H H I at a Glance. 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 H H I at a Glance Business Performance Appendix 3

4 HHI at a Glance 4

5 Business Structure Division Main Products Major Clients Competitors Capacity Sales 2012(E) Shipbuilding VLCCs, Tankers, Product Carriers, Chemical Tankers Containerships, Bulk Carriers, OBO Carriers Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers Tankers / VLCCs LNG Carriers, LPG Carriers Drillships Submarines, Destroyers, Frigates HAPAG-LLOYD (GER) C.P. OFFEN (GER) AP MOLLER (Denmaark) Seaspan (Canada) Diamond Offshore (USA) DSME (KOR) SHI (KOR) 8.00 mil. GT 36% Offshore & Engineering 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 BP(UK) ExxonMobile(USA) SHELL(USA) TOTAL (FR) CHEVRON (USA) ENI NORGE (NOR) DSME, SHI (KOR) Technip (FR) Saipem (Italy) McDermott (USA) Stolt Offshore (FR) Floaters : 1~2 units Fixed Platform : 3~4 units Pipeline laying : 30km 16% Industrial Plant 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, CFBF Boiler, Regenerator & Reactor SHELL (US) MEW (KUWAIT) SEC (SAUDI) Siemens (GER) Power plant Hyundai E&C (KOR) : 1,000MW (4~5 projects) Doosan Heavy (KOR) Samsung C&T Corporation (KOR) 7% Engine & Machinery Two-Stroke Diesel Engines, Four- Stroke(HiMSEN)Engines Propellers and Crankshafts Steam Turbines and Turbochargers Diesel and Gas Power Plant Engines Industrial and Marine Pumps, Industrial Robots, Side Thrusters Presses, Conveyor Systems, and Steel Strip Process Lines HMD(KOR) Shanghai (CHINA) DSME, SHI (KOR) Doosan, STX (KOR) Mitsui (JPN) Hudong, Dalian(China) Large Engines(500 units) :18 mil bhp Medium (1800 Units) : 5 mil bhp 13% Electro Electric Systems Transformers, Gas Insulated Switchgear, Switchgear Low- and Medium-Voltage Circuit Breakers Rotating Machinery Power Electronics and Control Systems State-Owned Power company Utility, IPP company ABB (Sweden) Siemens (GER) Hyosung (KOR) Transformer(620 units) 120,000 MVA 11% Green Energy Construction Equipment Solar/Wind Power Systems Excavators Wheel Loaders Forklifts Skid Loaders Wagner&Co Solartechnik(GER) MHH Solartechnik (GER) Sun Energy Europe (GER) Albatech (Italy) Suntech, Yingli (CHN) Vestas (DEN), GE (USA) Komatsu (JPN) Caterpillar (USA) Terex (USA) Doosan Infracore (KOR)` Solar Cell/module : 510 MW Wind Turbine : 600 MW 29,000 units (Excavators 16,000 units) 3% 13% * Others : 1% 5

6 Sales Breakdown by Product Shipbuilding Offshore & Engineering Industrial Plant & Engineering Special 4%PCTC 3% P/C 5% Drillship 7% Bulker 20% LPG 1% Containership 45% Shipbuilding 21% Subsea Pilepline 15% Fixed Platforms& Floaters 64% Oil & Gas 15% Others 11% Power Plant 74% Tanker 15% Engine & Machinery Electro Electric Systems Construction Equipment Hydraulic Robotics Machinery 9% Power 3% Plant Engine 9% Marine Engine 79% Green Energy Others 5% Rotating Machinery 26% Switchgear Low Voltage 14% Circuit Breaker 6% Transformer 35% High Voltage Circuit Breaker 14% CKD 16% Wheel Loader 8% Folk Lift 11% Others 7% Excavator 58% Solar Power : 93% Wind Power : 7% * The above results are based on K-IFRS 2011 sales. 6

7 Business Portfolio (E) Engine& Electro Electric Construction Machinery 10.0% 9.0% Equipment 1.0% Industrial Plant 7.0% Others 1.0% Shipbuilding Electro Electric 12.0% Engine& Machinery 12.0% Construction Green Energy Others 1.0% Equipment 3.0% 10.0% Construction Equipment 13.0% Electro Electric 11.0% Green Energy Others 1.0% 3.0% Shipbuilding 36.0% Offshore& Engineering 16.0% 56.0% Industrial Plant 12.0% Offshore& Engineering 15.0% Shipbuilding 35.0% Engine& Machinery 13.0% Industrial Plant 7.0% Offshore& Engineering 16.0% Shipbuilding/Engine 66% 10,354 bil. KRW of total sales Shipbuilding/Engine 47% 22,405 bil. KRW of total sales Shipbuilding/Engine 49% 27,573 bil. KRW of total sales(e) * 2005 sales are based on K-GAAP. 7

8 2012 Sales & New orders Target Sales (bil. KRW) Sales (bil. KRW) (E) Change Shipbuilding 9, , % Offshore & Engineering 3, , % Industrial Plant 2, , % Engine & Machinery 3, , % Electro Electric Systems 2, , % Green Energy % Construction Equipment 3, , % Others % Total 25, , % * 2010 sales are based on K-GAAP. New orders (mil. USD) New Orders (mil. USD) (E) Change Shipbuilding 10, , % Offshore & Engineering 4, , % Industrial Plant 1, , % Engine & Machinery 3, , % Electro Electric Systems 2, , % Green Energy % Construction Equipment 2, , % Total 25, , % 8

9 Affiliates 24 affiliated companies in Hyundai Heavy Industries Group (Overseas corporations excluded) Changjuk Wind Power : As of Jan , the date of addition as an affiliate Hyundai Energy & Resources : As of May , the date of addition as an affiliate New Korea Country Club & Hyundai Oil Terminal Co., Ltd.: As of March , the date of addition as an affiliate Ownership of Hyundai Energy & Resources : Hyundai Mipo Dockyard 35%, Hyundai Oilbank 15%, Hyundai Corporation 10% Sales and assets : FY2010, based on K-GAAP (Hyundai Futures, HI Investment and Securities, HI Asset Management : End of March 2011) 9

10 Business Performance 10

11 New Orders Trend (Mil. USD) +20.6% YoY 35,000 30,552 30,000 25,020 27,473 25,324 21,439 25,000 18,706 13,838 20,000 13,405 16,107 9,290 17,209 14,419 15,000 9,817 7,835 7,236 10,735 13,147 10,000 5, ,400 5,777 4,357 2,968 2,043 2,809 3,025 6,792 4,917 8,488 8,272 11,470 15,730 13,635 10, ,061 10,905 9,113 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12(Target) Shipbuilding Non-Shipbuilding 11

12 New Orders & Sales by Division (Unit: sales -bil. KRW, New Orders & Backlog -mil. USD) Sales New Orders Backlog Target May Achieve ment Full Year May Target May Achieve ment Full Year May May Shipbuilding 10,005 3, % 9,487 4,114 9,113 2, % 10,905 7,265 20,323 Offshore& Engineering Industrial Plant &Engineering Engine & Machinery Electro Electric Systems Construction Equipment 4,390 1, % 3,729 1,234 5, % 4,480 3,135 13,364 2, % 2,761 1,116 5, % 1, ,938 3,667 1, % 3,096 1,196 3,600 1, % 3,176 1,833 4,370 3,090 1, % 2, ,727 1, % 2,625 1,171 2,996 3,450 1, % 3,052 1,513 3,139 1, % 2,734 1,356 - Green Energy % % Others % Total 27,573 9, % 25,020 10,183 30,552 7, % 25,324 15,724 47,171 * The financial information above is based on K-IFRS * The backlog above is on a delivery basis 12

13 Shipbuilding Drillship VLCC Containerships Bulk Carrier LNG LPG Car Carriers Naval Ships Special Vessels 13

14 Market Shipbuilding Global Demand Global Demand by vessel types in 2011, <New orders in 2012> Korea : 2.5 mil CGT (M/S 48.0 %) China : 1.2 mil CGT (M/S 23.0 %) Japan : 0.6 mil CGT (M/S 12.0 %) Global Korea Japan China Others LPGC LNGC CNTR B/C T/K Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (Unit: mil. CGT, Source : Clarkson Research Studies) (Unit: mil. CGT, Source : Clarkson Research Studies) Newbuilding Price Trend since VLCC Bulk Carrier(Capesize) Container(4,800TEU) From the beginning of VLCC: -3.0% -Capesize B/C: -4.1 % -4,800teu Containership: -6.1% 2011 : Global contracts reached 28.1 mil. CGT, decreasing by 26% YoY 2012 : Global contracts as of end of April recorded 5.2 mil. CGT decreasing by 42% YoY (Source: Clarkson Research Studies / As of June ) Newbuilding Benchmark price Index As of the end of May 2012, the shipbuilding price has reduced by 4.3% from the beginning of ,800 TEU containerships -6.1%, Capesize bulk carriers -4.1% 14

15 Overview Shipbuilding Sales Contribution(2011) Sales Breakdown by Product (2011) Others 62.0% Shipbuilding 38.0% Special 4% PCTC 3% P/C 5% Drillship 7% Bulker 20% Tanker 15% LPG 1% Containership 45% 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, ,272 5,322 6,443 Annual Sales & New Orders 11,470 15,730 7,557 9,084 13,635 * 2005 ~ 2009 sales are based on K-GAAP. (Unit : sales - bil. KRW, New order mil. USD) 9, ,849 4,061 <May 2012> - Sales : 3,892 - New order : 2,747 10,905 10,005 9,487 9, (E) Sales New order Main Products VLCCs, Tankers, Product Carriers, Chemical Tankers Containerships, Bulk Carriers, OBO Carriers Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers Tankers / VLCCs LNG Carriers, LPG Carriers Drillships 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) 15

16 Performance Shipbuilding New Orders by Shiptype (2012) Backlog by Shiptype (2012) Semi Submersible Rig 23% Others 2% Drillship 20% Special & Naval 6% Others 3% Semi Submersible RIg 3% Container ship 21% Tanker 5% PCTC 5% LPG Carrier Drillship 33% Tanker 14% 9% LNG Carrier 36% Bulker 2% LPG Carrier 3% LNG Carrier 15% The above data is based on the amount Backlogs as of May 2012 on a delivery basis : 123 vessels, USD 20.6 bil. The above data include vessels of Offshore division (1 vessels, USD 0.23 bil.) The above data is based on the amount New Orders in Jan. Feb. Mar. Apr. May Total Target Achievement Details (mil. USD) , ,186 2,747 9, % -3 LPG Carriers (231) -4 LNG Carriers (994) -3 Tanker (141) -2 PCTC (135) -1 Drillship (565) -1 Semi Submersible (621) -Others (60) 16

17 Delivery Shipbuilding Annual Delivery (mil. GT) Annual Delivery (number of vessels) 10 Gunsan Offshore Ulsan Ulsan Offshore (on-ground building) Gunsan Total # of Ship

18 Offshore & Engineering FPSO Drilling Rig Semi-Submersible Unit Subsea Pipeline 18

19 Overview Offshore & Engineering Sales Contribution (2011) Sales Breakdown by Product (2011) Others 85.0% Offshore & Engineering 15.0% Shipbuilding 21% Subsea Pilepline 15% Fixed Platforms& Floaters 64% 6,000 5,000 4,000 3,000 2,000 1, ,577 1,476 1,935 Annual Sales & New Orders 1,997 2,222 1,102 3,095 2,978 3,423 3,413 3,069 2,352 4,480 3,729 4,390 5, (E) Sales * 2005 ~ 2009 sales are based on K-GAAP. (Unit : sales - bil. KRW, New order mil. USD) New order <May 2012> - Sales : New order : 577 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 1.4 bil. of Myanmar SWHE Field development project (Feb. 2010) 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 0.2 bil. of Dockwise Transportation vessel order (Feb. 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) 19

20 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.) May 2012 Fixed 529 1,113 2,196 1,501 2, Floating 155 1, ,303 1, Subsea Pipeline Others Total 1,067 2,978 2,351 3,069 4, 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.) Goliat FPSO (Feb. 2010) - Cylindrical Floating Production Storage Offloading unit ($1.1 bil. from ENI Norge AS) Fixed Floating Type Total number of projects Platforms 84 Onshore Facilities 10 Jack-up rig 3 Semisubmersible Drilling Rig 10 (1976 ~ May 2012) Major Projects Umm Shaif Gas Injection Projects (ADMA-OPCO, 2011) Sakhalin-1 OPF Onshore Modules Fabrication(ExxonMobil, 2006) Harsh Environment Jack-up PDQ (BP, 1994) Deepwater Horizon Semi- Submersible Drilling Unit (R & B Falcon, 2000) FPSO 10 AKPO FPSO (TOTAL, 2008) TLP 2 West Seno Field Development (Chevron, 2003) FPU 4 Moho Bilondo FPU (TOTAL, 2008) Subsea Pipelines 5,100 km Crude Export Facilities (KOC, 2010) 20

21 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 - Completion : Nov Details : Fabrication and Installation of Wellhead Platforms, Living Quarters, Onshore & Offshore pipeline (EPC) - Date : Feb Price : USD 1.2 billion - Owner : BP - Completion : May Details : Construction of FPSO (EPC), Processing 0.32 million bpd, storing 0.8 million bbls - Date : Mar Price : USD 620 million - Owner : BP - Completion : Nov Details : Fabrication and Installation of Drilling and Quarters Platforms (EPC) 21

22 Industrial Plant & Engineering Thermal Power Plant Co-Generation Plant Process Plant Combined Cycle Power Plant 22

23 Overview Industrial Plant & Engineering Sales Contribution(2011) Others 89.0% Industrial Plant & Engineering 11.0% Sales Breakdown by Product (2011) Others Oil & Gas 11% 15% Power Plant 74% 6,000 5,000 4,000 3,000 2,000 1, , Annual Sales & New Orders , , , , , , (E) Plnat Sales (Unit : sales - bil. KRW, New order mil. USD) Plnat New order <May 2012> - Sales : New order : 396 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) * 2005 ~ 2009 sales are based on K-GAAP. 23

24 Performance Industrial Plant & Engineering Major Projects in 2010/2011 Riyadh PP11 (Jun. 2010) bil. USD / Dhuruma Electricity Company, Saudi Arabia (SEC) - 1,756MW Combined cycle power plant New Orders by Type (mil. USD) May 2012 Power Plants 1,152 1,727 1,412 1, Chemical Plants , Plant equipment Total 1,544 2,076 2,826 2,010 1, Performance Record (1976 ~ May 2012) CFBC Boiler (Mar. 2011) mil. USD / SK E&C, Korea - Circulating Fluidized Bed Combustor boiler of 1,500MW X 3 for Tufanbeyli, Turkey and 1,000MW X 1 for Gimcheon, Korea HCP BTX (May 2011) mil. USD / HC Petrochem, Korea - #2 BTX project to increase Benzene, Toluene, Xylene (BTX) capacity for HC Petrochem(JV of Hyundai Oilbank 50% + Cosmo Oil Japan 50%) Oil & Gas Power Project Type Oil & Gas Tank Farm Refinary & Petroche m Gas To Liquid Independent Water and Power Project Cogeneration Thermal Desalination Plant Major Projects Escravos Gas Plant Phase Ⅲ (Chevron Nigeria Ltd., Nigeria, 2010) Bonny Terminal Integrated Project (Shell Petroleum Development, Nigeria, 2009) KOC Crude Oil Export Facilities Project (Kuwait Oil Company, 2011(E)) JPR Zarpa Tank Farm Project (Jordan Petroleum Company, 2000) Mumbai Diesel Hydro-Desulfurization Project (Hindustan Petroleum Company, India, 2000) HPC 2nd Petrochemical Complex Project (Hyundai Oilbank, 1997) Pearl GTL Feed Gas Preparation Project (Qatar Shell, 2011) Al Dur Independent Water and Power Project (Al Dur Power & Water Co., Bahrain, 2011) Marafiq Independent Water and Power Project (Saudi Marafiq, 2010) Saudi Shaybah Power Generation (Saudi Aramco, 2008) Saudi Aramco 3rd party Cogeneration Program (Tihama Power Company, Saudi, 2006) Daejeon Cogeneration Plant (Korea Energy Mgmt Corp., 1997) Youngheong Thermal Plant (KEPCO, 2007) Taweelah A1 (ADWEA, UAE, 2003) Al Hidd (MEW,Bahrain,1998) 24

25 Engine & Machinery Marine Engine & Equip. Marine & Industrial Turbine Industrial & Marine Pump Industrial Robot & System Marine Propeller 25

26 Overview Engine & Machinery Sales Contribution (2011) Engine & Machinery 12.0% Sales Breakdown by Product (2011) Hydraulic Robotics Machinery 9% Power Plant 3% Engine 9% Others 88.0% Marine Engine 79% 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Annual Sales & New Orders 1, ,880 1,220 3,248 1,646 4,646 2,522 2,772 2,835 1,452 2,283 3,6673,600 3,176 3, (E) Sales * 2005 ~ 2009 sales are based on K-GAAP. (Unit : sales - bil. KRW, New order mil. USD) New order <May 2012> -Sales : 1,015 -New order : 1,066 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) 26

27 Performance Engine & Machinery Major Projects in 2010, 2011 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 Eco-friendly Engine products Eco-Friendly Diesel Engine -15 % reduction of NOx emission meeting new IMO standards High output Eco-Friendly HiMSEN Gas Engine - 20% reduction of CO2 emission compared to diesel engine - 97% reduction of NOX emission to reach the world s lowest level of 50ppm - 47% improvement in engine performance Market Share in 2010 (%) Large-size Marine Engine Medium-size Marine Engine Propeller Ship Engine New Orders by Region Diesel power plant Domestic Global % 3% 11% 8% 8% 21% 74% 39% 57% 44% 45% 33% 67% 92% 9% 83% Domestic China Others 27

28 Electro Electric Systems Transformers Switchgears High Voltage Circuit Breakers Marine Electrical Equip. 28

29 Overview Electro Electric Systems Sales Contribution (2011) Sales Breakdown by Product (2011) Electro Electric Systems 9.0% Rotating Machinery 26% Others 5% Transformer 35% Others 91.0% Switchgear 14% Low Voltage Circuit Breaker 6% High Voltage Circuit Breaker 14% 4,000 3,500 3,000 2,500 2,000 1,500 1, Annual Sales & New Orders 1,925 1,766 1,453 1,274 1,004 1, ,712 2,556 2,281 3,242 3,793 2,625 2,319 3,090 3, (E) Sales New Orders * 2005 ~ 2009 sales are based on K-GAAP. (Unit : sales - bil. KRW, New order mil. USD) <May 2012> - Sales : 1,115 - New order : 1,060 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) 29

30 Performance Electro Electric Systems Major performance Global Market Share by Product (2010) US transformer long-term supply contract (May 2010) - 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 US Europe Middle East Asia Transformers 6.9% 1.7% 20.6% 1.4% GIS 0.2% 1.9% 14.8% 3.1% 57% 49% 35% 3% 38% 4% 51% 3% 29% 18% 4% 8% 16% 13% 3% 7% 11% 20% 18% 1% 6% 4% 5% 2% 9% 4% 3% 4% 1% 6% 14% 14% 14% 14% 11% Domestic Others Middle East Europe Africa Asia North America Transformer Market Share in the US 10~30MVA 30~100MVA 100MVA and larger % 3% 26% % 19% 33% % 18% 33% * The sales of Green Energy division is not included in 2011 results * 2007 ~ 2009 sales are based on K-GAAP. (Source : NEMA report and company data) 30

31 Construction Equipment Mini Excavator Crawler Excavator Wheel Excavator Wheel Loader Forklift Truck Skid Steer Loader 31

32 Overview Construction Equipment Sales Contribution (2011) Sales Breakdown by Product (2011) Construction Equipment 12.0% CKD 16% Others 7% Wheel Loader Others 88.0% 8% Folk Lift 11% Excavator 58% Annual Sales (Unit : sales - bil. KRW) Main Products 4,000 3,500 3,000 2,500 2,000 1,500 1, ,275 1,769 1,512 1,034 1,052 1,198 1,190 3,450 3,052 <May 2012> - Sales : 1, (E) 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) Operational Highlights 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) * 2005 ~ 2009 sales are based on K-GAAP. 32

33 Performance Construction Equipment Excavators Sales in China Excavator Sales in China 180, , ,000 90,000 60,000 30, , ,182 Market size(left) HHI(Right) 93,237 18,467 17,294 41,500 60,856 71,767 10,101 24,680 9,138 9,495 8,377 9,630 5, May 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 May 2011 May 2012 YoY Market 13,430 9, % H H I 1, % M/S 9.1% 7.7% -1.3%p (Source : China construction machinery association) Construction Equipment Sales by Region HHI s Excavator Market Share by Region 39% 49% 39% 38% 48% Others China % 20% 11% 17% 25% 27% 19% 28% 22% 17% 21% 17% 6% 7% 3% 3% 4% 6% 6% 6% 2% 3% 3% ~ 2009 sales are based on K-GAAP. Others includes Middle East (11%), South America (8%), Russia (7%), Southeast Asia (6%), Africa (3%), Turkey, Australia and etc. Domestic Europe North America India Domestic 29% 33.2% 33.2% Global 7.8% 9.5% 8.6% China 11.7% 10.6% 11.3% India - 6.7% 11.2% (Source : Company data) 33

34 Green Energy Solar Power Wind Power 34

35 Solar Power Vertically Integrated Solar company with 510MW capacity of polysilicon-based solar modules Thin-film solar cell production facility to be completed by 2012 with 100 MW capacity Polysilicon Solar Cell Solar Module Thin-film Solar module Solar System (Inverter) Picture Facilities Annual Capacity (2010) Details KAM (Seosan, Korea) Solar Cell Plant (Eumseong, Korea) Solar Module Plant (Eumseong, Korea) Hyundai Avancis (Ochang, Korea) Electro Electric Systems Division (Ulsan, Korea) 3,000 ton 370MW 510MW (100MW by 2012) 500MW - JVC with KCC (50:50) - High quality polysilicon produced - Mono-crystalline, Polycrystalline solar cells produced - 54 cell(6x9), 60 cell(6x10), 72 cell(6x12) modules produced - JVC with Saint-Gobain (50:50) - CIGS (Cu, In, Ga, Se) thinfilm solar module produced - Grid-Tied Solar Inverter with/without transformer Capacity and Sales Capacity Polysilicon (ton) Cell (MW) Modules (MW) Sales (KRW bil.) % of total HHI Sales , % % * The above capacity expansion and sales plan is subject to change according to the market situation % % Solar Product Certification - UL Listed - IEC edition 2, IEC (TUV) - J-PEC - JET Cert - CE Declaration - MCS (UK) - CSTB (France) - Ammonia resistance test 35

36 Wind Power Wind Turbine Production facilities Company Name Details Wind Turbine System Structure Wind Turbine plant (HHI) - Located in Gunsan, Korea - Annual Capacity: 600MW - Capex: KRW 110 bil. 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 (Geared Type) Model Rated Power (MW) Gear Type Installation Type On Market HQ Geared Onshore Oct HQ Geared Onshore Dec Gear box (Jake) Generator (HHI) Power converter (HHI) Transformer (HHI) AV Gearless Onshore - HQ Geared Offshore - - HHI s production : Nacelle part (Geared & Gearless) - Outsourcing : Rotor Part (Blade, Hub), Tower 36

37 Affiliated Companies 37

38 Hyundai Oilbank At a Glance Facilities & Products Production Capacity 390,000B/D #1 : 110,000 B/D, #2 : 280,000 B/D Completion of # 2 HOU Plant 30.8% With the completion of # 2 HOU plant in Jan., 2011, Hyundai Oilbank achieved a ratio of 30.8%, the highest upgrading ratio in the industry Crude oil 100% (390,000 b/d) Refining Unit LPG, Naphtha, Gasoline 19% Kerosene, Diesel 37% Upgrading Unit Gasoline, LPG 46% Diesel 37% Bunker C 44% Propylene 9% Domestic Light Oil Market Share 20.3% # of Service Stations : 2,400 Total CAPEX : KRW2.6 tril. Others 8% (JUl. 2006~ Feb. 2011) HHI s Management Control 91.1% Acquired by HHI in Aug.,

39 Hyundai Oilbank Income Statement (Unit: KRW billion) Q2011 1Q2012 Sales 10, , , , ,607.5 Operating Income % , , , Operating Income Sales Net Income % Financial Position (Unit: KRW billion) Q2012 Total Assets 5, , , ,378.9 Total Liabilities 3, , , ,558.6 Total Shareholder s Equity 1, , , , % 200.6% 5, , % 8,642.6 Assets Liabilitiesto-Equity Ratio Liabilities-to- Equity Ratio(%) * The financial information of 2009 is based on K-GAAP. 39

40 Hyundai Samho At a Glance Backlog by Shiptype (2012) Production Capacity - Delivered 38 vessels in # of dry docks : Sales Target 4.3mil. GT 4,712 bil. KRW LNG Carrier 20% Bulker 15% Tanker 3% Others 2% Containership 60% 2012 Order Target 4,250 mil. USD Backlogs as of May 2012 on a delivery basis : 69 vessels, USD 6.2 bil. The above data is based on the amount New Orders in Jan. Feb. Mar. Apr. May Total Target Achievement Details (mil. USD) # of ship % -2 LNG Carriers (412) Amount (mil. USD) 3, , % 40

41 Hyundai Samho Income Statement (Unit: KRW billion) Q2011 1Q2012 4,828.7 Sales 4, , , , ,373.8 Operating Income % Net Income , , Operating Income Sales % Financial Position (Unit: KRW billion) Q2012 Total Assets 7, , , ,233.7 Total Liabilities 5, , , , , , % 147.3% 6, % Assets Liabilitiesto-Equity Total Shareholder s Equity 2, , , ,523.8 Ratio Liabilities-to- Equity Ratio(%) * The financial information of 2009 is based on K-GAAP. 41

42 Appendix (Financial Statements) Important Notice The financial information regarding 1Q,, 4Q 2011 and 1Q 2012 Consolidated Earnings Release is consolidated financial earnings results based on K-IFRS. 42

43 Statements of Comprehensive Income (K-IFRS consolidated) Recorded KRW 13,938.3 bil. in 1Q 2012 (Decreased by 4.0% QoQ, increased by 9.7% YoY) - QoQ : Sales decreased by 4% due to reduced work volume and fall in selling prices in Shipbuilding, Offshore & Engineering, Industrial Plants & Engineering, Engine & Machinery and Electro Electric Systems divisions. Operating income increased by 10.3% due to profit increase in Shipbuilding, one-off loss decline in Green Energy and demand recovery in Construction Equipment divisions - YoY : Sales increased by 9.7% due to increased production volume as well as high oil prices in Refinery division and demand recovery in Electro Electric Systems. Operating income decreased by 43.4% due to reduced sales contribution of high priced vessels in Shipbuilding and profit decline in Non-Shipbuilding divisions other than Finance 1Q 2012 QoQ YoY (unit : bil. KRW) 4Q Q 2011 Sales 13, % 9.7% 14, ,701.1 Cost of sales 12, % 19.1% 13, ,412.7 Gross profit Operating income 1, % -33.0% 1, , % -43.3% ,710.9 Operating income margin Other non-operating income Finance income 7.0% 0.9%p -6.5%p 6.1% 13.5% (227.4) -66.2% -3.4% (671.9) (235.5) % -71.0% Equity method income (86.9) -46.1% 367.2% (161.2) (18.6) Net income before income taxes % -58.4% ,837.0 Net income Turned Surplus -63.1% (25.5) 1,418.8 Net income margin 3.8% Turned Surplus -7.4%p -0.2% 11.2% 43

44 Sales & Operating Income by divisions (K-IFRS Consolidated) 1Q Q Q 2011 (Unit: bil. KRW) Sales Operating Income OP Margin Sales Operating Income OP Margin Sales Operating Income OP Margin Shipbuilding 4, % 4, % 4, % Offshore & Engineering Industrial Plant & Engineering % 1, % % % % % Engine & Machinery % % % Electro Electric Systems % % % Green Energy % % % Construction Equiptment 1, % % 1, % Refinery 5, % 5, % 4, % Finance % % % Others 52.6 (84.4) (84.1) (24.6) - Total 13, % 14, % 12, , % 44

45 Statements of Financial Position (K-IFRS consolidated) (unit: bil. KRW) As of Mar As of Dec Change Total Assets 49, , % Current Assets *Cash & Cash Equivalents Non-current Assets Total Liabilities Current Liabilities Non-current Liabilities 24, , , % 2, , % 25, ,924.4 (508.7) -2.0% 31, , % 24, ,490.8 (500.5) -2.0% 6, , % Shareholders' Equity 18, , % Libilities-to-Equity Ratio 167.7% 169.6% -1.9%p - Debt-to-Equity Ratio 65.9% 60.8% 5.1%p - Total borrowings 12, , , % 45

46 Statements of Comprehensive Income (K-IFRS non-consolidated) (in KRW billions) 1Q Q Q 2011 QoQ YoY Sales Cost of Sales Gross Profit Operating Income Operating Income Margin Net other Non-operating Income/Expenses Net Financial income/cost Income before income taxes Net Income Net Income Margin 5, % -6.1% 6, , , % 2.9% 6, , % -40.9% , % -53.5% % 1.8%p -7.9%p 6.0% 15.7% (139.5) - - (374.1) (132.9) % -60.4% , % -61.7% % 4.7%p -8.5%p 1.1% 14.3% 46

47 Statements of Financial Position (K-IFRS non-consolidated) (in KRW billions) As of Mar As of Dec Change Total Assets 30, , % Current Assets 12, , % *Cash and Cash Equivalents 1, % Non-current Assets Total Liabilities Current Liabilites Non-current Liabilities Shareholders' Equity 18, , % 15, , % 14, , % 1, , % 14, , % Liabilites-to-Equity Ratio 106.6% 103.3% 3.3%p - Debt-to-Equity Ratio 36.0% 26.9% 9.1%p - Total debt 5, , , % 47

48 Q & A 48

49 Thank You *For More Information IR Team Tel: , 4546, 7858 Fax: Website: (Company) / (IR) 49