2011.

3Q
2011
Performance

2011. 11. 10
 - Contents
C -
1. 2011. 3Q. Summary
1) Summary --------------------------------------------------------- 1
2) Compositions --------------------------------------------------------- 2
2 2011.
2. 2011 3Q.
3Q Financial
Fi i l Performance
P f
1) Income Statement --------------------------------------------------------- 4
2) Balance Sheet --------------------------------------------------------- 5
3) Cost Breakdown --------------------------------------------------------- 6
3. 2011. 3Q. Operating Performance
1) Int’ll Passenger
Int --------------------------------------------------------- 7
2) Cargo --------------------------------------------------------- 9

4. Fleet Plan --------------------------------------------------------- 11

5. Market Demand
1) Int’l Passenger Demand --------------------------------------------------------- 12
2) Cargo Demand --------------------------------------------------------- 14
※ Account Standards Change --------------------------------------------------------- 16
1. 2011. 3Q Summary

1) Summary(K-IFRS)
Summary(K IFRS)
(Unit : KRW 100mil.) (Unit : KRW 100mil.)

Revenue Operating
p g Income Capital Stock Borrowings
(Op. Margin %)
14,101
13,816 2,479 9,138
((17.9%)) 34,862
1,520
1 520 8 921
8,921
(10.8%) 30,745
(2.1%)
(217) (-4,117)
-38.7%
(-7.2%p)

’10.3Q. ’11.3Q. ’10.3Q ’11.3Q. ’10.3Q. ’11.3Q. ’10.3Q. ’11.3Q.

.

Income Statement (Unit : KRW 100mil.) Balance Sheet (Unit : KRW 100mil.)

Category 2011. 3Q. 2010.3Q. Change(%) Category 2011.09. 2010.12 Change(%)

Revenue 14,101 13,816 2.1% Assets 57,563 59,471 -1,908

Operating
p g
1 520
1,520 2 479
2,479 -38.7%
38 7% Liabilities 49 722
49,722 51 394
51,394 -1,672
1 672
Income
Net Income -474 1,617 - Equity 7,841 8,077 -236
1
1. 2011. 3Q Summary

2) Compositions

Revenue Composition Cost Composition

Domestic Labor
Pax 11.6%
Others
Oth
8.1% 5.4%

Others
31.3%
Cargo
23.3%
Fuel
Sales 38 0%
38.0%
Int’l Pax Commission
63.2% 2.0%
Maintenance
4.9%
Dep. &
Amortization
4.6% Lease Rental
7.6%

[Above numbers are based on 3Q.2011. data]

2
1. 2011. 3Q Summary

Compositions(Cont’d)
2) Compositions(Cont d)

Revenue Composition by Passenger Routes Revenue Composition by Cargo Routes

Oceania Oceania
5.7% 1.0%
Domestic Japan
7.9% 6.7%
Europe
8.7% Domestic
0.4%
Japan Europe S.E. Asia
18 7%
18.7% 21 0%
21.0% 15 6%
15.6%

USA
20.5%
China
8.7%
SE Asia
18.7%
USA
46.7%
China
19.9%

[Above numbers are based on 3Q.2011. data]

3
2. 2011. 3Q Financial Performance

1) Income Statement (K-IFRS)

(K IFRS) (Unit : KRW 100mil.)

Quarterly Cumulative
Category
Change
g Change
g
’11 3Q
’11.3Q. ’10 3Q
’10.3Q. Change ’11 3Q
’11.3Q. ’10 3Q
’10.3Q. Change
(%) (%)
Revenue 14,101 13,816 285 2.1% 39,763 37,828 1,935 5.1%

Cost of Sales 11,286 9,664 1,622 16.8% 32,586 27,748 4,838 17.4%

SG & A. Expenses 1,295 1,673 -378 -22.6% 4,293 4,768 -475 -10.0%

Operating Income 1,520 2,479 -959 -38.7% 2,884 5,312 -2,427 -45.7%

- Op.
O Margin(%)
M i (%) 10 8%
10.8% 17 9%
17.9% -7.2%p
7 2% - 7 3%
7.3% 14 0%
14.0% -6.8%p
6 8% -

Non-Operating Income -2,102 -350 -1,752 - -2,433 -1,993 -439 -

Other Gain 1,380 240 1,141 475.3% 2,725 1,431 1,294 90.4%

Other Loss 3,080 58 3,022 5,245.4% 3,786 1,776 2,010 113.2%

- Foreign Currency related Gain/Loss -784 582 -1,366 - -287 188 -475 -

Financial Gain 37 27 10 34 8%
34.8% 98 89 10 10 9%
10.9%

Financial Loss 439 559 -120 -21.5% 1,470 1,737 -267 -15.4%
- Net Interest Cost 402 532 -130 -24.4% 1,366 1,648 -282 -17.1%

Income Before Taxes -581

581 2 129
2,129 -2,711
2 711 - 452 3 318
3,318 -2,867
2 867 -86.4%
86 4%
Net Income -474 1,617 -2,091 - 321 2,513 -2,191 -87.2%

4
2. 2011. 3Q Financial Performance

2) Balance Sheet (K-IFRS) (Unit : KRW 100mil.)

Category 2011.09 2010.12 Change Change(%)

Current Assets 8,721 8,129 592 7.3%

Non-Current Assets 40,107 42,606 -2,499 -5.9%

Non-Current Assets held for sale 8,735 8,735 0 -

Total Assets 57,563 59,471 -1,908 -3.2%

Current Liabilities 28,329 24,595 3,734 15.2%

Non-Current
Non Current Liabilities 21 393
21,393 26 799
26,799 -5
5,406
406 -20
20.2%
2%

■ Borrowings with Interest 30,745 34,862 -4,117 -11.8%

- KRW Borrowings 22,483 24,559 -2,076 -8.5%

- Foreign
F i C Currency B
Borrowings
i 8 262
8,262 10 303
10,303 -2,041
2 041 -19.8%
19 8%

■ Borrowings without Interest 18,977 16,532 2,445 14.8%

Total Liabilities 49,722 51,394 -1,672 -3.3%

Capital Stock＊ 9,138 8,921 217 2.4%

Total Equity 7,841 8,077 -236 -2.9%

Debt Ratio 634 1%
634.1% 636 3%
636.3% -2.2%p
2 2%p -

＊The number of remained subscription rights, related to BW, was 12.4 million as of 2011.09.30. (Expire date : Feb.2012)
5
2. 2011. 3Q Financial Performance

3) Cost Breakdown (Unit : KRW 100mil

100mil.))

Changes
Category 2011.3Q. 2010.3Q. Remarks
Difference Change(%)
Total Expense 12 581
12,581 11 337
11,337 1 244
1,244 11 0%
11.0%
- Cost of Sales 11,286 9,664 1,622 16.8%

- SG & A Expenses 1,295 1,673 -378 -22.6%

The fuel price and consumption
Fuel Expenses 4,783 3,581 1,202 33.6%
increased
- Fuel Price 300.7 218.0 82.7 37.9%

- Consumption(Mil. USG) 150.5 139.6 10.9 7.8%

- Exchange rate (￦/$) 1,056.7 1,176.7 -120.0 -10.2%

The number of employees and wages

Wages 1,462 1,385 77 5.6%
increased (+4.1%)
- Number of
9 008
9,008 8 474
8,474 534 6 3%
6.3%
employees

Rental Expenses 962 970 -8 -0.9%

Depreciation 577 574 3 0.6%

Engine maintenance price increased and the
Maintenance Expenses 616 434 183 42.1%
capitalized maintenance expenses reduced
Sales commission for passenger flight was
Sales Commission 246 679 - 433 -63.8%
abolished in Korea from 11.4.1.
Borrowing reduced by 426bil
426bil. KRW
* Interest Expenses 439 559 -120 -21.5%
year –on –year

6
3. 2011. 3Q Operating Performance
1)) Int’l Passenger
g

™ 2011. 3Q RPK increased by 9.5% due to the increment of outbound passenger during the big holidays
and vacation season and inbound passenger from China and Japan

Operating
Item ‘11. 3Q. ‘10. 3Q. Change Change(%)
Rev(KRW 100 Mil.) 8,821 7,978 843 10.6%
ASK (Mil.
(Mil KKm)) 9,801 8,882 919 10.3%
%
RPK (Mil. Km) 7,826 7,144 682 9.5%
L/F 79.9% 80.4% -0.6%p -
Yield (KRW) 112.8 111.7 1.1 1.0%
Yield (￠) 10.7 9.5 1.2 12.5%
(Revenue doesn’t include sales commission)
Routes
RPK(Mil. Km) Yield (KRW)
Routes
‘11. 3Q. ‘10. 3Q. Change(%) ‘11. 3Q. ‘10. 3Q. Change(%)
Int’l Passenger 7,826 7,144 9.5% 112.8 111.7 1.0%
J
Japan 722 843 -14.4%
14 4% 248 1
248.1 227 6
227.6 9 0%
9.0%
S.E. Asia 1,967 1,588 23.9% 90.9 91.7 -0.9%
China 1,016 909 11.7% 187.9 178.3 5.4%
USA 2 556
2,556 2 357
2,357 8 4%
8.4% 76 8
76.8 76 1
76.1 0 8%
0.8%
EU 980 859 14.0% 84.8 80.7 5.2%
Oceania 586 588 -0.3% 93.2 84.0 11.0%
7
3. 2011. 3Q Operating Performance

1) Int
Int’ll Passenger (Cont
(Cont’d)
d) (U
(Unit
it : Mil
Mil. K
Km))

Int’l Passenger RPK

RPK Change(%)
g 7,826
7,021 7,144 6,998
6,763 6,700 6,749
6,227 5,998
5,779 5,690 5,953 32%
5,300 5,501
5,122 28%
13% 15% 12%
8% 7% 10%
5% 5% 3%
-2% -5% -4%
-10%
'08.1Q 2Q 3Q 4Q '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q '11.1Q 2Q 3Q

Int’l Passenger Yield (Unit : KRW)

Yield Change(%)

112 113
104 105 102 105 103
97
90 92 90 88 91 93
86
21% 24%
14% 14% 16% 16%
7% 8% 9% 10%
1%
-7%
7% -7%
7%
-14% -17%
'08.1Q 2Q 3Q 4Q '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q '11.1Q 2Q 3Q
8
(Change rate : year-on-year)
3. 2011. 3Q Operating Performance
2)) Cargo
g
™ 2011. 3Q RTK increased by 9.5% due to expansion of cargo supply and luring cargo in spite of
downgrading US credit rate, financial risk in Europe and sluggish IT demand

O
Operating
ti
Item ‘11. 3Q. ‘10. 3Q. Change Change(%)
Rev(KRW 100Mil.) 3,134 3,237 -103 -3.2%
ATK (Mil. Km) 1,271 1,144 127 11.1%
RTK (Mil. Km) 963 879 84 9.5%
L/F 75.8% 76.8% -1.1%p -
Yield (KRW) 325.4 368.1 -42.7 -11.6%
Yield (￠) 30.8 31.3 -0.5 -1.6%
(Revenue doesn’t include sales com)
Routes
RTK (Mil. Km) Yield (KRW)
R t
Routes
‘11. 3Q. ‘10. 3Q. Change(%) ‘11. 3Q. ‘10. 3Q. Change(%)
Cargo Total 963 879 9.5% 325.4 368.1 -11.6%
Japan
p 20 22 -6.8% 1,021.9 931.7 9.7%
S.E. Asia 122 129 -5.8% 401.2 397.1 1.1%
China 27 31 -10.9% 1,002.6 947.3 5.8%
USA 556 502 10.7% 263.3 320.0 -17.7%
EU 225 184 22.6% 291.7 318.8 -8.5%
Oceania 9 8 13.8% 329.8 300.9 9.6%
9
3. 2011. 3Q Operating Performance
2)) Cargo
g ((Cont’d))
(Unit : Mil. Km)
Cargo RTK

RTK Change(%) 964 953 979 963

929
908 889
861 867 879
834
777 785 27%
741 25%
703 17%
12% 10%
6% 7% 5%
1%
-3% -3% -6%
-15%
-20% -18%
'08
08.1Q
1Q 2Q 3Q 4Q '09
09.1Q
1Q 2Q 3Q 4Q '10
10.1Q
1Q 2Q 3Q 4Q '11
11.1Q
1Q 2Q 3Q

Cargo Yield (Unit : KRW)

Yi ld
Yield Ch (%)
Change(%)
387
363 375 368 364
357 349 356
48% 335 325
316
47% 303
271 261 37%
36% 255
28% 21%
13% 5%
-18% -16%
-6%
6% -5% -6%
6%
-4%
4% -12%
'08.1Q 2Q 3Q 4Q '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q '11.1Q 2Q 3Q

(Change rate : year-on-year) 10

4. Fleet Plan
Fleet Status
Category ‘11.09 2010 Change Operating Finance Owned ‘2011(E) ‘2012(E)
Total 71 69 2 44 17 10 71 80
Ratio 62% 24% 14%
Passenger 62 59 3 42 14 6 62 69
A320-200 11 11 0 11 11 10
A321-100 2 2 0 2 2 2
A321 200
A321-200 15 13 2 15 15 20
A330-300 10 9 1 10 10 12
B737-400 2 2 0 1 1 2 2
B767-300 7 7 0 4 3 7 7
B777-200ER 11 11 0 3 8 11 12
B747-Pax 2 2 0 2 2 2
B747-Com 2 2 0 1 1 2 2
Freighter 9 10 -1
1 2 3 4 9 11
B767-Frt 1 1 0 1 1 1
B747-Frt 8 9 -1 2 2 4 8 10

™ Delivered Aircraft in 2011 ™ A380 +6 Fleets

- A321 : +2 Fleets(Jan, Mar) - Delivery from 2014 to 2017
- A330 : +1 Fleet(Mar) - Jumbo A/C with more than 500 seats
- Expand of long haul routes

™ Fleet Plan for 2012 ™ A350 XWB(800/900/1000) +30 Fleets

- Passenger: +7 Fleets(narrow body +4, mid/wide +3) - Delivery form 2016 to 2022
- Freighter: +2 Fleets(B747-400) - A/C for Mid/long haul routes with 270~350 seats
- Eco-friendly Aircraft(Low noise & emission) 11
5. Market Demand – 1) Int’l Passenger
Int’l Passenger
g Demand

Int’l Passenger Transit

4,500 Thou. Pax
550 Thou.
Thou Pax
4,000 500
3,500 450
400
3,000
350
2,500
300
2,000 250
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 Month
2008 2009 2010 2011 2008 2009 2010 2011
Outbound Inbound

1,400 Thou. Pax 1,000 Thou. Pax

900
1,200
800
1,000 700
600
800
500
600 400
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 Month

12
[Source : KTO, Incheon Airport Corporation, Korea Airport Corporation]
 5. Market Demand – 1)Int’l Passenger Demand(Cont’d)

D
Demand
d off Major
M j Countries
C ti
Outbound Inbound
China 2008 2009 2010 2011 2008 2009 2010 2011
300 Thou. Pax
500 Thou. Pax
250
400 200
150
300
100
200 50
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 Month
350 Thou. Pax 350 Thou. Pax
Japan
300
250
250
150
200
50 150
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 Month

USA 150 Thou.

Th P
Pax 65 Thou.
Thou Pax
130
110 55
90
70 45
50
30 35 Month
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 13
[Source : KTO]
5. Market Demand – 2) Cargo
Cargo
g Demand
Cargo Transit
2008 2009 2010 2011 2008 2009 2010 2011
Thou. Ton
280 120 Thou.
Thou Ton

110
230
100

180 90

80
130 70
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12 Month
Outbound Inbound
(except transit) (except transit)
Thou. Ton 70 Thou. Ton
80
60
70
50
60
40
50 30

40 20
Month
1 2 3 4 5 6 7 8 9 10 11 12 Month 1 2 3 4 5 6 7 8 9 10 11 12
14
[Source : Incheon Airport Corporation]
5. Market Demand – 2) Cargo(cont’d)

Composition of Cargo Export (Weight)

Chemicals
Chemicals Wireless 7.3%
Wireless Others
Others 5.6% devices
devices 4.8%
4.1%
10.0% 10.0%
Plastics
Plastics
52%
5.2%
Computers 4.8% Textiles Computers
3.5% 9.5% 3.0% Textiles
10.3%

Electric Steel / Metal

devices 4.8% 2011.
2011 Steel / Metal
Electric devices
45.4% 2010
Display
40.4%
3Q. 4.4%
Display
2010년 Panels Cum.
Panels 3.4%
9.7% Machinery
25 9%
25.9% Machinery
Car parts 27.6%
8.6% Semi- Car parts
Semi- conductors 8.9%
conductors 6.0%
4.9% Optical
TV parts Optical
TV parts instruments
2.0% instruments
3.5% 4.6% 3.0%

[Source : The Korea International Trade Association]

15
※ Account standards change

Income Statement(Before) Income Statement(After)

Revenue Revenue

Operating/SG & A Expense Operating/SG & A Expense

Operating Income
Before Other Income Operating Income

Other Income Other Income

- Foreign Currency related Gain/Loss
(O
(Operating
ti related)
l t d)
- Foreign Currency related Gain/Loss
- Tangible Asset related Gain/Loss, etc
- Tangible Asset related Gain/Loss, etc

Operating Income
Financial Income
Financial Income
- Foreign Currency related Gain/Loss
- Interest Gain, Interest Cost, etc
(Non-operating related)
- Interest Gain, Interest Cost, etc
16