H H I at a Glance. Business Performance. Financial Performance

Transcription

1 (2015.4) 1

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 Financial 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 : A1 (Commercial Paper), AA (Corporate Bond) Korea s large conglomerate ranking : 7th (Excluding public companies, based on total assets, As of December 31, 2013) No. of employees : 25,663 (Average 18.5 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. Inauguration of the Shipyard and Simultaneous Naming of First Two Supertankers Change of Company Name to Hyundai Heavy Industries Co., Ltd. Established Special Vessels, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems, Construction Equipment Divisions Listed on the Korean Securities Dealers Automated Quotations, Delivery of Korea s First LNG Carrier Listed on the Korean Stock Exchange Disaffiliated from Hyundai Group and creation of Hyundai Heavy Industries group (Hyundai Heavy Industries Co., Ltd., Asan Foundation and six other companies) Acquired Samho Heavy Industries Co., Ltd. Acquired HI Investment and Securities Co., Ltd. and HI Asset Management Co., Ltd. (Underwriting company : Hyundai Mipo Dockyard Co., Ltd. ) Acquired Hyundai Corporation Acquired Hyundai Oilbank Co., Ltd. (70% of Ownership and management) Became the world s first shipbuilder to deliver 1,700 th ship 6

7 Business Highlights No.1 in Global shipbuilding Market (Since 1983) HHI, HSHI, HMD : 12.16% (2011 delivery basis) Recognized for building the World Best Ship for the 29 th consecutive year (Since 1983) Total 47 ships, World shipbuilding publications (Maritime Report and Marine Log) First to build LNG Carrier in Korea (Jun. 1994) 125,000 m 3 Completion of World s Largest Elf Girassol FPSO (Feb. 2001) 343,000 Ton Achieved world record production in 2-stroke Markne engines (Sep. 2010) 100 million bhp Delivery of the World s Biggest Jacket (May, 1989) Exxon (U.S.A) 40,000 ton Completed World s largest Saudi Marafiq power plant (Apr. 2011) power generation 2,750 MW + desalination 176 MIGD Achieved domestic record production in 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% National Pension Service 4.69% KCC 3.04% (Foreign Ownership : 12.14% ) Hyundai Motors 2.88% Asan Foundation 2.53% Treasury Shares 19.36% POSCO 1.94% Asan Nanum Foundation 0.65% 8

9 Business Structure Division Main Products Major Clients Competitors Capacity Shipbuilding Offshore & Engineering 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 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 HAPAG-LLOYD (GER) C.P. OFFEN (GER) AP MOLLER (Denmaark) Seaspan (Canada) Diamond Offshore (USA) BP(UK) ExxonMobile(USA) SHELL(USA) TOTAL (FR) CHEVRON (USA) ENI NORGE (NOR) DSME (KOR) SHI (KOR) DSME, SHI (KOR) Technip (FR) Saipem (Italy) McDermott (USA) 8.00 mil. GT Floaters : 1~2 units Fixed Platform : 3~4 units Pipeline laying : 30km Industrial Plant & Engineering Engine & Machinery Power Plants: Combined-Cycle, Cogeneration, Thermal Power Plants Process Plants: Oil and Gas, Refinery, Tank Farm, GTL, and LNG Facilities Plant Equipments: Industrial Boiler, HRSG, CFBF Boiler, Regenerator & Reactor 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 SHELL (US) MEW (KUWAIT) SEC (SAUDI) HMD(KOR) Shanghai (CHINA) DSME, SHI (KOR) Siemens (GER) Hyundai E&C (KOR) Doosan Heavy (KOR) Samsung C&T Corporation(KOR) Doosan, STX (KOR) Mitsui (JPN) Hudong, Dalian(China) Power plant : 1,000MW (4~5 projects) Large Engines (500 units) :18 mil bhp Medium (1800 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 State-Owned Power company Utility, IPP company ABB (Sweden) Siemens (GER) Hyosung (KOR) Transformer (620 units) 120,000 MVA Construction Equipment Excavators Wheel Loaders Forklifts Skid Loaders Komatsu (JPN) Caterpillar (USA) Terex (USA) Doosan Infracore (KOR) 29,000 units (Excavators 16,000 units) Green Energy Refinery Financial Services Solar/Wind Power Systems Petroleum: LPG, Gasoline, Kerosene, Jet Fuel Petrochemicals: Propylene, Alkylate, BTX, Naphtha Securities Brokerage Asset Management Futures Corporate Finance Leasing Wagner&Co Solartechnik(GER) MHH Solartechnik (GER) Sun Energy Europe (GER) Albatech (Italy) Suntech, Yingli (CHN) Vestas (DEN), GE (USA) SK Innovation (KOR) GS-Caltex (KOR) S-Oil (KOR) Solar Cell/module : 510 MW Wind Turbine : 600 MW 390,000 B/D 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.) 5.4% 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 (HHI included, 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 11

12 Global Network Established 21 Overseas offices and 26 Incorporated firms, a total of 47 global network. 21 overseas offices - Europe : 7, America : 3, Asia : 4, Middle East / Africa : 7 26 Incorporated firms - Production/sales : 14, Sales : 2, Construction : 3, R&D : 2, Management : 3, Agriculture: 2 London Belgium France Spain Europe Nigeria Oslo Rotterdam Bulgaria Germany Hungary Athens Riyadh Al Khobar (office, incorporated) Moscow Istanbul Kuwait Dubai Jebel Ali Abu Dhabi Tai an Mumbai India Khorol Agro, Mikhailovka Agro, Hyundai Electrosystems Chanzhou Beijing Shandong Yantai Weihai Yangzhong Singapore [HHI] 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. Alabama Houston Hyundai Ideal Electric Co. New Jersey Atlanta (office, incorporated) Production / Sales(14) Sales (2) Construction(3) R&D(2) Management(3) Agriculture(2) Offices (21) Luanda Middle East / Africa Asia America Brazil 12

13 Business Performance 13

14 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 14

15 Shipbuilding Drillship VLCC Containerships Bulk Carrier LNG LPG Car Carriers Naval Ships Special Vessels 15

16 Market Shipbuilding (Unit: Mil. GT) Global Demand since 2007 Others LPG Carrier LNG Carrier Containers Tankers Bulkers (Unit: Mil. GT) `07 `08 `09 `10 `11 `12 `13 `14 YoY `15.2 Total % % 95.5 Bulkers % 0.3 Tankers % 3.7 Containers % LNG % 1.2 LPG % '07 '08 '09 '10 '11 '12 '13 '14 * Source : Clarkson others % 0.2 * Others : offshore, cruise vessels, ro-ro ferries, MPP, Reefers, PCC Newbuilding Price Trend since 2007 Capesize K DWT (Left, Mil. USD) VLCC K DWT (Left, Mil. USD) Containership 8,500-9,100 TEU (Left, Mil. USD) LPG Carrier 82,000m³ (Left, Mil. USD) LNG Carrier 160,000m³ (Right, Mil. USD) '07 '08 '09 '10 '11 '12 '13 '14 '15 * Source : Clarkson * Index : 1988=100 (Unit: Mil. USD) `07 `08 `09 `10 `11 `12 `13 `14 YoY `15.2 Price Index % Capesize Bulk(180K) % 52.0 VLCC(320K) % 96.5 Container(8,800teu) % 89.0 LPG(82,000m³) % 78.0 LNG(160,000m³) %

17 Overview Shipbuilding Sales Contribution(2014) Shipbuilding 40.0% Sales Breakdown by Product (2014) Special Tanker Special Semi-sub Purpose 1% Rig 7% 3% 5% Bulk 5% P/C 2% Others 1% LNG 17% LPG 10% Drillship Containership 20% 29% * Non-Consolidated basis, preliminary results * Non-Consolidated basis, preliminary results Annual Sales & New Orders Main Products 20,000 15,000 10,000 5,000 6,443 11,470 7,557 15,730 13,635 9,084 9,003 7,849 (Unit : sales - bil. KRW, New order mil. USD) 4,061 10,905 9,487 9,766 10,159 9,349 9,512 6,143 6,192 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 Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP preliminary results 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) 17

18 Performance Shipbuilding New Orders by Shiptype ( ) Backlog by Shiptype ( ) LPG Carrier 32% Others 9% Containership 8% Tanker 26% Drillship 6% Bulkers 3% Special & Naval 11% Semi Submersible RIg 7% Others 2% Container ship 16% Tanker 13% LNG Carrier 21% Bulker 4% LPG Carrier 16% LNG Carrier 26% The above data is based on the amount Backlogs as of Dec on a delivery basis : 145 vessels, USD bil. The above data is based on the amount New Orders in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Target Achievement Details (mil. USD) # of ship Amount (mil. USD) 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) 18

19 Performance Shipbuilding New Orders by Shiptype (2015.3) Backlog by Shiptype (2015.3) LPG Carrier 22% Others 4% Special & Naval 12% Drillship 3% Bulkers 3% Semi Submersible RIg 8% Others 2% Container ship 13% Tanker 16% Tanker 74% LPG Carrier 17% LNG Carrier 26% The above data is based on the amount Backlogs as of Mar (YTD) : 135 vessels, USD bil. The above data is based on a delivery basis The above data is based on the amount New Orders in Jan Feb Mar Total Target Achievement Details (mil. USD) # of ship Amount (mil. USD) 6, , % - 4 Tankers (469) - 2 LPG Carriers (140) - Others (27)Containerships (501) - 6 LNG Carriers (1,294) - 3 Bulkers (242) - 2 Special Vessel (529) - Others (64) 19

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

21 Offshore & Engineering FPSO Drilling Rig Semi-Submersible Unit Subsea Pipeline 21

22 Overview Offshore & Engineering Sales Contribution (2014) Sales Breakdown by Product (2014) Offshore & Engineering 20.0% Subsea Pipeline 7% Fixed Platforms& Floaters 93% * Non-Consolidated basis, preliminary results * Non-Consolidated basis, preliminary results 7,000 6,000 5,000 4,000 3,000 2,000 1, ,222 1,997 1,935 Annual Sales & New Orders 1,102 3,729 3,423 3,413 3,0952,978 3,069 2,352 (Unit : sales - bil. KRW, New order mil. USD) 4,480 4,373 2,072 6,503 4,753 4, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP preliminary results 6,005 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) 22

23 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.) Mar Fixed 2,196 1,501 2,121 1, , Floating 46 1,303 1, ,735 1, Subsea Pipeline Others Total 2,351 3,069 4,480 2,072 6,503 6, 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) 23

24 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) 24

25 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 25

26 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) 26

27 Industrial Plant & Engineering Thermal Power Plant Co-Generation Plant Process Plant Combined Cycle Power Plant 27

28 Overview Industrial Plant & Engineering Sales Contribution (2014) Sales Breakdown by Product (2014) Industrial Plant & Engineering 10.0% Oil & Gas 2% Plant Equipments 11% Power Plant 87% * Non-Consolidated basis, preliminary results * Non-Consolidated basis, preliminary results 5,000 4,000 3,000 2,000 1,000 0 Annual Sales & New Orders 2,076 1,898 1,544 1,374 1, (Unit : sales - bil. KRW, New order mil. USD) 2,826 2,645 2,010 2,761 1,014 1,480 4,077 1,259 4,396 2, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP preliminary results 1,256 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) 28

29 Oil & Gas Power Performance Project Type Oil & Gas Tank Farm Performance Record Industrial Plant & Engineering 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) (1976 ~ present) 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) Riyadh PP 11 Independent Power Project (Dhuruma Electricity Company, Saudi Arabia, 2013) Sabiya Combined Cycle Gas Turbine Project Combined (Ministry of Electricity and Water, Kuwait, 2013) Cycle/ Al Dur Independent Water and Power Project Simple Cycle (Al Dur Power & Water Co., Bahrain, 2012) Power Plant 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)) Cogeneration 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 Thermal (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) Desalination Plant 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) Mar Power Plants 1,412 1, ,510 4, Chemical Plants/ Plant equipment 1, , , Total 2,826 2,010 1,014 4,077 4,396 1, 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 29

30 Engine & Machinery Marine Engine & Equip. Marine & Industrial Turbine Industrial & Marine Pump Industrial Robot & System Marine Propeller 30

31 Overview Engine & Machinery Sales Contribution (2013) Sales Breakdown by Product (2013) Engine & Machinery 9.0% Hydraulic Machinery 7% Power Plant Engine 6% Robotics 9% Marine Engine 78% * Non-Consolidated basis, preliminary results * Non-Consolidated basis, preliminary results 5,000 4,000 3,000 2,000 1, ,220 Annual Sales & New Orders 3,248 1,880 1,646 4,646 2,522 (Unit : sales - bil. KRW, New order mil. USD) 3,176 2,772 2,835 3,096 2,967 1,452 2,283 2,425 2,313 2,241 1,858 2, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP preliminary results 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) 31

32 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 2013 (%) Large-size Marine Engine Medium-size Marine Engine Propeller Ship Engine New Orders by Region Diesel power plant Domestic Global % 11% 8% 8% 4% 6% 14% 9% 9% 33% 39% 28% 17% 44% 57% 45% 67% 92% 83% 87% 66% 69% Domestic China Others 32

33 Electro Electric Systems Transformers Switchgears High Voltage Circuit Breakers Marine Electrical Equip. 33

34 Overview Electro Electric Systems Sales Contribution (2014) Electro Electric Systems 10.0% Sales Breakdown by Product (2014) Others 9% Transformer Rotating Machinery 28% 22% * Non-Consolidated basis, preliminary results Switchgear 17% Low Voltage Circuit Breaker 6% High Voltage Circuit Breaker 18% * Non-Consolidated basis, preliminary results 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 1, Sales New Orders Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP preliminary results 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) 34

35 Performance Major performance Electro Electric Systems 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. * 2014 preliminary results Know-how Export Fresh Water Installation Gas Insulated Switchgear : TATUNG Company (Taiwan) Shuweihat S2 IWPP Project (U.A.E.) 35

36 Construction Equipment Mini Excavator Crawler Excavator Wheel Excavator Wheel Loader Forklift Truck Skid Steer Loader 36

37 Overview Construction Equipment Sales Contribution (2014) Sales Breakdown by Product (2014) Construction Equipment 9.0% CKD 6% Others 10% Skid Loader 1% Wheel Loader 10% Excavator Folk Lift 17% 56% * Non-Consolidated basis, preliminary results * Non-Consolidated basis, preliminary results 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 preliminary results 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) 37

38 Performance Excavators Sales in China Construction Equipment Market size(left) 200,000 HHI(Right) 30, , , ,000 25, ,000 93,237 20, , ,908 71,767 18,467 17,294 84,573 15,000 80,000 8,540 7,532 10,000 10,101 3,743 16,523 40,000 8,377 5, Construction Equipment Sales by Region Mar Excavator Sales in China Mar 2014 Mar 2015 YoY Market 32,443 16, % H H I 1, % M/S 4.7% 5.1% 0.4%p (Source : China construction machinery association) 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 28.0% 32.1% 27.5% 27.9% Global (Exclude Japan) 9.7% 10.0% 9.0% 7.8% China 11.3% 10.2% 8.1% 7.2% India 11.1% 14.4% 17.7% 19.7% 38

39 Green Energy Solar Power Wind Power 39

40 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 2013 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 Saint-Gobain (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 % % % % % % % % The above capacity expansion and sales plan is subject to change according to the market situation. The above sales is total sales of Green Energy division preliminary results Solar Product Certification - UL IEC edition 2, IEC (TUV) - J-PEC - JET Cert - CE Declaration - MCS (UK) - CSTB (France) - Ammonia resistance (IEC 62716) - Salt mist (IEC ed.2) 40

41 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) 41

42 Subsidiaries 42

43 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 34.4% With the completion of # 2 HOU plant in Jan., 2011, Hyundai Oilbank achieved a ratio of 34.4%, the highest upgrading ratio in the industry Domestic Light Oil Market Share 22.1% 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 : KRW2.6 tril. (Jul ~ Feb. 2011) HHI s Management Control 91.1% Acquired by HHI in Aug.,

44 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, , , ,068.1 * The financial information of 2009 is based on K-GAAP. * 2014 preliminary results , , , , Assets Liabilities-to- Equity Ratio 44

45 Hyundai Samho At a Glance Backlog by Shiptype (2015.3) Production Capacity - Delivered 30 vessels in # of dry docks : mil. GT PCTC 7% LPG Carrier 11% FPU 3% Semi Submersible Rig/ HLV / F Dock 9% Containership 19% Tanker 27% 2015 Sales Target 4,599 bil. KRW LNG Carrier 19% Bulker 5% 2015 Order Target 3,800 mil. USD Backlogs as of Mar on a delivery basis : 85 vessels, USD 8.70 bil. The above data is based on the amount New Orders in Jan Feb Mar Total Target Achievement Details (mil. USD) # of ship Amount (mil. USD) 2, , % New Orders in Tankers (334) -Others (57) 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) 45

46 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% 145.4% Total Assets 6, , , ,076.1 Total Liabilities 3, , , ,192.4 Total Shareholder s Equity Liabilities-to- Equity Ratio(%) * The financial information of 2009 is based on K-GAAP. * 2014 preliminary results. 3, , , , , , , , Assets Liabilities-to- Equity Ratio 46

47 Financial Performance 47

48 Financial Summary (Consolidated) Sales Operating Profit Net Income (Bil. of KRW) (Bil. of KRW) (Bil. of KRW) 60, , , , ,000.0 OP OP Margin 30% 60,000.0 NI NI Margin 30% 40, , , % 8.5% 20% 40, % 20% 20, , , % 5, , % 2, , % 10% 0% -10% 20, , % 10% 1.9% 4, , % 1, % , % -10% (Bil. of KRW) Sales , % 53, % 54, % 54, % 52, % Operating Profit 5, % 4, % 2, % % (3,249.5) -6.2% Shipbuilding 2, % 2, % 1, % % (1,895.9) -11.5% Offshore % % % % (230.3) -4.9% Industrial Plant % % % % (1,130.8) -46.9% Engine & Machinery % % % % (10.9) -0.7% Electro Electric % % (74.3) -2.6% % % Construction % % % % (33.4) -1.2% Green Energy - - (175.0) -46.0% (106.3) -31.5% (103.2) -32.8% (16.5) -5.3% Refinery % % % % % Finance services % % % % % Others (239.2) - (304.3) - (314.6) - (293.2) - (282.9) - Net Income 4, % 2, % 1, % % (2,206.1) -4.2% * 2014 preliminary results. 48

49 Financial Summary (Consolidated) Assets Liabilities & Total Debt Shareholder s Equity (Bil. of KRW) (Bil. of KRW) (Bil. of KRW) 60, , , , , , , , , , , , , , , , , , , , , , , , , , , , (Bil. of KRW) Total Assets 46, , , , ,384.4 Current Assets 22, , , , ,871.6 Cash& Cash Equivalents 1, , , , ,229.3 Non Current Assets 23, , , , ,512.8 Total Liabilities 30, , , , ,745.8 Current Liabilities 26, , , , ,702.7 Non-Current Liabilities 4, , , , ,043.1 Total Shareholder's Equity 16, , , , ,638.6 Liabilties-to Equity Ratio 192.4% 169.6% 162.9% 179.6% 220.8% Debt-to-Equity Ratio 61.4% 60.8% 79.1% 83.3% 99.4% Total Debt 9, , , , ,543.1 * 2014 preliminary results. 49

50 Financial Summary (Non-Consolidated) Sales Operating Profit Net Income (Bil. of KRW) (Bil. of KRW) (Bil. of KRW) 40,000.0 OP OP Margin NP NP Margin 40, % 20% 40, % 10.5% 12.7% 30, , , , , , , % 22, % 10% 5.2% 20, , , % 3.0% 1.9% 10, , , , , , % 2, , % , , , % -8.2% -10, , % -10% (Bil. of KRW) Sales 22, % 25, % 25, % 24, % 23, % Operating Profit Net Income 3, % 2, % 1, % % (1,923.3) -8.2% Shipbuilding 1, % 1, % % % (492.4) -5.3% Offshore % % % % (230.5) -5.0% Industrial Plant % % % % (1,068.8) -44.0% Engine & % % % % % Electro Electric % % (58.7) -2.1% % % Construction % % % % % Green Energy - - (172.7) -46.0% (103.1) -30.0% (100.8) -32.3% (13.6) -4.3% Others (245.3) - (270.7) - (290.5) - (284.6) - (302.6) - 2, % 1, % 1, % % (1,754.7) -7.5% * 2014 preliminary results. 50

51 Financial Summary (Non-Consolidated) Assets Liabilities & Total Debt Shareholder s Equity (Bil. of KRW) (Bil. of KRW) (Bil. of KRW) 40, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , (Bil. of KRW) Total Assets 28, , , , ,999.3 Total Liabilities Current Assets 11, , , , ,778.7 Cash& Cash Equivalents ,407.9 Non Current Assets 17, , , , , , , , , ,226.2 Current Liabilities 14, , , , ,554.1 Non-Current Liabilities 1, , , , ,672.1 Total Shareholder's Equity Liabilties-to Equity Ratio 13, , , , , % 103.3% 101.7% 106.2% 132.3% Debt-to-Equity Ratio 26.4% 26.9% 43.1% 47.5% 53.0% Total Debt 3, , , , ,300.5 * 2014 preliminary results. 51

52 2015 Business Plan (Non-Consolidated) 40,000 30,000 20,000 10,000 0 Sales (bil. KRW) +3.7% 23, , (E) (E) Change Shipbuilding 9, , % Offshore & Engineering 4, , % Industrial Plant 2, , % Engine & Machinery 2, , % Electro Electric Systems 2, , % Construction Equipment 2, , % Green Energy % Others % Total 23, , % 40,000 30,000 20,000 10,000 0 New Orders (mil. USD) +15.7% 22, , (E) (E) Change Shipbuilding 6, , % Offshore & Engineering 6, , % Industrial Plant 1, , % Engine & Machinery 1, , % Electro Electric Systems 2, , % Construction Equipment 2, , % Green Energy % Total 19, , % 52

53 Sales by Division (Non-Consolidated) Sales (bil. KRW) Target Feb. Achievement Target Feb. Achievement Shipbuilding 8,305 1, % 9,619 1, % Offshore & Engineering 4, % 5, % Industrial Plant & Engineering 3, % 3, % Engine & Machinery 2, % 2, % Electro Electric Systems 2, % 2, % Construction Equipment 2, % 3, % Green Energy % % Others % % Total 24,326 3, % 26,570 3, % * The financial information above is based on K-IFRS * The backlog above is on a delivery basis 53

54 New Orders by Division (Non-Consolidated) New Orders and Backlog (Mil. USD) New Orders Backlog Target Mar. Achievement Target Mar. Achievement Mar. Shipbuilding 8, % 9,150 3, % 17,134 Offshore & Engineering 5, % 6, % 22,279 Industrial Plant & Engineering 1, % 5, % 9,945 Engine & Machinery 2, % 2, % 3,061 Electro Electric Systems 2, % 2, % 2,166 Construction Equipment 2, % 2, % - Green Energy % % 21 Total 22,950 3, % 29,565 5, % 54,606 * The financial information above is based on K-IFRS * The backlog above is on a delivery basis 54

55 Business Overview & Outlook Outlook Shipbuilding Shipbuilding demand declined YoY, due to a slowdown in the global economic growth, imbalance of supply and demand in the market, falling shipping rates, weak newbuild order momentum. - LNG Carrier: Demand is expected to grow, spurred by LNG project plans in regions including the US, Australia. - Large-sized containership: Alliance of top tier shipping companies is expected to intensify competition and boost large-sized containership demand to take advantage of economies of scale. Offshore & Engineering Shale gas production, fall in oil prices raised volatility risks in the market and limited the growth. HHI had total 7 projects which amount 6.0 bil. USD of new orders in 2014 and the market remained highly competitive. Fall in oil prices, over budget of some large-sized offshore projects put pressure on oil majors to reduce their CAPEX and cut costs, as a short term action. In the long term, oil and gas investments will continue to maintain and expand market share and production level. Industrial Plant & Engineering - Power: Competition among South Korean E&C Companies has eased and the market prices in the Middle East have recovered gradually. - Oil & Gas: Competition among South Korean E&C Companies in the Middle East has eased, investments for Shale Gas, LNG Plant have increased especially in the North America. - Power: Demand for power is expected to grow in the Middle East, facing high energy needs and also in the Southeast Asia markets, suffering for energy thirst brought by industrialization. - Oil & Gas: Demand for the Middle East Upstream and refinery is expected to slow down slightly but demand for LNG and Gas projects is expected to pick up steam. 55

56 Business Overview & Outlook Outlook Engine & Machinery As the shipbuilding industry continued to see a slow newbuild growth, demand for marine engines stayed weak. Demand for non-marine engines has shrunk due to global economic recessions. Dual Fuel Engine(ME-GI, DF Engine) sector will see growing demand with the rise of demand for high efficiency & eco vessels. Demand for LNG Carrier and large-sized containership engines is expected to grow but demand for non-marine engines is likely to remain weak due to global economic recessions. Electro Electric Systems Demand for new high-voltage transmission line in the North America, replacement demand for aging equipments and demand for power infrastructures in the Middle East continued, but the new players in the market intensified competition. Replacement demand for aging equipments in developed countries will continue but with the falling prices of oil, investments for oil producing infrastructures and electricity markets in the Middle East looks uncertain. In addition, economic slowdown in Russia and western economic sanctions are expected to scale back investments. Construction Equipment Economic recessions and political uncertainties dampened demand in the emerging markets, and Japanese makers who Benefitted from the weak yen increased competition. North America and the UK are expected to see signs of economic recovery but demand in the emerging markets is expected to shrink due to China and Russia s economic recessions, political unrest etc. In addition, the price competition from Japanese and Chinese makers is expected to intensify. Green Energy A growth in global market size and a decrease in new investments for production facilities helped to improve supply-demand balance And the market saw signs of recovery. The main target markets were Japan and the U.S.A. Active government incentives across the world and industry consolidation are expected to accelerate market recovery but the polarization between top tier companies and small companies is expected to get more intense. 56

57 Q & A 57

58 Thank You *For More Information IR Team Tel: , 4546, 7858 Fax: Website: (Company) / (IR) 58