 5th Fiscal Year (Jan. 1 2005 ~ Dec. 31 2005) 6th year 5th year I. SALES 1,885,086,853,273 1,540,835,625,835 1. Domestic logistics services 647,325,504,382 560,161,152,858 2. Overseas logistics services 511,326,850,056 464,444,819,293 3. Sales of CKD parts 644,139,817,105 454,136,273,202 4. Merchandise sales 82,294,681,730 62,093,380,482 II. COST OF GOODS SOLD 1,751,590,891,658 1,406,587,674,288 1. Cost of domestic logistics 598,039,718,115 513,064,637,928 2. Cost of Overseas logistics 467,862,996,369 427,156,959,107 3. Cost of CKD part sold 611,618,063,240 410,440,643,899 4. Cost of merchandise sold 74,070,113,934 55,925,433,354 III. GROSS PROFIT 133,495,961,615 134,247,951,547 IV. SELLING & ADMINISTRATIVE EXPENSES 77,874,639,553 55,727,273,594 1. Salaries expenses 14,466,189,253 11,202,140,864 2. Severance benefits 2,550,806,002 1,064,275,999 3. Employee benefits 2,389,118,711 2,142,193,550 4. Travel expenses 773,147,453 815,803,168 5. Communication expenses 790,652,425 610,000,807 6. Office maintenance expenses 347,141,973 301,774,176 7. Utilities expenses 68,180,420 57,071,293 8. Taxes and Dues 197,555,313 128,815,666 9. Rental expenses 1,028,212,349 761,938,383 10. Depreciation expense 1,139,048,388 887,740,486 11. Amortization expenses on intangible assets 1,729,306,766 1,717,452,390 12. Repairs expenses 113,845,434 96,223,825 13. Insurance premium 647,690,429 305,260,572 14. Entertainment expenses 122,594,768 103,619,873 15. Advertising expenses 315,605,105 204,255,120 16. Supplies expenses 104,149,794 53,461,492 17. Office supplies expenses 307,220,559 236,069,870 18. Publication expenses 25,458,769 26,910,294 19. Service fees 8,604,472,769 6,049,579,338 20. Freight expenses 37,873,208,921 25,611,701,690 21. Vehicles maintenance expenses 186,087,594 125,809,748 22. Bad debt expenses 392,413,211 436,379,012 23. Training expenses 225,390,057 290,430,923 24. IT system operating expenses 2,232,082,181 1,815,791,377 25. Estimated warranty expenses 1,245,060,909 682,573,678 V. OPERATING INCOME 55,621,322,062 78,520,677,953 VI. OTHER INCOME 54,010,287,317 45,424,765,037 1. Interest revenues 9,305,828,492 2,806,638,717 2. Rental revenues 55,620,724 49,800,000 3. Fees revenues 404,286,516 474,243,273 4. Gain on disposition of available-for-sale 2,662,172-5. Gain on disposition of tangible assets 23,992,975 36,575,243
6. Gain on foreign currency transaction 9,958,755,938 6,642,639,279 7. Gain on foreign currency translation 603,685,651 898,499,965 8. Income tax returned 1,133,679,064 28,672,272 9. Gain on prior period error correction - 31,649,450 10. Gain on equity method 32,228,587,842 34,294,489,397 11. Reversal of allowance for possible loan losses 1,593,156-12. Miscellaneous revenues 291,594,787 161,557,441 VII. OTHER EXPENSE 19,676,794,703 13,861,868,834 1. Interest expense 4,570,226,259 4,006,579,264 2. Donations 312,430,360 206,555,380 3. Loss on disposition of available-for-sale 129,011 9,000,000 4. Loss on disposition of tangible asset 27,399,588 560,771,573 5. Loss on foreign currency transaction 13,266,329,519 8,125,589,792 6. Loss on foreign currency translation 1,141,622,674 718,627,778 7. Other bad debts expense - 26,860,613 8. Loss on prior year error correction - 71,694,700 9. Loss on disposition of trade receivables - 3,503,036 10. Reduction loss on intangible asset - 41,018,333 11. Miscellaneous losses 358,657,292 91,668,365 VIII. ORDINARY INCOME 89,954,814,676 110,083,574,156 IX. EXTRAORDINARY GAIN - - X. EXTRAORDINARY LOSS - - XI. EARNINGS BEFORE TAXES 89,954,814,676 110,083,574,156 XII. INCOME TAX EXPENSE 23,267,890,907 30,117,928,126 XIII. NET INCOME 66,686,923,769 79,965,646,030 (Ordinary income per share : this year : KRW 1,778 prior year : KRW 2,647 )
Statements of Appropriations of Retained Earnings 6th Fiscal Year (Jan. 1 2006 ~ Dec. 31 2006) 5th Fiscal Year (Jan. 1 2005 ~ Dec. 31 2005) I. RETAINED EARNINGS BEFORE APPROPRIATIONS 6th year 102,980,497,981 5th year 118,413,295,839 1. Unappropriated retained earnings carried over from prior years 37,225,795,839 38,262,162,230 2. Change in retained earnings of equity method investment (-)932,221,627 185,487,579 3. Net income 66,686,923,769 79,965,646,030 II. APPROPRIATIONS 71,187,500,000 81,187,500,000 1. Legal reserve 562,500,000 562,500,000 2. Dividends 5,625,000,000 5,625,000,000 1) Cash dividends 5,625,000,000 5,625,000,000 Dividend ratio: common stock this, prior year: KRW 150 (30%) 3. Reserve for facility investment 40,000,000,000 50,000,000,000 4. Other reserves 25,000,000,000 25,000,000,000 III. UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO THE NEXT YEAR 31,792,997,981 37,225,795,839
Statement of Cash Flow 6th Fiscal Year (Jan. 1 2006 ~ Dec. 31 2006) 5th Fiscal Year (Jan. 1 2005 ~ Dec. 31 2005) 6th year Amount 5th year Amount I. CASH FLOWS FROM OPERATING ACTIVITIES 33,524,909,678 58,737,424,401 1. Net income 66,686,923,769 79,965,646,030 2. Addition of expenses without cash outflows 12,058,708,588 8,948,615,352 Severance benefits 2,685,006,684 1,144,682,624 Depreciation expenses 5,137,833,931 3,526,697,985 Loss on disposition of available-for-sale 129,011 9,000,000 Loss on foreign currency translation 716,470,573 718,627,778 Intangible assets amortization cost 1,854,394,681 1,798,500,720 Bad debt expenses 392,413,211 436,379,012 Estimated warranty expenses 1,245,060,909 682,573,678 Other doubtful account expenses - 26,860,613 Loss on disposition of tangible assets 27,399,588 560,771,573 Loss on disposition of trade receivables - 3,503,036 Impairment loss on intangible asset - 41,018,333 3. Deduction of revenues without cash inflows (-)32,838,617,714 (-)35,229,564,605 Gain on foreign currency translation 544,511,022 898,499,965 Equity method gain 32,228,587,842 34,294,489,397 Reversal of allowance for doubtful accounts 1,593,156 - Gain on disposition of tangible assets 23,992,975 36,575,243 Gain on disposition of available-for-sale 2,662,172 - State subsidy offset 37,270,547-4. Changes in assets and liabilities due to operating activities (-)12,382,104,965 5,052,727,624 Increase in trade receivables (-)26,939,900,526 (-)38,709,225,821 Increase in inventories (-)32,790,868,877 (-)65,201,345,169 Increase in accrued income (-)70,274,099 (-)262,217,894 Increase in account receivables (-)1,035,672,232 (-)2,712,044,333 Increase in advance payments 8,302,438,881 177,555,105 Increase in prepaid expenses (-)1,778,666,672 (-)16,311,615 Increase in current portion of deferred income tax asset (-)1,553,084,588 - Decrease in deposit of insurance for severance and retirement (-)1,340,006,919 (-)650,847,898 Increase in trade payables 48,837,079,725 64,616,062,069 Increase in account payables 5,214,191,866 5,924,364,609 Increase(decrease) in advances from customers (-)14,858,490,359 39,754,453,464 Increase in withholdings 4,045,797,030 920,411,196 Increase in accrued expense (-)692,108,319 692,108,319 Decrease in income taxes payable (-)3,800,755,264 (-)8,584,017,570 Increase(decrease) in current portion of deferred income taxes liabilities (-)33,535,195 33,535,195 Increase in deferred income tax liabilities 7,025,135,976 9,215,418,501 Payment of estimated warranty expense (-)483,312,532 - Payment of severance & retirement benefits (-)450,440,914 (-)145,170,534
Succession of provision for severance benefits 16,672,353 - Decrease of contribution to National Pension Plan 3,695,700 - II. CASH FLOWS FROM INVESTING ACTIVITIES (-)66,388,095,937 (-)95,025,022,303 1. Cash inflows from investing activities 234,806,417 564,542,027 Disposition of available-for-sale 123,419,142 86,895,000 Receipt of dividends on investment in associates - 195,000,000 Decrease in leasehold deposits - 3,870,000 Disposition of other investment assets 35,000,000 - Disposition of land - 100,000,000 Disposition of buildings 1,400,000 150,000,000 Disposition of structures - 930,000 Disposition of vehicles and transportation equipment 74,084,000 25,347,027 Disposition of office fixtures 903,275 2,500,000 2. Cash outflows for investing activities (-)66,622,902,354 (-)95,589,564,330 Increase in short-term financial instrument 10,000,000,000 70,000,000,000 Acquisition of available-for-sale 2,527,140,980 6,804,775,568 Acquisition of investment in associates - 11,294,615,000 Increase in long-term lease 352,696,323 - Increase in leasehold deposits 955,299,318 103,655,214 Acquisition of land 16,986,170 5,512,930 Acquisition of buildings 343,834,970 122,598,269 Acquisition of structures - 9,480,061 Acquisition of machinery and equipment 891,110,000 125,000,000 Acquisition of vehicles and transportation equipment 2,096,724,760 741,662,201 Acquisition of tools and instruments 101,706,000 141,034,000 Acquisition of office fixtures 2,479,486,479 1,751,590,670 Increase in construction in-progress 39,727,205,447 3,485,253,440 Increase in intangible assets 1,095,711,907 1,004,386,977 Acquisition of other investment assets 6,035,000,000 - III. CASH FLOWS FROM FINANCING ACTIVITIES (-)46,622,303,677 152,928,415,431 1. Cash inflows from financing activities 902,696,323 158,273,863,259 Increase in guarantee deposit 120,000,000 905,000,000 Increase in long-term borrowings 352,696,323 - Increase in capital stock - 3,750,000,000 Increase in paid-in capital in excess of par value - 153,618,863,259 Receipt of state subsidy 430,000,000-2. Cash outflows for financing activities (-)47,525,000,000 (-)5,345,447,828 Decrease in short-term borrowings 41,900,000,000 - Decrease in guarantee deposits - 602,000,000 Decrease in current portion of lease payables - 243,447,828 Payment of dividends 5,625,000,000 4,500,000,000 IV. INCREASE(DECREASE) IN CASH (I+II+III) (-)79,485,489,936 116,640,817,529 V. CASH AT THE BEGINNING OF THE FISCAL YEAR 191,372,286,678 74,731,469,149 VI. CASH AT THE END OF THE FISCAL YEAR 111,886,796,742 191,372,286,678