CASH FLOW STATEMENT 2009

(All values in thousands of U.S. dollars)

Financial year 1 Jan - 31 Dec

Cash flows from operating activities

Net income 8,765,999
Adjustments to reconcile net income to net cash provided by
operating activities :

Depreciation and amortization 9,562,507

Provision for severance benefits 553,076
Bad debt expenses 288,839
Loss on disposal of property, plant and equipment 103,407
Gain on disposal of property, plant and equipment -57,100
Loss on foreign currency translation 907,877
Gain on foreign currency translation -1,155,008
Loss on valuation of equity-method investments 104,286
Gain on valuation of equity-method investments -808,345
Deferred income taxes -11,682
Others 1,187,284
19,441,140
Changes in operating assets and liabilities
Increase in trade accounts and notes receivable -5,336,652
Increase in inventories -935,941
Decrease (increase) in financing receivables 784,877
Increase (decrease) in trade accounts and notes payable 2,976,866
Increase (decrease) in accrued expenses 900,672
Increase (decrease) in income taxes payable 428,278
Payment of severance benefits -445,604
Increase in long-term accrued expenses 444,901
Others -1,415,529
Net cash provided by operating activities 16,843,008

Cash flows from investing activities

(Increase) decrease in short-term financial instruments -4,333,764

Proceeds from sale of short-term available-for-sale securities 2,290,753
Acquisition of short-term available-for-sale securities -3,234,784
Decrease (increase) in deposits and loans $58,362
Proceeds from disposal of property, plant and equipment 96,297
Acquisition of property, plant and equipment -7,011,308
Proceeds from sale of long-term available-for-sale securities 98,510
Proceeds from sale of long-term held-to-maturity securities 24,765
Proceeds from sale of equity-method investments 38,416
Acquisition of long-term available-for-sale securities -59,815
Acquisition of equity-method investments - - -224,112
Others -103,304
Net cash used in investing activities -12,359,984

Cash flows from financing activities

Payment of dividends -746,506
Net (decrease) increase in short-term borrowings -836,620
Repayment of current maturities of long-term debts -2,028,388
Repayment of long-term debts -578,986
Proceeds from long-term debts 806,307
Others 869
Net cash (used in) provided by financing activities -3,383,324
Effect of exchange rate changes on cash and cash equivalents 377,856
Net increase in cash and cash equivalents from changes
in consolidated subsidiaries 254,453
Net increase in cash and cash equivalents 1,732,009

Cash and cash equivalents

Beginning of year 7,553,246
End of the year $9,285,255
 Fund Flow statement 2009
(All values in thousands of U.S. dollars)
Financial year 1 Jan - 31 Dec
2009
Particulars

Sources
Funds from operations
Trading Profit 9,920,866
Depreciaton 9,562,507
Proceeds from disposal of property, plant and equipment 96,297
Proceeds from long-term debts 806,307
Proceeds from sale of long-term available-for-sale securities 98,510
Proceeds from sale of long-term held-to-maturity securities 24,765
Non-operating income
Interest and dividend income 366,738
Foreign exchange gains 6,593,601
Gain on foreign currency translation 1,133,056
Gain on valuation of equity method investments 1,304,345
Others 1,042,156
Deferred income taxes 11,682
30,960,830

Applications

Payment of dividends 746,506

Repayment of long-term debts 578,986
Acquisition of property, plant and equipment 7,011,308
Acquisition of long-term available-for-sale securities 59,815
Acquisition of equity-method investments 224,112
Non-operating expenses
Interest expense 468,315
Foreign exchange losses 6,987,712
Loss on foreign currency translation 903,261
Loss on valuation of equity method investments 104,286
Repayment of current maturities of long-term debts 2,028,388
Others 3,344,525
Income tax 2,000,968

24,458,182

Increase in working capital 6,502,648

 (All values in thousands of U.S. dollars)

2009 2008
Current assets
Cash and cash equivalents $9,285,255 $7,553,246
Short-term financial instruments 7,394,809 3,077,410
Short-term available-for-sale securities 1,803,273 841,531
Trade accounts and notes receivable 14,619,877 10,320,462
Other accounts and notes receivable 1,781,629 1,335,286
Short-term financing receivables 5,048,473 5,369,762
Prepaid expenses and other current assets 3,296,541 3,499,630
Deferred income tax assets 1,404,359 1,829,536
Inventories 8,552,754 8,134,196

Total current assets 53,186,970 41,961,059

Current liabilities
Trade accounts and notes payable $7,055,971 $4,787,607
Short-term borrowings 6,524,009 7,734,901
Current maturities of long-term debts 2,680,375 1,939,486
Other accounts and notes payable 5,073,196 4,382,662
Accrued expenses 7,760,579 6,775,662
Income taxes payable 963,300 578,880
Other current liabilities 2,264,028 1,398,977

Total current liabilities 32,321,458 27,598,175

Schedule of changes in working capital

Current assets Increase Decrease

Cash and cash equivalents 1,732,009
Short-term financial instruments 4,317,399
Short-term available-for-sale securities 961,742
Trade accounts and notes receivable 4,299,415
Other accounts and notes receivable 446,343
Short-term financing receivables 321,269
Prepaid expenses and other current assets 203,089
Deferred income tax assets 425,177
Inventories 418,558

Total increase or decrease 12,175,466 949,535

Net Increase in current assets 11225931

Current liabilities Increase Decrease
Trade accounts and notes payable 2,268,364
Short-term borrowings 1,210,892
Current maturities of long-term debts 740,889
Other accounts and notes payable 690,534
Accrued expenses 984,917
Income taxes payable 384,420
Other current liabilities 865,051

Total increase or decrease 1,210,892 5,934,175

Net decrease in current liabilities 4,723,283

Net Increase in working Capital 6,502,648

Decrease
Decrease
 Fund Flow statement 2008
(All values in thousands of U.S. dollars)

Particulars

Sources
Funds from operations
Trading Profit 5,168,692
Depreciaton 8,650,549
Proceeds from disposal of property, plant and equipment 0
Proceeds from long-term debts 3,724,425
Proceeds from sale of long-term available-for-sale securities 161,381
Proceeds from sale of long-term held-to-maturity securities 26,764
Non-operating income
Interest and dividend income 547,934
Foreign exchange gains 6,202,774
Gain on foreign currency translation 381,031
Gain on valuation of equity method investments 897,364
Others 1,246,193
Deferred income taxes 428,822

Total 27,435,929

Applications

Payment of dividends 1,127,237

Repayment of long-term debts 355,848
Acquisition of property, plant and equipment 12,072,137
Acquisition of long-term available-for-sale securities 10,799
Acquisition of equity-method investments 0
Non-operating expenses
Interest expense 574,354
Foreign exchange losses 6,510,403
Loss on foreign currency translation 800,291
Loss on valuation of equity method investments 179,398
Repayment of current maturities of long-term debts 1,565,433
Others 1,345,912
Income tax 589,169

Total 25,130,981

Increase in working capital 2,304,948

 (All values in thousands of U.S. dollars)

2008
Current assets
Cash and cash equivalents $7,553,246
Short-term financial instruments 3,077,410
Short-term available-for-sale securities 841,531
Trade accounts and notes receivable 10,320,462
Other accounts and notes receivable 1,335,286
Short-term financing receivables 5,369,762
Prepaid expenses and other current assets 3,499,630
Deferred income tax assets 1,829,536
Inventories 8,134,196

Total current assets 41,961,059

Current liabilities
Trade accounts and notes payable $4,787,607
Short-term borrowings 7,734,901
Current maturities of long-term debts 2,939,486
Other accounts and notes payable 4,382,662
Accrued expenses 6,775,662
Income taxes payable 578,880
Other current liabilities 1,398,977

Total current liabilities 27,598,175

Schedule of changes in working capital

Current assets Increase

Cash and cash equivalents 1,888,312
Short-term financial instruments 688,350
Short-term available-for-sale securities
Trade accounts and notes receivable 2,425,972
Other accounts and notes receivable 10,378
Short-term financing receivables 479,084
Prepaid expenses and other current assets
Deferred income tax assets 371,710
Inventories 825,650

Total increase or decrease 6,689,456

Net Increase in current assets 6,248,383

Current liabilities Increase

Trade accounts and notes payable 332,882
Short-term borrowings
Current maturities of long-term debts
Other accounts and notes payable 514,318
Accrued expenses
Income taxes payable
Other current liabilities

Total increase or decrease 847,200

Net decrease in current liabilities

Net Increase in working Capital 2,304,948

 2007

$5,664,934
2,389,050
1,239,564
7,894,490
1,324,908
4,890,678
3,542,670
1,457,826
7,308,546

$35,712,666

5,120,489
5,346,892
1,367,650
4,897,010
6,089,730
492,506
1,340,853

24,655,130

Decrease

398,033

43,040

441073
Decrease

2,388,009
1,571,836

685,932
86,734
58,124

4,790,635

3,943,435
 CASH FLOW STATEMENT 2008
(All values in thousands of U.S. dollars)
Financial year 1 Jan - 31 Dec

Cash flows from operating activities

Net income $5,047,313
Adjustments to reconcile net income to net cash provided by
operating activities :

Depreciation and amortization 8,650,549

Provision for severance benefits 466,135
Bad debt expenses 456,237
Loss on disposal of property, plant and equipment 53,378
Gain on disposal of property, plant and equipment -95,083
Loss on foreign currency translation 917,188
Gain on foreign currency translation -383,792
Loss on valuation of equity-method investments 179,398
Gain on valuation of equity-method investments -641,301
Deferred income taxes -428,822
Others 1,105,169
15,326,369
Changes in operating assets and liabilities
Increase in trade accounts and notes receivable -73,847
Increase in inventories -594,440
Decrease (increase) in financing receivables -1,125,598
Increase (decrease) in trade accounts and notes payable -1,297,686
Increase (decrease) in accrued expenses -178,133
Increase (decrease) in income taxes payable -644,061
Payment of severance benefits -258,686
Increase in long-term accrued expenses 349,892
Others -55,588
Net cash provided by operating activities 11,448,222

Cash flows from investing activities

(Increase) decrease in short-term financial instruments 1,238,887

Proceeds from sale of short-term available-for-sale securities 3,064,641
Acquisition of short-term available-for-sale securities -3,067,695
Decrease (increase) in deposits and loans
Proceeds from disposal of property, plant and equipment
Acquisition of property, plant and equipment -12,072,137
Proceeds from sale of long-term available-for-sale securities 161,381
Proceeds from sale of long-term held-to-maturity securities 26,764
Proceeds from sale of equity-method investments 14,295
Acquisition of long-term available-for-sale securities -10,799
Acquisition of equity-method investments - -
Others -424,346
Net cash used in investing activities -11,249,721

Cash flows from financing activities

Payment of dividends -1,127,237
Net (decrease) increase in short-term borrowings 572,736
Repayment of current maturities of long-term debts -1,565,433
Repayment of long-term debts -355,848
Proceeds from long-term debts 3,724,425
Others 408,787
Net cash (used in) provided by financing activities 1,657,430
Effect of exchange rate changes on cash and cash equivalents 697,099
Net increase in cash and cash equivalents from changes
in consolidated subsidiaries 2,796
Net increase in cash and cash equivalents 2,555,826

Cash and cash equivalents

Beginning of year 4,997,420
End of the year $7,553,246