- Shipbuilding Division - Offshore & Engineering and Industrial Plant Division - Engine & Machinery Division - Financial Summary of HHI - Financial Summary of HMD - 2018 New Order & Sales Target
HMD 3.9 KCC 6.8 National Pension Fund 9.1 Asan Foundation 3.1 HHIH 27.7 Treasury Stocks 0.1 46.5
1973 ~ 2010 2011 ~ 2018 12. 1973 Establishment of Hyundai Shipbuilding & Heavy Industries Co. Ltd. 04. 1975 Establishment of Hyundai Mipo Dockyard 05. 1989 Delivery of World`s biggest Jack (Exxon, 40,000 Ton) 06. 1994 Delivery of Korea`s first LNG Carrier 08. 1999 Listed on Korean Stock Exchange 11. 2000 Selected as a main contractor of the next Korean submarine Builder 02. 2001 Completion of the World`s largest deep-sea FPSO(343K Ton) 02. 2002 Separation from Hyundai Group and foundation of HHI Group 10. 2004 Launch of World`s first ship built on the ground (105K DWT Crude Oil Carrier) 02. 2009 Completion of H-Dock, eligible for 1,000K Ton FPSO construction 09. 2010 Surpassed cumulative 2-stroke engine production of 100 mil. BHP 04. 2011 Completion of World`s largest Saudi MARAFIQ power plant (2,750 MW) 02. 2014 Delivery of the World`s first LNG-FSRU 01. 2015 Recognition as the World`s Significant Ship for 32 consecutive yrs. 02. 2015 Completion of the World`s largest Cylindrical FPSO 12. 2015 Produced Eco-friendly Tier-III engine for the first time in the world 03. 2016 Breakthrough the production of accumulating 10,000 HMSEN Engines 10. 2016 Delivery of MOS type LNG Carrier 04. 2017 Business Spin-off 03. 2018 Rights Offering 08. 2018 Announcement of Corporate Governance Reform
[ Spin-off ] April 2017 HHI Holdings HHI HEE HCE HDO (*) (*)
3.9% -
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 10,000 179.6% 220.8% 220.9% 34,175 36,746 34,234 31,360 175.3% 145.8% 131.1% 129.7% 119.0% 18,037 17,728 17,394 16,284 300% 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% 1,800 4.2% 1.5% 1,642 802 0.1% 0.9% 4% 15 29 0 0% '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q -3.3% -124-176 -1,800-4% -1,540-4.1% -6.2% -3,600-5.6% -3,250-8% 20,000 15,000 10,000 5,000 0 99.4% 108.7% 89.8% 83.3% 15,843 16,543 16,852 16,073 11.4% 1.4% 3.4% 7.0% 2,059 184 462 955 '13 '14 '15 '16 '17 '18. 1Q '18. 2Q '18. 3Q 150% 100% 50% 0%
2. Quarterly Operating Income Margin 16,000 Sales Revenue Operating Margin 10.00% 14,000 12,000 10,000 7.07% 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% 8,000-5.60% -5.00% -8.62% 6,000-8.22% -10.00% 4,000-9.80% 2,000-15.60% -15.00% - 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 -20.00%
3. History of Business Performance before Spin-off (Consolidated) (Unit : Bil. KRW)
4. Business Performance after Spin-off (Consolidated) (Unit : Bil. KRW)
5. Earnings of Major Affiliates (Non-consolidated) (Unit : Bil. KRW)
New Order Trend (HHI continue-to-exist Consolidated) 35,000 30,000 25,000 20,000 15,000 10,000 5,000-898 2,186 720 796 19,907 603 14,238 14,574 595 11,426 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 4,344 640 5,079 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 2,000 842 1,001 298 979 13,17612,674 711 9,852 5,914 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18(E) 18.11
World Shipbuilding Market Share Rank Shipbuilder Output in 2017 (# of Vessels) (1,000 DWT) Market Share 1 Hyundai Heavy Industries Co., Ltd.(KOR) 53 7,809 7.9% 2 Daewoo Shipbldg. & Maritime Engineering (KOR) 38 5,936 6.0% 3 Shanghai Waigaoqiao Shipbuilding (CHN) 28 5,633 5.7% 4 Hyundai Samho Heavy Industreis. Co., Ltd.(KOR) 33 4,951 5.0% 5 Samsung Heavy Industries Co., Ltd.(KOR) 37 4,651 4.7% 6 New Times Shipbuilding (CHN) 26 2,670 2.7% 7 Oshima Shipbuilding (JPN) 38 2,613 2.6% 8 Dalian shipbuilding Industry (CHN) 12 2,535 2.6% 9 Hyundai Mipo Dockyard Co., Ltd.(KOR) 53 2,162 2.2% 10 GSI Nansha (CHN) 16 1,891 1.9% Rest Total 1,150 58,289 58.8% 1,484 99,140 100.0% HHI Group 139 14,922 15.1% (Source : Clarkson)
Global Demand 177.2 111.4 34.6 95.9 62.8 41.3 117.1 81.4 79.5 22.4 46.9 48.9 14.5 12.7 13.9 11.3 11.4 5.9 0 5.5 0 0 4.8 5.2 '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. 2017 Nov. 2018 08 09 10 11 12 13 14 15 16 17 17.11 18.11 111.4 34.6 95.9 62.8 41.3 117.1 81.4 79.5 22.4 51.0 39.3 48.9 57.0 21.1 58.6 23.7 13.8 56.7 35.1 13.8 7.0 19.2 12.7 14.5 27.4 8.1 19.3 4.2 6.2 15.0 13.8 25.8 6.0 15.4 12.5 9.9 11.5 1.0 6.0 19.0 4.2 21.2 10.0 21.9 1.7 5.2 5.1 9.0 0.6 0.0 0.5 5.4 4.1 4.1 7.4 3.8 0.9 1.5 1.5 5.5 0.6 0.1 0.6 0.4 1.1 2.8 3.5 2.5 0.3 0.6 0.5 1.0 2.5 0.5 1.4 1.9 2.9 6.5 2.1 3.0 0.4 2.2 1.4 1.4 1.2 0.0 0.6 1.1 0.4 1.9 1.7 2.1 1.5 1.5 0.8 2.4 6.9 3.3 6.9 4.1 5.3 0.5 4.0 1.5 2.7 1.7 4.8 5.2
Newbuilding Price Trend 180 130 80 300 250 200 150 100 50 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) 07 08 09 10 11 12 13 14 15 16 17 18.11 185.1 177.7 138.0 142.4 139.0 126.3 133.2 137.7 131.0 123.0 125.0 130.0 97.0 88.0 56.0 57.0 48.5 46.0 53.5 54.0 46.0 42.0 44.0 50.0 146.0 150.0 101.0 105.0 99.0 93.0 94.0 97.0 93.5 84.5 81.5 92.5-166.0 118.0 129.0 128.0 107.0 113.5 116.0 116.0 109.0 107.0 115.0 237.0 245.0 211.5 202.0 202.0 199.5 198.0 200.0 199.0 192.0 182.0 182.0 93.0 92.0 72.0 72.8 73.0 70.0 74.5 79.0 77.0 71.0 70.0 71.0 52.5 47.5 35.0 36.5 35.5 34.0 34.8 36.8 35.5 32.5 33.8 36.5 41.0 38.0 23.0 29.5 30.5 25.0 26.0 27.0 25.0 21.8 22.5 26.0
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 4,702 444 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (E) Sales New Order
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%
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 24 3 3 0 1 10 0 2 1 10 7 1 10 48 - Amount 3,878 391 367 5 42 847 5 146 224 805 589 94 1,187 4,702 4,300
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 # 25 0 4 7 13 4 13 6 7 0 2 3 5 64 - Amount 913 2 180 297 426 168 436 205 201 8 69 105 227 2,324 1.600 # 15 0 4 0 7 4 0 0 0 4 9 2 6 36 - Amount 1,124 0 240 4 545 228 1 0 0 417 715 170 676 2,826 2,300
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 48 3 3 1 3 9 1 10 2 14 1 6 53 - Amount 4,702 213 249 210 251 990 192 1,378 215 1,721 183 630 6,232 6,805
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 # 64 5 4 3 7 6 5 12 3 9 2-56 - Amount 2,324 126 143 110 278 214 149 386 110 310 54-1,880 3.000 # 36 7 3 6 9-2 2 - - 3 4 36 - Amount 2,826 743 194 696 1148-357 354-27 317 726 4,562 3,371
Offshore & Engineeri ng 17% Fixed Platform 74% Fixed 75% Floaters 26% Floating 25% 6503 6005 4480 4,753 4,373 4,653 4,467 3,729 3,423 3,413 3,448 3069 2352 2,588 2072 1572 1600 1,173 395 264 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (E) Sales New Orders
(Mil. USD) 2010 2011 2012 2013 2014 2015 2016 2017 '18.11 (As of Nov. 2018, Unit: Mil. USD) Fixed 1,501 2,121 1,621 454 4,406 718 69 72 279 Floaters 1,303 1,819 412 5,735 1,470 657 298 187 453 Pipeline 252 539 31 292 129 197 28 0 0 13 1 8 22 0 0 0 5 0 Expected Delivery Major Project (Owner) Delivery basis Backlog Sales basis Competion Total 3,069 4,480 2,072 6,503 6,005 1,572 395 264 732 2020.02 NASR 2 (ADMA-OPCO) 2,146 373 82.6% 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) 2021.04 King's Quay FPS 454 453 0.1% 0 63 Total (2 Projects) 2,600 889 Semi-Submersible Drilling Rig 3 Deepwater Horizon (R&B Falcon, 2000) Subsea Pipelines 35 Offshore Gas Spur Line (PTT PCL, 2011)
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 1,001 316 34 400 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (E) Sales New Orders
(As of Nov. 2018, Unit: $mil.) (Mil. USD) 2010 2011 2012 2013 2014 2015 2016 2017 '18.11 Power Plant 1,601 9 3,510 4,285 6 5 1 0 1 Projects Owner (Country) Expected Delivery Delivery basis Backlog Sales basis Completion Oil & Gas 409 1,005 567 111 1,250 1,253 315 34 108 Total 2,010 1,014 4,077 4,396 1,256 1,258 316 34 109 Shuqaiq Steam Power Plant SEC (Saudi) 2018 (PAC*) 3,261 88 97% Jazan Refinery & Thermal Project** Aramco (Saudi) 2019 13 31 92% Jeddah South (Oct. 2012) - 3.2 bil. USD / Saudi Electricity Co, - 2,400MW Oil fired Conventional Power Plant Clean Fuel Project ZOR Refinery Project KNPC (Kuwait) KNPC (Kuwait) 2019 1,096 (16) 102% 2020 1,087 442 59% Shuqaiq Power Plant (Aug. 2013) - 3.3 bil. USD / Saudi Electricity Co. - 2,640MW Oil fired Conventional Power Plant Total (4 PJTs) 801 217 6,258 762 Clean Fuel Project (Apr. 2014) - 1.1 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.
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% 3176 2283 1452 2,772 2,835 1858 3,096 2,967 2425 1996 2,313 2,110 1860 2,414 979 1001 2,060 1363 1,197 1,005 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (E) Sales New Orders
3,124.4 2.7% -26.4% 3,042.5 4,245.8 3,082.8 2.1% -17.8% 3,018.3 3,751.1 41.6 71.9% -91.6% 24.2 494.7-175.7 Loss Turned Increase Loss-making -123.8 148.4-5.6% -1.5%p -9.1%p -4.1% 3.5% -125.2 - - -75.2 147.4-300.9 - - -199.0 295.8-67.2 - - -66.9 113.0-233.7 Loss Turned Increase Loss-making -132.1 182.8
547.7 0.4% -20.9% 545.4 692.3 507.1 1.9% -18.5% 497.8 622.2 40.6-14.7% -42.1% 47.6 70.1 18.7-18.7% -57.9% 23.0 44.4 3.4% -0.8%p -3.0%p 4.2% 6.4% -80.2 - - 92.0 301.6 7,725.9 6,776.2 6,546.3 473.5 562.2 804.4 6,301.3 5,080.5-1,804.6 1,543.2 2,680.0 7,045.0 5,904.7 5,471.8 456.4 462.4 2,870.2 5,734.6 4,498.9-63.9 75.6 1,496.1 - - 464.1-61.5 - - 115.0 346.0-10.8 - - 27.6 83.5 Turned Turned -50.7 Loss-making Loss-making 87.4 262.5 100.0 100.0 1,00.0 271.0 397.9 762.8 1,929.1 1,718.8 1,279.7 121.5 122.4 115.9
8,418 83% 24,724 13,676 1.88 6,232 92% 13,574 10,077 2.37 732 46% 2600 889 0.83 109 27% 6,588 748 0.82 1,345 99% 1,962 1,962 2.15 1,880 63% 4,044 2,826 1.13 4,562 135% 7,593 5,632 2.45 14,860 90% 36,361 22,134 1.83 12,674 96% 25,211 18,535 2.05