December 6, 2012

CONTENTS

1

2

3

Public Policy Compliance

Business Outcomes

4

VISION 2017 5

01/16

KOGAS Overview

Overcoming Challenges

Better Energy, Better World

1. KOGAS Overview

02/16

KOGAS, as a state owned company, has grown exponentially since its establishment in 1983 - Sales per employee is 8.4million US$

Currently operating 8.3 million ㎘ of storage capacity and 3,023km of national transmission pipeline network

Participating in 26 Overseas Projects

31.3

24.8

0

5

10

15

20

25

30

35

83 85 87 89 91 93 95 97 99 01 03 05 07 09 11

Assets

Sales

Unit : bn US$, FX 1,150won/US$

Assets 31.3bn US$

Sales 24.8bn US$

Sales volume 33.6mn tons

Employees 2,920

Storage capacity 8.3mn ㎘

Pipeline network 3,023 km

Overseas projects 26 projects

Sales & Assets Business overview

2. Public Policy Compliance

03/16

1

2

3

Management Integrity

Governance Enhancement

Management Transparency

Better Energy, Better World

2-1. Management Transparency – Disclosure

Organization

Governance

Management Status and Plan

Financial Statements

Borrowings

Financial Performance

Credit rates – S&P

Bid information

Customers' Satisfaction

Information

33 33 34

109 175

616

105 97

116

'09 '10 '11

CMRD CMOD SD

Activities

CMRD: Consolidated Management Regular Disclosure CMOD: Consolidated Management Occasional Disclosure SD : Self-Disclosure

247

766

04/16

Better Energy, Better World

2. 고객만족 경영 시행 Reliable International

Credit Rates

S&P : A, Moody’s : A1, Fitch : A+

The Best Public Corp.

Services In Korea

Obtained Top Rating

For the Fifth Successive Year

Natural Gas Users

Quality of Natural Gas and Services

Social Contributions

Synthesis Satisfaction

Etc

Evaluation Indicators

2-1.Management Transparency – Customer Satisfaction

05/16

Better Energy, Better World

2-2.Management Integrity – Ethical Management

Implementation System

Practice HUB Audit

• CEO : Determines the Directions for Ethics Management and Spearheads Practices

• Education & Business Support • Monitoring & Feedback

Establishing the Direction of Ethical Management

Executive Committee (Chairman : CEO)

On-Site

Practice Committee

Ethics Leader

Ethics Officer

Anti-corruption activity/ Post de facto audit

Information for Management & investment/CSR

Transparency and Anti-corruption, PR

Ethical Business Model

06/16

Better Energy, Better World

2-2. Management Integrity – Ethical Management

Ethical standards

All Employees Management Job Functions

Ethics doctrine

Our Promise 30

Employee behavioral doctrine

Ethical doctrine for NSD

Executive job transparency contract

An executive code of conduct to lead by example

Auditor R&D Employee

Constructor Contractor

Inspector Salesperson

Integrity Evaluation Result

Division 2010 2011 Remarks

Integrity of Public Agencies. 8.89 9.05 Excellent (Rank 3)

Internal Evaluation Results 83.5 87.7 4.2 point Rise

07/16

Better Energy, Better World

2-3. Governance Enhancement – Board of Directors

Non-Standing Director [NSD] : 7 Members Standing Director [SD] : 6 Members

Feedback Annual operation Planning Do Check(monthly) Action

Composition

Planning and Strategy

Audit

Overseas business

Deliberation on the budget

• Organization, Accounting

& Financial Expert

• Media, Energy & Security Expert

• All Non-Standing

Director

• Administration/Labor- Management Relations Expert

Subcommittees of BOD

08/16

Better Energy, Better World

3. Business Outcome – Domestic Business

□ Annual Operating results

2008 2009 2010 2011

Operating Income 603 742 930 951

Sales volume (1000 ton)

26,345 24,644 31,202 33,570

(Unit : $ million)

Increased Supply Rate of City Gas Enhanced Operating Income

69.8

71.1

72.2 73.3

603

742

930

951

500

600

700

800

900

1000

68

69

70

71

72

73

74

'08 '09 '10 '11

Supply Rate of City Gas Operating Income

(Million USD) (%)

09/16

Better Energy, Better World

RasGas

Oman LNG

Yemen LNG

Prelude FLNG

GLNG

DSLNG

LNG Canada, 20%

Mozambique Area 4

Canada E&P

‘12

Reserves(million tons)

28

150

‘08

10/16

Involved in 26 projects in 16 countries

- 4 Explorations, 9 Development and productions, 6 LNG plant projects

- 7 Technical business projects

3.Business Outcome – Overseas Business

Mexico Manzanillo USA Sabine Pass

Better Energy, Better World

Duration : 20yrs (’17∼’37]

Quantity : 350Mtpa

Price : Henry Hub linked

Delivery : FOB, No Destination-

clause

- Whole volume subject to free disposal or

cancellation

- Priority will be given to Korea demand

Sabine Pass LNG Purchase (Jan. 2012)

First LNG Business in USA, Diversifying LNG Supply, LNG Trading Opportunities

11/16

[Main Practice] Overseas Business - In North America(1)

Better Energy, Better World

Location : Horn River area

Operator : Encana

Interests : KOGAS (50%), Encana (50%)

Recoverable Resources : 1.43 Tcf

Type : Shale Gas

Location : West Cutbank area

Operator : Encana

Interests : KOGAS (50%), Encana (50%)

Recoverable Resources : 1.04 Tcf

Type : Tight Gas

Unconventional Gas Development In Canada

Kiwigana Gas Field Jackpine & Noel Gas Field

12/16

[Main Practice] Overseas Business - In North America(2)

Better Energy, Better World

Project Outline

Storage tank : 150,000 ㎥ x 2

Send-out Capacity : 3.8 Mtpa

Participants

Client : Mexico CFE (Government)

Investor (Sponsor) : KOGAS(25%), Samsung C&T(37.5%), Mitsui(37.5%)

EPC Contractors : Samsung Engineering (Terminal), Toa Corp (Jetty)

Operator : KOGAS (20 years)

Project Financing : KEXIM + Commercial Bank

13/16

[Man Practice] Overseas Business - Mexico Manzanillo

Better Energy, Better World 14/16

Block: Mozambique Area 4

Location: East off-shore (Area : 12,956 km2)

Share: KOGAS (10 %), ENI (Operator 70 %), GALP (10 %), ENH (10%)

Resources : 62 ~ 70 Tcf

Outline

No. 2 Gas well discovered in 2011(IHS)

KOGAS equity : 140 million Ton of LNG

(4 years of Korea consumption)

Combined to exploration, liquefaction

and importation to Korea

Expand overseas business related to

E&P together with other plant company

[Main Practice] Overseas Business - Mozambique E&P project

Better Energy, Better World

4. Overcoming Challenges

Increased Debt Through Pricing Advance of Importing LNG and Expanding Investment

Debt to Equity Ratio : 228%(2007)→348%(2011)

Financial issues

Create Revenue from overseas business and Enhance Management Efficiency

Increase Capital from Government

Counter measures

15/16

Market Environment issues

Intensifying Competition in Energy Market (Economic Growth of China , India, etc )

Raising Global LNG Demand by Changing Energy Policy( Spreading Anti Nuclear-Power)

Completion of Vertical Integration of Gas Industry by Expanding E&P Business

Diversification of LNG resources such as shale gas, tight gas, CBM, etc

Counter Measures

Better Energy, Better World

1. 한국가스공사 소개

Global KOGAS growing together with our Customers

Enhancing Global Competency

Expanding Business Networks

Securing Energy Resources

Professional

Technology

Brand Power

Core Competencies

Trust Change Challenge Responsibility

Core Values

Vision

Better Energy, Better World Corporate Philosophy

Upgrading Management System

9% 25%

34% 60%

45% 100%

5. KOGAS Vision 2017

16/16

KOREA GAS CORPORATION