Celltrion GSC 2012 AR

Annual Report of Celltrion GSC in 2012
From 1 January 2012

To
31 December 2012
.....................................................................................................................1
....................................................................................................2
I. ......................................................................................................................3
1. .....................................................................................................................3
2. .....................................................................................................................3
3. ..............................................................................................................3
4. ................................................................................................................5
5. .....................................................................................................................7
6. ........................................................................................................8
II. ....................................................................................................................9
III. .........................................................................................................20
IV. ..................................................................................................50
V. ........................................................................................52
VI. ..........................................................55
1. .......................................................................................................55
2. ....................................................................................................57
3. ....................................................................................58
4. .......................................................................................................58
VII. ........................................................................................................60
VIII. ......................................................................................61
1. ......................................................................................................61
2. ..............................................................................................................61
IX. .............................................................................................63
X. ...................................................................66
XI. .................................................................................................................68
XII. .................................................................................................................69
..........................................................................................................70
1. ...............................................................................................................70
2. .....................................................................................................70
Contents
Annual Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .2
Confirmation of Executives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .. . . . . . . . . .4
I. Company Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .6
1. Company Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .6
2. Company History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . .. . . . . . . . . .6
3. Change in Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . .8
4. Total Number of Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . 14
5. Status of Voting Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 18
6. Dividend Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 20
II. Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .22
III. Financial Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
IV. Auditors Opinions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . .. . 108
V. Operational Diagnosis and Analytic Opinions of the Chief Excecutive Officer. . . . . . . . . . .. . . . . . . . . .. ..112
VI. Related issues about the Company Departments (i.e. Board of Directors) and Subsidiaries.. . . . . . . . . . 116
1. Board of Directors. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .116
2. Supervision System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121
3. The Voting Rights of Shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
4. Status of Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124
VII. Issues Concerning Shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
VIII.Executives and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 128
1. Status of Executives and Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .128
2. Remuneration of Executives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .129
IX. Transactions with Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..132
X. Necessary Measures to Protect OtherInvestors. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
XI. Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
XII. Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . ..144
Confirmation of Experts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
1. Confirmation of Experts . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .146
2. The Interest of Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . ..148
( 13 )
2012 01 01
2012 12 31

01
:
:
2013
:
04
()
13-3 5 (
)032-850-6464 ()
http://
( )
( ) (
)032-850-6464
Annual Report
(13th Period)
Financial year:1 January 2012 to 31 December 2011
Financial Services Commission (FSC)

Korea Exchange (KRX)
1 April 2013
Company: Celltrion GSC Corporation

CEO: Kim Tae-ku
Headquarter location:13-35th floor of Songdo-dong, Yeonsu-gu, Incheon (Tel) 032-850-6464
(Website) http://
Reporting Director:
(Position) (Name) Lee Byeong-lyur

(Tel) 032-850-6464
Executive Confirmation
As executives of the company and the people in charge of the preparation of the financial statements, we have
paid significant attention to the content of the financial statements covering this financial year. After direct
confirmation and discussions, we confirm that no record or note of major events was omitted and that there
were no false records or notes. Therefore, the contents of the report will not lead to major misunderstandings
for users.
Moreover, we confirm that the company has set up an internal accounting management system according to the
second and third paragraphs of the second article of The Law Concerning the External Audit of Corporations.
And the company has operated in compliance with this system.
29 March 2013 Celltrion GSC Corp.

CEO: Kim Tae-ku
Reporting Director: Lee Byeong-lyur
I.
1.
. . :
. : 2000.06.14
. : 13-3
5 : 032 - 850 - 6464
. :
. :

1.
2.
3. , , , , ,

4.
5.
6.
7.
8.

() ,
, ,

2.
.
(1)
2008.03.31
: () ()
2008.12.30
2009.01.12
2009.02.01
2009.02.27
2009.03.19
2009.04.02
1
(5,000 ) ( 1129-22
7-50) 2
(7,000 )
2010.11.30
( )
2 (2 @5,000)
2011.08.01
( 7-50 13-3)
(2)
- 2009 3 19
() () .
I Company Introduction
1. Company Profile
a) Legal name and business name of the company: Celltrion GSCCorporation
bDate of establishment: 14 June 2000
c Headquarter location: 13-3 5th floor of Songdo-dong, Yeonsu-gu, Incheon (tel) 032-850-6464
dScale: small to medium enterprise
eMajor business: business purposes in the Article of Association
Business purposes
Remarks
1. Manufacture recipients for medicine production

2. Research and development for materials localization
3. Trade and trade agency for medicine, pharmaceutical raw materials, chemicals,
medicines for external use, basic compounds and recipients for medicine
production
4. Overall business related to each phase
5. Wholesale equipment (machinery), parts and accessories
6. Manufacture pharmaceutical raw materials, chemicals, and basic compounds
7. Procurement and logistics consultancy
8. Procurement agency
2. Company History
a) Company History
(1) Changes After Company Establishment
Time
31 Mar 2008
Jan 12 2009
Feb 1 2009
Feb 27 2009
Mar 19 2009
Apr 2 2009
Nov 30 2010
Aug 1 2011
Process and major changes

Change of CEO: changed from Seo Jung-jin to Kim Tae-ku
For the first time the company issued unsecured convertible bonds with a value of KRW
5 BN
For the first time the company issued bearer bonds with non-detachable warrants with a
value of KRW 5 BN
The head office was moved from 1129-22 Guwol-dong, Namdong-gu, Incheon to 7-50
Songdo-dong, Yeonsu-gu, Incheon
The company issued unsecured convertible bonds with a value of KRW 7 BN for the
second time
The company name was changed from Nexolbiotech to Celltrion GSC
The company issued unsecured convertible bonds with a value of KRW 5 BN for the third
time
Equity investment from TOMATO 2 Savings Bank (2 million shares with aprice of KRW
5,000 per share)
The head office was moved from 7-50 Songdo-dong, Yeonsu-gu, Incheon to 13-3
Songdo-dong, Yeonsu-gu, Incheon
(2) The Change in Company Name

The company name was changed from Nexolbiotech toCelltrion GSC through a regular shareholders meeting on
19 March 2009
3.
()
( :
2012 12 31
()
()
2000
06
14
2001
04
04
2001
04
17
2001
09
25
2001
10
31
2002
03
23
2002
04
24
2012
10
10
( : , )
()
()
10,000
5,000
5,000
(
)
40,000
5,000
5,000
(
)
20,000
5,000
5,000
(
)
16,000
5,000
5,000
114,000
5,000
5,000
84,700
5,000
159,400
2,607,480
5,000
5,000
1,159,800
5,000
4,676
(
)
( 3
)
3. Changes in Capital
Capital increase/decrease
(Base date: 31 December 2012)
Unit: KRW, per share
Stock issuance/Decrease
Date of share
issuance/Decrease
Form of
issuance/Decrease
Category
Quantity
Par value
per share
Issuance/
Decrease price
Remarks
per Share
14Jun 2000
Capital increase with

consideration (rights
offering)
Common
stock
10,000
5,000
5,000
4 Apr 2001

offering)
Common
stock
40,000
5,000
5,000
17 Apr 2001

offering)
Common
stock
20,000
5,000
5,000
25 Sep 2001

offering)
Common
stock
16,000
5,000
5,000
31 Oct 2001

offering)
Common
stock
114,000
5,000
5,000
23 Mar 2002

consideration (the
3rdoffering)
Common
stock
84,700
5,000
159,400
24 Apr 2002
Capital increase
without consideration
Common
stock
2,607,480
5,000
5,000
10 Oct 2002
Capital reduction
Common
stock
1,159,800
5,000
4,676
Share
Repurchase

( :
2012 12 31
2009 2015
02
02
27
26
7,000
2009 2013
04
04
02
01
5,000
12,000
( : , )
2010.3.1~
2013.02.25
2010.04.02~
2013.04.01
(%)
100
37,600
7,000
186,170
100
37,600
5,000
132,978
200
12,000
319,148
(*) .
Status of Outstanding Convertible Bonds

Base date: 31 December 2012Unit: KRW MN per share
Class
Date of Date of
issuance maturity
Total
book
value
Second
Registered
unsecured 27 Feb
convertible 2009
6 Feb
2013
7,000 common
stock
bonds
Third
unsecured 2 Apr
convertible 2009
bonds
Total
Period for Conversion conditions

Type of
possible
shares for
conversion Conversion
conversion
Conversion
claims
price
rate
Registered
1 Apr
2013
-
5,000 common
stock
12,000
1 Mar
2010~
25 Feb
2013
2 Apr
2010~
Outstanding bonds
Total
book
value
Shares for
Remarks
possible
conversion
100
37,600
7,000
186,170
100
37,600
5,000
132,978
200
12,000
319,148
1 Apr 2013
-
(*) Bondholders have the full exercise of the stock options
10

( :
2012 12 31
( : , )
(%)
(*) .
11
Status of Outstanding Bonds with Warrants

Base date: 31 Dec 2012Unit: KRW MN per share
Class
XXX
unregistered
bonds with
detachable
warrants
Total
Total
book
value
Unit: KRW MN, %
Type of
shares
Bonds which have

Exercise conditions
Period for
not been exercised
possible
Shares Remarks
exercise
Total
for
of options Exercise Exercise
book
price
rate
possible
value
exercise
Date of
issue
Date of
maturity
(*)Early repayment of detachable warrants before December 31 2010has been completed
12
4.

( :
2012 12 31 )

( : )

4,000,000
4,000,000
2,892,180
2,892,180
1,159,800
1,159,800
1,159,800
1,159,800
2.
3.
4.
1,732,380
1,732,380
233
233
1,732,147
1,732,147
1.
. (-)
.
. (-)
13
4. The total number of shares
Status of Total Number of Shares

Base date: 31 Dec 2012
Unit: per share

Type of share
Division
Common stock Preferred stock
Remarks
Total
. Total number of issued shares
4,000,000
4,000,000
. Total number of shares issued to date
2,892,180
2,892,180
. Total number of shares which decreased

to date
1,159,800
1,159,800
1. Capital reduction
1,159,800
1,159,800
2. Profit redemption
3. Repayment of redeemable shares
4. Others
1,732,380
1,732,380
233
233
1,732,147
1,732,147
.Total number of outstanding shares

. Self-owned shares
. Number of outstanding shares
14

( :
2012 12 31 )
( : )

(+)
(-)
(-)
233
233
233
233
(a)
(b)
(c)
(a+b+c)
) 2002 4 24
15
Status of the Acquisition and Disposal of Own Shares

Unit: per share
Acquisition method
exchange
OTC direct
Acquisition from
Acquisition
Direct
within the acquisition

range of
Quantity change
Type of Basic
Final
Remarks
stocks quantity Acquisitio Disposal Redemption quantity
n
acquisition
Public Purchase
available
Subtotal (a)
for
Quantity held by
trustees
233
233
233
233
profit
dividned Acquisition
through Current holding
quantity
trust
agreement
Subtotal (b)
Acquisition through other methods (c)
Total
Other Acquisition) acquired odd lot (fractional-lot) stocks when increase of capitalstock without consideration
on April, 24 2002
16
5.
( :
2012 12 31
( : )

1,732,380
233
(F
1,732,147
= A - B - C - D + E)
(A)
(B)

(C)

(D)
(E)
17
5. Voting Status
Division
Total number of issued shares (A)
Number of shares without voting rights
(B)
Number of shares without voting rights
due to the commercial laws within the
companys articles of incorporation (C)
Number of shares with limited voting
rights according to other laws (D)
Unit: per share

Type of stocks
Number of shares
Remarks
Common stock
1,732,380
Preferred stock
Common stock
Preferred stock
Common stock
Preferred stock
Common stock
233
Preferred stock
Number of shares with resurrected voting

rights (E)
Common stock
Preferred stock
Number of shares with voting rights
Common stock
1,732,147
(F = A - B - C - D + E)
Preferred stock
18
6.
3

()
13
12
11
5,000
5,000
5,000
101,458
-6,347
6,830
58,574
-3,664
3,943
()
()
(%)
()
()
(%)
(%)
()
()
19
6. Matters Concerning Dividends

Dividend Repayments in the Past 3 Years
Division
Type of stocks
Par value per share (KRW)
13th Period
12th Period
11th Period
5,000
5,000
5,000
101,458
-6,347
6,830
58,574
-3,664
3,943
Total cash dividends (million KRW)
Total stock dividends
Cash dividend payout
Common stock
Preferred stock
Common stock
Preferred stock
Common stock
Preferred stock
Common stock
Preferred stock
Net profit of the period (million KRW)

Earnings per share
Cash dividend yield
Stock dividend yield (%)

Cash dividend per share
(KRW)
Stock dividend per share
(per share)
20
II.
1.
.
, 2~3%
15% ,
25%, 35%,
65% .
. .
,

.
Generic
,
Original
.

Project
Project (, ) ,
,
Bio Project Project
,

Business Model ,
Bio Project ,

21 Bio
.
.
-
2000 6 ,
, ,

,
21
II. Business Overview

1. Business Overview
a) Industry Status
In recent years, investments in R&D in domestic pharmaceuticals and life science companies have accounted
for 2-3% of the companys revenues, far below the R&D investment of multi-national pharmaceutical
businesses, in which R&D typically accounts for nearly 15% of revenue. Technically, the development of new
material technologies is only 25% that of developed countries. Our production technology is underdeveloped.
The development of domestic bioengineering and biotechnology is only 35-65% that of developed countries.
Many bioventure companies have emerging during these years mainly thanks to the governments
encouragement to develop this venture industry. These companies are committed to research and development
on the basis of unique technologies. In addition, large domestic pharmaceutical companies have developed
revolutionary medicine. To be accepted into the international market, they have conducted clinical experiments
on human subjects in specialized international clinical research organizations. However, at the moment they are
inexperienced and face many difficulties.
Granted the exclusive patents of advanced pharmaceutical companies in South Korea, we focus on the
development of generic medicine in the domestic market and maintaining stable sales and profit. However,
due to the recent medical reform separating the prescribing and dispensing of drugs, prescriptions for foreign
original medicine have increased. As a result, domestic pharmaceutical companies are in a worse situation
with decreasing R&D investment and may even lose opportunities to develop new medicines.
To avoid this dire situation and to promote the development of the domestic biological industry:
South Korean companies should take advantage of its own high-quality talent and low production structure
to set up a domestic production base through cooperation with foreign companies which possess advanced
technologies and products. They can also make a profit through projects that are under development or
are undergoing commercialization, as well as through direct or indirect investments in products (medicine,
medicine for external use, etc.).
We should seek out profitable overseas bio projects and create opportunities for domestic investors to
participate in them. This way, investors can make a profit, and at the same time technology transfers will
become possible.
We should see to it that excellent domestic bioventure companies possessing their own technologies
receive adequate financial support by attracting investment, so that their business models can be scaled
and industrialized.
We should help domestic bioventures, which possess self-developed technologies, to attract investment,
which helps them industrialize their business. We should promote our business through direct or indirect
investments in profitable domestic and overseas bio projects, and by securing elusive patents in other
countries and regions. On one hand, we should do research on basic bioengineering technologies and
make investments in production infrastructure; on the other hand, we should attract advanced foreign
companies to build local bases for mass production and gradually advance the development of profitable
technologies. In this way, we can upgrade the biological industry the sunrise industry with high added
value in the 21stcentury into a mainstream national industry which boasts competitive strength.
b) Company Status
Biotechnology investment projects
Established in June 2000, our company relies on international talent with years of experience in the planning
and proposal of overseas projects. We focus on developed countries and regions, including the US, Europe and
Japan.
Ourcompany is seeking companies engaged in promising biotechnology projects, appraising their research
programs, making direct investments and maintaining investments from domestic investors.
22

, ,
,
.
1 (VaxGen)
(Mammalian Cell-Culture Technology)
(Therapeutic Proteins) ,
()
,
,

.
-

,

.

, 2
.
,
,
, , ColdChain ,
,
.
-

.
1 .

..

Cold-Chain CRO

,

.
, Cold-Chain
Knowhow Cold-Chain
Gloval .
23
Ourcompany combines foreign companies which possess advanced biotechnology with domestic capital, and
plans and promotes the establishment of joint ventures in South Korea.
Our company is engaged in the procurement of raw materials for biopharmaceutical production from
domestic and overseas suppliers, as well as the distribution of these products.
Our companys first investment project is a good example. In order to develop various therapeutic proteins for
the production of vaccines and anticancer drugs, it used the Mammalian Cell-Culture Technology of the VaxGen
Company, and established a joint venture named Celltrion. Our company will build on this achievement and
continue to promote profitable new projects.
- The localization of excipients for biopharmaceutical production
The demand for equipment for biopharmaceutical production is increasing sharply worldwide, and the market
for raw materials and excipients will expand along with it. It is necessary to purchase raw materials for
biopharmaceutical production from domestic and foreign suppliers, and upgrade the relevant distribution
channels.
In order to adjust to the change in business structure and maintain quality and price competivemess, our
company is planning to carry out its second round of commercial projects, aiming at the localization of
excipients for biopharmaceutical production.
To this end, our company plans to promote cooperation with overseas companies to establish joint efforts to
promote the technologies necessary for the development of these materials, since most raw materials and
excipients for basic biopharmaceutical production are imported from overseas. Meanwhile, it will advance the
localization of these materials and expand its Asian market through the diversification of material production,
investment in cold-chain logistics, and the construction of domestic bases for material production.
Procurement of reference drug
In physical and chemical comparison tests and clinical trials with originators, control tests are crucial for the
development of biosimilars. Notably, the number of reference drugs used in the clinical trials of biosimilars is
even larger than the total of those used in several Eastern European countries over an entire year. It is a wellknown fact that the pharmaceutical companies from which drugs originate from usually restrict the purchase of
reference drugs in order to impede the development of biosimilars.
Since its establishment, our company has run overseas projects for many years. With a chain of networks
and cold-chain operation capabilities, we first started the business of bulk purchasing reference drugs with
a price advantage, which is hard to achieve even for specialized international clinical research organizations.
Moreover, we continue to supply the development and clinical use of biosimilars. Recently, we have
expanded our business in Japan, including the supplying of reference drugs for domestic clinical use and
ordering products from Japanese pharmaceutical companies. Since many domestic and foreign companies
may eventually transition towards biosimilar production, our company plans to increase its purchases of
reference drugs, as well as expand our global cold chain distribution capabilities through our overseas
network and reference drug suppliers.
24
2.
.
( : , %)
()
()
Air fillter
8,556(55.26)
1,420(48.93)
4,869(31.45)
570(19.64)
API
268(1.73)
29(0.99)
198(1.27)
5(0.17)
149(0.96)
12(0.41)
1,441(9.30)
866(29.84)
15,481(100.00)
2,902(100.00)
.
( : , %)
13
12
84
0.54
13
0.08
97
0.62
15,384
99.37
27,824
100.00
15,384
99.37
27,824
100.00
15,481
100.00
27,824
100.00
25
2. Sales Details
a) Status of Major Products
Unit: KRW MN, %
Division
Business Sectors
Sales (Percentage)
Gross Profit
(percentage)
Remarks
Air filters
8,556(55.26)
1,420(48.93)
Biosimilars
4,869(31.45)
570(19.64)
API
268(1.73)
29(0.99)
Machinery
198(1.27)
5(0.17)
Others
149(0.96)
12(0.41)
1,441(9.30)
866(29.84)
15,481(100.00)
2,902(100.00)
Services
Total
Total
b) Sales Breakdown by Sales Method

Unit: KRW MN, %
Categories
Export
sales
Sales
12th Period
Sales
Percentage
Percentage
Sales of products not produced

by Celltrion GSC
84
0.54
Sales of services
13
0.08
Sales of agent products
Others
97
0.62
27,824
100.00
Subtotal
Domestic
Sales
13th Period
Sales of products not produced

by Celltrion GSC
Sales of services
15,384
-
Sales of agent products
Others
27,824
100.00
27,824
100.00
Subtotal
Total
15,384
15,481
1
0
26
.
(1)
AIR FILTER
(2)
27
c) Sales Channels and Sales Methods

(1) Sales Organization
Air filters
In-house direct sales
Reference drugs, etc.
Plastic greenhouse materials
(2) Sales Channels
Suppliers (domestic and

overseas)
The company
Clients
Korean branches of foreign

companies
28
(3)
- :
- : (15 1 ) 15

(4)
-
-
3.
. ()
( : , %)
13
12
Air fillter
8,556
55.26
4,869
31.45
API
268
1.73
5,030
18.07
19,790
71.12
55
0.19
198
1.27
2,597
9.33
84
0.54
65
0.41
352
1.26
13
0.08
1,428
9.22
15,481
100.00
27,824
100.00
29
(3)Sales Methods and Conditions

Sales methods: supplies based on supply contracts or orders from customers
Payment terms: after settling sales with customers (within 15 days to one month), cash payments should
be made within 15 days; after monthly sales settlements with customers, cash payments should be made
no later than the last day of the next month
(4) Sales Strategy
Cooperate with target corporate clients and expand market by expanding the variety of applicable products
Strict quality control and just-in-time management of the import and supply chains
3. Sales Results
a) Export (Domestic Sales) by Category
Unit: KRW MN, %
Item
Categories
13thPeriod
Amount
12thPeriod
Percentage (%)
Export
Air filters
Biosimilars
Domestic sales
8,556
55.26
Export
Domestic sales
4,869
31.45
Export
API
Domestic sales
268
1.73
Export
Machinery
Others
Services
Amount
Percentage (%)
-
5,030
18.07
19,790
71.12
55
0.19
Domestic sales
198
1.27
2,597
9.33
Export
84
0.54
Domestic sales
65
0.41
352
1.26
Export
13
0.08
1,428
9.22
15,481
100.00
27,824
100.00
Domestic sales
Total
30
. ()
( : , %)
Air fillter
API
13
12
6,869
61.30
4,457
16.74
3,963
35.36
19,271
72.40
15
0.06
40
0.35
136
0.51
65
0.58
49
0.18
99
0.88
1,242
4.66
33
0.29
1,119
4.20
64
0.57
328
1.23
72
0.64
11,205
100.00
26,617
100.00
. ()
( : , % )
Air fillter
API
8,556
55.26
4,869
31.45
268
1.73
198
1.27
84
0.54
65
0.41
13
0.08
1,428
9.22
15,481
100.00
31
b) Import (domestic purchase) by category
Item
Categories
Unit: KRW MN, %
13th Period
Amount
12th Period
Amount
Percentage (%)
Percentage (%)
Import
Domestic
purchase
Air filters
Machinery
Others
6,869
61.30
4,457
16.74
3,963
35.36
19,271
72.40
15
0.06
Import
40
0.35
136
0.51
Domestic
purchase
65
0.58
49
0.18
Import
99
0.88
1,242
4.66
Domestic
purchase
33
0.29
1,119
4.20
Import
64
0.57
328
1.23
Domestic
purchase
72
0.64
11,205
100.00
26,617
100.00
Import
Comparison pills
for
Bioequivalence Domestic
purchase
Test
(Biosimilars)
API
Total
c) Export (Domestic Sales) by Business Region

Unit: KRW MN, %
Item
Air filters
Categories
Target country
Export
Domestic sales
Domestic
Export
Comparison pills
for
Bioequivalence
Domestic sales
Test
(Biosimilars)
API
Machinery
Others
Domestic
Percentage
Remarks
8,556
55.26
4,869
31.45
268
1.73
Export
Domestic sales
Domestic
Export
Domestic sales
Domestic
198
1.27
Export
Russia
84
0.54
Domestic sales
Domestic
65
0.41
Japan
13
0.08
1,428
9.22
15,481
100.00
Export
Services
Amount
Domestic sales
Total
Domestic
-
32
. ()
( : , %)
API
18.75
98
0.87
1,588
14.17
23
0.20
56
0.49
55
0.49
39
0.34
0.01
6,869
61.30
99
0.88
33
0.29
40
0.35
65
0.58
64
0.57
72
0.64
11,205
100.00
Air fillter
2,102
33
d) Import (Domestic Purchase) by Business Region
Item
Categories
Target country
Germany
Others
Remarks
98
0.87
1,588
14.17
Mexico
23
0.20
U.S.
56
0.49
Austria
55
0.49
Netherlands
39
0.34
Hong Kong
0.01
Domestic purchase
Domestic
Import
Domestic purchase
Domestic
6,869
61.30
Import
Germany
99
0.88
Domestic purchase
Domestic
33
0.29
Import
India
40
0.35
Domestic purchase
Domestic
65
0.58
Import
U.S.
64
0.57
Domestic purchase
Domestic
72
0.64
Comparison pills
for
Bioequivalence
Test
(Biosimilars)
API
Percentage
18.75
U.K.
Machinery
Amount
2,102
Switzerland
Air filters
Unit: KRW MN, %
Import
Total
100.00
34
4.
.
(1)
( : , )
43
43
*
(2)
( )
(3)
( )
.
( )
.
(1)
( )
(2)
( : )
14
15
16
130
50
30
50
17,500
15,000
1,000
1,500
17,630
15,050
1,030
1,550
35
4. Status of Operation Equipment

a) Status of Commercial Equipment
(1) Domestic
Unit: KRW MN
Category
Number of
employees
Location
Land
Building
Total
IncheonYeonsu Songdo
43
43
Total
Remarks
* The rented HQ office is in use

(2) Overseas
No related issue
(3) Plans for Establishment of New Branches
No related issue
b) Other Commercial Equipment
No related issue
c) Plans for Purchasing New Equipment
(1) Ongoing investment
No related issue
(2) Future Investment Plans
Unit: KRW MN
Business
sector
Name of
plan
Total expected Investment
Investment effect
Assets from
Equipment Equipment, etc.

Investment
Total
Total expected investment
Security
Amount
th
th
Remarks
th
14 Period 15 Period 16 Period
130
50
30
50
17,500
15,000
1,000
1,500
17,630
15,050
1,030
1,550
Improved office
efficiency
New business
36
5.
2011.04.29
()
2011.05.05
CELLTRION DON LLC ()
2011.05.30
CELLTRION CO.,LTD.
2011.06.29
2011.06.29 Master Supply Agreement
Nippon Kayaku
2012-01-13 Werehouse Service Agreement
()
2012.02-06
CELLTRION DON LLC ()
2012-02-03
2012-06-07 Confidentiality & non_disclosure agreement
PDP Courier, Jupiter Express
UPS Supply Chain Solutions
2012-10-18 SHARE PERCHASE AGREEMENT
ORIX CORPORATION
2012-11-27
()
2012-12-01
()
2012-12-10
2012-12-26
2012-12-28
()
2012-12-28
()
37
5. Major Operating Contracts, etc.
Category
Contract date
Contract content
Project construction
contract
Contracts for plastic greenhouse

29 Apr 2011 construction and supplementary
services in Russia
Project construction
contract
5 May 2011
Purchase contract
30 May 2011 Purchase contract for generics
Trust contract for

assets management
29 Jun 2011
Trust contract for the management of

fixed benefit pensions
Purchase contract
29 Jun 2011
Master Supply Agreement
Service contract for plastic greenhouse

construction in Russia
Counterparty
Bogwang Construction
Corporation
Russian legal person
Celltrion Co.,Ltd.
Hana Bank
Nippon Kayaku
Contract for
Luggagestorage
and
13 Jan 2012 Warehouse Service Agreement
Modern General Motors

Corporation, Ltd.
transportstation
Contract for good
supply
6 Feb 2012
Good Supply Agreement
Purchase contract
3 Feb 2012
Agreement on the purchase of

Russianexportgoods
Nanjing Dong
Transport contract
7 Jun 2012
Confidentiality & nondisclosure

agreement
PDP Courier, Jupiter Express
Transport contract
2 Aug 2012

agreement
UPS Supply Chain Solutions
Transport contract
27 Sep 2012

agreement
Korean Air
Block deal
18 Oct 2012 Share purchase agreement
Investment contract
27 Nov 2012 Advance payment agreement
Service contract
1 Dec 2012
Dispatch of contract workers
CELLTRION DON LLC (Russian

Subsidiary)
ORIX Corporation
SeoulInvestmentClubLtd.
FreeZone
Comprehensive Cash Balance

Monetary agreement 10 Dec 2012 Agreement (cash consumption, money
borrowing/lending)
RainbowIndianapolis, Ltd.
Comprehensive Cash Balance

Monetary agreement 26 Dec 2012 Agreement (cash consumption, money
borrowing/lending)
In andOut, Ltd.
Service contract
28 Dec2012 Business support contract
Celltrion, Ltd.
Service contract
28 Dec 2012 Business support contract
Celltrion Health Care, Ltd.
38
6.
()
7.
.
[]
( : )
23,024
90
90
23,024
16,435
40,000
2,435
54,000
39,459
40,090
2,525
77,024
()
()
22,000
10,000
12,000
()
8,662
8,662
()
()
()
30,662
10,000
20,662
5,400
43,200
5,440
43,160
75,521
83,290
17,965
140,846
( )
:
:
12,000
. 3
( )
.
2013 2 4 720,000 (
80%) 13,200 2013 3 8
.
39
6. Research and Development Activities

No related issue
7. Other information necessary for investment decisions
a) Summary of External Financing
Domestic Financing
Financing source
Banks
Unit: KRW MN
Beginning
balance
New financing
Reduction
through
repayment
End balance
23,024
90
90
23,024
Insurance companies
Comprehensive financial companies
Commercial credit companies
Mutual savings banks
16,435
40,000
2,435
54,000
39,459
40,090
2,525
77,024
22,000
10,000
12,000
8,662
8,662
Share offering (private placement)
Asset securitization (public offering)
Asset securitization (private

placement)
Others
30,662
10,000
20,662
5,400
43,200
5,440
43,160
75,521
83,290
17,965
140,846
Other financial institutions

Subtotal of financial institutions
Corporate bonds (public offering)
Corporate bonds (private placement)
Share offering (public offering)
Subtotal of capital market

Shareholders, executives, subsidiary
borrowings
Other
Total
Remarks
(Reference) total number of corporate bonds issued in this period

Public offering:
KRW MN
Private placement: KRW 12,000 MN
b) Credit Rating in the Past Three Years
(N/A)
c) Other Important Matters
After the end of the business, the company signed a contract to acquire 720,000 (equity ratio 80%) shares of
Hanskins common stock with KRW 13,200 MN(USD 13.2 MN) on 4 February 2013, and completed the
acquisition on 8 March 2013.
40
III.
1.
( : )
13
12
[]
103,594,997,365
51,407,776,236
103,594,997,365
50,609,602,339
798,173,897
[]
485,012,004,781
380,440,887,128
484,999,196,978
380,439,397,058
5,099,134
1,203,334
7,708,669
286,736
588,607,002,146
431,848,663,364
185,787,797,761
82,992,980,938
70,839,835,872
81,748,492,374
256,627,633,633
164,741,473,312
8,661,900,000
8,661,900,000
597,333,772
597,333,772
(130,144,180)
(130,144,180)
225,183,859,461
261,769,792,184
97,666,419,460
(3,791,691,724)
331,979,368,513
267,107,190,052
15,481,246,329
27,824,376,329
1,589,982,836
903,419,671
134,386,703,228
(7,101,232,091)
101,458,111,184
(6,347,194,424)
[]
[]
[]
[]
[]
[]
[]
41
III.Financial Status
1. Financial Summary
(Unit: KRW)
Division
12th Period
13th Period
Current assets
103,594,997,365
51,407,776,236
Quick assets
103,594,997,365
50,609,602,339
798,173,897
Non-current assets
485,012,004,781
380,440,887,128
Investment assets
484,999,196,978
380,439,397,058
Tangible assets
5,099,134
1,203,334
Intangible assets
7,708,669
286,736
Total assets
588,607,002,146
431,848,663,364
Current liabilities
185,787,797,761
82,992,980,938
70,839,835,872
81,748,492,374
256,627,633,633
164,741,473,312
8,661,900,000
8,661,900,000
597,333,772
597,333,772
(130,144,180)
(130,144,180)
225,183,859,461
261,769,792,184
97,666,419,460
(3,791,691,724)
331,979,368,513
267,107,190,052
15,481,246,329
27,824,376,329
1,589,982,836
903,419,671
Profit from continuous

operation
134,386,703,228
(7,101,232,091)
Net profit
101,458,111,184
(6,347,194,424)
Inventories
Non-current liabilities
Total liabilities
Equity
Capital surplus
Capital adjustment
Other accumulated
comprehensive income
Retained earnings
Total equity
Sales revenue
Operating income
42
2.
1).
.
, .
2011 1 1
. '
.
.
.
21 '' 21.5 2

. ,
36,937 ,
36,937 .
.
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43
2. Attention in the Use of Financial Statements

1) Financial Statement Creation Criteria and Significant Accounting Policy
The important accounting policy for financial statement creation is written below. These policies are
continuously applied throughout the noted accounting periods unless specifically noted otherwise.
The company has applied the Private Sector Accounting Principles from the annual report period since 1 January
2011. Private Sector Accounting Principles is the standard that is applied to firms that are among the firms
subject to Corporate External Auditing Law and are not conducting their accounting according to K-IFRS.
The applied important accounting policies for the creation of financial statements are the following:
a) Change of Accounting Policy
Due to the amendment of Private Sector Accounting Principles, page 21, Employee Benefit paragraphs 21.5, 2,
the company now recognizes the expenses and liabilities related to annual paid leave during the accounting
periods when staff provide the services that generate the rights to annual paid leave. The amendment is
effective starting this accounting period. Therefore, the companys current year-end assets were decreased by
KRW 36,936,000 (USD 36,937) and companys current year-end profit was decreased by KRW 36,937,000
(USD 36,937).
b) Profit Recognition Criteria
The company uses fair value to forecast the revenue generated from the sale of goods, rendering of services, and
use of the assets. When forecasting the revenue, the value-added taxes, sale allowance, rebates and discounts
was subtracted. The company recognizes revenue when the amount of revenue can be reliably measured and it is
probable that future economic benefits will flow to the entity.
Revenue from the sale of goods is recognized when the risks and rewards are transferred to the buyer and
when there is an ownership of the goods sold and when common administration or effective control cannot be
done, and when costs incurred or will be incurred due to the amount of revenue and transactions can be
estimated credibly with a very high probability of economic benefits inflow.
Revenue from the provision of services is recognized according to the accounting policy when the entire
amount of revenue and progress can be reliably estimated, when there is a high probability of economic
benefit inflow, and when incurred expenses and transactions costs can be reliably estimated.
c) Cash and Cashable Assets
The company is treating Cash and Cashable Assets (cash equivalents when substitute securities (like currency
and checks), checking accounts, ordinary deposits and financial instruments that can be easily converted to
cash with a low risk of change of value due to interest change and when the contract period (or repayment
period) is less than three months.
44
.

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,
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.
1
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45
d) Allowance for Bad Debts

For account receivables bearing repayment risk, the company estimates the bad debt amount and sets a bad
debt reserve based on reasonable and objective standards. The balance of allowance for writing off estimated
impairments or losses is called the write-off expense for bad debts. For trade-related receivables in commercial
transaction, the write-off expense for bad debts should be accrued into the cost of selling and administrative
expenses, while the write-off expense for bad debts related to other bonds should be accrued into non-operating
expenses.
e) Financial Instruments
The company classifies time deposits for the purpose of short-term capital operations, time deposits, and
periodical deposits of financial institutions with a maturity date less than one year as short-term financial
instruments. Financial instruments, which do not belong to current assets, are classified as long-term financial
instruments.
f)
Inventories
The companys inventories are determined on the basis of the perpetual inventory method and regular
inventory inspection. The inventory value is calculated by the total average method and is recorded as a
purchase cost. The market value of inventory is recorded in the financial statements by inventory classification.
When the market value of the inventory is lower than the purchase cost, the valuation loss of the inventories is
included into the costs of goods sold and at the same time it is recorded in the inventory balance account.
However, when there is no devaluation in the inventory value and the market value is higher than the book
value but lower than the purchase costs, the valuation loss is reversed and deducted from the costs of goods
sold.
g) Marketable Securities
The values of marketable securities are estimated by applying the moving average cost method. According to
the acquisition purpose and intention of holding, the company is classifying the investment for security and
debit securities into held-for-trading, available-for-sale, and held-to-maturity. Among the securities, shares that
can exercise a significant influence in securities are classified as investment stock under the equity method.
Held-for-trading securitiesare classified as short-term investment assets and available-for-sale, and held-tomaturity are classified as long-term investment assets; however, from the end of the reporting period, if a
security matures within one year or it is almost certain that the securities will be disposed, the company
classifies them as short-term investment assets.
Held-to-maturity investments are valued at acquisition cost after depreciation.Held-for-trading securities and
available-for-sale securities financial assets are measured at fair value. However, for available-for-sale financial
assets, when the fair value of stocks cannot be precisely measured, it is evaluated using the acquisition costs.
Gains and losses related to held-for-trading securities are recognized in gains or losses for the period. Gains and
losses related to available-for-sale securities are recognized by Accumulated Other Comprehensive Gain or Loss,
and when available-for-sale securities are sold or when the impairment losses are recognized, the company
reflects these changes in the gains and losses for the period.
46
( "")
,
.
,
. .
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,
(
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.

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,
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.
47
If the recoverable amount of securities is less than the acquisition costs (considering depreciation) of securities
or acquisition costs of equity, the company considers recognizing the gain or loss for the period. At the end of
the accountingreport, the company evaluates whether there is objective proof that the lost occurred or not.
With objective proof to prove when the loss occurs and there is no other proof to affirm the loss is uncertain,
should be recognized in gain or loss for the period.
When the recovery of impairment losses is objectively related to the events after the impairment loss
recognition, and held for maturity or available-for-sale securities at the fair value recognize the recovery value
as a gain or loss for the period. However, after the recovery, if the amount in the financial statement does not
recognize the impairment loss, the amount of recovery must not exceed the acquisition cost after depreciation
(for available-for-sale, acquisition price) on the current date of recovery. For the available-for-sale securities
that are evaluated at fair value, the previously recognized impairment loss amount should be the limit and the
recovery amount is recognized in the gains or losses for the period.
h) Derivative Goods
The company calculatesassets and liabilities by evaluating the rights and responsibilities that have arisen for
the contract of derivative goods. The gains and losses due to the contract are recognized immediately at the
time of occurrence as the gains or losses for the period.
i) Tangible Assets
The acquisition cost of tangible assets is composed of buying expenses or manufacturing expenses, and is
directly related to the expenses for activating the tangible asset in the necessary place with the necessary
conditions according to the method that executive members intend. After the expiration of the economic usage
of the tangible asset, when the expenses of eliminating the asset or the estimated cost of recovering the asset
fulfill the liabilities recognition criteria, the present value of these expenses are included as the acquisition cost.
The companys tangible assets are measured by the acquisition cost (or the re-evaluated price-residual value)
minus the assets accumulated depreciation and impairment loss, calculated based on the expected useful
life and the depreciation method in the following chart
Division
Convenience goods
Useful Life
Five years
Depreciation Method
Straight-line method
If an expenditure on tangible assets at acquisition or after installation can increase future economic benefits,
such as productivity increases, the extension of useful life, and significant cost savings, it is treated as a capital
expenditure. Otherwise, it is treated as an expense of the period.
48

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(1)
,

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,
.
49
j) Intangible Assets
The acquisition cost of the companys intangible assets is composed of the purchaing cost and any directly
related expenses that were used for preparing the intangible asset. The company indicates the acquistion cost by
subtracting the accumulated depreciation and accumulated impairment loss on the basis of the expected useful
life and depreciation method in the following chart:
Classification
Right for trademark
Depreciation
Straight-linemethod
Expected Useful Life

Five years
k) Impairment of Non-Financial Assets

Non-financial assets that are not ready for use are reviewed via an impairment test at the end of every
reporting period. The company undertakes the impairment test on goodwill acquired due to the business
combination by assessing the recoverable amount. In the case of depreciated or amortized assets, the
impairment test is undertaken when there is any indication that the carrying amount may not be recoverable
due to the changes in circumstances or events. However, the impairment test is undertaken for the tangible
asset when it has been determined that there are the signs of damage, and when the future net cash flows is
expected due to the use or disposal of the relevant year of the tangible asset (individual assets or tangible
assets including cash-generating units) is lower than the book value. An impairment loss is recognized when the
book value exceeds the recoverable amount. The highest number between fair value and value in use is chosen
to be the recoverable amount. For the purpose of estimating the impairment, assets are grouped into the lowest
level group (cash generating unit) that can create identifiable individual cash flow.
The goodwill that is acquired for the purpose of the impairment test will be distributed on the acquisition date
at the cash generating unit that the synergy effect of business combination is expected. When the recoverable
amount of the cash generating unit is lower than the book value, the company first decreases the book value of
the distributed goodwill at the cash generating unit, and then the other assets that belong to the cash
generating unit are proportionally allocated to the book value.
Non-financial assets, except the goodwill that recognizes the impairment loss, are examined with the possibility
of reversal, and impaired goodwill cannot be recovered in the future.
I) Employee Wage
(1) Pension Plan
The company has a defined benefit retirement pension plan. The company selects the currently employed staff
and receives pension plans, and any liabilities related to retired employees are calculated as pension plan
liabilities and accrued pension plans. Pension planassets arepresented by subtracting from total liabilities for the
period and, if thepension plan assetsexceed this number, the excess amount is presented as an investmentasset.
50
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51
(2) Annual Allowance Liability

The company recognizes the costs and expenses related to annual paid vacation during the accounting period
of working service that generates the right to annual future paid vacation.
m) Convertible Bonds and Bonds with Warrants
The company separates the liability and equity parts in the accounting treatment of convertible corporate
bonds and bonds with warrants. The liabilities are recognized at the fair value of ordinary corporate bonds
without conversion rights or warrants, and the fair value is measured by the present value of the expected
future cash flows. The value of conversion rights or warrants is derived by deducting the value of bonds in the
liabilities part from the total value of corporate bonds, and is recorded into capital surplus. The liabilities part
is discounted by the effective interest rate method, whereas the equity part will not be measured after initial
recognition.
In addition, the company amortizes (reversal) discounts (premiums) on bonds by applying an effective interest
rate, and the same amortized (reversal) amount is added (or subtracted) on the interest expenses.
n) Conversion of Foreign Currencies
(1) Functional Currency and Term Currency
The company is estimating the items on the financial statements by applying the currency (functional
currency) in the primary economic environment where the operating activities happen. The companys
functional currecy is Korean Won and the financial statement is expressed in Korean Won.
(2) Currency Exchange and Currency Translation
The company has recorded using the spot exchange rate between the foreign currency and the functional
currency of the trading days in the case of recognizing the deals made in other currencies(foreign currency) as
a functional currency. Also, monetary foreign currency assets and liabilities are calculated by the current
exchange rate of the end of reporting report, and any gains or losses from the exchange translation are
included in the gains or losses from the period. However, the same amount is recognized for the risk hedging
costs and foreign currency denominated available-for-sale debt securities as other comprehensive income in the
case of meeting the requirements for cash flow hedging. Non-monetary financial assets and liabilities arising
from exchange differences are reported as part of the fair value gain or loss. At fair value through profit or loss
exchange differences arising from equity to profit or loss is seen as part of the fair value gain or loss, and
foreign currency differences on available-for-sale equity instruments are recognized and included in other
comprehensive income for changes in fair value.
o) Net Income Taxes and Deferred Income Taxes

According to Corporate Tax Law, the currenttax expenses arecalculated as corporate tax expense minus
changes in deferred income taxes. In the case that the income tax effect for taxable temporary differences
increases taxable income in the future periods, the whole amounts are recognized as deferred income taxes
liabilities. The tax effect of such temporary differences and losses to be deducted to reduce taxable income of
future periods is recognized as a deferred tax assets, and if it is expected to be a tax saving for the future it is
probable that the future taxable income is very high. Also, the tax burdens of capital account items that are
directly related to the deferred income tax are deducted and adjusted directly to shareholders' equity.
52
.

.
,

. , ,
,
.
.
,
( ,
). ,

.
()
, (
) . ,
, (
)
.
, ( )

.
,

,
,

.
, ,
.
.
53
p) Estimated Liabilities and Contingent Liabilities

As the company performs the present obligations because of past events or transactions, when it is probable
that recources will flow out and when the loss can be reliably measured, the loss is included into liabilities.
Additionally, contingent liabilities are recorded when the company recognizes potential obligations according to
past events or uncertain future events. If present obligations exist because of past events or transactions,
contigent liabilities are also recorded if it is not probable for resources to flow out, or when the amount of the
obligations cannot be reliably measured.
Estimated liabilities are measured at the present value of the expected expenditures that are required to fulfill
the obligation, and the discount rate that is used for present value assessment is the pre-tax interest rate that
reflects the assessment of the current market for the time value of money and the specific risks of the liability.
Additionally, the residuals of estimated liabilities are reviewed at the end of every reporting period; they are
adjusted by reflecting the current best estimates. The discount rates that are used for present value assessment
are used in the original report, assuming that they have remained unchanged.
F) Measurement of Financial Assets and Financial Liabilities
The First Estimates
The company uses fair value to estimate the financial assets and fianacial liabilities, and the fair value is
normally the trading price or transaction value (it is the fair value of consideration for providing financial assets
in the case of financial assets and it is fair value of consideration of receiving financial liabilities in the case of
financial liabilities). However, the bonds and debts are measured at fair value in these cases: long-term
deferred trading conditions, long-term cash loan if this transaction or the significant difference between the
nominal amount and the fair value of bond debt arising from a similar deal.
If non-financial assets are included in the counter-performance paid (received), then the fair value of this nonfinancial asset is measured by its market price. If there is no market price, deduce the fair value using the
evaluation method (including present value evaluation method). However, even though the counter-performance
paid or received includes non-financial assets, if the relationship between the allocation and use of the fund used
for collecting or paying benefits in return (the restriction of product supply value) is certain, or is dealing with
the leasing deposit, we adopt the total transaction price as the initial confirmed amount of the financial
asset.Short-term trading securities, derivatives (except in a situation suitable for risk-aversion accounting), and
other financial assets or financial liabilities are not measured as fair value after initial confirmation, and the
changes in the fair value are counted as current gainsor losses. The entry value is calculated as initially
measured fair value additions or deductions of the transaction cost that directly relate to the acquisition of
financial assets or the distribution of financial liabilities.
The current value of the financial product measured by the corporation is suitable for the transactionimplied
interest rate of this year. When the transaction implied interest rate is unavailable or is different thanthe same
market rate, it is measured usingthe same market rate. When the same market rate is unavailable, the weighted
average interest rate, calculated according to an objective and reasonable criteria, is a suitable measurement.
When there is no objective and reasonable criteria for productive weighted average interest rate, it is based on
the corporation bonds current yield rate. The rate should reflect the corporations reasonable deducing credit
rating and suit capital allocation costs.
Subsequent measurement
Except for the securities, derivatives, designed projects of the profits and loss affirmed in current period, and
financial guarantee contracts, financial assets and financial debts are suitable for the effective method to
measure the after-depreciation cost. The subsequent determination of the designed projects of the profits and
losses affirmed in the current period should use the same method as held-for-trading.
54
2).
(:).
(%)
2012.12.31
6.0
6.5~8.5
50
50
51,011,559
32,609,293
51,011,609
32,609,343
( 14 ).
3).
.
(:).
()
(%)
()
16,086,118
9.21
108,701
0.77
()
() 2
2,000,000
9.9
(*)
185,936,861
483,083,099
483,083,099
297,146,238
1,935,559
1,847,917
1,847,917
(67,934)
10,000,000
10,000,000
197,852,712
486,931,016
486,931,016
297,078,304
10,000,000
() () , ()
2 .
()
(%)
(*)
()
10,475,717
8.99
34,925,794
380,268,527
380,268,527
345,342,734
() 2
2,000,000
9.90
10,000,000
92,460
92,460
9,907,540
44,925,794
380,360,987
380,360,987
345,342,734
9,907,540
55
2). Short-term investment assets

The content of current investment assets at the end of the reporting period is as follows:
2012.12.31
Annual interest rate (%)
Division
Government bond
Short-term loan
(Unit: KRW 000)
Amount
End of current period
End of last period
6.0
50
50
6.5~8.5
51,011,559
32,609,293
51,011,609
32,609,343
Total
The short-term loans mentioned above include loans to the groups related parties. (Note 14)
3). Available-for-sale securities
a. The content of available-for-sale securities
The content of available-for-sale securities asof the end of the reporting period is as follows: (Unit: KRW 000)
(Current period)
The name of
the company
Celltrion
Owners
Shareholding hip
stake
16,086,118
Celltrion Pharm
Tomato Bank
Purchase
cost
9.21 185,936,861
Net asset
value (*)
Total
Accumulated
unrealized impairment
loss
losses
Book
value
483,083,099 483,083,099 297,146,238
108,701
0.77
1,935,559
1,847,917
1,847,917
2,000,000
9.9
10,000,000
Total
197,852,712
(67,934)
- 10,000,000
486,931,016 486,931,016 297,078,304 10,000,000
Celltrion and Celltrion Pharm used the closing price at the end of the reporting date. The company judeged
thatnet asset value of Tomato bank available-for-saleis unlikely to be recoverable, thus the loss is recognized in
asset impairment losses.
(Last period)
The name of
the company
Celltrion
Tomato Bank
Owners
hip
rate
Shareholding
(%)
10,475,717
2,000,000
Total
Purchase
cost
Net assets
value (*)
Book value
Total
Accumulated
unrealized impairment
loss
losses
8.99 34,925,794 380,268,527 380,268,527 345,342,734

9.90 10,000,000
92,460
92,460
9,907,540
44,925,794 380,360,987 380,360,987 345,342,734
9,907,540
56
.
(:).
()
345,342,733
(160,302,534)
112,106,038
297,146,237
(67,934)
(67,934)
345,342,733
(160,302,534)
112,038,104
297,078,303
(83,572,941)
(38,793,213)
(27,114,716)
(71,894,444)
261,769,792
(121,509,321)
84,923,388
225,183,859
()
322,295,214
(6,284,488)
29,332,008
345,342,734
(70,904,947)
1,382,587
(14,050,582)
(83,572,942)
251,390,267
(4,901,901)
15,281,426
261,769,792
.

( 16 ).
4).
(:).
()
1,203
1,257
/
5,153
5,099
8,564
()
413
410
/
1,200
1,203
7,307
57
b. The content of the changes in the evaluation of available-for-sale securities

The changes of the companys evaluation of available-for-sale securities at the end of this period are as follows:
(Unit: KRW 000)
(Current period)
The beginning of
the period
Division
Increase/
decrease
Liquidation
The end of the

period
Income from the

evaluation of available-forsale securities
345,342,733
(160,302,534)
112,106,038
297,146,237
Evaluation of available-forsale losses
(67,934)
(67,934)
345,342,733
(160,302,534)
112,038,104
297,078,303
(83,572,941)
(38,793,213)
(27,114,716)
(71,894,444)
261,769,792
(121,509,321)
84,923,388
225,183,859
Total
The influence of income
tax
Total differences
(Last period)
The beginning of
the period
Division
Income from the
The influence of income
tax
Increase/
decrease
Liquidation
The end of the

period
322,295,214
(6,284,488)
29,332,008
345,342,734
(70,904,947)
1,382,587
(14,050,582)
(83,572,942)
251,390,267
(4,901,901)
15,281,426
261,769,792
Total differences
c. Available-for-sale securities that provide security

Some of the available-for-sale securities that the company held have been mortgaged in Woori Bank etc. asof
the end of this reporting period. (Notes 16)
4). Tangible assets
The changes in the book value of companys tangible assets in the current period and last period are as follows:
(Unit: KRW 000)
(Current period)
Division
Convenience
goods
Book value at
the beginning
of the period
1,203
Depreciation
Book value at
the beginning
of the period
Depreciation Purchase
/disposition
1,257
Purchase/
disposition
Book value
Total depreciation
asof the end of cost as of the end of
the period
the period
5,153
5,099
8,564
(Last period)
Division
Convenience
goods
413
410
1,200
Book value
Total depreciation
asof the end of cost as of the end of
the period
the period
1,203
7,307
58
5).
(:).
1,202
1,202
1,202
9,000
1,202
9,000
1,202
1,202
1,143
1,350
(916)
(916)
59
7,650
286
286
(228)
(1,350)
243
243
6).
.
(:).

2012.12.31
6.24
8,500,000
8,500,000
IBK
6.90
11,000,000
11,000,000
7.50
7,000,000
7,000,000
6.30
3,000,000
3,000,000
5.46
40,000,000
7.00
30,000,000
7.00
13,160,000
2,435,000
5,400,000
112,660,000
37,335,000
7,524,000
7,524,000
7,524,000
7,524,000
(%)
6.44
59
5Intangible assets
The changes in the companys intangible assets in the current period and last period are as follows: (Unit:
KRW 000)
Current period
Division
Right for trademark
Purchase cost at the beginning of

the period
Last period
Software
Right for
trademark
Subtotal
1,202
1,202
1,202
Purchase cost/capital expenses
9,000
Purchase cost at the end of the

period
1,202
9,000
1,202
1,202
Accumulated depreciation cost at

the end of the period
1,143
1,350
(916)
(916)
59
7,650
286
286
(228)
(1,350
)
243
243
Book value at the end of the

period
Depreciation cost of intangible
assets
6).Loans
a. Long-term and short-term loans
The long-term and short-term loans until the end of the reporting period are as follows: (Unit: KRW 000)
Division
Short-term loan
Interest rate(%)
Hana Bank
6.24
8,500,000
8,500,000
IBK investment
security
6.90
11,000,000
11,000,000
Shinhan Capital
7.50
7,000,000
7,000,000
Samsung security
6.30
3,000,000
3,000,000
Korea Securities
Finance Corporation
5.46
40,000,000
Rainbow Plus
7.00
30,000,000
In and Out Ltd
7.00
13,160,000
Hana Daetoo Securities

Co., Ltd
2,435,000
5,400,000
112,660,000
37,335,000
7,524,000
7,524,000
7,524,000
7,524,000
Individuals
Total
Long-termdebt
Amount
2012.12.31
Source of loans
Woori Bank
Total
6.44
Current period
Last period
60
.
(1)
(
:).

(1~3 )
(1 )
(%)
2012.12.31
11.00~17.00
12,000,000
17,000,000
5,000,000
12,000,000
22,000,000
(631,825)
(1,866,211)
10,486,647
17,221,788
(228,209)
(4,641,481)
(850,659)
21,626,212
31,863,437
1 1 .
(2)
- 2
: 7,000
: 2009 2 27
: 2013 2 26
:
: 17%
: 3 1
3 .
17%
.
: 1
: 37,600
2 2015 2 26 ,
11% .
61
b. Convertible bonds and bonds with warrants

(1) The convertible bonds and bonds with warrants at the end of the reporting period.
Convertible bondsand bonds with warrants at the end of the reporting period are as follows: (Unit: KRW 000)
Division
Convertible bonds (The 1st-3rd
insurance)
Corporate bonds with warrants
(The 1st insurance)
Amount
2012.12.31
Interest rate (%)
11.00~17.00
-
Total
Corporate bond discounts
Premium of the bond repayment
Adjustment of conversion
Adjustment of warrants
The total amount of bookvalue
Last period
Current period
12,000,000
17,000,000
5,000,000
12,000,000
22,000,000
(631,825)
(1,866,211)
10,486,647
17,221,788
(228,209)
(4,641,481)
(850,659)
21,626,212
31,863,437
(*) The company has repaid the first round of convertible bondsand bonds with warrants during the current
period.
(2) Conditions of the convertible bonds and bonds with warrants
-The second issuance of convertible bonds
Book value: KRW 7,000 MN
Issue date: 2009.2.27
Maturity date: 2013.2.26
Method of repayment: One-time paymenton the date of maturity.
Repayment of company bonds: From the issue date to date of maturity; the interest rate is 17%.
Repayment of options: Bondholders can exercise their right to sell bonds to the company or the third party
designated by the company starting the third month after the issuedate until the end of the period. In this case,
from the issue date to the transfer date, the annual compound interest rate is 17%. Earnings are added to cash
and paid to bondholders.
Conversion period: From one year after the issue to the day before the due day.
Conversion price: KRW 37,600
The maturity day of the second issuance of convertible bonds was extended to February 26, 2015 from the first
maturity date to the transfer date, the annual compound interest rate has been changed to 11%
62
- 3
: 5,000
: 2009 4 2
: 2013 4 1
:
: 17%
: 3 1
3 .
17%
.
: 1
: 37,600
7).
()
,
.
( )
2010.01.05
140,000
762,477
()
(226,512) 14 12
63
-The third issue of convertible bonds

Book value: KRW 5,000 MN
Issue date: 2009.4.2
Maturity date: 2013.4.1
Method of repayment: One-time payment on the date of maturity.
Repayment of companys bonds: Calculated using the annual compound interest rate of 17%, from the issuing
date to the date of maturity.
Repayment of options: Bondholders can exercise the right to sell the bonds to the company or the third party
designated by the company from the third month after the issuedate until the end of the period. In this case,
from the issue date to the transfer date, the annual compound interest rate is 17%. Earnings are added to cash
and paid to bondholders.
Conversion period: From one year after the issue to the day before thedue day.
Conversion price: KRW 37,600
7). Derivatives trading
The group has signed a contract that gives buyers income compensation or bonus shares when Woori Bank
transfers Celltrions stock. Profit and loss for the current period and previous period are as follows:
(Last period)
Signing date
Remarks
Counterparty
Target shares Trading profits Gains (losses)
Counterparty
Target Shares TargetTrading
Shares Counterparty
Profit
Target
Trading
Shares
Gains
Profit
(Losses)
Target
Trading
Gains
Shares
(Losses)
Profit
Trading
Gains
Remarks
2010.01.05
Individual
140,000
762,477
(226,512)
120,000 out of 140,000

shares were sold
The previous period and the beginning of the current period have been fully carried out. The gain and loss in
the last period has also been completed. Therefore, there are no gainsor losses oncommodity derivative
trading.
64
8).
(
:).
USD
61,182
65,532
3,676
4,240
EUR
52
77
65,532
4,317
USD
81
87
59,831
69,004
EUR
13,719
19,430
163,949
244,956
GBP
5,500
9,521
5,500
9,776
CHF
35,254
41,357
35,254
43,217
EUR
2,700
3,824
USD
17,238
18,464
92,683
366,953
65
8). Foreign currency assets and foreign exchange liabilities

Until the end of reporting period, changes of in the companys foreign currency assets and liabilities are as follows:
(Unit: KRW 000)
This period
Accounts
Cash and cash equivalent
Currency
Foreign currency
amount
Accrued payables
Total liabilities
Foreign currency
amount
KRW
KRW
USD
61,182
65,532
3,676
4,240
EUR
52
77
Total assets
Accounts payable
Last period
65,532
4,317
USD
81
87
59,831
69,004
EUR
13,719
19,430
163,949
244,956
GBP
5,500
9,521
5,500
9,776
CHF
35,254
41,357
35,254
43,217
EUR
2,700
3,824
USD
17,238
18,464
92,683
366,953
66
9).
( : ).
23,875
68,419
23,875
(10,908)
81,386
23,875
(149,567)
(102,284)
(68,181)
(78,409)

(: ).
23,875
61,362
23,875
7,850
3,999
81,386
23,875
81,386
23,875
67
9) Retirement pension liabilities

Changes in retirement pension liabilities during the current period and the last period are as follows: (Unit: KRW
000)
Division
Current period
Last period
Initial balance
23,875
Increase
68,419
23,875
(10,908)
81,386
23,875
(149,567)
(102,284)
(68,181)
(78,409)
Payments
Final amount
Pension
Pension payables
Changes in retirement pension liabilities during the last period of pension provisions and operating assets are as
follows (Unit: KRW 000)
Current period
Last period
Foundation
23,875
Reserve
61,362
23,875
Payments
7,850
Interest income
3,999
81,386
23,875
81,386
23,875
End of period
Configuration details
Fixed deposit
68
10).
.
4,000,000 (1
:5,000 ) ( : 1%, 15%)
20% . 2012 12 31
1,732,380 .
.
.
.
(233 , 1,165 )
, .
.
.
13
=====================
2012 01
12
01
2012 12
31
2013 3 29
2011 01 01
2011 12 31
2012 3 30
( : )
()
97,666,420
(3,791,691)
()
(3,791,691)
2,555,503
()
101,458,111
(6,347,194)
64,490
64,490
97,601,930
(3,791,691)
()
69
10). Capital
a) The number of authorized shares and the number of the issue of ordinary shares
According the company bylaws, the sum of stocksit can issue is 4,000,000 shares at KRW 5,000 per share. Up
to 20% of this can be issued in non-voting preferred shares in registered form (preferred shares rate: 1%-15%).
Outstanding common shares were 1,732,380 shares as the end of the period.
b) Premium of the decrease in capital
Premium on the reduction of capital cannot be used for other purposes except to cover a deficit orconvert to
capital.
c) Common share
To dispose of shares related to the non-paid capital increase (223 shares, KRW 1.2 MN), the group planed to
include the acquisition cost of self-owned shares in the adjustment of equity.
d) Statement of retained earnings
Profits of the company's current and historical surplus appropriation statement are as follows:
Statement of Retained Earnings
====================
The 12th period
The 13th period
2012.1.12012.12.312011.1.12011.12.31
Expected date of disposal 2013.3.29
Date of disposal 2013.3.30
Celltrion GSC
(Unit: KRW 000)

Division
Current quarter
Last quarter
Undistributed loss
97,666,420
(3,791,691)
Unappropriated retained earnings carried over from prior

period(outstanding loss)
(3,791,691)
2,555,503
Net income (loss)
101,458,111
(6,347,194)
Retained earnings
64,490
Discount on stock issuance
64,490
97,601,930
(3,791,691)
Unappropriated retained earnings carried over from prior

period(outstanding loss)
70
11).
.
(: ).
31,951,970
1,848,913
(10,701,875)
10,065,044
11,678,497
(12,667,995)
32,928,592
(754,038)
()
.
( :).
134,386,703
(7,101,232)
32,059,582
(1,744,898)
869,010
990,860
(:3,995 ,
:2,324 )
(/
)
878,793
562,455
(9,783)
428,405
32,928,592
(754,038)
24.5%
71
11) Income tax expenses

a) Detail of income tax expenses
The details of the income tax expenses in the current period and last period are as follows: (Unit: KRW 000)
Detail
Current period
Income tax
Last period
31,951,970
1,848,913
(10,701,875)
10,065,044
Deferred income tax reflected on the capital
11,678,497
(12,667,995)
Income tax expenses
32,928,592
(754,038)
The change of deferred income tax liabilities due to

temporary difference
b) The relationship between net profit or loss before income tax and income tax expenses
The relationship between net profit or loss before income tax and income tax expenses is as follows: (Unit: KRW
000)
Category
Current period
Net profit or loss before income tax

Income tax according to applicable tax
rate
Adjustment
Non-tax exemption expenses (current
period: KRW 3,995 MN, last period: KRW
2,324MN)
Difference in other tax rate
Income tax expenses
Effective tax rate (income tax
expenses/net profit or loss before income
tax)
Last period
134,386,703
(7,101,232)
32,059,582
(1,744,898)
869,010
990,860
878,793
562,455
(9,783)
428,405
32,928,592
(754,038)
24.5%
72
. ()
() (
:).
()
()
()
()
-
-
333,293
333,293
541,777
541,777
119,191
13,860,937
3,374,290
10,486,647
2,307,062
3,360,850
3,360,850
226,512
226,512
9,907,540
92,460
10,000,000
2,200,000
168
168
4,662
4,662
1,026
17,907
1,882
49,084
65,109
14,324
8,292,951
3,499,278
4,793,673
1,054,608
67,934
67,934
14,946
36,000,158
10,796,273
755,917
25,959,802
4,627,279
1,083,878
(1,565,875)
(934,050)
(631,825)
(139,002)
(300,336)
(300,336)
(4,641,481)
(4,413,272)
(228,209)
(50,206)
(850,659)
(850,659)
(160,302,535) (112,106,039) (297,146,238)
(71,909,390)
()
-
-
()-
(345,342,734)
(8,749)
(8,749)
(3,188)
(3,188)
(701)
(17,907)
(47,202)
(65,109)
(14,324)
(787,578)
(787,578)
(173,267)
(166,809,601) (114,065,759) (299,983,899)
(363,176)
(71,923,714)
4,264,103
(70,839,836)
(352,727,741)
73
c) The increase or decrease of temporary differences and deferred income tax assets (liabilities)
The increase or decrease of temporary differences and deferred income tax assets (liabilities) betweenthe current
and previous period is as follows: (Unit: KRW 000)
(Current period)
Temporary differences
Category
Balance at
the
beginning of
the period
Decrease
Liquid
deferred
income tax
assets
(liabilities)
Balance at
the end of
the period
Increase
Non-current
deferred
income tax
assets
(liabilities)
Deductible temporary
differences
Provision for bad debt
333,293
333,293
541,777
541,777
119,191
Premium of repayment
Convertible bonds
13,860,937
3,374,290
10,486,647
2,307,062
Corporate bonds with
warrants
3,360,850
3,360,850
226,512
226,512
9,907,540
92,460 10,000,000
2,200,000
168
168
4,662
4,662
1,026
Retirement benefit liabilities
17,907
1,882
49,084
65,109
14,324
Available-for-sale securities
8,292,951
3,499,278
4,793,673
1,054,608
67,934
67,934
14,946
36,000,158
10,796,273
755,917 25,959,802
4,627,279
1,083,878
(1,565,875)
(934,050)
(631,825)
(139,002)
(300,336)
(300,336)
(4,641,481) (4,413,272)
(228,209)
(50,206)
Subscription right
(850,659)
(850,659)
Profit or loss of evaluation of
(345,342,734 (160,302,535 (112,106,039 (297,146,238
derivative commodity
)
)
)
)
Evaluation loss of derivative

commodity
Impairment loss of availablefor-sale securities
Loss of foreign exchange
translation
Loss of available-for-sale
securities
Total
(Taxable temporary
differences)
Issue discount Convertible
bonds
Issue discount Bonds with
stock option
options
Gains on foreign exchange

conversion
Pension contributions
Accrued income
Total
(8,749)
(8,749)
(17,90
-
(3,188)
(3,188)
(701)
(47,202)
(14,324)
(787,578)
(65,109)
(787,57
(173,267)
(352,727,741 (166,809,601 (114,065,759 (299,983,899

)
)
)
)
Deferred income tax assets (liabilities) Net amount
- (71,909,390)
(363,176) (71,923,714)
4,264,103 (70,839,836)
74
()
()
()
()
153,364
153,364
333,293
333,293
73,324
14,856,083
995,146
13,860,937
3,049,406
4,369,436
1,008,586
3,360,850
739,387
226,512
226,512
49,833
9,907,540
9,907,540
2,179,659
4,149
4,149
168
168
37
29,450
29,450
4,490,012
4,490,012
-
-
17,907
17,907
3,939
8,457,872
164,921
8,292,951
1,824,449
32,360,366
6,845,628
10,485,420
36,000,158
6,091,646
1,828,388
(2,783,677)
(1,217,802)
(1,565,875)
(344,492)
(575,533)
(275,197)
(300,336)
(66,074)
(9,044,705)
(4,403,224)
(4,641,481)
(1,021,126)
()
-
-
()-
(2,552,182)
(1,701,523)
(850,659)
(187,145)
(322,295,214)
(89,042,652)
(112,090,172)
(345,342,734)
(83,572,941)
(1,377,589)
(1,377,589)
(8,749)
(8,749)
(1,925)
(17,907)
(17,907)
(3,939)
(338,628,900)
(98,017,987)
(112,116,828)
(352,727,741)
(1,620,762)
(83,576,880)
4,470,884
(81,748,492)
75
(Last period)
Temporary differences
Category
Balance at the
beginning of Decrease
the period
Increase
Liquid
deferred
Balance at income tax
assets
the end of
the period (liabilities)
Noncurrentdeferr
ed income
tax assets
(liabilities)
(Deductible temporary)
Convertible bonds
Corporatebonds with
warrants
Loss on derivatives
Impairment loss on availablefor-sale securities
Loss of foreign exchange
conversion
Accrued expenses
Option payables
Retirement pension liabilities
153,364
153,364
333,293
333,293
73,324
14,856,083
995,146
13,860,937
3,049,406
4,369,436 1,008,586
3,360,850
739,387
226,512
226,512
49,833
9,907,540
9,907,540
2,179,659
4,149
4,149
168
168
37
29,450
29,4
4,490,012
4,490,
164,
17,907
17,907
3,939
8,292,951
1,824,449
8,457,872
Total
32,360,366 6,845,628
10,485,420
36,000,158
6,091,646
1,828,388
(Taxable temporary
differences)
Issue discount Convertible
bonds
Issue discount Bonds with
warrants
(2,783,677) (1,217,802)
(1,565,875)
(344,492)
(575,533) (275,197)
(300,336)
(66,074)
option
(9,044,705) (4,403,224)
(4,641,481) (1,021,126)
Adjustment of subscription
rights
(2,552,182) (1,701,523)
The profit or loss of

The profit or loss of
evaluation ofderivative
commodity
(322,295,214)
(850,659)
(89,042,65 (112,090,172 (345,342,734

2)
)
)
(187,145)
- (83,572,941)
(1,377,589)
(1,377,5
89)
Gains from conversion of

foreign currency
(8,749)
(8,749)
(1,925)
Pension contributions
(17,907)
(17,907)
(3,939)
Total
(338,628,900)
(98,017,98 (112,116,828 (352,727,741

(1,620,762) (83,576,880)
7)
)
)
Deferred income tax assets (liabilities) Net amount
4,470,884 (81,748,492)
76
.
(:
).
297,146,238
(71,909,390)
225,236,848
345,342,734
(83,572,942)
261,769,792
67,934
(14,945)
52,989
. (: )
677,563
1,964,268
(31,951,970)
(1,848,913)
()
(31,274,407)
115,355
12).
(:).

()
101,458,111,
(6,347,194)
(36,585,933)
10,379,525
(36,585,933)
10,379,525
64,872,178
4,032,331
( :
:
11,678,497 :
77
d) Explanation of addition or deduction of deferred tax assets in equity

Details of addition or deduction of deferred tax assets in equity at the end of the accounting period are as follows
(Unit: KRW 000)
Current period
Category
The amount
before tax
Profit or loss of
evaluation of
available-for-sale
securities
The amount
Influence of
after income
income tax
tax
297,146,238 (71,909,390)
Loss on available-forsale securities
Previous period
67,934
(14,945)
The amount
Influence of The amount
before income income tax
after income
225,236,848
345,342,734 (83,572,942)
52,989
261,769,792
e) Income tax assets and income tax liabilities before offsetting in this period (Unit: KRW 000)
Accounting
This period
Income tax assets before deduction
Previous period
677,563
1,964,268
Income tax liabilities before deduction
(31,951,970)
(1,848,913)
Net income tax assets (liabilities) after

deduction
(31,274,407)
115,355
12).Statement of comprehensive income

Details of the comprehensive income during the current and previous period are as follows: (Unit: KRW 000)
Division
Current period
Previous period
Net income (loss)
101,458,111
(6,347,194)
Other comprehensive income
(36,585,933)
10,379,525
(36,585,933)
10,379,525
64,872,178
4,032,331
valuation gains (Tax effect:
Current period: 11,678,497
Previous period:12,667,995)
Net comprehensive income
78
13).
. ( : , ).

()
101,458,111,184
(6,347,194,424)
1,732,147
1,732,147
58,574
(3,664)
(*1)
(*1)
, .
.

.

(: , )

()
101,458,111,184
(6,347,194,424)
1,732,147
1,732,147
319,148
598,853
139,852
319,148
459,000
2,051,295
2,331,000
49,461
(2,723)
79
13). Earnings per share

a. Basic earnings per share are as follows: (Unit: KRW, share)
Division
Net income per common share (loss)
Current period
Previous period
101,458,111,184
(6,347,194,424)
1,732,147
1,732,147
58,574
(3,664)
Weighted average number of common

shares
Basic earnings per share
(*1) The weighted average number of common shares deducted from company-owned shares in the stock
issuance. The number of common shares during the current period stays the same as that of the previous
period.
b. Diluted earnings per share
Diluted earnings per share are estimated under the assumption that all dilutive potential common stcoks are
converted into common shares adjusted and applied to the weighted average number of ordinary shares. The
dilutive potential common stocks that company holds include preemptive rights and convertible bonds. The
number of shares is calculated under the assumptions that preemptive rights are excercised and convertible
bonds are converted into stocks. (Unit: KRW, share)
Division
Net income per common share (loss)
Weighted average number of common
shares outstanding
Adjustment details
Corporate bonds with warrants
Convertible bonds
Weighted average number of shares
outstanding for diluted earnings per
share calculation
Diluted earnings per share
Current period
Previous period
101,458,111,184
(6,347,194,424)
1,732,147
1,732,147
319,148
598,853
139,852
319,148
459,000
2,051,295
2,331,000
49,461
(2,723)
80
14) :
.
()
()
()
()
()
()

()
()
()
()

. (:)
()

2,337,165
16,529,392
2,935,595
18,866,557
2,935,595
()

690,620
30,587,795
2,052,681
31,278,415
2,052,681
81
14. Transactions with Related Parties

a) Related parties
Division
General manager
Other related parties
Current period
Previous period
Seo Jung-Jin
Seo Jung-Jin
Celltrion Holdings
Celltrion Holdings
Celltrion Healthcare
Celltrion
Celltrion
Celltrion Pharm
Celltrion Pharm
Celltrion Chemical Laboratory
Celltrion Don (in Russia)

Shareholders and
employees
Celltrion Don (in Russia)

Shareholders and
employees
b) Main transaction between related parties (Unit: KRW 000)

(Current period)
Division
Sold
General manager
Total
Purchased
2,337,165
16,529,392
2,935,595
18,866,557
2,935,595
(Last period)
Division
General manager
Total
Sold
Purchased
690,620
30,587,795
2,052,681
31,278,415
2,052,681
82
. (:)
()
33,904,151
339,042
21,249,591
212,480
12,165,759
55,153,742
551,552
12,165,759
()
25,436,986
254,370
9,185,134
91,852
13,967,318
34,622,120
346,222
13,967,318
. (:)
()
(%)
(*1)
6.9~8.5
30,963,000
6.9~8.5
19,848,559
17%
12,747,800
(*1) () 17,443
.
()
(%)
(*1)
8.50%
24,833,000
8.50%
7,736,293
17.00%
10,382,301
(*1) () 13,990
.
83
c) The contents of the main receivables and payables resulting from the main transactions between related
parties (Unit: KRW 000)
(Current period)
Credit
Company
Amount
Debt
Amount
General manager
33,904,151
339,042
21,249,591
212,480
12,165,759
55,153,742
551,552
12,165,759
Total
(Last period)
Credit
Company
General manager
Total
Amount
Debt
Amount
25,436,986
254,370
9,185,134
91,852
13,967,318
34,622,120
346,222
13,967,318
d) Credits and debts on financial arrangements with related parties

(Current period)
Credit
Debt
Division
Transaction parties
Short-term
investment
assets
General manager (*1)
6.9~8.5
30,963,000
6.9~8.5
19,848,559
17%
12,747,800
Convertible bonds
Profit rate(%)
Amount
(*1) Celltrion provided 17,443 shares as a guarantee for the long-term loan mentioned above.
(Last period)
Division
Credit
Debt
Short-term
investment
assets
Convertible bonds
Transaction parties
Profit rate(%)
Amount
General manager (*1)
8.50%
24,833,000
8.50%
7,736,293
17.00%
10,382,301
(*1) Celltrion provided 13,990 shares as a guarantee for the long-term loan mentioned above.
84
. (:)
(*1)
()
7,524,000 3,645,583
()
(*1)
7,000,000 () 690,000
21,626,612
8,500,000
- USD 3,000,000
. (:)
()
() 3,827,319 (*1)
()
() 690,000 (*2)
34,991,000
7,000,000
(*1) ()
42,515,000 ( 16 ).
(*2) ()
14,000,000 ( 16 ).
15)
(:).
(48,264,430)
23,047,520
(11,678,497)
12,667,995
85
e) Related parties have provided collateral, and guarantee details are as follows. (Unit: KRW 000)
Loan source
Warranty source
Guarantee details
Amount
Details
3,645,583 shares of Celltrion
Provide
stocks
General manager, other guarantee, joint

Woori Bank (*1) related parties
guarantee
Shinhan Capital
(*1)
7,524,000 60,000 shares of Celltrion

healthcare stocks
Provide
General manager, other guarantee, joint
related parties
guarantee
7,000,000 690,000 shares of Celltrion stocks
Convertible bond General manager
Joint guarantee
21,626,612
Hana bank
National
Agricultural
Cooperative
Federation
General manager
Joint guarantee
8,500,000
General manager
Joint guarantee
- Limitation USD 3,000,000
(*) Loan guarantee as a common obligation is provided by CelltrionHoldings Note 16

f) Guarantees to related parties and mortgage details (Unit: KRW 000)
Borrower
Celltrion Holdings
Warranty details
(*1)3,827,319 shares of Celltrion
stocks
Loan source
Woori Bank
Amount
Note
34,991,000 Loan guarantee
(*2)690,000 shares of Celltrion

Shinhan
stocks
Capital
(*1) Company and Celltrion Holdings have borrowed KRW 42,515,000 from Woori Bank, with a joint
guarantee obligation. (Note 16)
(*2) Company and Celltrion Holdings have borrowed KRW 42,515,000 from Shin-Han Capital, with a joint
guarantee obligation. (Note 16)
Celltrion Holdings
15) Cash flow statement

Significant non-cash transactions for the current and previous period are as follows: (Unit: KRW 000)
Division
Current period
Previous period
Valuation gains of available-for-sale securities
(48,264,430)
23,047,520
Reversal of deferred tax liabilities in valuation of available-forsale securities
(11,678,497)
12,667,995
86
16)
.
. (:)
()
3,077,319
(*1)
750,000
690,000
(*1,3)
7,524,000
-

()
(*2,3)
7,000,000
IBK
11,000,000
IBK
8,500,000
3,000,000
40,000,000
740,000
620,000
286,192
2,200,000
200,000
2,360,000
USD 3,000,000
30,000,000
13,160,000
1,000,000
.
( 14 ).
(*1) 42,515,000
.
(*2)
14,000,000 .
(*3)
.
15
.
.
USD 3,000,000
USANCE L/C
() 200,000 ,
( 14 ).
87
16) Contingent liabilities and commitments

As of the end of the current period, collateral and guarantees of the group company are as follows:
a) Guarantees and collaterals of company assets(Unit: KRW 000)
Account
Collaterals
3,077,319
Loan provider
Woori Bank(*1)
750,000 Woori Bank(*1,3)
Available-for-sale
financial assets
690,000
Shinhan Capital
Co.,LTD(*2,3)
740,000
IBK Investment
&Securities Co.,Ltd
620,000
Hana Bank
Debt balance
Details
7,524,000Loan guarantee from Woori Bank

-
Guarantee provided by Celltrion

Holdings
7,000,000Loan guarantee from Shinhan Capital

11,000,000
Loan guarantee from IBK Investment

&Securities Co.,Ltd
8,500,000Loan guarantee from Hana Bank
Samsung securities
Co.,Ltd
Korea Securities
2,200,000
Finance
National
Agricultural
200,000
Cooperative
Federation
Loan guarantee from Samsung

Securities
Korean securities finance loans as
40,000,000
collateral
2,360,000
30,000,000Loan guarantee
286,192
Rainbow Plus
1,000,000 Inand Out Co.,Ltd
3,000,000
The amount of guarantee is under the

limitation of 3,000,000
13,160,000Loan guarantee
Except for the company providing the above guarantee and related parties providing or receiving from the
associated party, the company has no other collateral. (Note 14)
(*1) The group and Celltrion Holdings have borrowed KRW 42,515,000 from Woori Bank, with a joint
guarantee obligation.
(*2) The group and Celltrion Holdings have borrowed KRW 14,000,000 from Shin-Han Capital, with a joint
guarantee obligation.
(*3) The groups shareholders have a responsibility ofjoint and several guarantee for the loans from Woori
Bank and Shin-Han Capital.
The company has no other collateral or guarantee except the items written on note 15 which is the lists of
collateral and guarantees that company provides or received from the special party.
c) Commitmentswith financial institutions
Contractor
National Agricultural
Cooperative
Federation
Limitation agreed
USD 3,000,000
Amount exercised
Agreement details
-
USANCE L/C
(*) According to the above agreement, the group is using 200,000 shares of Celltrion stock as collateral and a
credit guarantee is provided by related parties. (Note 14)
88
17)
.(:).

12,004,100
25,818,905
798,174
11,205,926
26,617,079
798,174
18)
.(:).

600,946
701,638
68,419
23,875
58,095
24,426
(582)
7,462
106,123
173,934
34,084
21,419
1,257
410
1,578
243
49,544
8,276
38,753
16,763
181,999
69,407
159,632
40,738
12,571
13,461
1,312,419
1,102,052
89
17Cost of goods sold

The cost of goods sold during the current and previous period is as follows: (Unit: KRW 000)
Division
Current period
Cost of goods sold (COGS)
Previous period
12,004,100
25,818,905
Beginning inventory
798,174
Purchase this period
11,205,926
26,617,079
798,174
Ending inventory
18) Sellingand administrative expenses (SG&A)
The sellingand administrative expenses of the current and previous period are as follows: (Unit: KRW 000)
Division
Salaries
Current Period
Previous Period
600,946
701,638
Retirement salaries
68,419
23,875
Welfare expenses
58,095
24,426
(582)
7,462
106,123
173,934
34,084
21,419
Depreciation expenses
1,257
410
Moralization of intangible assets
1,578
243
Travel and transportation expenses
49,544
8,276
Vehicle maintenance expenses
38,753
16,763
Commissions
181,999
69,407
Rent payment
159,632
40,738
12,571
13,461
1,312,419
1,102,052
Bad debt expenses

Delivery cost
Entertainment expenses
Selling and administration expenses
90
19)
(:).
600,946
574,745
701,638
68,419
23,875
58,095
24,426
1,257
410
1,578
243
612
1,643
159,632
40,738
1,465,283
792,973
20)
.
2012 3 08
.
.
2013 2 4 720,000 ( 80%)
13,200 2013 3 3 .
91
19) Accounts needed for calculating added value

Accounts needed for calculating added value for the current and previous period of are as follows: (Unit: KR
W 000)
Account
Current Period
Selling and administration
expenses
Salaries
Previous Period
Cost of sales
Selling and administrative

expenses
600,946
574,745
701,638
Retirement salaries
68,419
23,875
Welfare expenses
58,095
24,426
Depreciation expenses
1,257
410
Moralization of
intangible assets
1,578
243
Tax and addition
612
1,643
159,632
40,738
Rental cost
Total
1,465,283
792,973
20) Report termination date

AThe day financial statements are approved
The company's financial statements have been approved by the board of directors. It will present them at the
shareholder meeting on 14March2012.
b) Acquisition ofshares in other corporation
On 4February2013, the companysigned a contract to spend \13,200 millionwonto obtain 720,000 shares of
Hanskins common shares (80% ownership stake). The acquisition was finalized on 3March 2013.
92
3.
.
(1)
( : , %)
13
1,276
12
0.94%
51,012
510
0.99%
3,166
31
0.97%
55,454
553
0.96%
1,334
13
0.97%
32,609
326
0.99%
720
0.97%
34,663
346
0.99%
12
(2) 3
( : )
1.
13
347
12
248
11
290
2. ()
()
3. ()
206
99
4.
553
347
42
248
(3)
-
.
93
3. Matters concerning accounting information

a) Status of allowance for bad debt
(1) The allowance for bad debt in the recent fiscal year by account
Classification
Account
th
13 period
1,276
12
0.94%
Short-term loans
51,012
510
0.99%
Accrued income
3,166
31
0.97%
Total
55,454
553
0.96%
Accounts receivable
1,334
13
0.97%
32,609
326
0.99%
720
0.97%
34,663
346
0.99%
Short-term loans
th
12 period
Allowance for bad debt Loan loss reserve ratio
Total liabilities
Accounts receivable
(Unit: KRW MN, %)
Accrued income
Total
(2) Status of change in allowance for bad debt in the past three fiscal years
(Unit: KRW MN)
Classification
1. Beginning balance of allowance for
bad debt
13th period
12th period
11th period
347
248
290
2. Net bad debt expense()
Bad debt expense(book value of

bad debts)
Recovery amount of bad debt
Other changes
3.Allowance for bad debt(reversal)
206
99
4. Total ending balance of allowance

for bad debt
553
347
42
248
(3) Policy on the setting the allowance for bad debt related to accounts receivable
For the accounts receivable balance, the allowance for bad debt is set using the bad debt rate based on
historical data and the expected rate of bad debt.
94
(4)
( : )

6
1
1
3
13
13
1,262
1,262
1,275
1,275
100
100
.
(1)
( : , %)
336
AIR FILLER
267
API
134
61
798
798
0%
0.185%
30.1
69.7
(%)
[100]
()
[ {()2}]
13
12
(2)
-
, .
()
,
. ,

,
.
-

.
95
(4) Status of the balance of accounts receivable by age at the end of the period
(Unit: KRW MN)
Division
General
Amount
Related party
Total
Proportion
6 months to 1
year
<6 months
1-3 years
>3 years
Total
13
13
1,262
1,262
1,275
1,275
100
100
b) The holding and physical inspection history of inventory

(1)Status of inventory holding by business sector in the recent fiscal year
(Unit: KRW MN, %)
Business sectors
Account
13th period
12th period
Remarks
Biosimilars
Finished product
336
Air filler
Finished product
267
API
Finished product
134
Machinery
Finished product
61
Others
Finished product
798
798
0%
0.185%
30.1
69.7
Total
The ratio of inventory to total assets (%) [inventory total
assets at the endof the period 100]
Inventory turnover (times)[annual cost of goods sold

{(beginning inventory + ending inventory) 2}]
(2) The physical inspection history of inventory and the like

- The quantity of inventories at the end of the period is determined on the basis of the perpetual inventory
system and regular physical inspections. The value of inventory is measured by the total weighted average
method and is estimated as purchase cost. When the market value of inventory is lower than the purchase cost,
the difference (net realizable value) is included on the balance sheet by inventory classification while the loss
on valuation of inventories is included on the balance account of inventories and added to cost of goods sold.
However, in asituationwhere inventories that are devaluated disappear and the new market value is higher
than the book value(but do not exceed the initial carrying amount), losses from cost of goods sold are reversed
and marked.
- Other matters
The inventory difference between the inspection date and the balance sheet date is recognized by the
companys good delivery certificates and good reception certificates.
96
. 5
2008
. 5
( : )
12
(6,347)
() 2

(4,324)
launchig

.
. 5 30%

( : )
13
11
101,458
1~2 1
6,830

2006
,
10
7,315 2008 8

97
c) Change in accounting standards in the last five business years and reasons
Financial year
2008
Accounting change
Reason for change
The investment evaluated by the equity method in The significant influence was forfeited and
the last period was reclassified as available-for-sale therefore reclassified as available-for-sale
securities
securities
d) Losses in the lastfive business years and reasons

Business years
The 12th
period
The 9th
period
Loss in this period
(6,347)
(4,324)
(Unit: KRW MN)

The reason
As of the closing date of this report, Tomato Bank believed it

was difficult for the invested enterprise to recover net assets,
so the impairment loss is recognized during the current period.
The launch of new productsis continuing. Due to the change in
the investment fund, financial cost was recognized as a loss in
the current period.
e) In the lastfive business years, net profits rose 30%, turning positive. Below are the reasons for the shift in net
profits.
(Unit: KRW MN)
Business years
The 13thperiod
th
The 11 period
The 10thperiod
Loss in this period
The reason
With the transactions of call and put options, net profits increased
101,458 due to the disposal of investments in backdoor listings in August
2008.
Net profits increased due to profit from the acquisition of stock
options, including the first and second convertible bonds and the first
6,830
cooperate bonds with warrants.
In 2006, the transactions of call and put options, through which
Woori Bank and Celltrion sell stocks, were recognized as short-term
7,315 liabilities.The net profits increased due to the disposal of investments
in backdoor listings in August 2008.
98
4.
13
2012. 12. 31
12
2011. 12. 31
( : )
13
12 ()
103,594,997,365
51,407,776,236
(1)
103,594,997,365
50,609,602,339
1.( 8)
30,136,372,971
8,735,970,950
2.( 2,14)
51,011,608,701
32,609,343,364
(510,115,587)
(326,092,934)
3.( 14)
1,275,626,218
1,333,776,270
(12,756,263)
(13,337,763)
3,166,132,184
719,968,873
(31,661,321)
(7,199,689)
5.
9,569,439,572
6.
4,726,248,190
2,970,934,014
7. ( 11)
115,355,272
8. ( 11)
4,264,102,700
4,470,883,982
4.( 14)
(2)
1.
798,173,897
798,173,897
485,012,004,781
380,440,887,128
(1)
484,999,196,978
380,439,397,058
1. ( 3,16)
2. ( 9)
484,931,016,100
380,360,987,587
68,180,878
78,409,471
(2)( 4)
5,099,134
1,203,334
(3)( 5)
7,708,669
286,736
588,607,002,146
431,848,663,364
185,787,797,761
82,992,980,938
.
1.( 8)
154,719,116
1,758,224,734
112,660,000,000
37,335,000,000
7,848,823,625
275,206,791
4.
287,536,114
360,065,878
5.
545,571,348
20,604,408
6.
247,776,174
471,079,901
3,618,352,536
3,385,362,371
8.( 11)
31,274,406,995
9.( 6 14)
12,000,000,000
17,000,000,000
2.( 6 16)
3.( 8 14)
7.( 14)
99
4. Financial statement
a) Fiancial performance
The 13th period: 2012.12.31

The 12th period: 2011.12.31
Celltrion GSC AG
Accounting
(Unit: KRW)
th
The 12th period
The 13 period
Asset
.Working capital
103,594,997,365
51,407,776,236
(1) Current assets
103,594,997,365
50,609,602,339
1.Cash and cash

equivalents(Note8)
30,136,372,971
8,735,970,950
2. Short-term investment (Note2,

14)
51,011,608,701
32,609,343,364
(510,115,587)
(326,092,934)
3.Accounts receivable (Note14)
1,275,626,218
1,333,776,270
Bad debt provision for accounts

receivable
(12,756,263)
(13,337,763)
3,166,132,184
719,968,873
(31,661,321)
(7,199,689)
5.Other receivable
9,569,439,572
6.Prepayment
4,726,248,190
2,970,934,014
115,355,272
4,264,102,700
4,470,883,982
4.Accrued income (Note14)

Allowance for doubtful accounts
7. Deferred tax asset (Note11)

8. Deferred income tax assets
(Note11)
(2)Inventories
1.Instrument
798,173,897
798,173,897
.Non-current assets
485,012,004,781
380,440,887,128
(1) Investments assets
484,999,196,978
380,439,397,058
1. Available-for-sale securities
(Note 3,16)
2. Pension (Note 9)
484,931,016,100
380,360,987,587
68,180,878
78,409,471
(2) Tangible assets (Note4)
5,099,134
1,203,334
(3) Intangible assets (Note 5)
7,708,669
286,736
588,607,002,146
431,848,663,364
185,787,797,761
82,992,980,938
Total assets
Liabilities
.Current liabilities
1.Current liabilities (Note 8)
154,719,116
1,758,224,734
2.Short-term borrowings (Note 6,

112,660,000,000
16)
37,335,000,000
3.Accounts payable (Note8, 14)
7,848,823,625
275,206,791
4.Accrued expenses
287,536,114
360,065,878
5.Advanced payments
545,571,348
20,604,408
6.Tax withholdings
7.Advance payment (Note14)
247,776,174
471,079,901
3,618,352,536
3,385,362,371
8.Current tax liabilities (Note11)
31,274,406,995
9.Convertible corporate bonds

(Note 6, 14)
12,000,000,000
17,000,000,000
100
(631,825,360)
(1,565,874,986)
10,486,646,520
13,860,937,199
(228,209,307)
(4,641,480,893)
10.( 6)
5,000,000,000
(300,335,585)
3,360,850,392
(850,659,272)
7,524,000,000
7,524,000,000
11.( 6,16)
.
70,839,835,872
1.( 9)
2.( 11)
81,748,492,374
81,386,109
23,875,480
(81,386,109)
(23,875,480)
70,839,835,872
81,748,492,374
256,627,633,633
164,741,473,312
8,661,900,000
8,661,900,000
.
1.( 10)
8,661,900,000
8,661,900,000
597,333,772
1.( 10)
597,333,772
597,333,772
597,333,772
(130,144,180)
(130,144,180)
1.
(128,979,180)
(128,979,180)
2.( 10)
(1,165,000)
(1,165,000)
225,183,859,461
1.( 3,11,12)
225,236,848,362
2.( 3,11,12)
(52,988,901)
V. ()( 11)
1.()
261,769,792,184
261,769,792,184
97,666,419,460
97,666,419,460
(3,791,691,724)
(3,791,691,724)
331,979,368,513
267,107,190,052
558,607,002,146
431,848,663,364
101
Discount on insurance of
corporate bond
Reimbursement expense
(631,825,360)
(1,565,874,986)
10,486,646,520
13,860,937,199
(228,209,307)
(4,641,480,893)
10.Corporate bonds with warrant

(Note6)
5,000,000,000
Discount on insurance of
corporate bond
(300,335,585)
Repayment premiums
3,360,850,392
Adjustment of warrants
(850,659,272)
7,524,000,000
7,524,000,000
11. Long-term current liability

(Note 6,16)
.Non-current liabilities
1. Retirement allowance liabilities
(Note 9)
Pension
2.Deferred tax liabilities (Note11)
70,839,835,872
81,748,492,374
81,386,109
23,875,480
(81,386,109)
(23,875,480)
70,839,835,872
81,748,492,374
Total liabilities
256,627,633,633
164,741,473,312
8,661,900,000
8,661,900,000
Equity
.Capital
1.Common stock (Note10)
8,661,900,000
.Capital surplus
1. Reduction of capital premium
(Note10)
597,333,772
597,333,772
.Capital adjustment
1.Stock issue discount
2. Treasuryshares (Note10)
.Other comprehensive
gain/loss
1.The gains of evaluation of
available-for-sale securities
(Note3,11,12)
2.Loss on valuation of availablefor-sale securities (Note3, 11, 12)
597,333,772
597,333,772
(130,144,180)
(130,144,180)
(128,979,180)
(128,979,180)
(1,165,000)
(1,165,000)
225,183,859,461
225,236,848,362
261,769,792,184
261,769,792,184
(52,988,901)
V. Retained earnings (Note 11)

1.Unappropriated earned
surplus(unappropriated retained
earnings)
8,661,900,000
97,666,419,460
97,666,419,460
(3,791,691,724)
(3,791,691,724)
Total equity
331,979,368,513
Total liabilities and equity
558,607,002,146
267,107,190,052
431,848,663,364
102
13 2012 1 1 2012 12
31 12 2011 1 1 2011
12 31

( : )
13 ()
.( 14)
12 ()
15,481,246,329
27,824,376,329
1.
14,040,297,274
27,824,376,329
2.
1,440,949,055
.
1.( 14, 17)
2.
.
12,578,844,097
25,818,905,015
12,004,099,587
25,818,905,015
574,744,510
2,902,402,232
2,005,471,314
103
b) Income statement
The13thperiod: 2012.1.1-2012.12.31
The12thperiod: 2011.1.1-2011.12.31
Celltrion GSC AG
Accounting
.Sales (Note 14)
1. Sales of products
2.Sales of service
(Unit: KRW)
The 13th period
15,481,246,329
2.Service cost of sales

.Gross profit
27,824,376,329
14,040,297,274
27,824,376,329
1,440,949,055
.Gross profit
1.Costs of goods sold
(Note14, 17)
The 12th period
12,578,844,097
25,818,905,015
12,004,099,587
25,818,905,015
574,744,510
2,902,402,232
2,005,471,314
104
.(
14,18,19)
.
.
1,312,419,396
1,102,051,643
1,589,982,836
903,419,671
144,199,752,770
11,129,773,751
1.( 14)
3,963,772,899
2,899,655,527
2.
1,047,571,700
800,303,475
14,920,998
82,549,962
3,187,934
8,749,315
138,959,003,796
6,295,403,556
762,477,395
10,120,381
280,593,079
201,175,062
41,442
3.
4.
5.
6.( 7)
8.
9.
.
1.( 14)
11,403,032,378
19,134,425,513
10,797,333,010
8,599,786,747
182,652,354
212,789,229
4,662,450
168,122
208,484,285
91,019,514
226,512,120
6.
92,460,487
9,907,539,513
7.
1,624,405
115,192,586
96,261,800
622,801
348,468
2.
3.
4..
5.( 7)
8.
9.
10.
.()
134,386,703,228
(7,101,232,091)
.()( 11)
32,928,592,044
(754,037,667)
.()( 12)
101,458,111,184
(6,347,194,424)
1.
58,574
(3,664)
2.
49,461
(2,723)
XI.( 13)
105
.Sales and administrative

expenses (Note 14,18,19)
1,312,419,396
1,102,051,643
.Operating profit
1,589,982,836
903,419,671
144,199,752,770
11,129,773,751
.Non-operating income
1.Interest income (Note
14)
3,963,772,899
2,899,655,527
2.Dividend income
1,047,571,700
800,303,475
14,920,998
82,549,962
3,187,934
8,749,315
138,959,003,796
6,295,403,556
762,477,395
10,120,381
280,593,079
201,175,062
41,442
3.Currency arbitrage
4.Earnings from
translationof foreign
currency
5.Gains from disposal of
available-for-sale securities
6.Gains from transaction of
derivative commodity(Note
7)
8.Fee income
9.Miscellaneous profit
.Non-operating profit
1.Interest expense (Note
14)
2.Losses from foreign
exchange trading
11,403,032,378
19,134,425,513
10,797,333,010
8,599,786,747
182,652,354
212,789,229
4,662,450
168,122
208,484,285
91,019,514
226,512,120
92,460,487
9,907,539,513
7. Loss on disposition of
available-for-sale
1,624,405
8.Loss on redemption of
debentures
115,192,586
96,261,800
622,801
348,468
3.Losses from translation

of foreign currency
4.Other bad debt
5.Loss of evaluation of
derivative commodity(Note
7)
6.Loss and impairment of
available-for-sale financial
assets
9.Commission
10.Miscellaneous losses
.Profit before income tax
134,386,703,228
(7,101,232,091)
32,928,592,044
(754,037,667)
101,458,111,184
(6,347,194,424)
1.Basic earnings per share
58,574
(3,664)
2.Gain or loss per diluted

share
49,461
(2,723)
.Taxexpense(Note11)
. Net profit for the year
(Note 12)
XI.Earnings per share
(Note 13)
106
IV.
1. ()
.
13
12
11
. ( )
-
.
13
12
11
10
13
12
21 '' 21.5 2

.
,
36,937 , 36,937
.
20,982 .
, 24,815
11
10
13,126 . ,
8,699 ,
29,899
-
107
IV. Auditors Opinions
1. Audit opinions of auditors (certified public accountants), etc.

a) Auditors
The 13th period
The 12th period
Samyoung Accounting Corporation

Independent Audit Report
The 11th period


b) Notes on the annual audit (or review) process of the current accounting year.
No related issue
c)
Audit opinions
Fiscal year
Audit opinions
Summary of opinions
The 13th period
No opinion
No deficiencies
th
The 12 period
No opinion
No deficiencies
The 11th period
No opinion
No deficiencies
th
No opinion
No deficiencies
The 10 period
d)
Summary of special matters
Fiscal year
The 13th period
The 12th period
Special matters
Under Korean GAAP, amendment was made on the chapter 21.5-2ofEmployee
Benefits. Due to the amendment, the company recognizes the expenses and liabilities
related to annual paid leaves for the employees works that gives a right for future
annual paid leave during the accunting period. Upon the amendments becoming
effective, companys current net assets at the end of current accounting perod were
reduced by KRW 36,937 and net profit at the current accounting period was reducedby
KRW 36,937.
In this accounting period, revenue from related parties reached KRW 20,982 MN. As of
the end of this accounting period, credits and debts of related parties were KRW 24,815
MN and KRW 13,126 MN, respectively.
The 11th period
The 10th period
In the previous accounting period, revenue from related parties was KRW 8,699 MN. As
of the end of the previous accounting period, credits and debts of related parties were
KRW 29,899 MN and KRW 1,261 MN respectively
-
108
1. ()
( )
2. 3
.
( : )
13
32
384
12
30
344
11
29
320
3. .
( )
4.
( )
109
1.The annual audit (internal) opinions of the current accounting year

(None)
2. Remuneration of external auditors in the recent three accounting years and relevant matters
a) Contract status of audit service
(Units: KRW MN)
Fiscal year
Auditor
Contents
Remuneration
Total time
The 13th period
Samyoung
Accounting
Corporation
External audit contract that complies with

Act on External Audit of Stock Companies
32
384 hours
The 12th period
Samyoung
Accounting
Corporation

30
344 hours
The 11th period
Samyoung
Accounting
Corporation

29
320 hours
3. Non-audit contract with external auditors

(No relatedissue)
4. Other(No related issue)
110
V.
1.
,
.
2.
(1) ,
2012
2011
( : , %)
15,481
27,824
12,343
55.64
12,578
25,819
13,241
48.72
2,902
2,005
897
144.74
1,312
1,102
210
119.06
1,590
903
686
175.97
144,200
11,130
133,069
1,295.59
11,403
19,134
134,387
-7,101
141,487
1,792.49
101,458
-6,347
141,003
2,021.56
7,731
59.60
(2)
(: )
13
12
588,607
431,849
159,063
136.83
256,628
164,741
94,747
157.51
331,979
267,107
64,317
124.08
588,607
431,849
159,063
136.83
111
V. Operational Diagnosis and Analytic Opinions of the Chief

Executive Officer
1. Please note that the predicted information contained here is based on expectationson internal markets and
the working conditions of the company, which canchange due tobusiness conditions and the analysis
environment.
2. Business performance
(1) The business performance at the end of the latest accounting year is as follows:
(Unit: KRW MN,%)
Division
2012
Increase/
decrease
2011
Ratio of increase or
decrease
Revenue
15,481
27,824
12,343
55.64
Cost of sales
12,578
25,819
13,241
48.72
Gross profit
2,902
2,005
897
144.74
Selling and administrative

expenses
1,312
1,102
210
119.06
Operating profit
1,590
903
686
175.97
Non-operating income
144,200
11,130
133,069
1,295.59
Non-operating expense
11,403
19,134
7,731
59.60
Profit before income tax
134,387
-7,101
141,487
1,792.49
Net profit for the year
101,458
-6,347
141,003
2,021.56
(2) Financial status

(Unit: KRW MN)
Accounting
The 13th period
The 12th period
Increase/decrease
Ratio of increase or
decrease
Total assets
588,607
431,849
159,063
136.83
Total liabilities
256,628
164,741
94,747
157.51
Total equity
331,979
267,107
64,317
124.08
Total liabilities and equity
588,607
431,849
159,063
136.83
112
3.
2 .
(:)
13
12
(4,781)
2,914
(7,695 )
(164.07)
(32,386)
(8,378)
(24,007)
386.55
58,568
3,000
55,568
1,952.27
. (++)
21,400
(2,464)
23,864
(868.51)
8,736
11,200
(2,465)
77.99
30,136
8,736
21,400
344.96
4.
21 '' 21.5 2

. ,
36,937 ,
36,937 .
5.
" " "
2. " .
113
3. Procurement of liquidity and funding, etc.

The cash flow of the group during the last two accounting years is as follows:
(Unit: KRW MN)
Accounting
The 13th period The 12th period
Increase/
decrease
Ratio of increase
or decrease
. Cash flows from operating activities
(4,781)
2,914
(7,695)
(164.07)
. Cash flows from investing activities
(32,386)
(8,378)
(24,007)
386.55
. Cash flow from financing activities
58,568
3,000
55,568
1,952.27
. Increase in cash (++)
21,400
(2,464)
23,864
(868.51)
. Opening cash balance
8,736
11,200
(2,465)
77.99
. Closing cash balance
30,136
8,736
21,400
344.96
4. Important changes in accounting policy and accounting estimates

Under Korean GAAP, amendment was made on the chapter 21.5-2ofEmployee Benefits. Due to the
amendment, the company recognizes the expenses and liabilities related to annual paid leaves for the
employees works that gives a right for future annual paid leave during the accunting period. Upon the
amendments becoming effective, companys current net assets at the end of current accounting perod were
reduced by KRW 36,937 and net profit at the current accounting period was reducedby KRW 36,937.
5. Other issues concerning investment decision
Please refer to Note 2, important accounting guidelines, in the audit report appendix for important changes
to the accounting policy and accounting valuation.
114
VI.
1.
.
1 , 2
3 .
.
( )
.
()

.

2 1
.
.

- .
.
- .
.
-

,
.
115
VI.Relevant Issues Concerning Company Departments (i.e.

Board of Directors) and Subsidiaries
1. Board of directors
a) General introduction of board of directors
As of the date of finalizing this report, the companys board of directors consisted of three people, including one
permanent director and two nonpermanent directors.
b) Outside directors
(No related issue)
c) Relevant issues concerning the operation of board of directors
(a) Main content
Composition of board of directors
The board of directors is made up entirely of directors. The president is its chairman.
Convening of the board
Board meetings are held atthe request of a representative director or at least two directors. All directors and
supervisors need to be informed one day before the meeting.However, the summons procedure can be omitted
with the consent of the directors and auditors.
Decision process
- Proposals are passed when more than half the board is in attendance and when more than half of the
attendingdirectors approve. Ifthe number of approvals equalsdisapprovals, the final decision is left to the
chairman.
-Directors must attend the meeting personally. Forms of simultaneous audio and video participation are
permitted.
- An attendant withspecial interest in the proposal is not allowed to vote.
Meeting records
Records should contain issues
discussed in the meeting and be
filed after attending directors and
supervisors signand seal them.
116
()
2012.01.02
. (_15 , _15 )
. ()
. (_4 )
. (USANCE)
. 2011 ,
. 70
12
. 2011 , ,
. (()_400 )
. (_1 , _4 , _2 )
. (75 ,1 ) ()
2011

2012.01.27
2012.02.23
2012.03.07
2012.03.28
2012.03.30
2012.05.07
2012.05.14
2012.06.26
2012
2012.07.02
. (_200 , _35 )
. (_242 )
. (() () )
. (_30 , _15 )
. (_63 )
. (_1500 )
. (3,759,398 ) _
. (_70 )
. (_2 )
. (_600 , _600 )
. /
. (_249
2012.10.02

2012.10.18
2012.11.28
()

2012.12.10
2012.12.28
2012.12.31
117
b) Directors meeting details

Year
Date
Content
-The case ofsetting limits on capital loans for
Whether
approved
Yes
special party and the case of approvingloan

2012.01.02
Notes
-Approval of loan limit (Seo Jung-jin_1.5 billion, Celltrion
Holdings_15 billion)
execution
-The case of changingrepayment date and
Yes
interest rate for the residuals of loans at the

end of 2011
-The case of approval for holding shareholders
-Approval of loans (Celltrion Healthcare_KRW0.04 billion)

Yes
meeting
-The case of approving joint and several
-Approval of repayment date and interest rate changes (Celltrion

Holdings)
Yes
-Approval of re-extension for matured opening import letter of

credit (USANCE)
guarantee of matured Celltrion Holdingss

2012.01.27
2012.02.23
borrowings
-The 12th shareholders meeting
-The case of approving of borrowings for
Yes
Yes
operation
2012.03.07
2012
2012.03.28
-The case of loan payments

-The case of re-arrangement for loans
2012.03.30
Yes
Yes
-The case of setting limits on capital loans for Yes
execution
-Approval of extension for matured loan
2012.06.26
exchange market
-Approval of 2011 financial statements, changes in articles of

incorporation, appointment of boards and compensation limits.
-Approval of financial loans (Korea Securities Finance Co., Ltd._ 40
billion)
Yes
-Extension of loans payable to Woori Bank (7.5 billion for 1 year)

and
approval of joint and several gurantee and giving collateral
Yes
-Approval of loan limit (Celltrion Holdings_20 billion, Seo Jungjin_3.5billion)
2012.05.14
-Approval of marketable securities in the stock
-Approval of agreement for joint and several guarantee of Shinhan

Capital 70 billion
-Approval of loans (Seo Jung-jin_0.1 billion, Gojanghwan_0.4

billion, Choenanyoung_0.2 billion)
special party and the case of approving loan

2012.05.07
-Approval of2011 closing report, appointing directors and

supervisors, and changes in articles of incorporation
-The case of setting limits on capital loans for Yes
-Approval of extension for matured loan(Seo Jung-jin_24.2 billion)

execution
2012.07.02
-Approval of maturity date extension for loans Yes

-Approval of the sale of marketable securities
Yes
in the stock market

-The case of setting limits on capital loans for
2012.10.02
Yes
execution
-Approval of maturity date extension for loans Yes
-Approval of the sale of marketable securities
Yes
-Approval of marketable securities in the stock exchange market

(Celltrion shares and Celltrion Pharmaceutical)
-Loan limit granted (Celltrion Holdings_3 billion, Seo Jung-jin_1.5
billion KRW)
-Approval of matuity dateextension for loan (Seo Jung-jin_6.3
billion)
-Approval of the sale of marketable securities in the stock market
(limit approved_150 billion)
-Approval of sales of Celltrion shares (3,759,398 shares_Buyer:
Orix Corporation)
in the stock market

2012.10.18
-Approval of selling common share of Celltrion Yes
-Approval ofextension for loan payables (Shinhan Capital_7 billion)
2012.11.28
-Approval of extension for borrowings
Yes
-Approval of extension for matured loan
Yes
-Approval of extension for matured loan (Choenanyoung_0.2

billion)
2012.12.10
2012.12.28
2012.12.31
-Approval of limits loan borrowing due to the

comprehensive contract of working capital
-Approval of collateral and terms of condition
changes from the negotiations with the
reflection of the revised commercial law
Yes
-Approval of stock collaterallimitsloans (Rainbow Police Co.,

Ltd_60billion, In and Out Ltd_60 billion)
Yes
-Approval of transactions that reflect the revision of

contract/commercial law.
Yes
-Approval of the agreement for collateral for loans and conditions

modification (Seo Jung-jin_24.9 billion
118
. 2010 , ,

2011.02.25
. 70
()
2011.03.29
2011.03.31
2011.03.31
2011.06.27
2011
. 2010 , , .
11
2011.07.22
2011.09.19
2011.09.22
2011.09.29
2011.09.30
2011.10.03
2011.11.29
2011.12.26
. (75 ,1 )
(),
. ( 7-50 13-3)

2011.10.12
.
. (, 220 )_ 62,000
. (, 12.2 )
.
. (_10 ,
_30 ,
_10
)
. (_30 )
. 70
( 83 )
()
( )
()
( )
()
( )
119
2011.02.25
2011.03.29
-The case of approval for holding

shareholders meeting
-Agreement for joint
and several guarantee
Yes
Yes
-Passed the 2010 closing report, appointed directors and supervisors, and
set relevant payment limits
-Approved Shinhan Capital 7 billion joint and severalguarantee agreement
with respect to the

condition changes for
the loans of Celltrion
Holding
-the 11th general

2011
2011.03.31
2011.03.31
2011.06.27
stakeholders meeting
-Appointment of CEO
-Re-arrangement for
Yes
Yes
Yes
Headquarter
Yes
-Holding extraordinary
2011.09.19
shareholders meeting
-External loan payment
2011.09.22
2011.09.29
-Approval of the2010 financial report, article of incorporation

modification, appointed directors and supervisors, and set payment limits
-Approval of the representative directorappointment
-Approval of theextension of WooriBanks loan(7.5billion, 1 year), joint
& several collateral and collateral provision for Celltrion Holdings,
loans
-Relocation of
2011.07.22
Yes
Yes
related issues
-External loan payment
Yes
related issues
Yes
Celltrion Start-ups Investments

- Relocation of headquarter(InchonYeonsu District, Songdo,750InchonYeonsu District, Songdo,13-3)
-Approval of holdingextraordinary general meeting of stockholders for the
modification of articles of incorporation
-Approval of external loans (Seo Jung-Jin, 22billion), collateral Celltrion
Healthcare 62,000 stocks
-Approval of external loans(Celltrion Healthcare_1.22billion)

-Approval of modification of the articles of association
-Modification of the
articles of association
2011.09.30
-The case of setting limits on capital loans
Yes
for special party and the case of approving
-Loan limit granted and approval of execution (Celltrion Holdings_1billion,

Celltrion Healthcare_3 billion, Seo Jung-jin_1 billion)
loan execution
2011.10.03
-Approval of working
capital borrowing
Yes
-Approval of obtaining working capital loan (Samsung_3 billion)
2011.10.12
-Rearrangement of Loan
2011.11.29
Yes
-Payment of loan
2011.12.26
-Approval of negotiation
Yes
-Loan approval (Seo Jung-jin_8.3 billion)
Yes
-Collateral agreements and mortgage loans changed, conciliation

agreement approved (Seo Jung-jin)
for change of loan

collateral agreement and
-Shinhan Capital7 billion
adjustment of collaterals.
(c) Meeting details of outside directors

(No related issue)
(d) Composition of internal committee
(No related issue)
(e) Internal committee meeting details
(No related issue)
120
2.
.
() () ,
,
1 .
() ()
1) ,
.
2) ,
.
3) .
() ()

2004.1-2004.12()
2005.1-2005.12() IT
. ()
2011
2011.02.25
2011.03.31
3.
.
( )
.
( )
.
( )
121
2. Audit system
a) Relevant issues concerning audit system
(a) Setting theaudit system, its organization, and others
No supervision committee has been settled on as of the date of submitting the annual report. A supervisor has
beenselected to perform supervision duties for thecompanys accounting and business.
(b) The internal mechanism for the committee to acquire operating information needed for supervision
1) The supervisor supervises directorsand hasthe right to ask directors for business reports and to
check on the companys business.
2) The supervisor should pre-check the proposals submitted to the general stockholdermeeting and state
whether there areany procedures or issues violatingregulations.
3) The supervisor should record his/her work and sign and seal it.
(c)Personal information of the committee(supervisor)
Name
Major experience
Hwang Sok-yong
Notes
2004.1-2004.12Representative director of Global Education Cultural Exchange

Co.
2005.1-2005.12Director of Gangbuk Computer Education for the Professional School of IT
b) The activity details of the committee (supervisor)
Year
2011
Date
2011.02.25
2011.03.31
Content
Submit agree-to-convene proposal to the general
stockholder meeting
Appointrepresentative director
Whether
approved
Yes
Yes
Notes
-
3. Relevant details concerning exercising voting rights of shareholders

a) The application of the cumulative voting system
(No related issue)
b) The application of the written or electronic voting system
(No related issue)
c) The exercise of minority stakeholders rights
(No related issue)
122
4.

( :
2012 12 31 )
( : , , %)
()
()
2002
02
50
10,476
8.99
380,269
5,610
-9,292
112,106
16,086
9.21 483,083
1,732,914
174,431
1,916
109
1,916
-68
109
0.77
1,848
331,044
3,552
10,000
2,000
9.90
92
-92
2,000
9.9
12,476
18.89
380,361
5,719
-7,376
111,946
18,195
19.88 484,931
2,063,958
177,983
26
2012
10
22
2010
12
29
* () () ,
() 2

.
** () 1 0.5
.
123
4. Status of subsidiaries
Other investment corporation status
(Base date: 31 December2012)
Name
Funding Funding Funding
(Unit: KRW MN, %)
Beginning balance
2002.
Pharm
Tomato
Valuation
Overweight
(underweight)
Amount Equity
ratio
Amount Monetary
amount
10,476
8.99
380,269
5,610
-9,292
112,106
16,086
10.
investmen 1,916
109
1,916
-68
109
0.77
22
2,000
9.90
92
-92
2,000
9.9
12,476 18.89
380,361
5,719
-7,376
111,946
26
Celltrion
Equity
Book
value
50
02.
2012.
investment
Book
value
9.21 483,083
Current
term of
Total
assets profit and
loss
1,732,914
174,431
1,848
331,044
3,552
18,195 19.88 484,931
2,063,958
177,983
Equity
2010.12
Equity
.29
Bank
Last years
financial status
purpose amount
date
Amount Equity
ratio
Celltrion
Ending
balance
Increase (decrease)
investmen
10,
000
t
Total
Celltrion and CelltrionPharm use the current price as the final price.Tomato Bank 2 has been deemed difficult to
restore the net asset value. Therefore, impairment losses are recognized in the previous period and the current
period.
Celltrion implementsa free capital increase of 0.5 per shareusing ashare premium in the current period.
124
VII.

( :
2012 12 31 )
( : , %)

1,160,327
66.98
1,185,341
68.42
315,774
18.23
276,507
15.96
1,476,101
85.21
1,461,848
84.38

( :
2012 12 31
2012 07 31
( : , %)
1,185,341
68.42

( :
2012 12 31
( : )
5%
1,185,341
68.42
109,703
6.33
( :
2012 12 31
( : )
20
66.66
160,829
9.28
125
VII. Issues Concerning Shareholders

The largest shareholder and related parties of the shareholding status
(Unit: Share, %)
Name of shares
Name
Beginning
Type of
stock
Relation
End of period
Equity
ratio
Amount
Notes
Equity
ratio
Amount
Seo Jung-Jin Oneself
Common
stock
1,160,327
66.98
1,185,341
68.42
Individuals
Common
stock
315,774
18.23
276,507
15.96
Common
stock
1,476,101
85.21
1,461,848
84.38
Preferred
stock
Affiliate
Total
Details of the shareholder stockholder change
The largest
stockholder
Changing date
2012.07.31
(Unit: Share, %)
Amount of
stockholding
Seo Jung-Jin
Equity ratio
1,185,341
Notes
68.42
Status of shareholding
Changing date
Shareholders with
more than a 5%share
(Unit: Share, %)
Name of stockholder
Amount of stockholding Equity ratio
Notes
Seo Jung-Jin
1,185,341
68.42
HongIn-pyo
109,703
6.33
Conference of shareholding employees

Status of minority stockholders
(Unit: Share, %)
Stockholder
Category
Minority stockholder
Amount of stockholding
Amount of
stockholding
Equity ratio
20
66.66
Number of shares
160,829
Equity ratio
Notes
9.28
126
VIII.
1.

( :
2012 12 31 )
( : )
- ()
1941
09
2008.3.31~
- ()
2014
03
31
('98~'99)
- ()
1962
11
27,164
2014
03
- ()
31
('00~'03)
1970
04
2015
03
()
31

( :
2012 12 31 )
( : )
20
23
1.00
677
29
18
21
0.94
568
27
38
44
1.94
1,245
56
127
VIII. Executives and Staff

1. Status of executives and staff
Status of executives
Date
of
Name
birth
Whether
Positio
registered
n
(Unit: share)
Full
time
Duty
Repres
entativ
Gimtaeg 1941.
u
09
Registered
executive
Full
time
Registered
executive
Full
time
Registered
executive
Part
time
director
Yibyeon 1962
11
gryul
Jeon yil 1970.0

4
bu
All
Amount of
stockholding
Major experience
Common Preferred
stock
stock
Representative,
executivedirector of
DaewooMotor Company
('98~'99)
Director of Neksol
Finance
End of
the
term
Time on
the job
2008.3.3
1~
27,164
2014.03.31
Present
2014.03.31
2015.03.31
IMM Investment
vice present
Status of staff
(Unit: KRW MN)
Number of staff
Business
Gender Regular Contracte
sectors
Other
staff
d workers
Total
Average
Total
Average
working
annual
salary per
years
payment
capita
Note
Male
20
23
1.00
677
29
Female
18
21
0.94
568
27
38
44
1.94
1,245
56
Total
128
2.
1.
( : )
2,000
2,000
2.
( : )
12
12

( :
2012 12 31 )
( : , )
( )
129
2. Remuneration of executives
1. Approval amount atshareholdergeneral meeting
(Unit: KRW MN)
Number of
people
Catalog
Approved amount
Note
Director
2,000
Auditor
2,000
2. Payments
(Unit: KRW MN)
Number of
Total payments
people
Catalog
Payment per
capital
Total fair value of

stock options
Note
Executive director
Non-executive directors
Audit committee or
audit
12
12
Total
Status of granting and exercising stock option

(Based day: 31 December 2012)
(Unit: KRW/share)
Number of
Exerci
Quantity changes
Types of
Relations
Exercising
Recipient
Method
unexercise
sing
Date of grant
hip
period
of grant stocks Grant Exercise Cancel
d
price
-
(No related issue)
130
IX.
1. :
.
()
()
()
()
()
()
()
()
()
()
. (:)
()

2,337,165
16,529,392
2,935,595
18,866,557
2,935,595
()

690,620
30,587,795
2,052,681
31,278,415
2,052,681
. (:)
()
33,904,151
339,042
21,249,591
212,480
12,165,759
55,153,742
551,552
12,165,759
131
IX. Transactions with Stakeholders

1. Transactions with related parties
a) Related parties
Division
Current period
General manager
Last period
Seo Jung-Jin
Seo Jung-Jin
Celltrion Holdings
Celltrion
Celltrion Pharm
Celltrion
Shareholding executive employees
Celltrion Holdings
Celltrion
Celltrion Pharm
Celltrion
Shareholding executive employees
b) Main transactions with related parties. (Unit: KRW 000)

(Current period)
Catalog
Sell
General manager
Total
Purchase
2,337,165
16,529,392
2,935,595
18,866,557
2,935,595
(Last period)
Catalog
Sell
Purchase
General manager
Total
690,620
30,587,795
2,052,681
31,278,415
2,052,681
c) The main receivables and payables resulting from the transactions with related
parties(Unit: KRW 000)
(Current period)
Bond
Company
Amount
Debt
Allowance for bad debt
Amount
General manager
33,904,151
339,042
21,249,591
212,480
12,165,759
55,153,742
551,552
12,165,759
Total
132
()
25,436,986
254,370
9,185,134
91,852
13,967,318
34,622,120
346,222
13,967,318
. (:)
()
(%)
(*1)
6.9~8.5
30,963,000
6.9~8.5
19,848,559
17%
12,747,800
(*1) () 17,443
.
()
(%)
(*1)
8.50%
24,833,000
8.50%
7,736,293
17.00%
10,382,301
(*1) () 13,990
.
. (:)
(*1)
()
7,524,000 3,645,583
()
(*1)
21,626,612
8,500,000
7,000,000 () 690,000
- USD 3,000,000
(*1) ()
( 17 ).
133
(Last period)
Bond
Company
Amount
General manager
Total
Debt
Allowance for bad debt
Amount
25,436,986
254,370
9,185,134
91,852
13,967,318
34,622,120
346,222
13,967,318
d) Credits and debts on financial loan with related parties (Unit: KRW 000)
(Current period)
Catalog
Interest
rate(%)
Holder
Amount
General manager(*1)
6.9~8.5
30,963,000
Bond
Short-term
investment asset
6.9~8.5
19,848,559
Debt
Convertible bonds
17%
12,747,800
(*1) Celltrion Healthcare provided 17,443 shares toguarantee the short-term investment mentioned above.
(Last period)
Catalog
Bond
Holder
Short-term
investment asset
Debt
Convertible
bonds
Interest rate(%)
Amount
General manager(*1)
8.50%
24,833,000
8.50%
7,736,293
17.00%
10,382,301
(*1) Celltrion Healthcare provided 13,990 shares to guarantee the short-term investment mentioned above.
e) Related parties provide collateral and guarantee details(Unit: KRW 000 )
Guarantee
Source of loans
Collateral source
Amount
Details
details
3,645,583 shares of Celltrion
Provide
Woori Bank(*1)
General manager, other

related parties
guarantee,
joint
guarantee
Provide
stock
7,524,000 60,000 shares of Celltrion
Healthcare stock
Shinhan
Capital(*1)
Convertible
bonds
General manager, other

related parties
General manager
Joint
guarantee
21,626,612
Hana Bank
General manager
Joint
guarantee
8,500,000
National
Agricultural
Cooperative
General manager
Joint
guarantee
guarantee
7,000,000 690,000 shares of Celltrion stock
- Limitation USD 3,000,000
(*1) Refers to CelltrionHoldings incidental obligation to repay the amount of the joint and several guarantee loan.
134
. (:)
()
() 3,827,319 (*1)
()
() 690,000 (*2)
34,991,000
7,000,000
(*1) ()
42,515,000 ( 17 ).
(*2) ()
14,000,000 ( 17 ).
135
f)
Related parties provide collateral and guarantee details(Unit: KRW 000)

Borrowers
Collateral details
Source of
loans
Celltrion Holdings
3,827,319 shares of Celltrion stock
Woori Bank
Celltrion Holdings
690,000 shares of Celltrion stock
Shinhan
Capital
Amount
Note

(*1)CelltrionHoldingshas joint guarantee obligations with Woori Bankfortotal joint and severalguarantee
loanworthKRW 42,515 MN. (Referring to Note 17)
(*2) CelltrionHoldings hasjoint guarantee obligations with Shinhan Capital fortotal joint and severalguarantee
loanworthKRW14,000 MN. (Note 17)
136
X.

( : 2012.12.31)
( : )
()
()

( )
( )

, 2
() ( 197 )

( )
( :
2012 12 31
( : )

( )
( :
2012 12 31
( : )
137
X.Necessary Measures to Protect Other Investors

Status of bills and checks for mortgage or collateral
(Base date:31 December 2012)
Issued party
(Unit: KRW)
Purchase
Amount
Note
Banks
Financial institutions (bank

exclusive)
Corporation
Other (individual)
Status of short-selling, non-exchange

(No related issue)
Relationship
between margin
acquirer and
company
Notified
Notified
price of
occurrence
Unrecover Whether Claim and
time of
short-termRedempti
action Period of Whether public
ed
request
short-term
exclusion
disclosure
on
Gain from
trading
trading
Current
plan
returns
amount amount
acquisitio
margin
date
margin
n
-
Total
Shareholders of the group(including sovereign entitiesotherthan equity securities or a securities depository)

may require that thegroupprovide arefund onwhich to obtain short-term spreads.Ifthe group does not claim the
bill within two months, the shareholder may request a subrogation (Capital Market Law Enforcement Order
197).
Details about publicfunds raised
(No related issue)
Catalog
-
Payment date
-
(Unit: KRW)
Actual received
amount
Funds usage plan

declared
Actual funding
usage
Reason of
difference
Details about privatefunds raised

(No related issue)
Catalog
-
Payment date
-
(Unit: KRW)
Actual received
amount
-
Funds usage plan

-
Actual funding
usage
-
Reason of
difference
138

( )
( : 2012.12.31)
( : )
...
(
(
139
Status of foreign holding subsidiaries

(No related issue)
Catalog
(Unit: KRW)
A Holding
C
BCorporation
DCorporation
company
Corporation
...
Adjustment/c Amount
after
ombination
Sales
Internal sales
Net sales
( )
( )
( )
( )
( )
( )
Operation
income
( )
Income from
continuing
operation
( )
Profit or loss in
current quarter
( )
Total assets
( )
Total debts
( )
Owned capital
( )
Capital
( )
Auditors
Audit opinion
Note
140
XI.
-
141
XI. Financial Statements, etc.

No related issue as non-listing corporate
142
XII.
-
143
XII. Appendix
-No related issue as non-listing corporate
144

1.
( )
145
Confirmation of Experts
1.
confirmation of experts
(no related issue)
146
2.
( )
147
2.The interest of experts

(No related issue)
148

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Celltrion GSC 2012 AR

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Annual Report of Celltrion GSC in 2012

From 1 January 2012

Financial Services Commission (FSC)

Company: Celltrion GSC Corporation

(Position) (Name) Lee Byeong-lyur

29 March 2013 Celltrion GSC Corp.

1. Manufacture recipients for medicine production

Process and major changes

(2) The Change in Company Name

Unit: KRW, per share

Capital increase with

Capital increase with

Capital increase with

Capital increase with

Capital increase with

Capital increase with

Status of Outstanding Convertible Bonds

Period for Conversion conditions

(*) Bondholders have the full exercise of the stock options

Status of Outstanding Bonds with Warrants

Unit: KRW MN, %

Bonds which have

(*)Early repayment of detachable warrants before December 31 2010has been completed

4. The total number of shares

Status of Total Number of Shares

Unit: per share

Common stock Preferred stock

. Total number of issued shares

. Total number of shares issued to date

. Total number of shares which decreased

3. Repayment of redeemable shares

.Total number of outstanding shares

Status of the Acquisition and Disposal of Own Shares

Unit: per share

within the acquisition

Unit: per share

Number of shares with resurrected voting

Number of shares with voting rights

6. Matters Concerning Dividends

Par value per share (KRW)

Total cash dividends (million KRW)

Total stock dividends

Cash dividend payout

Net profit of the period (million KRW)

Cash dividend yield

Stock dividend yield (%)

II. Business Overview

Biotechnology investment projects

Procurement of reference drug

b) Sales Breakdown by Sales Method

Sales of products not produced

Sales of agent products

Sales of products not produced

Sales of agent products

c) Sales Channels and Sales Methods

In-house direct sales

Reference drugs, etc.

In-house direct sales

Plastic greenhouse materials