- Shipbuilding Division - Offshore & Engineering and Industrial Plant Division - Engine & Machinery Division

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3 - Shipbuilding Division - Offshore & Engineering and Industrial Plant Division - Engine & Machinery Division - Financial Summary of HHI - Financial Summary of HMD New Order & Sales Target

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5 HMD 3.9 KCC 6.8 National Pension Fund 9.1 Asan Foundation 3.1 HHIH 27.7 Treasury Stocks

6 1973 ~ ~ Establishment of Hyundai Shipbuilding & Heavy Industries Co. Ltd Establishment of Hyundai Mipo Dockyard Delivery of World`s biggest Jack (Exxon, 40,000 Ton) Delivery of Korea`s first LNG Carrier Listed on Korean Stock Exchange Selected as a main contractor of the next Korean submarine Builder Completion of the World`s largest deep-sea FPSO(343K Ton) Separation from Hyundai Group and foundation of HHI Group Launch of World`s first ship built on the ground (105K DWT Crude Oil Carrier) Completion of H-Dock, eligible for 1,000K Ton FPSO construction Surpassed cumulative 2-stroke engine production of 100 mil. BHP Completion of World`s largest Saudi MARAFIQ power plant (2,750 MW) Delivery of the World`s first LNG-FSRU Recognition as the World`s Significant Ship for 32 consecutive yrs Completion of the World`s largest Cylindrical FPSO Produced Eco-friendly Tier-III engine for the first time in the world Breakthrough the production of accumulating 10,000 HMSEN Engines Delivery of MOS type LNG Carrier Business Spin-off Rights Offering Announcement of Corporate Governance Reform

7 [ Spin-off ] April 2017 HHI Holdings HHI HEE HCE HDO (*) (*)

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10 1. Financial Summary (Consolidated) (Unit : Bil. KRW) (Unit : Bil. KRW) 54,188 52,582 46,232 39,317 15,469 3,043 3,124 3,242 40,000 30,000 20,000 10, % 220.8% 220.9% 34,175 36,746 34,234 31, % 145.8% 131.1% 129.7% 119.0% 18,037 17,728 17,394 16, % 200% 100% '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q 0 '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q 0% 3,600 8% 1, % 1.5% 1, % 0.9% 4% % '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q -3.3% ,800-4% -1, % -6.2% -3, % -3,250-8% 20,000 15,000 10,000 5, % 108.7% 89.8% 83.3% 15,843 16,543 16,852 16, % 1.4% 3.4% 7.0% 2, '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q 150% 100% 50% 0%

11 2. Quarterly Operating Income Margin 16,000 Sales Revenue Operating Margin 10.00% 14,000 12,000 10, % 2.64% 4.55% 0.41% 2.87% 2.21% 1.69% -0.59% -1.40% -0.16% -1.57%-1.43% -2.51% 6.14% 5.65% 3.60% 4.20% 3.30% 3.17% 3.50% 2.00% 0.90% 5.00% 0.00% -4.10% 8, % -5.00% -8.62% 6, % % 4, % 2, % % - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q* 2Q 3Q 4Q 1Q 2Q 3Q %

12 3. History of Business Performance before Spin-off (Consolidated) (Unit : Bil. KRW)

13 4. Business Performance after Spin-off (Consolidated) (Unit : Bil. KRW)

14 5. Earnings of Major Affiliates (Non-consolidated) (Unit : Bil. KRW)

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16 New Order Trend (HHI continue-to-exist Consolidated) 35,000 30,000 25,000 20,000 15,000 10,000 5, , , ,238 14, ,426 2,662 1,295 Shipbuilding Offshore & Industrial Plant Engine Machinery 3,248 2,425 2,646 4,646 10,899 1,880 5,054 3,176 2,843 1,566 5,494 1,858 3,987 29,358 2,283 6,149 5,178 3,798 4, ,079 20,773 20,948 16,795 1,452 1,995 1,860 7,261 2,830 11,871 10,806 12,417 8,545 1,363 1,345 2, , ,17612, ,852 5,914 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18(E) 18.11

17 World Shipbuilding Market Share Rank Shipbuilder Output in 2017 (# of Vessels) (1,000 DWT) Market Share 1 Hyundai Heavy Industries Co., Ltd.(KOR) 53 7, % 2 Daewoo Shipbldg. & Maritime Engineering (KOR) 38 5, % 3 Shanghai Waigaoqiao Shipbuilding (CHN) 28 5, % 4 Hyundai Samho Heavy Industreis. Co., Ltd.(KOR) 33 4, % 5 Samsung Heavy Industries Co., Ltd.(KOR) 37 4, % 6 New Times Shipbuilding (CHN) 26 2, % 7 Oshima Shipbuilding (JPN) 38 2, % 8 Dalian shipbuilding Industry (CHN) 12 2, % 9 Hyundai Mipo Dockyard Co., Ltd.(KOR) 53 2, % 10 GSI Nansha (CHN) 16 1, % Rest Total 1,150 58, % 1,484 99, % HHI Group , % (Source : Clarkson)

18 Global Demand '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18.11 Bulkers Tankers Containers LNGC's LPGC's Bulkers Tankers Containers LNGC's LPGC's Nov Nov

19 Newbuilding Price Trend Bulker180K dwt (Left) Tanker 320K dwt (Left) Container 13,000 teu(left) LPGC 78-84K m3 (Left) 30 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 0 LNGC 160K m3 (Right)

20 Shipbuilding 50% Tanker 26% LNGC 22% LPGC 14% Bulker 2% Tanker 32% LNGC 22% LPGC 6% Bulker 9% Container 28% Naval 6% 2% CNTR 20% Naval 11% 9,003 10,905 9,487 9,766 10,159 9,512 9,349 7,849 6,143 4,061 8,736 7,536 6,192 5,984 6,805 4,833 4,680 3,877 4, (E) Sales New Order

21 2 2 Tanker 61% Container 2% LNGC 8% 10% LPGC 10% PCTC 9% Tanker 77% CNTR 5% LNGC 7% LPGC 9% 2% P/C 55% LPGC 22% Ro-Ro 7% 16% P/C 74% LPGC 6% CNTR 1% Ro-Ro 6% 13%

22 Container 14% Bulker 17% Gas Carrier 37% Tanker 32% Bulker 8% 27% Container 15% Tanker 16% Gas Carrier 34% 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Target # of Ships Amount 3, ,187 4,702 4,300

23 Gas Carrier 11% Bulker 20% Container 15% 1% Tanker 53% Bulker 11% Gas Carrier 17% Containers 9% 4% Tankers 59% Ro-Ro 10% Gas Carrier 9% 7% P/C 74% Ro-Ro 8% LEGC 8% LPGC 10% 11% P/C 63% 2016 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Target HMD HSHI # Amount , # Amount 1, ,826 2,300

24 CNTR 30% LPGC 14% Tanker 19% LNGC 35% Bulker 6% CNTR 20% 18% LPGC 8% Tanker 17% LNGC 31% 2017 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Target # of Ships Amount 4, , , ,232 6,805

25 Bulker 7% LPGC 3% LNGC 47% 6% Tanker 17% CNTR 20% CNTR 17% Bulker 11% LPGC 4% 4% LNGC 36% Tanker 28% CNTR 36% LPGC 8% 4% P/C 52% Bulker Ro-Ro 3% 6% LEGC 5% LPGC 4% CNTR 17% 4% P/C 61% 2017 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Target HMD HSHI # Amount 2, , # Amount 2, ,562 3,371

26 Offshore & Engineeri ng 17% Fixed Platform 74% Fixed 75% Floaters 26% Floating 25% ,753 4,373 4,653 4,467 3,729 3,423 3,413 3, , , (E) Sales New Orders

27 (Mil. USD) '18.11 (As of Nov. 2018, Unit: Mil. USD) Fixed 1,501 2,121 1, , Floaters 1,303 1, ,735 1, Pipeline Expected Delivery Major Project (Owner) Delivery basis Backlog Sales basis Competion Total 3,069 4,480 2,072 6,503 6,005 1, NASR 2 (ADMA-OPCO) 2, % Fixed Floating Type # of projects Platforms 92 Onshore Facilities & 16 Major Projects SHWE Platform (Daewoo Intl., 2013) Clair Ridge Platform (BP, 2016) Gorgon LNG Plant Modules (Chevron, 2016) Jack-up Rig 2 MSC Jack-up Rig (A. P. Moller 2004) FPSO 12 FPU 5 Goliat FPSO (Eni Norge AS, 2015) Quad 204 FPSO (BP, 2016) Moho Bilondo FPU (Total E&P Congo, 2008) TLP 2 West Seno TLP (Unocal, 2003) King's Quay FPS % 0 63 Total (2 Projects) 2, Semi-Submersible Drilling Rig 3 Deepwater Horizon (R&B Falcon, 2000) Subsea Pipelines 35 Offshore Gas Spur Line (PTT PCL, 2011)

28 Industrial Plant 13% Oil & Gas 43% Plant Equip. 17% Power Plant 45% Oil & Gas 67% Plant Equip. 12% Power Plant 16% 4,077 4,396 4,174 2,826 2,826 2,761 1,898 2,010 1,480 1,014 1,259 2,429 1,256 1,258 2,240 1,360 1, (E) Sales New Orders

29 (As of Nov. 2018, Unit: $mil.) (Mil. USD) '18.11 Power Plant 1, ,510 4, Projects Owner (Country) Expected Delivery Delivery basis Backlog Sales basis Completion Oil & Gas 409 1, ,250 1, Total 2,010 1,014 4,077 4,396 1,256 1, Shuqaiq Steam Power Plant SEC (Saudi) 2018 (PAC*) 3, % Jazan Refinery & Thermal Project** Aramco (Saudi) % Jeddah South (Oct. 2012) bil. USD / Saudi Electricity Co, - 2,400MW Oil fired Conventional Power Plant Clean Fuel Project ZOR Refinery Project KNPC (Kuwait) KNPC (Kuwait) ,096 (16) 102% , % Shuqaiq Power Plant (Aug. 2013) bil. USD / Saudi Electricity Co. - 2,640MW Oil fired Conventional Power Plant Total (4 PJTs) , Clean Fuel Project (Apr. 2014) bil. USD / Kuwait National Petroleum Company, Kuwait - Upgrade and expansion of Refinery * PAC: Provisional Acceptance Certificate ** Jazan Refinery & Thermal Proejct : Constructed by HHI`s overseas Corp.

30 Engine & Machinery 12% Large-sized Engine 64% Mid-sized Engine 9% Sternpost 4% 6% Power Plant Engine 12% Environment al Equip. 5% Large-sized Engine 62% Mid-sized Engine 8% 5% Sternpost 6% Power Plant Engine 6% Environment al Equip. 13% ,772 2, ,096 2, ,313 2, , , ,197 1, (E) Sales New Orders

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33 3, % -26.4% 3, , , % -17.8% 3, , % -91.6% Loss Turned Increase Loss-making % -1.5%p -9.1%p -4.1% 3.5% Loss Turned Increase Loss-making

34 % -20.9% % -18.5% % -42.1% % -57.9% % -0.8%p -3.0%p 4.2% 6.4% , , , , , , , , , , , , , , , Turned Turned Loss-making Loss-making , , , ,

35 8,418 83% 24,724 13, ,232 92% 13,574 10, % % 6, ,345 99% 1,962 1, ,880 63% 4,044 2, , % 7,593 5, ,860 90% 36,361 22, ,674 96% 25,211 18,

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