Asia Pacific Equity Research

30 October 2011

Kia Motors
3Q11 earnings miss on higher tax, weak equity earnings, FX loss. FY12 volume guidance +8-12% yoy
3Q11 earnings miss. Kia reported 3Q11 sales of W999B (+14.9% yoy; 13.7% QoQ). OPM came in at stable 8.3% on mix improvement and ongoing COGS improvement. NP came in at W648B (-8% Y/Y;-43% Q/Q). (1) Volume/Inventory (+).Kia delivered ex-factory shipment of 612K (+19% Y/Y; -2% Q/Q). Compared to the beginning of the quarter, US inventory stabilized upward (from 1.5M to 1.6M) as local production of K5 started from September. Inventory decreased in Europe from 2.2M to 1.9M on strong new model sales (Morning and Rio). Utilization remained high at 107% (global), further expanding contribution margin. (2) Cost (-/+). GPM sharply rose to 25% (vs. 22% in 1H). Other than impact from platform integration (50% YTD vs. 45% in 1H2011), management guided overseas plant and sales subs profitability increase drove most of 3Q11 GPM improvement. SG&A to revenue increased to 15.3% vs. 13.7% in 1H11, on labor and marketing cost increase. (3) Mix (+). Above D segment sales % rose from 45% in 2Q11 to 50%, driven by SUV sales. (4) Pricing (+). Domestic ASP remained flattish Y/Y and Q/Q, while export ASP came in at historical high US$13.4K, +15% Y/Y and +1% Q/Q. (5) Tax (-). As overseas subs operation continue to turn around sharply, 3Q11 effective tax rate rose to 25.9% vs. 22.7% in 1H11. FY10 tax rate was 19%. (6) Non core operation earnings (-). Bigger miss on NP (NPM of 6.5%) came from FX translation loss and sharp decrease in equity method gain mainly from Hyundai Steel. 2012 guidance cautiously confident including (1) FY12 global auto demand to grow by 4% YoY; (2) among key markets, management shared view that China and US will be leading with 5-6% YoY growth followed by soft Europe (flat to 1-2% YoY); (3) Korea market outlook is most bearish with 1-2% YoY decline; (3) Kias FY12 global sales target is additional 200-300K, which translates to 812% YoY growth. Maintain OW with Dec-12 PT to W90,000, reflecting earnings fine-tuning. Key downside risks to our view include (1) fast rising marketing cost in US; (2) weaker brand image in overseas market; (3) capacity growth slow-down beyond 2012.
Kia Motors (Reuters: 000270.KS, Bloomberg: 000270 KS) Year-end Dec FY10A FY11E Revenue (W bn) 42,290 44,267 Operating Profit (W bn) 2,836 3,698 Net Profit (W bn) 2,842 3,915 EPS (W) 6,738 9,555 Revenue growth 43.6% 4.7% Operating Profit growth 137.3% 30.4% EPS growth 161.0% 35.5% ROA 10.6% 13.8% ROE 32.5% 32.9% P/E (x) 10.8 7.6 P/BV (x) 2.8 2.1 EV/EBITDA (x) 8.5 6.6
Source: Company data, Bloomberg, J.P. Morgan estimates.

Overweight
000270.KS, 000270 KS Price: W72,600

Price Target: W90,000

Previous: W94,000

South Korea Automobile Manufacture Wan Sun Park

AC

(82-2) 758-5722 [email protected]

Minsung Lee
(822) 758-5728 [email protected] J.P. Morgan Securities (Far East) Ltd, Seoul Branch
Price Performance
90,000 70,000 W 50,000 30,000
Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

000270.KS share price (W) KOSPI (rebased)

Abs Rel

YTD 38.3% 45.1%

1m 2.5% -9.5%

3m -6.3% 4.2%

12m 66.7% 65.6%

Bloomberg JPMA KIM <GO>

FY12E 45,966 4,060 4,308 10,542 3.8% 9.8% 10.0% 14.4% 27.2% 6.9 1.6 5.8

FY13E 47,953 4,179 4,534 11,110 4.3% 2.9% 5.3% 14.7% 22.2% 6.5 1.3 5.3

Company Data 52-week Range (W) Market cap (W bn) Market cap ($ mn) Shares O/S (mn) Fiscal Year End Price (W) Date Of Price Free float (%) 3M Avg daily Value (W bn) GPS_AU

84,600 - 42,650 29,035 26,279 400 Dec 72,600 28 Oct 11 44.1% 244.70

See page 7 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. www.morganmarkets.com

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Company description

P&L sensitivity metrics

2011 average Krw/US$ rate (W) Impact of each 5% change

Operating profit impact (%) We assume W1,150/US$. +/-24.1%

EPS impact (%) +/-11.8%

Kia Motors is the second largest auto maker in Korea, with a 30% domestic market share. HMC, the largest auto maker in Korea, owns a 38% stake in KIA Motors, and these two auto makers of Hyundai Motor Group dominate over 80% of the Korean market. Other than in Korea, KIA has manufacturing facilities in China and Slovakia and plans to build a new plant in Georgia, the US. We believe KIA has entered the stage of operational turnaround, aided by a strong new model cycle and operating leverage.

Source: J.P. Morgan estimates

Price target and valuation analysis Our Dec-2012 TP of W90,000 is based on PER valuation. Our target price is generated using 8.5x 1-yr forward EPS. JPM global auto teams target price multiples on key OEMs are 10~12x to FY12E EPS for Japanese and US OEMs. Key downside risks to our view include (1) fast rising marketing cost in US; (2) weaker brand image in overseas market; (3) capacity growth slow-down beyond 2012.

Volume breakdown by region (2010A)

Others 32% Korea 23%

U.S. 17% China 16% Europe 12%

Source: Company. Note: Consolidated basis

Net Profit: JPMe vs Consensus

Wbn FY11E FY12E FY13E J.P. Morgan 3,915 4,308 4,534 Consensus 3,990 4,394 4,788

Source: Bloomberg, J.P. Morgan estimates.

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Table 1: KIA Motors 3Q11 earnings review

Won in billions (Wbn) Sales Operating Profit OP margin % Net Profit NP margin % Actual 9,990 828 8.3% 648 6.5% 3Q11A JPM 10,764 861 8.0% 969 9.0% 3Q10A Consensus 11,030 897 8.1% 923 8.4% 8,695 679 7.8% 705 8.1% 2Q11A 11,581 1,032 8.9% 1,128 9.7% YoY (%) 14.9% 21.9% -8.0% QoQ (%) -13.7% -19.8% -42.5%

Source: J.P. Morgan estimates, Company data.

Figure 1: KIA Motors Domestic ASP trend

000 Won

Figure 2: KIA Motors Export ASP trend

000 Won, US$

19,000 18,500 18,000 17,500 17,000 16,500 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Domestic ASP trend
Source: J.P. Morgan estimates, Company data.

15,000 14,500 14,000 13,500 13,000 12,500 12,000 1Q10 2Q10 3Q10 4Q10 1Q11

+13% Y/Y +2% Q/Q +6% Y/Y +1% QoQ

13,500 13,000 12,500 12,000 11,500 11,000 10,500

2Q11 in USD

3Q11

in Won ('000)
Source: J.P. Morgan estimates, Company data.

Table 2: KIA Motors Global retail sales mix

Unit A+B+C D+E RV Others Total A+B+C D+E RV Others Total
Source: Company data.

3Q10A 274,714 50,274 151,261 30,230 506,479 54% 10% 30% 6% 100%

2Q11A 349,512 63,218 196,431 26,617 635,778 55% 10% 31% 4% 100%

3Q11A 307,037 63,648 213,809 30,583 615,077 50% 10% 35% 5% 100%

Y/Y (%, %p) 12% 27% 41% 1% 21% -4% 0% 5% -1%

Q/Q % (%, %p) -12% 1% 9% 15% -3% -5% 0% 4% 1%

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Table 3: KIA Motors Consolidated volume forecast (Old)

Units Domestic Export Transplants China Slovakia US Consolidated total 2010A 483,346 916,865 730,154 333,028 229,700 167,426 2,130,365 YoY % 17.5% 25.5% 86.5% 38.0% 52.9% NA 38.9% 2011E 503,580 1,073,293 916,322 416,285 240,037 260,000 2,493,195 YoY % 4.2% 17.1% 25.5% 25.0% 4.5% 55.3% 17.0% 2012E 519,256 1,123,262 1,069,465 445,425 264,040 360,000 2,711,983 YoY % 3.1% 4.7% 16.7% 7.0% 10.0% 38.5% 8.8% 2013E 529,919 1,168,033 1,128,702 467,696 301,006 360,000 2,826,653 YoY% 2.1% 4.0% 5.5% 5.0% 14.0% 0.0% 4.2%

Source: J.P. Morgan estimates, Company data.

Table 4: KIA Motors Consolidated volume forecast (New)

Units Domestic Export Transplants China Slovakia US Consolidated total 2010A 483,346 916,865 730,154 333,028 229,700 167,426 2,130,365 YoY % 17.5% 25.5% 86.5% 38.0% 52.9% NA 38.9% 2011E 505,868 1,062,347 919,652 419,615 240,037 260,000 2,487,867 YoY % 4.7% 15.9% 26.0% 26.0% 4.5% 55.3% 16.8% 2012E 513,801 1,093,997 1,085,030 448,988 276,042 360,000 2,692,829 YoY % 1.6% 3.0% 18.0% 7.0% 15.0% 38.5% 8.2% 2013E 527,034 1,122,472 1,155,105 480,418 314,688 360,000 2,804,612 YoY% 2.6% 2.6% 6.5% 7.0% 14.0% 0.0% 4.2%

Source: J.P. Morgan estimates, Company data.

Table 5: KIA Motors Earnings revision summary

Won in billions Old 43,718 3,413 7.8% 3,833 8.8% 2011E New 44,267 3,698 8.4% 3,915 8.8% Chg % 1.3% 8.4% 2.1% Old 46,584 3,872 8.3% 4,151 8.9% 2012E New 45,966 4,060 8.8% 4,308 9.4% Chg % -1.3% 4.8% 3.8% Old 49,627 4,175 8.4% 4,514 9.1% 2013E New 47,953 4,179 8.7% 4,534 9.5% Chg % -3.4% 0.1% 0.5%

Sales OP OPM % NP NPM %

Source: J.P. Morgan estimates.

Kia Motors: Rating and price target changes as of Oct 28, 2011
Company Kia Motors Ticker 000270 KS Date Jan 31, 2010 Apr 25, 2010 Jul 20, 2010 Aug 01, 2010 Nov 01, 2010 Jan 31, 2011 Mar 20, 2011 Apr 3, 2011 May 1, 2011 Jul 31, 2011 Rating OW OW OW OW OW OW OW OW OW OW Price target (W) 24,000 32,000 35,000 35,000 50,000 63,000 75,000 79,000 92,000 94,000

Source: Bloomberg, J.P. Morgan estimates.

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Kia Motors: Summary of consolidated financials

Won in billions, year-end December

Income statement
Revenues % change Y/Y Gross Margin (%) EBITDA % change Y/Y EBITDA Margin (%) EBIT % change Y/Y EBIT Margin (%) Net Interest Earnings before tax % change Y/Y Tax as % of EBT Net Income Owners of Parent Equity % change Y/Y Non-Ctrling Interests Equity EPS (reported) % change Y/Y FY10 42,290 44% 21.7% 3,658 81% 8.6% 2,836 137% 6.7% -174 3,511 188% 668 19% 2,842 2,641 170% 202 6,738 153% FY11E 44,267 5% 22.3% 4,598 26% 10.4% 3,698 30% 8.4% -65 5,117 46% 1,203 24% 3,915 3,807 44% 108 9,555 42% FY12E 45,781 3% 23.1% 4,950 8% 10.8% 4,041 9% 8.8% -40 5,635 10% 1,341 24% 4,308 4,186 10% 108 10,506 10% FY13E 47,741 4% 23.4% 5,126 4% 10.7% 4,157 3% 8.7% 13 5,944 5% 1,426 24% 4,534 4,409 5% 108 11,067 5%

Cash flow statement

EBIT Add: dep./amortization Less: tax paid Interest paid Gross cash flow Capital expenditures Investments Change in working capital Free cash flow Dividends paid New shares issued Other Net cash flow FY10 2,836 821 -668 -174 2,815 -1,229 -1,062 1,135 1,659 -97 47 -3,538 3,803 FY11E 3,698 900 -1,203 -65 3,330 -2,000 0 -115 1,216 -199 0 -1,038 -21 FY12E 4,041 909 -1,341 -40 3,569 -2,000 0 -88 1,481 -199 0 0 1,282 FY13E 4,157 968 -1,426 13 3,713 -2,000 0 -114 1,599 -199 0 0 1,400

Balance sheet
Cash and cash equivalents ST financial instruments Accounts receivable Inventories Others Current assets LT investments Fixed asset Intangible assets Other non-current assets Total assets ST loans Payables Others Total current liabilities Total non-current liabilities Total liabilities Shareholders' equity BVPS (w) FY10 1,693 1,365 3,236 3,802 1,368 11,464 4,942 9,654 1,272 262 27,593 3,311 5,039 4,005 12,355 5,033 17,388 10,205 26,038 FY11E 1,671 1,365 3,388 3,980 1,431 11,835 4,942 9,668 1,361 262 28,068 3,550 5,275 4,192 13,017 1,474 14,490 13,578 34,081 FY12E 2,953 1,365 3,504 4,116 1,480 13,417 4,942 9,674 1,361 262 29,657 3,550 5,455 4,335 13,341 -1,768 11,573 18,070 45,356 FY13E 4,353 1,365 3,654 4,292 1,543 15,206 4,942 9,621 1,361 262 31,392 3,550 5,689 4,521 13,760 -5,169 8,591 22,786 57,272

Ratio analysis
EBITDA margin Operating margin Net profit margin SG&A/sales FY10 8.6% 6.7% 6.7% 15.0% FY11E 10.4% 8.4% 8.8% 14.0% FY12E 10.8% 8.8% 9.4% 14.6% FY13E 10.7% 8.7% 9.5% 14.9%

Sales growth Operating profit growth Net profit growth EPS growth

44% 137% 178% 153%

5% 30% 38% 42%

3% 9% 10% 10%

4% 3% 5% 5%

Interest coverage (x) Debt to total capital Net debt to equity Sales/assets Assets/equity ROE ROA

9.4 38% 33% 153% 270% 32.5% 10.6%

19.8 28% 17% 158% 207% 32.9% 14.1%

21.6 23% 6% 154% 164% 27.1% 14.9%

22.2 19% -2% 152% 138% 22.1% 14.8%

Source: Company data, J.P. Morgan estimates.

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

JPM Q-Profile
Kia Motors Corp. (SOUTH KOREA / Consumer Discretionary)
As Of: 26-Oct-2011 [email protected]

Local Share Price

180,000.00 160,000.00 140,000.00 120,000.00 100,000.00 80,000.00 60,000.00 40,000.00 20,000.00 0.00 Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

Current:

73000.00

12 Mth Forward EPS

10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 0.00 -2,000.00

Current:

9353.81

Sep/08

Sep/09

Sep/10

Sep/11

-4,000.00 Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07 Sep/08 Sep/09 Sep/10 Sep/10 Sep/10 Sep/10 Sep/11

Earnings Yield (& local bond Yield)

30% 25% 20% 15% 10% 5% 0% -5% Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07
12Mth fwd EY South Korea BY Proxy

Current:

13%

Implied Value Of Growth*

1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50

Current:

-43.33%

Sep/08

Sep/09

Sep/10

Sep/11

-2.00 Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07 Sep/08 Sep/09 Sep/11

PE (1Yr Forward)
80.0x 60.0x 40.0x 20.0x 0.0x -20.0x -40.0x Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

Current:

7.8x

Price/Book Value
12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x -2.0x
PBV hist PBV Forward

Current:

3.1x

Sep/08

Sep/09

Sep/10

Sep/11

-4.0x Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07 Sep/08 Sep/09 Sep/11

ROE (Trailing)
350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 -50.00 -100.00 Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

Current:

32.58

Dividend Yield (Trailing)

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Sep/96 Sep/97 Sep/98 Sep/99 Sep/00 Sep/01 Sep/02 Sep/03 Sep/04 Sep/05 Sep/06 Sep/07

Current:

0.70

Sep/08

Sep/09

Sep/08

Sep/09

Sep/10

Summary
Kia Motors Corp. SOUTH KOREA Consumer Discretionary 12mth Forward PE P/BV (Trailing) Dividend Yield (Trailing) ROE (Trailing) Implied Value of Growth 26026.21 199.4878 SEDOL 6490928 Automobiles Latest Min -20.00 7.80x -0.40 3.07x 0.00 0.70 -63.86 32.58 -1.56 -43.3% As Of: Local Price: EPS: % to Max % to Med 861% 3% 210% -65% 453% -100% 849% -64% 331% 54% 26-Oct-11 73,000.00 9353.81 % to Avg 22% -42% 11% -39% 41%

Max 75.00 9.50 3.85 309.17 1.00

Median 8.05 1.06 0.00 11.70 -0.20

Sep/11

Average 9.50 1.79 0.77 19.77 -0.26

2 S.D.+ 27.47 6.02 3.11 184.40 0.85

2 S.D. -8.47 -2.44 -1.56 -144.86 -1.36

% to Min -356% -113% -100% -296% -261%

Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs

* Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP)

Sep/11

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Analyst Certification: The research analyst(s) denoted by an AC on the cover of this report certifies (or, where multiple research analysts are primarily responsible for this report, the research analyst denoted by an AC on the cover or within the document individually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report.

Important Disclosures

Client: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients: Kia Motors.

Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients, and the services provided were non-investment-banking, securities-related: Kia Motors. Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following company(ies) as clients, and the services provided were non-securities-related: Kia Motors. Non-Investment Banking Compensation: J.P. Morgan has received compensation in the past 12 months for products or services other than investment banking from Kia Motors. J.P. Morgan Securities (Far East) Ltd, Seoul branch is acting as a Market Maker (Liquidity Provider) for the Equity Linked Warrants of Kia Motors and owns 18,609,830 as of 28-Oct-11.
Date
Kia Motors (000270.KS) Price Chart

Rating Share Price (W) N UW UW UW UW UW N OW OW OW OW OW OW OW OW OW OW OW 14900 13250 11200 14100 10850 14250 6100 10500 12700 14450 16150 18650 19550 26400 30800 49500 57300 68700 76900 80900

Price Target (W) 14000 11000 10000 13000 9500 11000 5500 11300 15000 17000 18700 22000 24000 32000 35000 50000 63000 79000 92000 94000

13-Oct-06
141,324 UW W10,000 117,770 UW W11,000 UW W9,500 94,216 N W14,000 UW W13,000 Price(W) 70,662 OW W17,000 W24,000 OW OW W79,000

22-Feb-07 29-Jul-07
UW W5,500OW W15,000 OW W22,000 OW W35,000 W63,000 W94,000 26-Oct-07 OW OW

06-May-07 UW

27-Sep-08
UW W11,000 W11,300 N OW W18,700 OW W32,000 W50,000 W92,000 OW OW

26-Nov-08 26-Apr-09 02-Jul-09 09-Jul-09 13-Aug-09 25-Oct-09 31-Jan-10 25-Apr-10 20-Jul-10

47,108

23,554

0 Oct 06 Jul 07 Apr 08 Jan 09 Oct 09 Jul 10 Apr 11

01-Nov-10 31-Jan-11 03-Apr-11 31-Jul-11

Source: Bloomberg and J.P. Morgan; price data adjusted for stock splits and dividends. Initiated coverage Oct 13, 2006.

01-May-11 OW

The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period. J.P. Morgan ratings: OW = Overweight, N= Neutral, UW = Underweight Explanation of Equity Research Ratings and Analyst(s) Coverage Universe: J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the average total return of the stocks in the analyst's (or the analyst's team's) coverage universe.] Neutral [Over the next six to twelve months, we expect this stock will perform in line with the average total return of the stocks in the analyst's (or the analyst's team's) coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of the stocks in the analyst's (or the analyst's team's) coverage universe.] In our Asia (ex-Australia) and UK small- and mid-cap equity research, each stocks expected total return is compared to the expected total return of a benchmark country market index, not to those analysts coverage universe. If it does not appear in the Important Disclosures section of this report, the certifying analysts coverage universe can be found on J.P. Morgans research website, www.morganmarkets.com.

Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

Coverage Universe: Park, Wan Sun: Doosan Heavy Industries & Construction (034020.KS), Doosan Infracore (042670.KS), Hankook Tire (000240.KS), Hyundai Mobis (012330.KS), Hyundai Motor Company (005380.KS), Hyundai Wia (011210.KS), Kia Motors (000270.KS), Mando (060980.KS), Nexen Tire (002350.KS), Taewoong (044490.KQ) J.P. Morgan Equity Research Ratings Distribution, as of September 30, 2011
Overweight (buy) 47% 51% 45% 70% Neutral (hold) 42% 44% 47% 60% Underweight (sell) 11% 33% 7% 52%

J.P. Morgan Global Equity Research Coverage IB clients* JPMS Equity Research Coverage IB clients*

*Percentage of investment banking clients in each rating category. For purposes only of FINRA/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold rating category; and our Underweight rating falls into a sell rating category.

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Wan Sun Park (82-2) 758-5722 [email protected]

Asia Pacific Equity Research 30 October 2011

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