Leading market position in the oil refining and marketing (R&M) industry in Korea Integrated business portfolio Vulnerable to oil refining and petrochemical business cycles as well as fluctuations in crude oil prices Solid demand-supply dynamics in Asia-Pacific refining industry support financial risk profile Capital expenditures likely to rise following improved operating cash flows Positive free operating cash flow over the next 24 months The stable outlook reflects our expectation that SK Innovation Co. Ltd. (SKI) will be able to maintain its credit metrics over the next 24 months amidst some decline in profitability and a modest increase in capital expenditures. We also expect oil prices to be stable, which should reduce potential volatility from inventory valuation losses such as observed
