Establish Global Management for 2008
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1 Establish Global Management for 2008 Business Goal of USD 41 billion in Receiving Orders, USD 28 billion in Sales STX Business Group set this year s management policy as Establishment of Global Management through the Expansion of Biz Developing and plans to focus on establishing the Developing Biz Management, which had been pursued throughout Through his new year s address, Chairman Kang said, Having set Achieve Dreams Overseas as its management policy last year, STX Business Group created opportunities for new businesses through Developing Biz Management and concentrated its efforts on expanding overseas business. Thereby STX reinforced the future growth engine and the basis for global management, and added, Let s make every effort to make the world s best business group with dreams and a future. STX Business Group set this year s core tasks as: Expansion and Rein- forcement of the Portfolio of 4 Biz Axes Expansion of Biz Developing Project for Resources Development Reinforcement of Core Capabilities of the 3 Shipbuilding Bases of Jinhae, Dalian and Aker Yards Reinforcement of the Business in 7 Regions of Global Networks and Reinforcement of Risk Management and Strategic CSR(Corporate Social Responsibility) Performance. In addition, the supporting business including financing, foreign exchange, consulting, and public relations will be reinforced significantly. On the other hand, having decided to early achieve the KRW 20 trillion of sales set as the Vision 2010 goal this year, STX Business Group established its 2008 business goal of USD 41 billion in receiving orders, USD 28 billion in sales, USD 25 billion for overseas sales, and USD 2.4 billion for ordinary profits. Business Structure of STX
2 STX Energy entered into agreement with Shell E&P UK Limited. in U.K. for the transfer of equity for 3 exploration Licenses in Ireland and in Faroe Island(a Danish self-governing dominion) on December 18th. STX Energy is supposed to acquire 10% of the equity for License 007 and 25% for FEL(Frontier Exploration License) 2-94 and 2-05 in Ireland respectively after gaining approval from the relevant governments. By acquiring equity for this License in Europe following the joint acquisition of the equity for the License in Azerbaijan last October, STX Energy set the foundation for the full-scale promotion of overseas resources development projects. STX Business Group s Chairman Kang donated his private funds to STX Scholarship Foundation. This donation amounts to 36,000 shares of STX Corporation with market price of KRW 3 billion. STX Scholarship Foundation was Established at the end of 2006 to contribute to national development by providing excellent students with more systematic opportunities of education for them to grow as global elites and picked 35 scholarship students including university students and graduate students studying in Korea and overseas in STX Scholarship Foundation gives the annual scholarships of the largest amount in Korea. Faroe Islands in Danish Dominion FEL 2-94 in Ireland FEL 2-05 in Ireland License 007 Ireland United Kingdom Norway STX Business Group is expanding its social contribution activities under the motto of Make a World with Dreams and a Future. Chairman Kang and about 1,000 staffs of STX Business Group visited Taean, which was greatly damaged by oil leakage, and volunteered to remove the leaked oil on December 14th and 15th. They removed lumps of oil stuck on rocks and gravels using absorbent cloths or used clothes. STX Business Group promoted the charity bazaars program the Beautiful Saturday with STX on December 22nd. Volunteers from STX Business Group sold about 14,000 goods donated by the staffs at five the Beautiful Stores (Seoul Station in Seoul, Gojan Station in Ansan, Jungdong in Seongnam, Jungang in Changwon, and Myungryun in Busan). STX Business Group donated 165m 2 space, interior furnishings, a vehicle, and other supplies necessary to open the Changwon Jungang Branch Store, the 77th store of the the Beautiful Store. STX Business Group donated KRW 1 billion to Community Chest of Korea on December 11th. And purchased 15,000 bags of rice weighing 40kg each from 110 families, who were engaging in rice farming, of the employees and gave 1 bag to each member and cooperating companies on December 5th. In addition, STX Welfare Foundation opened its third House of Sharing for a needy family in Masan on December 22nd. 02
3 STX Business Group held a 2007 STX Grand Prize Awards ceremony on December 27th, in which prizes were given to the selected departments and teams that made remarkable contribution to the society and growth of STX. The Grand Prize was awarded to Shipbuilding Marketing Division of STX Corporation for receiving orders amounting to USD 10 billion in a year. The Creativity Prizes were given to 4 teams including Shipbuilding & Maritime Research Center of STX Shipbuilding. The Challenge Prizes were awarded to 7 teams including Indonesia Team of STX Energy. Furthermore, STX Members Family Volunteer Group received the Social Contribution Prize on December 22nd for proactively participating in voluntary social contribution activities. STX Business Group held year-end events participating employees and their families as well as subcontractors. In the Happy Musical with STX held in Changwon from December 21st to 24th and Year-end Night with STX held in Seoul on December 25th, employees and their families had a good time exchanging encouraging remarks for health and happiness as well as what they had done in In addition, the staffs working at sea who could not get together due to the characteristics of their jobs as well as STX Members were invited and encouraged for their pains in The newly recruited employees were also invited to be welcomed as new members of the STX Business Group. STX Shipbuilding won the Prime Minister Prize in the 6th awarding ceremony of the 100 Excellent Patented Products held on December 20th for the Lettering Welding System(LWS) of its own invention. The 100 Excellent Patented Products prize is one of the prizes of highest authority in the field of patents. The LWS is the system in which a welding robot with 4 axes retrieves information from the server or its own DB and automatically welds the characters or marks on the outer surfaces of ships. STX Shipbuilding registered the patent for this system in June STX Business Group held an event of Giving Thanks to Parents of New Employees at COEX on December 27th with new employees of latter half of 2007 recruitment and their parents, approximately 600 in all, in attendance. This event included the programs of reading letters of gratitude and reply letters, congratulatory performances, singing the song, Grace of Mother and pinning carnations on the parents. Prior to this ceremony, the parents of new employees toured around the offices, fitness center, and cafeteria in the STX Namsan Tower. On the other hand, the same ceremonial event was held on December 11th inviting new employees and their parents, approximately 900 in all, who were to work in Jinhae and Changwon. 03
4 Vice Chairman, Jong-chul Lee was selected as The Person of the Year 2007 in the ocean-going shipping business sector by the Korea Maritime Press on December 24th. STX Engine entered into an MOU for technology cooperation with Thales Underwater Systems(TUS) in France for the development of the sonar system for the next submarine(changbogo-iii). STX Pan Ocean incorporated a shipping company, Seawin Shipping Company Ltd., and held the launching ceremony in Qingdao, China, on December 6th. STX Heavy Industries developed the STX-MAN 6S40ME-B Engine for the first time in the world and held a ceremony on December 11th. STX Shipbuilding won the Prime Minister Prize in 4th Korea New Growth Management Award ceremony on December 21st. STX Enpaco supported to its sisterhood school, Changwon Jungang High School, jointly with the Gyeongnam Office of Education for remodeling the library, and held the ceremony on December 11th. 04
5 STX Business Group announced personnel change of 64 officers and directors to establish the responsible management system for each business division(shipping & Trading, Shipbuilding & Machinery, Plant & Construction, and Energy) led by the Vice Chairmen. Including the promotion of Jong-chul Lee and Sang-ok Lee to Vice Chairman, STX Business Group promoted a total of 60 directors: 3 to President, 5 to Vice President 11 to Senior Managing Director, 14 to Managing Director, and 25 to Vice Executive Director. Vice Chairman <Promotion> STX Corporation Jong-chul Lee(STX Pan Ocean, President) STX Energy Sang-ok Lee(STX Energy, President) <New Appointment> STX Shipbuilding In-sung Lee(DSME, Former Vice President) President <Promotion> STX Shipbuilding Sang-kyu Kim(Vice President, Auditor) STX Pan Ocean Dae-yoo Kim(Vice President) Vice President <Promotion> STX Corporation Je-hyun Yoon(Senior Managing Director) Yong-hee Byun(STX Pan Ocean, Senior Managing Director) STX Pan Ocean Sung-yob Choo(Senior Managing Director) STX Shipbuilding Sang-ho Shin(Senior Managing Director) Vice Chairmen of STX Business Group <Transfer> STX Heavy Industries Won-gab Jang(STX Shilbuilding, Vice Chairman) STX Engine Tae-doo Kim(STX Heavy Industries, Vice Chairman) STX Construction Kook-hyun Kim(Vice President) <Transfer> STX Energy Kyung-jin Hong(STX Corporation, President) STX Heavy Industries Ki-yeon Lee(Senior Managing Director) <Transfer> STX Enpaco Woo-yik Song(STX Shipbuilding, Vice President) Jong-chul Lee Shipping & Trading Division Sang-ok Lee Energy Division Myung-kee Lee China Division In-sung Lee Shipbuiding Division Won-gab Jang Plant & Construction Division Tae-doo Kim Engine Technology Division STX Business Group s Chairman Kang visited Zhangwenyue, the Party Secretary and Province Governor, and exchanged issues of mutual interest at Bangchuidao, the reception hall in Dalian on December 19th. Chairman Kang congratulated the new Party Secretary Zhangwenyue for taking office and expressed gratitude for supporting STX Dalian Shipbuilding Complex, which was being built in Changxing Island, Dalian so that it could be completed earlier than scheduled. In addition, Chairman Kang visited the construction site of STX Dalian Shipbuilding Complex, checked the construction progress, and encouraged the workers. 05
6 STX, the world s best group in Shipping & Trading, Shipbuilding & Machinery, Plant & Construction, and Energy business. Leaping up to the goal of USD 28 billion in sales through its 54 global networks, STX will make the world with dreams and a future in 2008.
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