Hanjin Shipping announced 2012 annual business results, reporting a sales of KRW 10.59 trillion(USD 9.39 billion), an operating loss of KRW 109.8 billion and a net

loss of KRW 638.0 billion.

Hanjin Shipping achieved annual sales of KRW 10 trillion for the first time in its history, recording KRW 10.59 trillion, which rose by 11.2% year-on-year as container

volume grew 7.4% year-on-year despite delay in the U.S. economic recovery and the persistent European financial risks. In terms of profitability, Hanjin Shipping

remained in the red, with operating loss of KRW 109.8 billion. However, the amount of loss was decreased considerably by 78.6% year-on-year, through freight rate

recovery on the main service lanes and cost-reduction efforts in lane rationalization, showing continuous profitability improvement even in the midst of a tough

business environment.

The container division showed some improvements as shipment volume grew 7.4% year-on-year and container freight rate rebound by 5.3% year-on-year. However, as high oil

prices continued, the company’s container division reported an operating loss of KRW 162.8 billion due to limited container freight rate recovery affected by

oversupply.

The bulk division remained in the black due to positive operation profit in the long-term contract business, achieving a KRW 19.2 billion operating profit, in spite of

an 11.0% reduction year-on-year in shipment volume.

Net loss recorded KRW 638 billion due to loss on foreign currency translation, KRW 187.4 billion, from appreciation of KRW against USD. Loss on foreign currency

translation is evaluation amount, which is not related with actual cash flow. Net loss decreased by 22.6% year-on-year.

Hanjin Shipping forecasted, Supply-heavy market will persist in the container sector due to the continuation of new mega-vessel deliveries. However, the economic

recovery of the U.S. and China with Europes financial crisis stabilizing is expected to raise the shipment volume and the carriers are to continue from last year the

various supply-control strategies such as early scrapping of uneconomic vessels, continuation of slow steaming, service rationalization, idling and temporary voyage

cancellation. Hence, profitability is expected to improve because of timely rate restoration by maintaining high operating rate and because of cost-reduction efforts.

The companys bulk division stated, The bulk shipments are expected to increase due to global economic recovery, including China. However, the global bulk market will

remain weak for the time-being due to oversupply of all vessel sizes.
Hanjin Shipping also emphasized, In 2013, in spite of some difficulties due to continued high oil prices and global economic uncertainties, we will ensure to achieve

Net Profit by continuing rate recovery efforts, as well as active cost-saving, etc.