HHI at a Glance. Financial Performance. Business Performance

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2 Important Notice This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHI s operations that are based on management s current expectations, estimates and projections. Words such as anticipates, expects, intends, plans, projects, schedules, estimates and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and other factors including new order flows, FX rates, steel plate prices and so on, some of which are beyond company s control and are difficult to predict. Therefore, actual outcomes and actual results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements. HHI undertakes no obligation to update any forward-looking statements to reflect subsequent events. 2

3 Contents HHI at a Glance Financial Performance Business Performance 3

4 HHI at a Glance 4

5 Summary Date of Establishment : Date of Listing : No. of issued stocks: 76,000,000 stocks Paid-in Capital : KRW 380 bil. Market Value : KRW 8,740 bil. (As of December 31, 2014) Credit Rating : A2+ (Commercial Paper), A+ (Corporate Bond) Korea s large conglomerate ranking : 8th (Excluding public companies, based on total assets) No. of employees : 26,710 (Average 17.6 years of continuous service) No. of dry docks : 10 (Shipbuilding), 1 (Offshore & Engineering) Business Division : Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems, Construction Equipment, Green Energy, Refinery, Financial Services 5

6 History Establishment of Hyundai Shipbuilding & Heavy Industry Co., Ltd Establishment of Hyundai Mipo Dockyard Separation from Hyundai Group and foundation of HHI Group Acquisition of Samho Heavy Industries Co., Ltd Completion of World s largest Saudi MARAFIQ power plant (2,750MW) Achievement of a 100 million GT in delivery of ships, the first in the world Delivery of Korea s first LNG Carrier Launch of World s first ship built on the ground (105K DWT Crude Oil Carrier) Delivery of the world s first LNG-FSRU 1970~ ~ ~ Listed on the Korean Stock Exchange Selected as a main contractor of the next Korean submarine builder Completion of the World s largest deep-sea FPSO (343K Tons) Completion of H-Dock, eligible for 1,000K Ton FPSO construction Acquisition of Hyundai Corporation Acquisition of Hyudai Oilbank Co., Ltd. (70% of ownership and management) Recognition as the World s Significant Ship for 32 consecutive years Completion of the World s largest cylindrical FPSO Breakthrough the production of accumulating 9,000 HiMSEN Engines 6

7 Business Highlights Achievement of a 100 million GT in delivery of ships, the very first in the world (Apr. 2011) Delivery of Korea s first LNG Carrier (Jun. 1994) 125,000 m 3 Completion of World s largest cylindrical FPSO (Feb. 2015) Formation of the world record in production of 2-stroke marine engines (Sep. 2010) 100 million BHP Recognition of the World Significant Ship for 32 consecutive years World shipbuilding publications, Maritime Report and Maine Log Delivery of World s Biggest Jacket (May.1989) Exxon (USA) 40,000 ton Completed World s largest Saudi MARAFIQ power plant (Apr. 2011) Power generation of 2,750 MW Desalination of 176 MIGD Achievement of domestic record in production of Transformers(Feb. 2010) 600,000 MVA 7

8 Ownership Structure (As of December 31, 2014) Chung Mong-joon 10.15% Hyundai Mipo Dockyard Co., Ltd. 7.98% Others 46.78% (Foreign Ownership : 12.14% ) National Pension Service 4.69% KCC 3.04% Hyundai Motors 2.88% Asan Foundation 2.53% Treasury Shares 19.36% POSCO 1.94% Asan Nanum Foundation 0.65% 8

9 Business Structures Divisions Main Products Main Clients Competitors Capacity Shipbuilding VLCCs, Tankers, Product Carriers, Chemical Tankers Containerships, Bulk Carriers, OBO Carriers Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers LPG Carriers, LNG Carriers Drill Ships, Semi-Submersible Rigs Submarines, Destroyers, Frigates Hapag-Lloyd (DEU) C.P. Offen (DEU) CMA CGM (FRA) A.P. Moller (DEN) Seaspan (CAN) Enesel S.A. (GRC) DSME (KOR) SHI (KOR) 10 mil. GT Offshore & Engineering Floating Units : FPSO, FLNG, FPU, TLP, Semi Submersible Unit Fixed Platforms : Topsides Jacket & Pile, Jack-up, : Modules & Quarters Pipelines & Subsea Facilities, Land-based Modules Offshore Installations BP (GBR) Exxon Mobil (USA) Shell (USA) Chevron (USA) Total (FRA) ENI Norge (NOR) DSME (KOR) SHI (KOR) Technip (FRA) Saipem (ITA) Mc Dermott (USA) Floaters : 1~2 units Fixed Platform : 3~4 units Pipeline Laying : 30km Industrial Plant & Engineering Power Plants t : Combined-Cycle, Thermal Power Plants Process Units t : Oil and Gas Refinery, Tank Farm, GTL and LNG Facilities Plant Equipment : Industrial Boiler, HRSG, CFBF, Boiler, Regenerator and Reactor Shell (USA) MEW (KWT) SEC (SAU) Siemens (DEU) Hyundai E&C (KOR) Doosan Heavy (KOR) Samsung C&T Corp. (KOR) Power Plant : 1,000MW (4~5 PJTs) Engine & Machinery Marine Engines : 2-Stroke and 4-Stroke(HiMSEN) Engines, Components, Marine Propulsion & Equipment Industrial Machinery : Pump, Compressor Robot & Automation : Processor, Conveyor System, Robot HMD (KOR) DSME (KOR) SHI (KOR) Shanghai (CHN) Doosan (KOR) STX (KOR) Mitsui (JPN) Hudong Dalian (CHN) Large Engines (500 units) : 18 mil. BHP Medium (1,800 units) : 5 mil. BHP Electro Electric Systems Transformers, Gas Insulated Switchgear, Switchgear Low- and Medium-Voltage Circuit Breakers Rotating Machinery Power Electronics and Control Systems, Wind Power Systems Aramco (SAU) KEOCI (KOR) DSME (KOR) Daelim (KOR) ABB (SWE) Siemens (DEU) Hyosung (KOR) Transformer (620 units) : 121,400 MVA Wind Turbine : 600MW Construction Equipment Excavator Wheel Loader, Skid Loader Forklift Komatsu (JPN) Caterpillar (USA) Doosan Infracore (KOR) 42,900 units (Excavator 26,200 units) Green Energy Solar Power Systems LG, Hanwha (KOR) SolarWorld (GER) Solar Cell/Module : 600MW Refinery Petroleum : LPG, Gasoline, Kerosene, Jet Fuel Petrochemicals : Propylene, Alkylate, BTX, Naphtha SK Innovation (KOR) GS-Caltex (KOR) S-Oil (KOR) 390,000 B/D Financial Services Securities Brokerage Asset Management, Leasing Futures Corporate Finance 9

10 Sales Breakdown 40.1% Financial Services Others (KRW bil.) (KRW bil.) 1.4% 0.4% 31.3% Refinery (KRW 21,087.1 bil.) Shipbuilding (KRW 16,432.2 bil.) 8.8% Green Energy (KRW bil.) 0.6% Offshore & Engineering (KRW 4,653.4 bil.) 5.5% 4.5% 2.9% 4.6% Construction Equipment Industrial Plant & Engineering (KRW 2,866.8 bil.) Electro Electric Systems (KRW 2,354.6 bil.) Engine & Machinery (KRW 1,518.1bil.) (KRW 2,409.2 bil.) (2014 Consolidated basis, preliminary results) 10

11 Affiliates 27 affiliated companies in Hyundai Heavy Industries Group (Including HHI, excluding overseas corporations) 11

12 Global Network Established 17 Overseas offices and 28 Incorporated firms, a total of 45 global network. 17 overseas offices - Europe : 5, America : 3, Asia : 3, Middle East / Africa : 6 28 Incorporated firms - Production/sales : 14, Sales : 3, Construction : 4, R&D : 2, Management : 3, Agriculture: 2 London Belgium France Europe Nigeria Oslo Rotterdam Bulgaria Germany Hungary Athens Riyadh Al Khobar (office, incorporated) Moscow Istanbul Kuwait Dubai Jebel Ali India Tai an Khorol Agro, Mikhailovka Agro, Hyundai Electrosystems Chanzhou Beijing Shandong Yantai Weihai Yangzhong Singapore Region Overseas Incorporated office firm Total Europe America Asia Middle East / Africa Total Vladivostok Tokyo Osaka HHI China Investment Co., Ltd. Hyudai Heavy Industries Shanghai R&D Co., Ltd. Hyundai Financial Leasing Co., Ltd. Jakarta [HHI] Alabama Houston Hyundai Ideal Electric Co. New Jersey Atlanta (office, incorporated) Production / Sales(14) Sales (3) Construction(4) R&D(2) Management(3) Agriculture(2) Offices (17) Luanda Middle East / Africa Asia America Brazil 12

13 Financial Performance 13

14 Quarterly Operating Income Margin (Consolidated) Recorded KRW 3.2 tril.of operating loss in 2014 reflecting KRW 1.6 tril.of provision mostly for three semi rigs, two power plant projects and offshore production facilities One off losses of early retirement benefit reflected in % 13.47% 10.00% 7.69% 6.99% 6.05% 7.07% 5.00% 0.00% 4.55% 2.64% 0.41% 2.87% 2.21% 1.69% -0.59% -1.40% -0.16% -1.57% -1.43% -5.00% % -8.62% -8.22% % % % 14

15 Financial Summary (Consolidated) Sales (in billion KRW) Operating Profit (in billion KRW) 56, , % 55, , , , , , , , ,582.4 '11 '12 '13 '14 4,000 2, ,000-4, % 10.0% 3.6% 1.5% 4, % 2,006-3,250-1, % '11 '12 '13 '14 '15.3Q -5.0% -3.6% -6.2% -10.0% Operating Profit(Left) OP Margin(Right) Liabilities to Equity Ratio Debt to Equity Ratio 40,000 30,000 20,000 10, % 162.9% 30,824 30, % 220.8% 234.1% 34,175 36,746 36, % 200.0% 150.0% 100.0% 50.0% 20,000 15,000 10,000 5, % 11, % 99.4% 79.1% 83.3% 14,827 15,843 16,543 17, % 100.0% 50.0% 0 '11 '12 '13 '14 '15.3Q 0.0% 0 '11 '12 '13 '14 '15.3Q 0.0% Liabilities(Left) Liabilities to Equity(Right) Debt(Left) Debt to Equity Ratio(Right) 15

16 Financial Summary (Consolidated) (Unit : Bil. KRW) Q (Cummulative) Sales Operating Profit 53, % 54, % 54, % 52, % 35, % 4, % 2, % % (3,249.5) -6.2% (1,261.0) -3.6% Shipbuilding 2, % 1, % % (1,895.9) -11.5% (618.9) -4.9% Offshore % % % (230.3) -4.9% (1,019.9) -33.1% Industrial Plant % % % (1,130.8) -46.9% % Engine & Machinery % % % (10.9) -0.7% % Electro Electric % (74.3) -2.6% % % % Construction Equipment % % % (33.4) -1.2% (29.9) -1.6% Green Energy (175.0) -46.0% (106.3) -31.5% (103.2) -32.8% (16.5) -5.3% % Refinery % % % % % Finance services % % % % % Others (304.3) - (314.6) - (293.2) - (282.7) - (242.9) - Net Income 2, % 1, % % (2,206.1) -4.2% (985.2) -2.8% 16

17 Financial Summary (Consolidated) (Unit : bil. KRW) At the end of Sep Total Assets 49, , , , ,039.2 Current Assets 23, , , , ,603.4 Cash& Cash Equivalents 1, , , , ,015.8 Non Current Assets 25, , , , ,435.8 Total Liabilities 30, , , , ,461.2 Current Liabilities 25, , , , ,251.7 Non-Current Liabilities 5, , , , ,209.5 Total Shareholder's Equity Liabilties-to Equity Ratio Debt-to-Equity Ratio Total Debt 18, , , , , % 162.9% 179.6% 220.8% 234.1% 60.8% 79.1% 83.3% 99.4% 114.8% 11, , , , ,

18 Business Performance 18

19 New Orders Trend (Mil. USD) 35,000 30,000 25,000 20,000 15,000 10,000 5, ,400 5,777 9,817 3,025 16,107 13,405 7,835 4,917 18,706 7,236 11,470 4,357 2,968 8,488 8,272 6,792 13,838 9,290 15,730 13,635 10,291 2,043 2, ,473 27,363 25,020 25,324 10,735 17,209 14,419 17,851 19,567 19, % YoY 22,950 14,600 13,424 13,642 13,147 10,905 9,512 6,143 4,061 6,192 8,350 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14`15 (Target) Shipbuilding Non-Shipbuilding 19

20 2015 Orders & Backlog by Division (Non-Consolidated) Lower than expected achievement ratio in Offshore division due to lower oil prices and profit oriented order policy (Unit : Mil. USD) New Orders Backlog 2015 Target Oct. Achievement Target Annual Oct. Oct. Shipbuilding 8,350 5, % 9,150 6,192 4,936 17,785 Offshore & Engineering 5,300 1, % 6,900 6,005 4,963 21,037 Industrial Plant & Engineering 1,650 1, % 5,000 1,256 1,146 10,960 Engine & Machinery 2,571 1, % 2,900 1,995 1,885 2,922 Electro Electric Systems 2,445 1, % 2,424 2,006 1,823 2,047 Construction Equipment 2,298 1, % 2,837 2,071 1,784 - Green Energy % Total 22,950 12, % 29,565 19,834 16,798 54,780 * The backlog above is on the delivery basis 20

21 Shipbuilding VLCC Containership Bulker LNGC LPGC Car Carrier Naval Ship Drill ship Semi-Rig 21

22 World shipbuilding Market share Shipbuilding <Output in 2014> Rank Shipbuilder No. of Output in 2014 Market share Vessels (in thousand CGT) (%) 1 Hyundai Heavy Industries (KOR) 56 2, % 2 Daewoo Shipbuilding & Marine Engineering (KOR) 43 2, % 3 Samsung Heavy Industires (KOR) 32 1, % 4 Hyundia Mipo Dockyard (KOR) 77 1, % 5 Imabari Shipbuilding (JPN) 61 1, % 6 Hyundai Samho Heavy Industries (KOR) 30 1, % 7 Shanghai Waigaoqiao (CHN) % 8 Japanese Marine United (JPN) % 9 Jiangsu New YZJ (CHN) % 10 Dalian Shipbuilding (CHN) % Rest 1,432 20, % Total 1,843 34, % HHI Group 163 5, % * Source : Clarkson 22

23 Demand Global Demand (in million GT) New Orders by ship type (in million GT) '07 '08 '09 '10 '11 '12 '13 '14 Oct Oct Bulkers Tankers Containers LNGC's LPGC's Others '14 '15 Bulkers Tankers Containers LNGC's LPGC's Others Oct. '14 Oct. '15 <Global Demand> (Unit : Million GT) '07 '08 '09 '10 '11 '12 '13 '14 YoY '14.10 '15.10 YoY Total % % Bulkers % % Tankers % % Containers % % LNGC % % LPGC % % Others % % * Others : Offshore, Cruise vessels, Ro-Ro ferries, MPP, Reefers, PCC * Source : Clarkson 23

24 Competition <Market Share of Global Demands> Region Shipbuilding (%) (%) (%) (%) (%) Korea China Japan Others Total Demand (Unit : mil. GT) Oct Backlog (in million GT) Korea China Japan Tanker Bulk LNGC LPGC Containership Drilling ship Others Global Market Share (%) * Source : Clarkson Korea China Japan Oct

25 Price Trend Shipbuilding Capesize 180K dwt (Left) VLCC 320K dwt (Left) Containership 13,000 teu(left) '07 '08 '09 '10 '11 '12 '13 '14 ' LPG carrier 78-84K m3 (Left) LNG Carrier 160K m3 (Right) Source : Clarkson (Containership data starts from 2008) <Price Trend> (Unit : Million USD) '07 '08 '09 '10 '11 '12 '13 '14 YoY '14.10 '15.10 YoY Clarkson Index % % Bulkers(180K) % % Tankers(320K) % % Containerships (13,000TEU) % % LNGC(160K m3 ) % % LPGC(82K m3 ) % % * Source : Clarkson (Index=100 in year 1988) 25

26 Overview Shipbuilding Sales Contribution(2014) Sales Breakdown by Product (2014) Shipbuilding 40% * Non-Consolidated basis 7% 5% 5% 7% 10% 17% 29% 20% Container Drillship LNGC LPGC Semi-Rig Bulk Carrier Special Naval Others * Non-Consolidated basis 20,000 15,000 10,000 5,000 0 Annual Sales & New Orders (Unit : sales - bil. KRW, New order mil. USD) 15,730 13,635 11,470 10,905 9,084 9,003 9,487 9,766 10,159 9,349 9,512 7,557 7,849 6,443 6,143 6,192 4, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Main Products VLCCs, Tankers, Product Carriers, Chemical Tankers Containerships, Bulk Carriers, OBO Carriers Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers LNG Carriers, LPG Carriers Drillships, Semi-Submersible Rigs Submarines, Destroyers, Frigates Operational Highlights Completion of Gunsan Shipyard (Mar. 2010) Investment & Technical Corporation Agreement with OSX (May 2010) 10% of stake in OSX(USD 61.9 mil.) in exchange for technical advise for establishment of a shipyard Delivery of first drillship (Sept. 2010) Delivery of 1,700 th vessel (Jan. 2011) Recorded delivery of 100 million GT in ships (Mar. 2011) Delivery of the World s first LNG-FSRU (Feb. 2014) 26

27 Performance Shipbuilding New Oredrs by shiptype ( ) Backlog by shiptype ( ) 2.1% Tanker 31.7% 9.6% 3.9% 20.9% 25.8% 8.1% Tanker Containership LNGC LPGC Bulk Others 6.3% 3.3% 10.7% 7.0% 16.2% 13.0% 15.8% 25.6% Containership LNGC LPGC Bulk Drillship Semi-Rig Naval ship Others Based on the amount Backlog as of 2014 (YTD) : 145 vessels, USD bil. Based on the amount New Orders in 2014 (Unit : Mil. USD) 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Target Achievement Details # of Ships Amount 9,512 1,549 1, ,192 9, % - 26 LPG Carriers (1,964) - 18 Tankers (1,598) - 5 Containerships (501) - 6 LNG Carriers (1,294) - 3 Bulkers (242) - 2 Special Vessel (529) - Others (64) 27

28 Performance Shipbuilding New Orders by Shiptype (Oct. 2015) Backlog by Shiptype (Oct. 2015) 3.8% Tanker 6.8% 14.3% 10.4% 32.2% 36.2% Tanker Containership LNGC LPGC Others 11.6% 22.6% 3.2% 3.5% 1.7% 13.4% 15.0% 25.1% Containership LNGC LPGC Bulk Drillship Semi-Rig Naval ships Others Backlogs as of Oct. 2015(YTD) : 146 vessels, USD bil. Based on the amount Based on the amount New Orders in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Total Target Achieve -ment # of ship Amount 6, , , ,444 8, % (Unit : Mil. USD) Details - 25 Tankers (1,974) - 15 Containerships (1,753) - 2 LNGC (564) - 11 LPGCs (780) - 2 Others (373) 28

29 Delivery Shipbuilding Annual Delivery (mil. GT) Annual Delivery (number of vessels) Gunsan Offshore Ulsan Ulsan Offshore (on-ground building) Gunsan Total # of Ship

30 Offshore & Engineering FPSO Fixed Platform Modules Installation Subsea Pipelines 30

31 Overview Offshore & Engineering Sales Contribution (2014) Sales Breakdown by Product (2014) Offshore & Engineering 20% Subsea Pipeline 7% Fixed Platforms& Floaters 93% * Non-Consolidated basis * Non-Consolidated basis 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Annual Sales & New Orders (Unit : sales - bil. KRW, New order mil. USD) 6,503 6,005 4,753 4,480 4,653 4,373 3,729 3,423 3,413 3,0952,978 3,069 2,222 1,997 2,352 2,072 1,935 1, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Main Products Floating Units: FPSOs, FLNGs, FPUs, TLPs, Semi Submersible Units Fixed Platforms: Topsides, Jackets & Piles, Jack-ups, Modules & Quarters Pipelines & Subsea Facilities: Subsea Pipelines Offshore Installations: Platforms, Pipelines Land-Based Modules Operational Highlights Received USD 1.1 bil. of Goliat FPSO order (Feb. 2010) Received USD 0.9 bil. of Barzan offshore platform order (Jan. 2011) Received USD 1.2 bil. of BP Q204 FPSO order (Feb. 2011) Received USD 0.6 bil. of BP Clair Ridge platform order (Mar. 2011) Received USD 1.1 bil. of Aasta Hansteen Topside order (Jan. 2013) Received USD 1.9 bil. of Moho Nord TLP & FPU order (Mar. 2013) Received USD 1.9 bil. of Rosebank FPSO order (Apr. 2013) 31

32 Performance Offshore & Engineering Major Projects in 2009/2010 Gorgon LNG (Oct. 2009) - LNG processing modules fabrication ($2.1 bil. from Chevron) New Orders by Type ($ mil.) Oct Fixed 2,188 1,501 2,121 1, , Floating 47 1,303 1, ,735 1, Subsea Pipeline Others Total 2,352 3,069 4,480 2,072 6,503 6,005 1,072 Performance Record Myanmar SHWE Field development project (Feb. 2010) - Installation of gas production & processing platform, pipeline & onshore terminal ($1.4 bil. from Daewoo International Corp.) Fixed Type Total number of projects Platforms 87 Onshore Facilities 10 Jack-up rig 3 Major Projects SHWE Platform (Daewoo Inter, 2013) (1976 ~ present) Sakhalin-1 OPF Onshore Modules Fabrication(ExxonMobil, 2006) Harsh Environment Jack-up Rig 2nd (A.P.Moller, 2004) Semi-submersible Drilling Rig 10 Deepwater Horizon Semi- Submersible Drilling Unit (R & B Falcon, 2000) Goliat FPSO (Feb. 2010) - Cylindrical Floating Production Storage Offloading unit ($1.1 bil. from ENI Norge AS) Floating FPSO 10 Usan FPSO (TOTAL, 2012) TLP 2 West Seno Field Development (Chevron, 2003) FPU 5 Moho Bilondo FPU (TOTAL, 2008) Subsea Pipelines 5,452 km Barzan Offshore Project (RasGas, 2013) 32

33 Performance Offshore & Engineering Major Projects Awarded in 2011 Qatar, Barzan Offshore Project UK, Q204 FPSO UK, Clair Ridge Platform - Date : Jan Price : USD 860 million - Owner : RasGas Company - Details : Fabrication and Installation of Wellhead Platforms, Living Quarters, Onshore & Offshore pipeline (EPC) - Date : Feb Price : USD 1.2 billion - Owner : BP - Details : Construction of FPSO (EPC), Processing 0.32 million bpd, storing 0.8 million bbls - Date : Mar Price : USD 620 million - Owner : BP - Details : Fabrication and Installation of Drilling and Quarters Platforms (EPC) 33

34 Performance Offshore & Engineering Major Projects Awarded in 2013 Norway, Aasta Hansteen Spar Topside Congo, Moho Nord TLP & FPU UK, Rosebank FPSO TLP (Tension Leg Platform) FPU (Floating Production Unit) - Date : Jan Price : USD 1.1 billion - Owner : Statoil - Details : Fabrication and Installation of Spar Topsides (EPC) - Date : Mar Price : USD 1.9 billion - Owner : Total - Details : Fabrication and Installation of Tension Leg Platform and Floating Production Unit (EPC) - Date : Apr Price : USD 1.9 billion - Owner : Chevron - Details : Construction of FPSO (EPC) Processing 100,000 BOPD (Oil), 190 MMSCFD (Gas), storing 1.05 million bbls 34

35 Performance Offshore & Engineering Major Projects Awarded in 2014 Indonesia, Jangkrik FPU Malaysia, Bergading Project - Date : Feb Price : USD 250 million - Owner : Eni Muara Bakau B.V. - Details : Hull/LQ (EPC) - Date : May Price : USD 700 million - Owner : Hess E&P Malaysia - Details : Central Processing Platform, Wellhead Platform, Bridge (EPCIC) Russia, Odoptu Stage 2 Project Abu Dhabi, NASR Package 2 - Date : Jun Price : USD 270 million - Owner : Exxon Neftegas Limited - Details : Onshore Modules (EPC) Umm Lulu Nasr Field - Date : Jul Price : USD 1.9 billion - Owner : Abu Dhabi Marine Operating Company - Details : Offshore Super Complex Platforms & Power Distribution Platform (EPCI) 35

36 Industrial Plant & Engineering Combined Cycle Power Plant Co-generation Power Plant Thermal Power Plant Oil & Gas Process Plant RFCC Plant Equipment 36

37 Overview Industrial Plant & Engineering Sales Contribution (2014) Sales Breakdown by Product (2014) Industrial Plant & Engineering 10% Oil & Gas 2% Plant Equipments 11% Power Plant 87% * Non-Consolidated basis * Non-Consolidated basis 5,000 4,000 3,000 2,000 1,000 0 Annual Sales & New Orders (Unit : sales - bil. KRW, New order mil. USD) 4,396 4,077 2,826 2,645 2,761 2,429 2,076 2,010 1,898 1,544 1,374 1,480 1,259 1,256 1,017 1, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Main Products Power Plants Combined-Cycle, Cogeneration, and Thermal Power Plants Process Plants Oil and Gas, Refinery, Tank Farm, GTL, and LNG Facilities Plant Equipments Industrial Boiler, HRSG(Heat Recovery Steam Generator), CFBC(Circulating Fluidized Bed Combustor) Boiler, Regenerator & Reactor Operational Highlights Received a USD 1.0 bil. Das Island order (Jul. 2009) Received a USD 2.6 bil. Sabiya order (Sept. 2009) Signed an MOU for supplying ITER vacuum vessel (Jan. 2010) Received a USD 1.6 bil. Riyadh order (Jun. 2010) Received a USD 3.2 bil. Jeddah South order (Oct. 2012) Received a USD 3.3 bil. Shuqaiq order (Aug. 2013) Received a USD 1.1 bil. NRP order (Oct. 2015) 37

38 Oil & Gas Power Performance Industrial Plant & Engineering Project Type Oil & Gas Tank Farm Performance Record (1976 ~ present) Major Projects Integrated Gas Development (IGD) Project (ADGAS, UAE, 2013) Escravos Gas Plant Phase Ⅲ (Chevron Nigeria Ltd., Nigeria, 2010) Bonny Terminal Integrated Project (Shell Petroleum Development, Nigeria, 2008) KOC Crude Oil Export Facilities Project (Kuwait Oil Company, 2008) JPR Zarpa Tank Farm Project (Jordan Petroleum Company, 2000) Clean Fuel Project (Kuwait National Petroleum Company, 2018(E)) Jazan Refinery and Terminal Project, Package 2 (Saudi Aramco, 2016(E)) Refinery & HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013) Petrochemical Mumbai Diesel Hydro-Desulfurization Project (Hindustan Petroleum Company, India, 2000) HPC 2nd Petrochemical Complex Project (Hyundai Oilbank, 1997) Gas to Liquid Pearl GTL Feed Gas Preparation Project (Qatar Shell, 2011) Combined Cycle/ Simple Cycle Power Plant Cogeneration Thermal Desalination Plant Riyadh PP 11 Independent Power Project (Dhuruma Electricity Company, Saudi Arabia, 2013) Sabiya Combined Cycle Gas Turbine Project (Ministry of Electricity and Water, Kuwait, 2013) Al Dur Independent Water and Power Project (Al Dur Power & Water Co., Bahrain, 2012) Marafiq Independent Water and Power Project (Jubail Water and Power Company, Saudi Arabia, 2010) Shaybah Power Generation Project (Saudi Aramco, Saudi Arabia, 2008) Tihama Cogeneration Expansion Project Stage II (Tihama Power Company, Saudi Arabia, 2015(E)) Saudi Aramco 3rd party Cogeneration Program (Tihama Power Company, Saudi Arabia, 2006) Jeddah South Power Plant (Saudi Electricity Company, Saudi Arabia, 2017(E)) Shuqaiq Power Plant (Saudi Electricity Company, Saudi Arabia, 2018(E)) Namjeju #3&4 Thermal Power Plant (KEPCO, Korea, 2007) Makkah-Taif Thermal Power Plant (Saline Water Conversion Corporation, Saudi Arabia, 1989) Taweelah A1 (ADWEA, UAE, 2002) Taweelah B (ADWEA, UAE, 1995) Umm Al Nar West (ADWEA, UAE, 1982) Al Khobar Phase 2 (SWCC, Saudi Arabia,1981) New Orders by Type (mil. USD) Oct Power Plants 1,412 1, ,510 4, Chemical Plants/ Plant equipment 1, , ,250 1,266 Total 2,826 2,010 1,014 4,077 4,396 1,256 1,269 Major Projects in 2012/2013/2014 Jeddah South (Oct. 2012) Shuqaiq Power Plant (Aug. 2013) Clean Fuel Project (Apr. 2014) bil. USD / Saudi Electricity Company, Saudi Arabia - 2,400MW Oil fired Conventional Power Plant bil. USD / Saudi Electricity Company, Saudi Arabia - 2,640MW Oil fired Conventional Power Plant bil. USD / Kuwait National Petroleum Company, Kuwait - Upgrade and expansion of Refinery 38

39 Engine & Machinery Marine Engine Marine Propeller Power Plant Engine Industrial Machinery Robotics 39

40 Overview Engine & Machinery Sales Contribution (2014) Sales Breakdown by Product (2014) Engine & Machinery 9% Hydraulic Machinery 7% Power Plant Engine 6% Robotics 9% Marine Engine 78% * Non-Consolidated basis * Non-Consolidated basis 5,000 4,000 3,000 2,000 1,000 0 Annual Sales & New Orders (Unit : sales - bil. KRW, New order mil. USD) 4,646 3,248 3,176 2,772 2,835 3,096 2,967 2,522 2,283 2,313 2,425 2,110 1,880 1,858 1,996 1,646 1,220 1, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Main Products & Capacity Two-Stroke Diesel Engines (500 units, 18 mil. BHP) Four-Stroke(HiMSEN) Engines (1,800 units, 5 mil. BHP) Diesel and Gas Power Plant Engines Propellers and Crankshafts Steam Turbines and Turbochargers Industrial and Marine Pumps, Industrial Robots, Side Thrusters Presses, Conveyor Systems, and Steel Strip Process Lines Operational Highlights Surpassed cumulative four-stroke engine production of 20 mil. bhp (Mar. 2010) Production of eco-friendly marine engine meeting new IMO standards (Mar. 2010) Received a 95MW PPS order from Venezuela (Apr. 2010) Received a 75MW diesel power plant order from Bangladesh (Apr. 2010) Development of high output eco-friendly gas engine (May 2010) - 20% reduction of CO 2 emission and 97% reduction of NO X emission Surpassed cumulative two-stroke engine production of 100 mil. bhp (Sept. 2010) Production of 1,000 th Packaged Power Station (Jul. 2012) 40

41 Performance Engine & Machinery Major Projects Diesel Power Plants order from Bangladesh (Apr. 2010) - USD 70 mil. order for 70 MW Diesel Power Plants from Bangladesh Power Development Board (BPDB) PPS order from Venezuela (Apr. 2010) - USD 160 mil. order for 204 MW, 120 Packaged Power Stations from electricity company Electricidad de Caracas, Venezuela Diesel Power Plants order from Ecuador (May 2011) - USD 74 mil. order for 140 MW Diesel Power Plants from Equitatis, Equador PPS order from JINRO, Panama (Jun. 2015) - USD 32 mil., order for 57MW, 34 Packaged Power Station from JINRO, Panama Eco-friendly Engine Products Eco-friendly Diesel Engine - 15% 3eduction of NOx emission meeting new IMO standards High output Eco-friendly HiMSEN Gas Engine - 20% reduction of CO2 emission compared to disel engine - 97% reduction of NOx emission to reach the world s lowest level of 50ppm - 47% improvement in engine performance Market Share in 2014 (%) L arge-s iz e Marine Engine Mid-size Marine Engine Ship Engine New Orders by Region Diesel Power Plant Dome s tic Global % 39% 57% 11% 8% 8% 4% 6% 33% 9% 9% 14% 28% 17% 44% 45% 67% 92% 83% 87% 66% 69% Domestic China Others 41

42 Electro Electric Systems Transformer Circuit Breaker Switchgear Rotating Machinery Wind Power 42

43 Overview Electro Electric Systems Sales Contribution (2014) Electro Electric Systems 10% Sales Breakdown by Product (2014) Others 9% Transformer Rotating Machinery 28% 22% High Voltage Switchgear 17% Low Voltage Circuit Circuit Breaker 18% * Non-Consolidated basis Breaker 6% * Non-Consolidated basis 4,000 3,000 2,000 1,000 0 Annual Sales & New Orders 2,712 2,281 2,556 1,925 1,766 1,453 1,274 1,057 (Unit : sales - bil. KRW, New order mil. USD) 3,793 3,242 2,843 2,625 2,609 2,319 2,318 2,241 1,820 2, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Main Products Transformers (up to 765kV, 1,300MVA), Gas Insulated switchgear(25.8kv~800kv), Low voltage Switchgear Low and Medium Voltage Circuit Breakers Rotating Machinery Power Electronics and Control Systems Operational Highlights Awarded Asia-Pacific Power Transmission Equipment Company of the Year by Frost & Sullivan (Aug. 2009) Received USD 0.25 bil. transformer order from South Africa (Nov. 2009) Received USD 0.6 bil. transformer order from the US (May 2010) Reached the transformer production milestone of 700,000MVA (Dec. 2010) Received 1,000 GIS order from Russia (Jun. 2011) 43

44 Performance Electo Electric Systems Major performance Major Projects US transformer long-term supply contract (May 2010) Project Type Major Projects - USD 600 mil. Order for supplying transformers ranging from 230kV to 500kV to Southern California Edison(SCE) for 10 years from 2010 to Largest transformer order to date Sales by Region Generator Installation Power Transmission & Mutation Installation Iron Manufacture Installation West Generating Project (U.S.A) British Columbia Hydro & Power Authority (Canada) NUEVA VENTANAS 240MW Coal Fired Power Project (Chile) 35% 38% 51% 46% 54% 58% 3% 4% 2% 29% 18% 8% 21% 2% 0% 18% 23% 11% 20% 7% 21% 5% 3% 4% 2% 1% 5% 6% 3% 4% 6% 9% 1% 0% 14% 14% 5% 8% 11% 12% 10% 7% Water Treatment & Cement & Petrochemical Installation Automotive Goods Marine Goods Ocean Installation KODECO IKC Project (Indonesia) Seoul Metro (South Korea) Royal Nedlloyd Group (Netherlands) Al-Jubail Saline Water Conversion (Saudi Arabia) Marine Steam Turbine Hyundai Merchant Marine LNG Carrier 22,000MW Marine Steam Turbine (South Korea) Domestic Others Middle East Europe Africa Asia North America * The sales of Green Energy division is not included in 2011 & 2012 results * 2007 ~ 2009 sales are based on K-GAAP. Know-how Export Fresh Water Installation Gas Insulated Switchgear : TATUNG Company (Taiwan) Shuweihat S2 IWPP Project (U.A.E.) 44

45 Wind Power Wind Turbine Production facilities Company Name Details Wind Turbine System Structure Wind Turbine plant (HHI) - Located in Gunsan, Korea - Annual Capacity: 600MW Nacelle Part (Installed in Tower) Weihai Hyundai Wind Power Technology - Located in Weihai, China - Annual Capacity: 600MW (2MW X 300 units) - JVC with Datang Shandong Power Generation (80% by HHI) Jahnel-Kestermann (Jake) - Located in Bochum, Germany - Annual Capacity: approx. 500 units of gearbox HHI s Products & Certification Model Rated Power (MW) Gear Type Installation Type On Market HQ Geared Onshore Jun HQ Geared Onshore Jun HQ Geared Offshore Feb * On Market: based on proto-type installation date Gear box (Jake) Generator (HHI) - HHI s production : Nacelle part Power converter (HHI) - Outsourcing : Rotor Part (Blade, Hub), Tower Transformer (HHI) 45

46 Construction Equipment Small Excavator Mid Excavator Electric Excavator Forklift Wheel Loader Skid Loader Roller 46

47 Overview Construction Equipment Sales Contribution (2014) Sales Breakdown by Product (2014) Construction Equipment 9% CKD 6% Others 10% Skid Loader 1% Wheel Loader 10% Excavator Folk Lift 17% 56% * Non-Consolidated basis * Non-Consolidated basis Annual Sales (Unit : sales - bil. KRW) Main Products 3,500 3,000 2,500 2,275 3,052 3,120 2,723 2,215 Excavators (Local 16,000 units, China 18,874 units, India 1,800 units) Wheel Loaders (2,900 units) Forklifts (9,500 units) Skid Loaders (600 units) 2,000 1,500 1,198 1,512 1,769 1,190 Operational Highlights 1, Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. Introduction of Hi-Mate remote management system (May 2009) 9-series excavators recognized at Korea s Pin-up Design Awards (Dec. 2009) Introduction of new 9-series wheel loader (May 2010) Breaking ground for wheel loader factory in China (Jul. 2010) Introduction of 120-ton excavator (Apr. 2011) Production of 350,000 th construction equipment (Oct. 2011) 47

48 Performance Construction Equipment Excavators Sales in China Excavator Sales in China 200, , ,000 80,000 40, ,767 8,377 Market size(left) HHI(Right) 162,908 93,237 10,101 18, ,182 17, , ,908 8,540 7,532 84,573 3,743 42,730 1, Oct 30,000 25,000 20,000 15,000 10,000 5,000 0 Oct Oct YoY Market 74,979 42, % H H I 3,460 1, % M/S 4.6% 4.1% -0.6%p (Source : China construction machinery association) Construction Equipment Sales by Region HHI s Excavator Market Share by Region 39% 49% 39% 38% 48% 54% 45% 43% 14% 6% 10% 25% 27% 11% 5% 19% 5% 3% 20% 4% 18% 19% 17% 16% 28% 22% 17% 9% 21% 17% 8% 12% 3% 6% 7% 3% 4% 6% 10% 15% 10% 6% 6% 2% 3% 3% 3% 2% 3% ~ 2009 sales are based on K-GAAP, 2014 preliminary results Others includes Middle East (12%), Africa (11%), Russia (6%), Asia, Turkey and etc. Others Brazil China Domestic Europe North America India (Source : Company data) Domestic 27.5% 27.9% 25.1% Global (Exclude Japan) 9.0% 7.8% 6.2% China 8.1% 7.2% 4.4% India 17.7% 19.7% 20.4% 48

49 Green Energy Solar Power Solar Power 49

50 Solar Power 600MW capacity of solar cell & solar modules and solar inverter to provide total solution Solar cell & solar modules, solar inverter production facility in 2014 Solar Cell Solar Module Thin-film Solar module Solar System (Inverter) Picture Facilities Solar Cell Plant (Eumseong, Korea) Solar Module Plant (Eumseong, Korea) Hyundai Avancis (Ochang, Korea) Electro Electric Systems Division (Ulsan, Korea) Annual Capacity (2013) 600MW 600MW 100MW 500MW Details - Mono-crystalline, Poly- crystalline solar cells produced - 54 cell(6x9), 60 cell(6x10), 72 cell(6x12) modules produced - JVC with CNBM, China (50:50) - CIGS (Cu, In, Ga, Se) thin-film solar module produced - Grid-Tied Solar Inverter with/without transformer Capacity and Sales Capacity Cell (MW) Modules (MW) Sales (KRW bil.) % of total HHI Sales % % % % % % % % Solar Product Certification - UL (UL 1703/USA, Canada) - VDE (IEC 61215, IEC / /International) - CE Declaration (International) - J-PEC (Japan) - JET (IEC 61215, IEC / /Japan) - MCS (IEC 61215, IEC / /UK) - CSTB (France) - Ammonia resistance (IEC 62716) - Salt mist (IEC 61701) - Fire test (UN9177/Italy) 50

51 Subsidiaries Hyundai Oilbank Hyundai Samho 51

52 Hyundai Oilbank At a Glance Facilities & Products Production Capacity #1 : 110,000 B/D, #2 : 280,000 B/D 390,000B/D Completion of #2 HOU Plant 36.7% With the completion of #2 HOU plant in Jan. 2011, Hyundai Oilbank achieved a ratio of 36.7% (the highest upgrading ration in the industry) Domestic Light Oil Market Share 22.0% Competitors : SK Innovation, GS Caltex, and S-Oil Crude oil 100% (390,000 b/d) Refining Unit Bunker C 44% LPG, Naphtha, Gasoline 19% Kerosene, Diesel 37% Upgrading Unit Gasoline, LPG 46% Diesel 37% Propylene 9% Others 8% Total CAPEX : KRW 2.6 tril. HHI s Management Control 91.1% (Jul. 2006~ Feb. 2011) Acquired by HHI in Aug

53 Hyundai Oilbank Income Statement (Unit: KRW billion) , , , ,258.0 Sales 18, , , ,258.0 Operating Income % Net Income Operating income Sales % Financial Position (Unit: KRW billion) % 194.6% 181.6% 151.0% Total Assets 8, , , ,701.2 Total Liabilities 5, , , ,633.1 Total Shareholder s Equity Liabilities-to- Equity Ratio(%) 2, , , , * The financial information from 2011 on is based on K-IFRS. 8, , , , Assets Liabilities-to- Equity Ratio 53

54 Hyundai Samho At a Glance 2.9 mil. GT - Delivered 30 vessels in # of dry docks : 2 Production Capacity 2015 Sales Target 2015 Order Target 4,599 bil. KRW 3,800 mil. USD 7.0% Backlog by Shiptype (Oct. 2015) 3.1% 18.7% 13.2% 2.6% 19.2% 36.3% Tanker Containership Bulker LNG Carrier LPG Carrier FPU PCTC Backlogs as of Oct on a delivery basis : 92 vessels, USD 8.84 bil. The above data is based on the amount New Orders in Jan Feb Mar Apr May Jun Jul Aug. Sep Oct Total Target Achieve -ment Details (mil. USD) # of ship Amount (mil. USD) 2, ,358 3, % New Orders in Tankers (1,546) - 5 Containerships (515) - 2 LNG Carriers (397) - 2 LPG Carriers (154) - 10 PCTCs (718) - Others (29) New Orders in 2014 (31 vessels) -10 Containerships (1,119) -12 Tankers (975) -4 PCTCs (298) -4 Bulk Carriers (246) -1 LPG Carrier (79) -Others (90) 54

55 Hyundai Samho Income Statement (Unit: KRW billion) Sales 4, , , ,172.1 Operating Income % Net Income , , , , Operating income Sales % Financial Position (Unit: KRW billion) % 109.1% 102.2% 136.3% Total Assets 6, , , , , , , Assets Total Liabilities 3, , , ,192.4 Total Shareholder s Equity Liabilities-to- Equity Ratio(%) 3, , , ,076.3 * The financial information from 2010 is based on K-IFRS Liabilities-to- Equity Ratio 55

56 Q & A 56

57 Thank You *For More Information IR Team Tel: , 7508, 4728 Fax: Website: (Company) / (IR) 57