Hyundai Elevator Co., Ltd.  

I would like to take this opportunity to outline the overall corporate achievements made by Hyundai Elevator Co., Ltd. during 2005 and present the business plan for 2006. Last year, we experienced a difficult business environment a sluggish construction sector caused by public measures to curb the overheated real estate market, high oil prices and increased material costs. We did our best to cope with low growth in the domestic elevator sector by increasing our focus on non-elevator sectors such as platform screen doors for subway system, automated material handling systems and the growing export market.

Total revenue for 2005 was W473 billion while net income was W83.9 billion. The financial status is healthy with a 70% debt ratio and 59% net equity ratio.
We expect 2006 to be a year of greater challenges. The foreign exchange rate is forecasted to be less stable as Korean Won has become stronger against the US Dollar since the beginning of the year with the exchange rate falling to as low as 960 won per dollar. The Government will likely continue to try to cool off the volatile real estate market and prospects for the construction sector do not seem bright. Crude oil price may rise as high as US$70 per barrel with the Iranian nuclear standoff being a major destabilizing factor and other material costs are likely to follow suit.

Still, our target for 2006 annual revenue is set to be W528 billion - a 12% increase from previous year. We will continue our effort to strengthen our competitiveness and to increase customers' satisfaction. Company staff will remain united to this common cause. No one will be left behind in our endeavor for renovation and we will establish our own unique service system to better serve the customers' needs. Our key words for 2006 are "all participating renovation" and "customer satisfaction".