1. Scope & Milestone - Category/Supplier/Schedule -
CONFIDENTIAL
Scope & Milestone - Category/Supplier/Schedule -

2. Operating Management Plan1
Target Scoping 2
Operating Management Plan 3
Implementation Schedule 4
R&R (Operating Team & CPO)

3. 1. Target Scoping 1) Survey Result
In order to define the scope of application for procurement policy, project team conducted survey and interview with operating team
Survey Summary
Survey Result
Objective
In order to Understand & Analyze Procurement Contract, Operation and Approval Parties for each Service
Define Target Scope of Applying Procurement Policy
Survey Result
Conduct
Survey
Final
Consensus
Service
Long term Lease/
Dry Dock Repair/ Feeder/
Trucking/Bulk Agent/
Terminal/Depot & CY/
M&R/Fuel & Lube/
Barge/Bulk Loading/
CNTR Agent/New Van/
Master Lease/ Ship
Maintenance & Engineering/
Spare & Store Parts/
Legal Affairs & Insurance/
General Administration
Schedule
Service Supplier Survey ▷ Survey Distribution & Gathering : st) ’09/07/03 ~ 07/ nd) ’09/07/09 ~ 07/10
Interview & Consensus Meeting
- ’09/07/13 ~ ’09/07/15
Survey Analysis
- ’09/07/16
Workshop
- ’09/07/17
Self Managed Terminal
In progress
Survey
Remarks
Survey : 12 Operating Teams
* Incl. RHQ and Subsidiaries (If needed)
Operating Direction and Scope will be reviewed during the project term

4. 1. Target Scoping
2) Total
According to scoping result, AHQ has the largest portion of procurement spend and the most numbers of suppliers in target scope, which is 10.1% and 17.2% each (excl. HQ)
HMM Procurement Policy Scope
Spend (by Organization)
Suppliers (by Organization)
Amount :142 (4%)
Supplier : 5,073 (85%)
CHQ
(85/2.3%)
EHQ
(109/2.9%)
EHQ
(50/5.8%)
SHQ
(51/5.9%)
HK Sub.
(63/1.7%)
UAE Sub.
(21/2.4%)
SHQ
(137/3.7%)
German Sub. (42/1.1%)
CHQ
(55/6.4%)
HK Sub.
(20/2.3%)
AHQ
(373/
10.1%)
AHQ
(148/17.2%)
Amount : 3,700 (96%)
Supplier : 859 (15%) HQ
(2,730/73.8%) HQ
(397/46.2%)
Service : 18 Services
Total Spend : 3,841,900,710 USD
Supplier : 5,932 Suppliers
Spend in Scope by Organization
HQ (1) / RHQ (4) – 92.8%
Subsidiary(18)/Others(13)–7.2%
Suppliers in Scope by Organization
HQ/RHQ : 701 (81.6%)
Sub./Others : 158 (18.2%)
* Unit : 1,000,000 USD **Term : ’08~ ’09(1st Half) *** Excluding Self Managed Terminal (Supplier)

5. 1. Target Scoping 3) By Service (1/2) Service Spend # of Suppliers
Amount in Scope
# of Supplier in Scope
Organization
New Van 20 4
20 (100%)
4 (100%)
Long Term Lease 16 14
16 (100%)
14 (100%)
Dry Dock Repair 20 7
20 (100%)
7 (100%)
Purchasing Team
Fuel & Lube
2,445 28
2,445 (100%)
28 (100%)
Spare & Store Parts 47
169
41 (87%)
44 (26%)
Legal Affairs & Insurance 30 20
28 (95%)
6 (30%)
Legal Affairs & Insurance Team
General Administration 17 55
17 (100%)
55 (100%)
General Administration Team
Ship Maintenance & Engineering 7
206
6 (80%)
38 (18%)
Ship Maintenance & Engineering Team
Master Lease 15 22
15 (98%)
11 (50%)
Equipment Team
*Unit : 1,000,000 USD

6. 1. Target Scoping 3) By Service (2/2) Service Spend # of Suppliers
Amount in Scope
# of Supplier in Scope
Organization
Trucking
230
1,595
183 (80%)
84 (5%)
Depot / CY 61
691
49 (80%)
101 (15%)
Equipment Team
M&R 13
430
10 (80%)
34 (8%)
Barge 29
162
23 (80%)
29 (18%)
Terminal
641
112
614 (96%)
76 (68%)
Marine Contract & Coordination Team
C. Feeder
188
179
167 (89%)
40 (22%)
Bulk Loading 22
556
21 (92%)
112 (20%)
Bulk Business Planning & Development Team
Bulk Agent 7
446
5 (67%)
134 (30%)
Bulk Business Planning & Development Team
Container Agent 32
1,237
21 (66%)
46 (4%)
Liner Business Development Team
*Unit : 1,000,000 USD

7. 2. Operating Management Plan
1) Monitoring
Applying procurement policy is to enhance procurement information visibility & ensure fairness of supplier selection
Purpose
Procurement Information Visibility Enhancement : Ensuring Integrated Visibility (Service Contract Status/Spend/Portion)
Fairness of Supplier Selection Evaluation : Managing Supplier Evaluation, Selection & Contract Standard (incl. Competitive Bidding)
Coverage
All Org. Level (HQ, RHQ, Subsidiary, Branch, Oversea & Liaison Office) Operates & Manages Suppliers on defined Scope
Monitoring Indicators I
Spend Ratio (Supplier Evaluation) II
Competitive Bidding
III
Supplier Evaluation
Maintain Cost Competitiveness by Defined Procedures for Supplier Selection (incl. Competitive Bidding)
Securing Procurement Visibility (Meet Target Scope : 80%)
Periodical Supplier Capability & Performance Evaluation for ensuring Supplier Competitiveness
“Evaluated Supplier' Spend
compared to Total Spend”
“# of Competitive Bidding Case
Compared to Total # of Contract”
“# of Evaluated Supplier
Compared to # of Suppliers in Scope”
Monthly Spend Data Set
(Various by Service)
Policy Monitoring Check List / Operating Template
/ Contract / Quotation / Related Approval Documents

8. 2. Operating Management Plan
2) Indicators
For Suppliers in scope, spend ratio & competitive bidding will be monitored monthly, supplier evaluation will be monitored yearly
Scoping
M+1
M+2
M+3
M+4
M+5
M+6
M+7
M+8
M+9
M+10
M+11
M+12
Spend
Ratio
(Supplier Evaluation) I
“Monthly Based Monitoring” II
Competitive Bidding
Monitoring Monthly Spend of Evaluated Suppliers &
Competitive Bidding Portion
Feed Back Monitoring Monthly Supplier Evaluation & Competitive Bidding Result
Indicate Scope Adjustment Guideline (If Needed)
M+1
M+2
M+3
M+4
M+5
M+6
M+7
M+8
M+9
M+10
M+11
M+12
Supplier
Evaluation
III
Supplier Evaluation
Warning
“Yearly Based Monitoring”
Yearly Monitoring Result
Managing Monthly Service/Regional Evaluation Result (Progress Ratio)
Improve Supplier Evaluation Ratio operating 3 Months Advanced Notice Prior to End Period of Evaluation
* Defined Supplier Scope will be effective by end of 2010
* The Subject of Supplier for 2011 will be Scoped in 4Q.2010

9. 2. Operating Management Plan
3) Managing Structure
Management hierarchy (Org. level) for policy monitoring is following.
Policy Monitoring Management Structure
CPO
Result by Service
Operating Team ‘A’
Operating Team ‘B’
Operating Team ‘C’ HQ
Result by RHQ
Result by RHQ
Result by Sub.
The Service Contract & Management By
HQ Operating Team
Result by RHQ
Regional CPO
AHQ
EHQ
SHQ
CHQ
Result by Sub.
RHQ
(Subsidiary
/Branch/
Others)
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
CPO
Regional CPO
Operating Team (HQ/RHQ/Sub./Branch)
Select monitoring indicators / Managing / Reporting
Responsibility for Managing Indicators
Monitoring & Feed Back
Managing & Reporting Monitoring Indicators
Responsibility for Managing Indicators (Regional)
Managing Monitoring Indicators
Gathering Monitoring Result
Sharing Monitoring Result (Internally)

10. 2. Operating Management Plan
4) Executing
Regarding procurement policy monitoring, internal & external work for operating team is following
Procurement Policy Monitoring
Supplier ‘A’
President/SVP A
Check List
Template
Contract
Quotation
Approval B
Supplier ‘B’
EXTERNAL
Monitoring
Mgmt.
INTERNAL
Monitoring
Mgmt.
Team Lead
Pertinent Operating Team
Supplier ‘C’
Part Lead
External Monitoring Management
Internal Monitoring Management A B
Check List*
Reasons for Approval
Potential Supplier Evaluation
Quotation I
Competitive Bidding
Approval Documents
Operating Template*
Contract
Exceptional Disqualification Case
Exceptional Bid Case
Check List* II
Supplier Evaluation
Operating Template*
Extension of Valid Period of Contract and Renewal
*Document per Supplier

11. 3. Implementation Schedule
1) Milestone
Implementation & rollout will be taken for 12 Weeks. The target starting point for HQ will be 3rd week of September and global will be 3rd week of October
July & August
September
October
November
7/27
8/3
8/10
8/17
8/24
8/31
9/7
9/14
9/21
9/28
10/5
10/12
10/19
10/26
11/2
11/9
11/16
11/23
11/30
Main
Schedule
Design
Implementation
Stabilization
Go Live HQ
CPO 1
Detailed Plan
W/S
W/S
Training
Migration
Monitoring
Event Management
Issue Management (Issue Watch List / Log)
Operating
Team 2
Template
Model
Process
Workflow
R&R
Translation
Global
Go Live
CPO 1
Remote Support
Migration
Monitoring
Event Management
Issue Management (Issue Watch List / Log)
W/S (1st)
Training(1st)
Operating
Team 2
W/S(2nd)
Training (2nd)
* CPO → RHQ
* RHQ → 법인/지사

12. 3. Implementation Schedule
2) Design
During first 5 weeks, detailed operational rule, implementation plan, and schedule will be defined & set up
Main
Schedule
July
August 27 28 29 30 31 3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28
Detailed Plan
W/S
Template
Model
Process
Workflow
R&R
Translation
Task
Detailed Implementing Plan
W/S
Preparation
Template
Guide
Document Operating Template
(Operating Team)
Revise Template
Finalize Template
Analyze As-Is Operation
(Evaluation Term/
Suppliers)
Interview &
Meeting
Design Operating Model/ Process/Workflow
Monitoring Operating Area, Rules and Detailed Implementation Schedule

13. 3. Implementation Schedule
Implementation will be conducted with dual implementation plan for HQ and Global. Only one rollout Phase for HQ, 2 separate rollout phases for RHQ and subsidiaries.
Go Live
Go Live
Main
Schedule
September
October 31 1 2 3 4 7 8 9 10 11 13 14 15 16 17 18 21 22 23 24 25 28 29 30 5 6 12 3W 4W
November 1W 2W 5W
W/S (1st)
Training(1st)
W/S
Training
Migration*
Monitoring
Event Management
Issue Management (Issue Watch List / Log)
Remote Support
Migration*
Monitoring
Event Management
Issue Management (Issue Watch List / Log)
W/S(2nd)
Training (2nd)
Task
W/S
Training
Migration
Go-Live &
Change Management 1
W/S & Training
(CPO ↔ RHQ)
W/S & Training Remote Support
(CPO)
AHQ 2
W/S & Training
(RHQ ↔ Sub./Branch)
Migration
Go-Live &
Change Management
EHQ
SHQ
Subsidiary
CHQ
Branch
Rollout I. : CPO → RHQ Rollout II. : RHQ → Subsidiaries/Branches

14. 4. R&R (Operating Team & CPO)
Subject Plan
Task
Details
Responsibility
OP. Team
CPO
Preparation
Implementation Schedule
Define Implementation & Rollout Milestone & Work Plan
Procurement Policy Rollout Workshop
Conduct Consensus Meeting with Operating Team
Request Cooperation Case
Operating Template
Document Operating Template Guideline
Document Operating Template
Revise & Finalize Operating Template
Suppliers in Scope (Org.)*
Finalize Scope (Supplier List)
Evaluation Period*
Survey & Settle Evaluation Period
Operating Model/Process/R&R
Define Monitoring Operating Model, Process, R&R
Monitoring Execution
W/S & Training
Train Operating Team (HQ & RHQ)
Train Operating Team (Subsidiary/Branch)
Migration
Document & Inform Previous Evaluation Result
Procurement Policy Monitoring Execution
Change Management
Issue Report
Report Monitoring Issue
Trouble Shooting
Receipt & Resolve Issue Report
* Template & Guide will be Provided