Financial Statement Analysis for Q1 2023

* Quarterly financial statement analyses are compiled using non-financial enterprises’ financial information provided based on their financial statements. The key accounting items, including sales and total assets, are surveyed at 3,907 corporations, which are selected using stratified systematic sampling from the business register for non-financial companies legally obliged to be audited by an independent external auditor. The statistics represent the activities of those companies in Korea.

/2

In the second 31rdstfirstfirstthird firstsecondthirdthirdthird first quarter of 2015678920213, salesSalessales of sales of non-financial companies droppeincreased and their profitabilitygrowth indicators of non-financial companies of non-financial stock companies inddecreasincreaseed  andmprovedworsend compared to same period last year, and  compared to the their Pprofitability indicators of non -financial stock companyies dropprosedimproved over the same period last year. The debt to equity ratio inincreasedmaintained same increased compared to the previous quarter.   year-on-year, and Financial stability indicator was  while their profitability and financial stability for thoseFinancial stability roseimproved year-on-yearquarter-end to quarter-end.same period last year and their financial stability indicators improved compared to the end of last quarter.profitabiltiy and financial stability indicators worsened compared to the previous quarter

(Growth)

Sales increased by 0.4% in the first quarter of 2023 compared to the same quarter last year and total assets rose by 1.9% compared to the end of last quarter.

(Profitability)

Operating income to sales ratio (6.3%→2.8%) and income before taxes to sales ratio (8.1%→5.0%) decreased over the same period last year.

(Financial stability)

The debt to equity ratio (92.1%→95.0%) and bonds payable to total assets ratio (25.3%→26.0%) increased compared to the previous quarter.

Key Financial Indicators1)

(%)

1. Growth			2020122022	2020122023
			Q1222Q4	Q2333Q1
	Sales2)		-1.6-2.07.9 3.43.5 -214910.118.720.5 6.9	-4.87.93.4 -2.4 -2.8110913.215.417.5 0.4
			(-2.1)(-3.3)(9.3)(3.4) (6.2-31792.724.322.2) (2.6)	(-6.1)(9.3)(3.4)(-3.7) (-3.811297.6(16.718.2) (-2.1)
			20192012022	2020122023
			Q2333Q1	Q2333Q1
	Total assets3)		1.80.50.8 1.8 2.0 3 01.22193.1 3.7	0.10.81.8 3.2 1.15193.12.8 1.9
			(1.8)(0.9)(1.2)(2.1) (201.72342.33.3) (4.8)	(0.2)(1.2)(2.1)(2.2) (12.42133.32.4) (2.7)
2. Profitability			20192020212022	2020120222023
			Q233Q3Q1	Q233Q3Q1
	Operating income to sales ratio		5.75.87.1 7.5 6 354.76.47.5 6.3	5.77.07.4 54 5.38136.07.54.8 2.8
			(6.4)(6.2)(8.2) (9.174.37.19.6) (8.4)	(5.9)(8.5)(8.8) (5435.7536.49.65.4) (2.5)
	Income before taxes to sales ratio		6.16.58.0 87.22 844.9 5.88.4 8.1	5.07.88.2 54 5.8982 68.45.0 5.0
			(5.6)(7.5)(9.3) (9.815.416.510.3) (10.5)	(5.5)(9.5)(9.7) (65.4045.50910.36.2) (5.8)
3. Financial Stability			2016201620178920122022	201620172018920122023
			end-Junend-Decend-DecDecend-JunDecMar-JuneJunJunend-Dec	end-Sepend-Marend-MarMarSepMarJuneSepSepSepend-Mar
	Debt to equity ratio		94.691.184.7 82.1 83.5487.32 085.4 91.2 92.1	91.890.385.8 86.7 83.5876.84.592.6 95.0
			(70.9)(68.7)(66.6)(65.9) (6357.708264.5) (70.8) (69.6)	(68.5)(68.5)(67.4)(69.0) (6487.94763.871.3) (72.9)
	Total borrowings and bonds payable to total assets ratio		25.423.522.5 21.8 245.13 54.3 24.5 25.3	24.823.322.2 22.8 24.25.3634.225.2 26.0
			(21.9)(20.2)(19.0)(19.4) (20.31.23619.6) (20.1) (19.7)	(21.4)(20.0)(18.9)(19.9) (20.41.47619.620.2) (20.7)

Notes: 1) Figures in parentheses refer to the manufacturing sector.

2) Year-on-year basis

3) Quarter-end to quarter-end basis