(2015.7) 1 Important Notice This presentation of Hyundai Heavy - - PowerPoint PPT Presentation

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(2015.7) 1 Important Notice This presentation of Hyundai Heavy - - PowerPoint PPT Presentation

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(2015.7) 1 Important Notice This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHIs operations that are based on managements current expectations, estimates and projections. Words such as

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(2015.7)

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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.

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Contents

  • HHI at a Glance
  • Business Performance
  • Financial Performance
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HHI at a Glance

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5  Date of Establishment : 1973. 12. 28  Date of Listing : 1999. 8. 24  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 : 8th

(Excluding public companies, based on total assets)

 No. of employees : 26,710 (Average 17.6 years of continuous service)  No. of dry docks : 10 (Shipbuilding), 1 (Offshore & Engineering)  Business Division : Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering,

Engine & Machinery, Electro Electric Systems, Construction Equipment, Green Energy, Refinery, Financial Services

Summary

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History

1970~2002 2002~2010 2011~2015

  • 12. 1973

Establishment of Hyundai Shipbuilding & Heavy Industry Co., Ltd.

  • 11. 2000

Selected as a main contractor of the next Korean submarine builder

  • 02. 2009

Completion of ‘H-Dock’, eligible for 1,000K Ton FPSO construction

  • 08. 2010

Acquisition of Hyudai Oilbank Co., Ltd. (70% of ownership and management)

  • 04. 2011

Completion of World’s largest Saudi MARAFIQ power plant (2,750MW)

  • 04. 1975

Establishment of Hyundai Mipo Dockyard

  • 05. 2002

Acquisition of Samho Heavy Industries Co., Ltd.

  • 10. 2004

Launch of World’s first ship built on the ground (105K DWT Crude Oil Carrier)

  • 06. 1994

Delivery of Korea’s first LNG Carrier

  • 02. 2014

Delivery of the world’s first LNG-FSRU

  • 01. 2015

Recognition as the World’s Significant Ship for 32 consecutive years

  • 08. 1999

Listed on the Korean Stock Exchange

  • 02. 2001

Completion of the World’s largest deep-sea FPSO (343K Tons)

  • 12. 2009

Acquisition of Hyundai Corporation

  • 02. 2002

Separation from Hyundai Group and foundation of HHI Group

  • 02. 2015

Completion of the World’s largest cylindrical FPSO

  • 03. 2015

Breakthrough the production of accumulating 9,000 HiMSEN Engines

  • 04. 2011

Achievement of a 100 million GT in delivery of ships, the first in the world

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Achievement of a 100 million GT in delivery of ships, the very first in the world (Apr. 2011) Formation of the world record in production of 2-stroke marine engines (Sep. 2010)

  • 100 million BHP

Delivery of World’s Biggest Jacket (May .1989)

  • Exxon (USA)
  • 40,000 ton

Delivery of Korea’s first LNG Carrier (Jun. 1994)

  • 125,000 m3

Recognition of the ‘World Significant Ship’ for 32 consecutive years

  • World shipbuilding publications,

Maritime Report and Maine Log

Business Highlights

Completed World’s largest Saudi MARAFIQ power plant (Apr. 2011)

  • Power generation of 2,750 MW
  • Desalination of 176 MIGD

Achievement of domestic record in production of Transformers(Feb. 2010)

  • 600,000 MVA

Completion of World’s largest cylindrical FPSO (Feb. 2015)

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Ownership Structure

(As of December 31, 2014)

Chung Mong-joon 10.15% Hyundai Mipo Dockyard Co., Ltd. 7.98% National Pension Service 4.69% KCC 3.04% Hyundai Motors 2.88% Asan Foundation 2.53% POSCO 1.94% Asan Nanum Foundation 0.65% Treasury Shares 19.36% Others 46.78%

(Foreign Ownership : 12.14% )

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Business Structures

Shipbuilding Offshore & Engineering Industrial Plant & Engineering Engine & Machinery Electro Electric Systems Green Energy Construction Equipment Refinery Financial Services

Divisions

  • VLCCs, Tankers, Product Carriers, Chemical Tankers
  • Containerships, Bulk Carriers, OBO Carriers
  • Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers
  • LPG Carriers, LNG Carriers
  • Drill Ships, Semi-Submersible Rigs
  • Submarines, Destroyers, Frigates
  • Floating Units : FPSO, FLNG, FPU, TLP, Semi Submersible Unit
  • Fixed Platforms : Topsides Jacket & Pile, Jack-up,

: Modules & Quarters

  • Pipelines & Subsea Facilities, Land-based Modules
  • Offshore Installations
  • Power Plants

t : Combined-Cycle, Thermal Power Plants

  • Process Units

t : Oil and Gas Refinery, Tank Farm, GTL and LNG Facilities

  • Plant Equipment : Industrial Boiler, HRSG, CFBF, Boiler,

Regenerator and Reactor

  • Marine Engines : 2-Stroke and 4-Stroke(HiMSEN) Engines,

Components, Marine Propulsion & Equipment

  • Industrial Machinery : Pump, Compressor
  • Robot & Automation : Processor, Conveyor System, Robot
  • Transformers, Gas Insulated Switchgear, Switchgear
  • Low- and Medium-Voltage Circuit Breakers
  • Rotating Machinery
  • Power Electronics and Control Systems, Wind Power Systems
  • Excavator
  • Wheel Loader, Skid Loader
  • Forklift
  • Solar Power Systems
  • Petroleum

: LPG, Gasoline, Kerosene, Jet Fuel

  • Petrochemicals : Propylene, Alkylate, BTX, Naphtha
  • Securities Brokerage
  • Asset Management, Leasing
  • Futures
  • Corporate Finance

Main Products

  • Hapag-Lloyd (DEU)
  • C.P. Offen (DEU)
  • CMA CGM (FRA)
  • A.P. Moller (DEN)
  • Seaspan (CAN)
  • Enesel S.A. (GRC)
  • BP (GBR)
  • Exxon Mobil (USA)
  • Shell (USA)
  • Chevron (USA)
  • Total (FRA)
  • ENI Norge (NOR)
  • Shell (USA)
  • MEW (KWT)
  • SEC (SAU)
  • HMD (KOR)
  • DSME (KOR)
  • SHI (KOR)
  • Shanghai (CHN)
  • Aramco (SAU)
  • KEOCI (KOR)
  • DSME (KOR)
  • Daelim (KOR)
  • Wagner & Co. Solartechnik (DEU)
  • Albatech (ITA)

Main Clients

  • DSME (KOR)
  • SHI (KOR)
  • DSME (KOR)
  • SHI (KOR)
  • Technip (FRA)
  • Saipem (ITA)
  • Mc Dermott (USA)
  • Siemens (DEU)
  • Hyundai E&C (KOR)
  • Doosan Heavy (KOR)
  • Samsung C&T Corp. (KOR)
  • Doosan (KOR)
  • STX (KOR)
  • Mitsui (JPN)
  • Hudong Dalian (CHN)
  • ABB (SWE)
  • Siemens (DEU)
  • Hyosung (KOR)
  • Komatsu (JPN)
  • Caterpillar (USA)
  • Doosan Infracore (KOR)
  • Suntech (CHN)
  • Vestas (DEU)
  • SK Innovation (KOR)
  • GS-Caltex (KOR)
  • S-Oil (KOR)

Competitors Capacity

  • 10 mil. GT
  • Floaters

: 1~2 units

  • Fixed Platform : 3~4 units
  • Pipeline Laying : 30km
  • Power Plant : 1,000MW

(4~5 PJTs)

  • Large Engines (500 units)

: 18 mil. BHP

  • Medium (1,800 units)

: 5 mil. BHP

  • Transformer (620 units)

: 121,400 MVA

  • Wind Turbine : 600MW
  • 42,900 units

(Excavator 26,200 units)

  • Solar Cell/Module : 600MW
  • 390,000 B/D
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Sales Breakdown

Shipbuilding (KRW 16,432.2 bil.) Offshore & Engineering (KRW 4,653.4 bil.) Industrial Plant & Engineering (KRW 2,409.2 bil.) Engine & Machinery (KRW 1,518.1bil.) Electro Electric Systems (KRW 2,354.6 bil.) Construction Equipment (KRW 2,866.8 bil.) Green Energy (KRW 312.3 bil.) Others (KRW 206.2 bil.)

Financial Services

(KRW 742.5 bil.) Refinery (KRW 21,087.1 bil.)

31.3% 8.8% 4.6% 2.9% 4.5% 5.5% 0.6% 40.1% 1.4% 0.4%

(2014 Consolidated basis, preliminary results)

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  • 26 affiliated companies in Hyundai Heavy Industries Group (HHI included, overseas corporations excluded)

Affiliates

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Vladivostok Tokyo Beijing Hyundai Financial Leasing Co., Ltd. Singapore Atlanta (office, incorporated) New Jersey Houston Istanbul Athens Luanda Nigeria Oslo Rotterdam London France Hyundai Ideal Electric Co. Osaka Moscow HHI China Investment Co., Ltd. Tai’an

Riyadh Al Khobar (office, incorporated)

Alabama Kuwait Hungary

Offices (17) Production / Sales(14) Management(3) Construction(4) Sales (3) R&D(2) Region Overseas

  • ffice

Incorporated firm Total Europe 5 9 14 America 3 4 7 Asia 3 12 15 Middle East / Africa 6 3 9 Total 17 28 45

India Bulgaria Belgium Germany Hyudai Heavy Industries Shanghai R&D Co., Ltd. Khorol Agro, Mikhailovka Agro, Hyundai Electrosystems Brazil

Established 17 Overseas offices and 28 Incorporated firms, a total of 45 global network.

  • 17 overseas offices - Europe : 5, America : 3, Asia : 3, Middle East / Africa : 6
  • 28 Incorporated firms - Production/sales : 14, Sales : 3, Construction : 4, R&D : 2, Management : 3, Agriculture: 2

【Europe】 【Middle East / Africa】 【Asia】 【America】 [HHI]

Yangzhong

Global Network

Agriculture(2)

Dubai Jebel Ali Shandong Yantai Weihai Chanzhou Jakarta

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Business Performance

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14 2,043 2,809 6,792 8,488 8,272 11,470 15,730 13,635 444 4,061 10,905 6,143 9,512 6,192 8,350 4,357 2,968 3,025 4,917 7,835 7,236 9,290 13,838 10,291 13,147 14,419 13,424 17,851 13,642 14,600

5,000 10,000 15,000 20,000 25,000 30,000 35,000 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14`15 (Target) Shipbuilding Non-Shipbuilding

6,400 5,777 9,817 13,405 16,107 18,706 25,020 27,473 10,735 25,324

New Orders Trend

(Mil. USD)

17,209

+15.7% YoY

19,567 27,363 19,834 22,950

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Shipbuilding

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

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16 0.0 50.0 100.0 150.0 200.0

'07 '08 '09 '10 '11 '12 '13 '14 Others LPG Carrier LNG Carrier Containers Tankers Bulkers

(Unit: Mil. GT)

39.9 117.1

  • 33%

Newbuilding Price Trend since 2007 Global Demand since 2007

* Source : Clarkson * Source : Clarkson * Index : 1988=100 (Unit: Mil. USD) (Unit: Mil. GT) * Others : offshore, cruise vessels, ro-ro ferries, MPP, Reefers, PCC

`07 `08 `09 `10 `11 `12 `13 `14 YoY `15.5 Total 177.2 111.4 34.6 95.9 62.8 41.3 117.1 78.9

  • 32.6%

21.1 Bulkers 92.6 57.0 21.1 58.6 23.7 13.8 56.7 34.9

  • 38.4%

1.1 Tankers 28.0 29.9 8.6 20.7 6.1 9.1 21.5 15.2

  • 29.3%

8.3 Containers 35.0 12.7 1.0 6.6 20.1 4.6 23.1 11.4

  • 50.6%

8.4 LNG 2.5 0.6 0.0 0.5 5.4 4.1 4.1 7.1 73.2% 1.6 LPG 0.7 0.6 0.1 0.6 0.4 1.1 2.8 3.4 21.4% 0.4

  • thers

18.4 10.6 3.8 8.9 7.1 8.6 8.9 6.9

  • 22.5%

1.3

`07 `08 `09 `10 `11 `12 `13 `14 YoY `15.5 Price Index 185.1 177.7 138.0 142.4 139.0 126.3 133.2 137.7 3.4% 132.9 Capesize Bulk(180K) 97.0 88.0 56.0 57.0 48.5 46.0 53.5 54.0 0.9% 50.0 VLCC(320K) 146.0 150.0 101.0 105.0 99.0 93.0 94.0 97.0 3.2% 96.0 Container(8,800teu) 134.0 129.0 86.5 95.0 92.5 76.5 85.5 89.0 4.1% 89.0 LPG(82,000m³) 93.0 92.0 72.0 72.8 73.0 70.0 74.5 79.0 6.0% 77.0 LNG(160,000m³) 237.0 245.0 211.5 202.0 202.0 199.5 198.0 200.0 1.0% 200.0

78.9

180.0 190.0 200.0 210.0 220.0 230.0 240.0 250.0 260.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 '07 '08 '09 '10 '11 '12 '13 '14 '15

Capesize 176-180K DWT (Left, Mil. USD) VLCC 315-320K 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)

Market

Shipbuilding

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Shipbuilding 40%

Annual Sales & New Orders

(Unit : sales - bil. KRW, New order – mil. USD)

Sales Breakdown by Product (2014) Sales Contribution(2014)

  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

* Non-Consolidated basis

6,443 7,557 9,084 9,003 7,849 9,487 9,766 10,159 9,349 11,470 15,730 13,635 444 4,061 10,905 6,143 9,512 6,192 5,000 10,000 15,000 20,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales New Orders 29% 20% 17% 10% 7% 5% 5% 7% Container Drillship LNGC LPGC Semi-Rig Bulk Carrier Special Naval Others

* Non-Consolidated basis

Overview Shipbuilding

Main Products

  • VLCCs, Tankers, Product Carriers, Chemical Tankers
  • Containerships, Bulk Carriers, OBO Carriers
  • Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers
  • LNG Carriers, LPG Carriers
  • Drillships, Semi-Submersible Rigs
  • Submarines, Destroyers, Frigates

Operational Highlights

  • Completion of Gunsan Shipyard (Mar. 2010)
  • Investment & Technical Corporation Agreement with OSX (May 2010)

10% of stake in OSX(USD 61.9 mil.) in exchange for technical advise for establishment of a shipyard

  • Delivery of first drillship (Sept. 2010)
  • Delivery of 1,700th vessel (Jan. 2011)
  • Recorded delivery of 100 million GT in ships (Mar. 2011)
  • Delivery of the World’s first LNG-FSRU (Feb. 2014)
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Backlog by Shiptype (2014.12) New Orders in 2014

2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Target Achievement

Details (mil. USD) # of ship

85 19 14 5 1 4 5 3 3 5 1 60

  • Amount

(mil. USD)

9,512 1,549 1,127 511 78 279 644 220 528 916 340 6,192 9,150 67.7%

New Orders by Shiptype (2014.12)

  • The above data is based on the amount
  • Backlogs as of Dec. 2014 on a delivery basis : 145 vessels, USD 18.55 bil.
  • The above data is based on the amount
  • 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)
Container ship 16% Tanker 13% LNG Carrier 26% LPG Carrier 16% Drillship 6% Special & Naval 11% Others 2% Semi Submersible RIg 7% Bulkers 3%

Others 9% Bulker 4% Containership 8% Tanker 26% LPG Carrier 32% LNG Carrier 21%

Performance

Shipbuilding

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Backlog by Shiptype (2015.6) New Orders in 2015

2014 Jan Feb Mar Apr May Jun Total Target Achievement

Details (mil. USD) # of ship

60 2 6 4 10 8 30

  • Amount

(mil. USD)

6,192 198 411 27 435 1,212 902 3,185 8,350 38.1%

New Orders by Shiptype (2015.6)

  • The above data is based on the amount
  • Backlogs as of Jun. 2015 (YTD) : 144 vessels, USD 18.35 bil.
  • The above data is based on a delivery basis
  • The above data is based on the amount
  • 17 Tankers (1,390)
  • 6 Containerships (670)
  • 2 LNGC (564)
  • 3 LPGCs (218)
  • 2 Others (343)
  • LNG선 6척 (1,294)

Performance

Shipbuilding

Containershi p 11% Tanker 19% LNGC 28% LPGC 15% Bulk 2% Drillship 3% Special Naval 11% Semi-Rig 7% Others 4%

Tanker 43% Container ship 21% LNGC 18% LPGC 7% Others 11%

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5.1 6.4 6.2 4.8 6.2 6.0 3.7 4.6 0.3 0.8 1.8 0.9 1.1 0.3 0.9 0.8 1.2

1.2 0.7

1 2 3 4 5 6 7 8 9 10 2007 2008 2009 2010 2011 2012 2013 2014

Gunsan Offshore Ulsan

5.4 7.2 8.0 6.6 7.5 8.1 4.9 5.3

Annual Delivery (mil. GT) Annual Delivery (number of vessels)

2007 2008 2009 2010 2011 2012 2013 2014 Ulsan 75 88 80 55 71 69 44 46 Offshore (on-ground building) 6 14 25 14 13 4 Gunsan

  • 10

9 11 12 10 Total # of Ship 81 102 105 79 93 84 56 56

Delivery

Shipbuilding

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Offshore & Engineering

FPSO Drilling Rig Subsea Pipeline Fixed Platform

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1,935 2,222 3,095 3,423 3,413 3,729 4,373 4,753 4,653 1,997 1,102 2,978 2,352 3,069 4,480 2,072 6,503 6,005 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales New Orders Offshore & Engineering 20%

Sales Contribution (2014)

(Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders Sales Breakdown by Product (2014)

  • 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

Main Products 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)
Fixed Platforms& Floaters 93% Subsea Pipeline 7%

* Non-Consolidated basis * Non-Consolidated basis

  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

Overview Offshore & Engineering

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New Orders by Type

($ mil.) 2009 2010 2011 2012 2013 2014

  • Jun. 2015

Fixed 2,196 1,501 2,121 1,621 454 4,406 403 Floating 46 1,303 1,819 412 5,735 1,470 303 Subsea Pipeline 100 252 539 31 292 129 181 Others 9 13 1 8 22 Total 2,351 3,069 4,480 2,072 6,503 6,005 887

Performance Record Major Projects in 2009/2010

  • Gorgon LNG (Oct. 2009)
  • LNG processing modules

fabrication ($2.1 bil. from Chevron)

  • 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)

(1976 ~ present)

Tot al number

  • f project s

Major Project s Plat forms 87 · SHWE Plat form (Daewoo Int er, 2013) Onshore Facilit ies 10 · Sakhalin-1 OPF Onshore Modules Fabricat ion(ExxonMobil, 2006) Jack-up rig 3 · Harsh Environment Jack-up Rig 2nd (A.P.Moller, 2004) Semi-submersible Drilling Rig 10 · Deepwat er Horizon Semi- Submersible Drilling Unit (R & B Falcon, 2000) FPSO 10 · Usan FPSO (TOTAL, 2012) TLP 2 · West Seno Field Development (Chevron, 2003) FPU 5 · Moho Bilondo FPU (TOTAL, 2008) 5,452 km · Barzan Offshore Project (RasGas, 2013) Fixed Float ing Subsea Pipelines Type

Performance

Offshore & Engineering

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Major Projects Awarded in 2011

  • Qatar, Barzan Offshore Project
  • Date : Jan. 2011
  • Price : USD 860 million
  • Owner : RasGas Company
  • Details : Fabrication and Installation of

Wellhead Platforms, Living Quarters, Onshore & Offshore pipeline (EPC)

  • UK, Q204 FPSO
  • UK, Clair Ridge Platform
  • Date : Feb. 2011
  • Price : USD 1.2 billion
  • Owner : BP
  • Details : Construction of FPSO (EPC),

Processing 0.32 million bpd, storing 0.8 million bbls

  • Date : Mar. 2011
  • Price : USD 620 million
  • Owner : BP
  • Details : Fabrication and Installation of

Drilling and Quarters Platforms (EPC)

Performance

Offshore & Engineering

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  • Norway, Aasta Hansteen

Spar Topside

  • Date : Jan. 2013
  • Price : USD 1.1 billion
  • Owner : Statoil
  • Details : Fabrication and Installation of

Spar Topsides (EPC)

  • Congo, Moho Nord TLP & FPU
  • UK, Rosebank FPSO
  • Date : Mar. 2013
  • Price : USD 1.9 billion
  • Owner : Total
  • Details : Fabrication and Installation of

Tension Leg Platform and Floating Production Unit (EPC)

  • Date : Apr. 2013
  • 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

 TLP

(Tension Leg Platform)

 FPU

(Floating Production Unit)

Major Projects Awarded in 2013

Performance

Offshore & Engineering

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  • Indonesia, Jangkrik FPU
  • Date : Feb. 2014
  • Price : USD 250 million
  • Owner : Eni Muara Bakau B.V.
  • Details : Hull/LQ (EPC)

Major Projects Awarded in 2014

  • Abu Dhabi, NASR Package 2
  • Date : Jul. 2014
  • Price : USD 1.9 billion
  • Owner : Abu Dhabi Marine

Operating Company

  • Details : Offshore Super Complex

Platforms & Power Distribution Platform (EPCI)

Nasr Field Umm Lulu

  • Russia, Odoptu Stage 2 Project
  • Date : Jun. 2014
  • Price : USD 270 million
  • Owner : Exxon Neftegas Limited
  • Details : Onshore Modules (EPC)
  • Date : May. 2014
  • Price : USD 700 million
  • Owner : Hess E&P Malaysia
  • Details : Central Processing Platform,

Wellhead Platform, Bridge (EPCIC)

  • Malaysia, Bergading Project

Performance

Offshore & Engineering

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Industrial Plant & Engineering

Co-Generation Plant Process Plant Thermal Power Plant

Combined Cycle Power Plant

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Industrial Plant & Engineering 10%

Sales Contribution (2014)

(Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders Sales Breakdown by Product (2014)

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)
Power Plant 87% Oil & Gas 2% Plant Equipments 11% 602 1,017 1,374 1,898 2,645 2,761 1,480 1,259 2,429 846 1,544 2,076 2,826 2,010 1,014 4,077 4,396 1,256 1,000 2,000 3,000 4,000 5,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales New Orders
  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

* Non-Consolidated basis * Non-Consolidated basis

Overview Industrial Plant & Engineering

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Performance Record New Orders by Type

(mil. USD) 2009 2010 2011 2012 2013 2014

  • June. 2015

Power Plants 1,412 1,601 9 3,510 4,285

6 3

Chemical Plants/ Plant equipment 1,414 409 1,005 567 111

1,250 95 Total 2,826 2,010 1,014 4,077 4,396 1,256 2,384

Major Projects in 2012/2013/2014

  • Jeddah South (Oct. 2012)
  • 3.2 bil. USD / Saudi Electricity Company,

Saudi Arabia

  • 2,400MW Oil fired Conventional

Power Plant

  • Shuqaiq Power Plant (Aug. 2013)
  • 3.3 bil. USD / Saudi Electricity Company,

Saudi Arabia

  • 2,640MW Oil fired Conventional

Power Plant (1976 ~ present)

Project Type Major Projects Oil & Gas Oil & Gas · 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) Tank Farm · KOC Crude Oil Export Facilities Project (Kuwait Oil Company, 2008) · JPR Zarpa Tank Farm Project (Jordan Petroleum Company, 2000) Refinery & Petrochemical · Clean Fuel Project (Kuwait National Petroleum Company, 2018(E)) · Jazan Refinery and Terminal Project, Package 2 (Saudi Aramco, 2016(E)) · HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013) · 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) Power Combined Cycle/ Simple Cycle Power Plant · Riyadh PP 11 Independent Power Project (Dhuruma Electricity Company, Saudi Arabia, 2013) · Sabiya Combined Cycle Gas Turbine Project (Ministry of Electricity and Water, Kuwait, 2013) · Al Dur Independent Water and Power Project (Al Dur Power & Water Co., Bahrain, 2012) · Marafiq Independent Water and Power Project (Jubail Water and Power Company, Saudi Arabia, 2010) · Shaybah Power Generation Project (Saudi Aramco, Saudi Arabia, 2008) Cogeneration · Tihama Cogeneration Expansion Project Stage II (Tihama Power Company, Saudi Arabia, 2015(E)) · Saudi Aramco 3rd party Cogeneration Program (Tihama Power Company, Saudi Arabia, 2006) Thermal · Jeddah South Power Plant (Saudi Electricity Company, Saudi Arabia, 2017(E)) · Shuqaiq Power Plant (Saudi Electricity Company, Saudi Arabia, 2018(E)) · Namjeju #3&4 Thermal Power Plant (KEPCO, Korea, 2007) · Makkah-Taif Thermal Power Plant (Saline Water Conversion Corporation, Saudi Arabia, 1989) 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)

  • Clean Fuel Project (Apr. 2014)
  • 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait
  • Upgrade and expansion of Refinery

Performance

Industrial Plant & Engineering

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SLIDE 30

30

Engine & Machinery

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

slide-31
SLIDE 31

31

Engine & Machinery 9% (Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders Sales Breakdown by Product (2014)

Main Products & Capacity Operational Highlights

  • 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

Sales Contribution (2014)

 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 CO2 emission and 97% reduction of NOX emission
 Surpassed cumulative two-stroke engine production of 100 mil. bhp (Sept. 2010)  Production of 1,000th Packaged Power Station (Jul. 2012)

Marine Engine 78% Power Plant Engine 6% Hydraulic Machinery 7% Robotics 9% 1,220 1,646 2,522 2,772 2,835 3,096 2,967 2,313 2,110 1,880 3,248 4,646 1,452 2,283 3,176 1,858 2,425 1,996 1,000 2,000 3,000 4,000 5,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales New Orders

  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

* Non-Consolidated basis * Non-Consolidated basis

Overview Engine & Machinery

slide-32
SLIDE 32

32

 Eco-friendly Diesel Engine
  • 15% 3eduction of NOx emission meeting new IMO standards
 High output Eco-friendly HiMSEN Gas Engine
  • 20% reduction of CO2 emission compared to disel engine
  • 97% reduction of NOx emission to reach the world’s lowest

level of 50ppm

  • 47% improvement in engine performance

Ship Engine New Orders by Region Market Share in 2014 (%)

Large-s iz e M ar arine Engine M id-s iz e M ar arine Engine Dies es el el Pow

  • w er

Plan ant Dome mes tic 54 45

  • Globa
  • bal

35 21 7

  • USD 70 mil. order for 70 MW Diesel Power Plants from

Bangladesh Power Development Board (BPDB)

Eco-friendly Engine Products Major Projects

  • USD 160 mil. order for 204 MW, 120 Packaged Power

Stations from electricity company Electricidad de Caracas, Venezuela

  • USD 74 mil. order for 140 MW Diesel Power Plants from

Equitatis, Equador

 Diesel Power Plants order from Bangladesh (Apr. 2010)  PPS order from Venezuela (Apr. 2010)  Diesel Power Plants order from Ecuador (May 2011)

57% 45% 67% 92% 83% 87% 66% 69% 39% 44% 33% 8% 9% 9% 28% 17% 3% 11% 8% 4% 6% 14% 2007 2008 2009 2010 2011 2012 2013 2014

Domestic China Others

Performance

Engine & Machinery

  • USD 32 mil., order for 57MW, 34 Packaged Power Station

from JINRO, Panama

 PPS order from JINRO, Panama (Jun. 2015)
slide-33
SLIDE 33

33

Electro Electric Systems

Transformers

High Voltage Circuit Breakers

Switchgears Marine Electrical Equip. Wind Power

slide-34
SLIDE 34

34

Transformer 28% High Voltage Circuit Breaker 18% Low Voltage Circuit Breaker 6% Switchgear 17% Rotating Machinery 22% Others 9%

1,057 1,453 1,925 2,712 3,242 2,319 2,843 2,609 2,241 1,274 1,766 2,281 2,556 3,793 2,625 2,318 1,820 2,006 1,000 2,000 3,000 4,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales New Orders

(Unit : sales - bil. KRW, New order – mil. USD)

Sales Contribution (2014) Annual Sales & New Orders

Operational Highlights Main Products

Sales Breakdown by Product (2014)

  • 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

Electro Electric Systems 10%

 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)

* Non-Consolidated basis * Non-Consolidated basis

  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

Overview Electro Electric Systems

slide-35
SLIDE 35

35

Sales by Region

  • US transformer long-term supply contract (May 2010)

Major performance

  • USD 600 mil. Order for supplying transformers ranging from

230kV to 500kV to Southern California Edison(SCE) for 10 years from 2010 to 2019

  • Largest transformer order to date

* The sales of Green Energy division is not included in 2011 & 2012 results * 2007 ~ 2009 sales are based on K-GAAP.

Major Projects

Project Type Major Projects

Generator Installation · West Generating Project (U.S.A) Power Transmission & Mutation Installation · British Columbia Hydro & Power Authority (Canada) Iron Manufacture Installation · NUEVA VENTANAS 240MW Coal Fired Power Project (Chile) Water Treatment & Cement & Petrochemical Installation · KODECO IKC Project (Indonesia) Automotive Goods · Seoul Metro (South Korea) Marine Goods · Royal Nedlloyd Group (Netherlands) Ocean Installation · Al-Jubail Saline Water Conversion (Saudi Arabia) Marine Steam Turbine · Hyundai Merchant Marine LNG Carrier – 22,000MW Marine Steam Turbine (South Korea) Know-how Export · Gas Insulated Switchgear : TATUNG Company (Taiwan) Fresh Water Installation · Shuweihat S2 IWPP Project (U.A.E.)

14% 14% 11% 12% 10% 7% 3% 4% 6% 9% 5% 8% 4% 2% 1% 3% 1% 0% 11% 20% 5% 7% 5% 6% 29% 18% 18% 21% 23% 21% 3% 4% 8% 2% 2% 0% 35% 38% 51% 46% 54% 58% 2009 2010 2011 2012 2013 2014

Domestic Others Middle East Europe Africa Asia North America

Performance

Electo Electric Systems

slide-36
SLIDE 36

36

Wind Power

  • HHI’s production : Nacelle part
  • Outsourcing : Rotor Part (Blade, Hub), Tower

Generator (HHI) Gear box (Jake) Power converter (HHI) Transformer (HHI)

(Installed in Tower)

  • Wind Turbine Production facilities
  • HHI’s Products & Certification

Model Rated Power (MW) Gear Type Installation Type On Market HQ1650

1.65 Geared Onshore

  • Jun. 2009

HQ2000

2.0 Geared Onshore

  • Jun. 2010

HQ5500

5.5 Geared Offshore

  • Feb. 2014

Nacelle Part

Wind Turbine System Structure

Company Name Details Wind Turbine plant (HHI )

  • Located in Gunsan, Korea
  • Annual Capacity: 600MW

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

* On Market: based on proto-type installation date

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SLIDE 37

37

Construction Equipment

Crawler Excavator Wheel Loader Forklift Truck Skid Steer Loader Mini Excavator Wheel Excavator

slide-38
SLIDE 38

38

Construction Equipment 9%

(Unit : sales - bil. KRW)

Annual Sales

Operational Highlights Main Products

Sales Breakdown by Product (2014)

  • 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)

Sales Contribution (2014)

  • 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 350,000th construction equipment (Oct. 2011)
Excavator 56% Folk Lift 17% Wheel Loader 10% CKD 6% Others 10% Skid Loader 1%

1,198 1,512 1,769 1,190 2,275 3,052 3,120 2,723 2,215 500 1,000 1,500 2,000 2,500 3,000 3,500 2006 2007 2008 2009 2010 2011 2012 2013 2014

* Non-Consolidated basis * Non-Consolidated basis

  • Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

Overview Construction Equipment

slide-39
SLIDE 39

39 6% 6% 2% 3% 3% 3% 2% 3% 3% 4% 6% 10% 15% 10% 21% 17% 3% 6% 7% 8% 9% 12% 20% 17% 28% 22% 17% 16% 18% 19% 14% 11% 25% 27% 19% 4% 5% 3% 5% 6% 10% 39% 49% 39% 38% 48% 54% 45% 43%

2007 2008 2009 2010 2011 2012 2013 2014

Others Brazil China Domestic Europe North America India

Construction Equipment Sales by Region Excavators Sales in China

※ Others includes Middle East (12%), Africa (11%), Russia (6%), Asia, Turkey and etc.

  • Jun. 2014
  • Jun. 2015

YoY Market 58,093 32,713

  • 43.7%

H H I 2,827 1,505

  • 46.8%

M/ S 4.9% 4.6%

  • 0.3%p

Excavator Sales in China HHI’s Excavator Market Share by Region

※ 2007 ~ 2009 sales are based on K-GAAP, 2014 preliminary results (Source : Company data) (Source : China construction machinery association) 71,767 93,237 162,908 169,182 104,908 162,908 84,573 32,713 8,377 10,101 18,467 17,294 8,540 7,532 3,743 1,505 5,000 10,000 15,000 20,000 25,000 30,000 40,000 80,000 120,000 160,000 200,000 2008 2009 2010 2011 2012 2013 2014

  • 2015. Jun.

Market size(Left) HHI(Right)

2011 2012 2013 2014

Domest ic

32.1% 27.5% 27.9% 25.1%

Global (Exclude Japan)

10.0% 9.0% 7.8% 6.2%

China

10.2% 8.1% 7.2% 4.4%

India

14.4% 17.7% 19.7% 20.4%

Performance

Construction Equipment

slide-40
SLIDE 40

40

Green Energy

Solar Power

slide-41
SLIDE 41

41

Solar Solar Cell Cell Solar Solar Module Module Thin Thin-film film Solar Solar module module Solar Solar Syste System (Inver Inverter er)

Picture re Facilit itie ies Sola lar Ce Cell ll Pla lant (Eumseong, Korea) Solar M Modul dule P e Plant nt (Eumseong, Korea) Hyundai dai Avanc ancis (Ochang, Korea) Electro ro E Electri ric S Systems ms Div Divis isio ion (Ulsan, Korea) Annua nnual C Capac apacity (2013) 013) 600MW 600MW 100MW 500MW De Detail ils

  • 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

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
  • Capacity and Sales

2005 2007 2008 2009 2010 2011 2012 2013 2014

Capacity

Cell (MW)

30 30 60 370 370 580 600 600 600

Modules (MW)

20 30 70 170 510 560 600 600 600

Sales (KRW bil.) % of total HHI Sales

50 0.4% 107 0.6% 150 1.3% 591 2.6% 399 1.6% 344 1.4% 312 1.3% 317 1.4%

  • Solar Product Certification
  • 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.
  • UL 1703
  • IEC 61215 edition 2, IEC 61730 (TUV)
  • J-PEC
  • JET Cert
  • CE Declaration
  • MCS (UK)
  • CSTB (France)
  • Ammonia resistance (IEC 62716)
  • Salt mist (IEC 61701 ed.2)
slide-42
SLIDE 42

42

Subsidiaries

slide-43
SLIDE 43

43

Hyundai Oilbank

Refining Unit Upgrading Unit Crude oil 100% (390,000 b/d) LPG, Naphtha, Gasoline 19% Kerosene, Diesel 37% Bunker C 44% Gasoline, LPG 46% Diesel 37% Propylene 9% Others 8%

Total CAPEX : KRW 2.6 tril. (Jul. 2006~ Feb. 2011)

At a Glance Facilities & Products

  • Completion of #2 HOU Plant

36.7%

With the completion of #2 HOU plant in Jan. 2011, Hyundai Oilbank achieved a ratio of 36.7% (the highest upgrading ration in the industry)

  • Domestic Light Oil Market Share 22.0%
  • Production Capacity 390,000B/D

#1 : 110,000 B/D, #2 : 280,000 B/D

  • HHI’s Management Control

91.1%

Acquired by HHI in Aug. 1020 Competitors : SK Innovation, GS Caltex, and S-Oil

slide-44
SLIDE 44

44

8,642.6 8,506.5 8,597.9 7,701.2 215.1% 194.6% 181.6% 151.0%

Assets Liabilities-to- Equity Ratio

2011 2012 2013 2014 Sales 18,958.6 21,523.9 20,295.6 18,258.0 Operating I ncome 594.7 308.4 403.3 192.8 % 3.1 1.4 2.0 1.1 Net I ncome 360.7 156.5 152.4 31.1 % 1.9 0.7 0.8 0.2

(Unit: KRW billion)

Income Statement

2011 2012 2013 2014 Total Assets 8,642.6 8,506.5 8,597.9 7,701.2 Total Liabilities 5,899.5 5,618.8 5,544.5 4,633.1 Total Shareholder’s Equity 2,743.2 2,887.6 3,053.5 3,068.1 Liabilities-to- Equity Ratio(% ) 215.1 194.6 181.6 151.0

(Unit: KRW billion)

Financial Position

Hyundai Oilbank

* The financial information from 2011 on is based on K-IFRS. 594.7 308.4 403.3 192.8 18,958.6 21,523.9 20,295.6 18,258.0

Operating income Sales

2011 2012 2013 2014 2011 2012 2013 2014

slide-45
SLIDE 45

45 2014 Jan Feb Mar Apr May Jun Total Target Achievement Details (mil. USD) # of ship 31 2 2 1 7 8 7 27

  • Amount

(mil. USD) 2,807 159 145 87 645 703 873 2,612 3,800 68.7% Containership 21% T anker 32% Bulker 4% LNG Carrier 19% LPG Carrier 8% Semi-Sub Rig / Floating dock 6% FPU 3% PCTC 7%

New Orders in 2015

At a Glance

Hyundai Samho

Backlog by Shiptype (2015.6)

  • Backlogs as of Jun. 2015 on a delivery basis : 96 vessels, USD 8.89 bil.
  • The above data is based on the amount

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)

New Orders in 2015

  • 16 Tankers (1,413)
  • 5 Containerships (515)
  • LNG Carriers (397)
  • 4 PCTCs (278)
  • Others (9)
  • Production Capacity

2.9 mil. GT

  • Delivered 30 vessels in 2014
  • # of dry docks : 2
  • 2015 Order Target
  • 2015 Sales Target

3,800 mil. USD 4,599 bil. KRW

slide-46
SLIDE 46

46 804.3 254.0

  • 35.6
  • 502.2

4,828.7 4,231.8 3,506.2 4,172.1

Operating income Sales

6,954.7 6,978.9 6,782.7 7268.7 116.5% 109.1% 102.2% 136.3%

Assets Liabilities-to- Equity Ratio

2011 2012 2013 2014 Sales 4,828.7 4,231.8 3,506.2 4,172.1 Operating I ncome 804.3 254.0

  • 35.6
  • 502.2

% 16.7 6.0

  • 1.0
  • 12.0

Net I ncome 551.0

  • 12.5
  • 52.1
  • 215.2

% 11.4

  • 0.3
  • 1.5
  • 0.5

(Unit: KRW billion)

Income Statement

2011 2012 2013 2014 Total Assets 6,954.7 6,978.9 6,782.7 7,268.7 Total Liabilities 3,741.7 3,641.1 3,428.9 4,192.4 Total Shareholder’s Equity 3,213.0 3,337.7 3,353.9 3,076.3 Liabilities-to- Equity Ratio(% ) 116.5 109.1 97.8 136.3

(Unit: KRW billion)

Financial Position

Hyundai Samho

* The financial information from 2010 is based on K-IFRS.

2011 2012 2013 2014 2011 2012 2013 2014

slide-47
SLIDE 47

47

Financial Performance

slide-48
SLIDE 48

48

Financial Summary (Consolidated)

Operating Profit Net Income

53,711.7 100.0% 54,973.7 100.0% 54,188.1 100.0% 52,582.4 100.0% 12,228.1 100.0% 4,561.0 8.5% 2,005.5 3.6% 802.0 1.5% (3,249.5)

  • 6.2%

(192.4)

  • 1.6%

Shipbuilding 2,494.3 13.6% 1,047.1 5.9% 12.6 0.1% (1,895.9)

  • 11.5%

(157.6)

  • 3.7%

Offshore 391.0 10.5% 319.3 7.3% 282.4 5.9% (230.3)

  • 4.9%

(85.8)

  • 6.9%

Industrial Plant 252.4 9.4% 106.5 7.4% 61.4 5.0% (1,130.8)

  • 46.9%

32.0 2.9% Engine & Machinery 602.2 28.0% 347.7 17.3% 118.3 6.9% (10.9)

  • 0.7%

(8.1)

  • 1.6%

Electro Electric 153.2 6.4% (74.3)

  • 2.6%

90.5 3.3% 86.3 3.7% 17.2 3.0% Construction 461.9 10.8% 276.5 7.3% 194.3 5.9% (33.4)

  • 1.2%

0.2 0.0% Green Energy (175.0)

  • 46.0%

(106.3)

  • 31.5%

(103.2)

  • 32.8%

(16.5)

  • 5.3%

(0.8)

  • 1.0%

Refinery 595.6 3.2% 308.7 1.4% 404.4 1.8% 228.4 1.1% 97.3 2.8% Finance services 89.7 13.0% 94.9 15.0% 34.5 5.2% 36.3 4.9% 19.2 8.0% Others (304.3)

  • (314.6)
  • (293.2)
  • (282.7)
  • (106.0)
  • 2,743.4

5.1% 1,029.6 1.9% 146.3 0.3% (2,206.1)

  • 4.2%

(125.2)

  • 1.0%

Operating Profit Sales Net I ncome 2012 2015.1Q 2011 2013 2014

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Sales

(Bil. of KRW)

53,711.7 54,973.7 54,188.1 52,582.4

0.0 20,000.0 40,000.0 60,000.0 2011 2012 2013 2014 4,561.0 2,005.5 802.0 -3,249.5 8.5% 3.6% 1.5%

  • 6.2%
  • 8%
  • 6%
  • 4%
  • 2%

0% 2% 4% 6% 8% 10%

  • 10,000.0

0.0 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 2011 2012 2013 2014 OP OP Margin 2,743.4 1,029.6 146.3

  • 2,206.1

5.1% 1.9% 0.3%

  • 4.2%
  • 6%
  • 4%
  • 2%

0% 2% 4% 6%

  • 10,000.0

0.0 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 2011 2012 2013 2014 NI NI Margin

slide-49
SLIDE 49

49

Assets Liabilities & Total Debt Shareholder’s Equity

2011 2012 2013 2014

  • Mar. 2015

49,000.8 49,273.1 53,205.0 53,384.4 53,742.0

Current Assets

23,076.4 25,278.6 29,254.2 29,871.6 30,429.0

Cash& Cash Equivalents

1,609.9 1,107.7 1,336.6 3,229.3 2,953.8

Non Current Assets

25,924.4 23,994.5 23,950.8 23,512.8 23,313.0 30,824.3 30,531.8 34,175.4 36,745.8 37,115.7

Current Liabilities

25,490.8 22,174.0 26,516.4 27,702.7 26,947.7

Non-Current Liabilities

5,333.5 8,357.8 7,659.0 9,043.1 10,168.0 18,176.5 18,741.3 19,029.6 16,638.6 16,626.3 169.6% 162.9% 179.6% 220.8% 223.2% Debt-to-Equity Ratio 60.8% 79.1% 83.3% 99.4% 109.0%

Total Debt

11,057.0 14,826.5 15,843.2 16,543.1 18,123.5

Total Assets Total Liabilities Total Shareholder's Equity Liabilties-to Equity Ratio

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Financial Summary (Consolidated)

(Bil. of KRW)

49,000.8 49,273.1 53,205.0 53,384.4

0.0 20,000.0 40,000.0 60,000.0 2011 2012 2013 2014 30,824.3 30,531.8 34,175.4 36,745.8 11,057.0 14,826.5 15,843.2 16,543.1 0.0 20,000.0 40,000.0 60,000.0 2011 2012 2013 2014

18,176.5 18,741.3 19,029.6 16,638.6

0.0 20,000.0 40,000.0 60,000.0 2011 2012 2013 2014

slide-50
SLIDE 50

50

Financial Summary (Non-Consolidated)

Operating Profit Net Income

25,019.6 100.0% 25,055.0 100.0% 24,282.7 100.0% 23,463.5 100.0% 6,610.0 100.0% 2,628.5 10.5% 1,292.9 5.2% 734.8 3.0% (1,923.3)

  • 8.2%

(198.6)

  • 3.0%

Shipbuilding 1,321.7 13.6% 698.2 7.1% 311.0 3.1% (492.4)

  • 5.3%

(91.4)

  • 3.7%

Offshore 391.4 10.5% 319.3 7.3% 280.0 5.9% (230.5)

  • 5.0%

(86.0)

  • 6.9%

Industrial Plant 244.9 9.4% 102.9 7.0% 64.1 5.1% (1,068.8)

  • 44.0%

33.3 3.0% Engine & 637.3 28.0% 381.0 12.8% 145.8 6.3% 4.6 0.2% (5.5)

  • 0.9%

Electro Electric 155.9 6.4% (58.7)

  • 2.1%

124.7 4.8% 110.0 4.9% 22.4 4.1% Construction 320.7 10.8% 243.8 7.8% 194.6 7.1% 70.0 3.2% 13.6 2.4% Green Energy (172.7)

  • 46.0%

(103.1)

  • 30.0%

(100.8)

  • 32.3%

(13.6)

  • 4.3%

(0.2)

  • 0.2%

Others (270.7)

  • (290.5)
  • (284.6)
  • (302.6)
  • (84.8)
  • 1,945.9

7.8% 1,111.4 4.4% 451.7 1.9% (1,754.7)

  • 7.5%

(103.4)

  • 1.6%

Operating Profit Sales Net I ncome 2012 2015.1Q 2011 2013 2014

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Sales

(Bil. of KRW) 1,945.9 1,111.4 451.7

  • 1,754.7

7.8% 4.4% 1.9%

  • 7.5%
  • 10%

0% 10% 20% 30%

  • 10,000.0

0.0 10,000.0 20,000.0 30,000.0

2011 2012 2013 2014 NI NI Margin

25,019.6 25,055.0 24,282.7 23,463.5

0.0 10,000.0 20,000.0 30,000.0 2011 2012 2013 2014 2,628.5 1,292.9 734.8

  • 1,923.3

10.5% 5.2% 3.0%

  • 8.2%
  • 10%

0% 10% 20% 30%

  • 10,000.0

0.0 10,000.0 20,000.0 30,000.0 2011 2012 2013 2014 OP OP Margin

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SLIDE 51

51

Assets Liabilities & Total Debt Shareholder’s Equity

2011 2012 2013 2014

  • Mar. 2015

29,920.5 30,637.9 32,131.7 31,999.3 31,513.8 Current Assets 11,605.9 13,260.6 14,815.7 14,778.7 14,320.8 Cash& Cash Equivalents

608.3 522.9 730.7 1,407.9

1,010.3

Non Current Assets 18,314.6 17,377.3 17,316.0 17,220.6 17,193.0 15,201.2 15,448.0 16,551.4 18,226.2 17,722.1 Current Liabilities 14,029.1 12,289.4 13,522.9 13,554.1 12,634.0 Non-Current Liabilities 1,172.1 3,158.6 3,028.5 4,672.1 5,088.1 14,719.3 15,189.9 15,580.3 13,773.2 13,791.7 103.3% 101.7% 106.2% 132.3% 128.5% Debt-to-Equity Ratio 26.9% 43.1% 47.5% 53.0% 57.6% Total Debt

3,962.7 6,542.1 7,397.8 7,300.5

7,943.5

Total Assets Total Liabilities Total Shareholder's Equity Liabilties-to Equity Ratio

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Financial Summary (Non-Consolidated)

(Bil. of KRW)

29,920.5 30,637.9 32,131.7 31,999.3

0.0 10,000.0 20,000.0 30,000.0 40,000.0 2011 2012 2013 2014 15,201.2 15,448.0 16,551.4 18,226.2 3,962.7 6,542.1 7,397.8 7,300.5 0.0 10,000.0 20,000.0 30,000.0 40,000.0

2011 2012 2013 2014

14,719.3 15,189.9 15,580.3 13,773.2 0.0 10,000.0 20,000.0 30,000.0 40,000.0 2011 2012 2013 2014

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SLIDE 52

52 19,834.0 22,950.0 10,000 20,000 30,000 40,000 2014 2015(E)

+15.7%

23,463.5 24,325.9

10,000 20,000 30,000 40,000 2014 2015(E)

+3.7% 2014 2015(E) Change Shipbuilding 6,192.0 8,350.0 34.9% Offshore & Engineering 6,005.0 5,300.0

  • 11.7%

Industrial Plant 1,256.0 1,650.0 31.4% Engine & Machinery 1,996.0 2,571.0 28.8% Electro Electric Systems 2,006.0 2,445.0 21.9% Construction Equipment 2,071.0 2,298.0 11.0% Green Energy 308.0 336.0 9.1% Total 19,834.0 22,950.0 15.7%

2015 Business Plan (Non-Consolidated)

Sales (bil. KRW) New Orders (mil. USD)

2014 2015(E) Change Shipbuilding 9,349.4 8,305.5

  • 11.2%

Offshore & Engineering 4,653.2 4,920.7 5.7% Industrial Plant 2,429.2 3,290.0 35.4% Engine & Machinery 2,110.2 2,417.1 14.5% Electro Electric Systems 2,241.0 2,510.6 12.0% Construction Equipment 2,214.7 2,370.0 7.0% Green Energy 317.0 354.0 11.7% Others 148.8 158.0 6.2% Total 23,463.5 24,325.9 3.7%

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53

Sales by Division (Non-Consolidated)

* The financial information above is based on K-IFRS

Target May Achievement Target May Achievement Shipbuilding 8,305 3,795 45.7% 9,619 3,972 41.3% Offshore & Engineering 4,921 2,012 40.9% 5,134 1,666 32.5% I ndustrial Plant & Engineering 3,290 1,881 57.2% 3,130 666 21.3% Engine & Machinery 2,417 934 38.6% 2,463 805 32.7% Electro Electric Systems 2,511 979 39.0% 2,638 854 32.4% Construction Equipment 2,370 957 40.4% 3,100 1,000 32.3% Green Energy 354 126 35.6% 334 127 38.0% Others 158 52 32.9% 152 62 40.8% Total 24,326 10,736 44.1% 26,570 9,152 34.4% 2015 2014

Sales (bil. KRW)

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SLIDE 54

54

Backlog 2015

Target Jun.

Achievement

Target Jun.

Achievement

Jun. Shipbuilding 8,350 3,185 38.1% 9,150 4,188 45.8% 18,346 Offshore & Engineering 5,300 888 16.8% 6,900 2,073 30.0% 20,851 I ndustrial Plant & Engineering 1,650 98 5.9% 5,000 1,088 21.8% 9,952 Engine & Machinery 2,571 1,080 42.0% 2,900 1,405 48.4% 2,973 Electro Electric Systems 2,445 946 38.7% 2,424 1,213 50.0% 2,037 Construction Equipment 2,298 1,045 45.5% 2,837 1,115 39.3%

  • Green Energy

336 152 45.2% 354 152 42.9% 34 Total 22,950 7,394 32.2% 29,565 11,234 38.0% 54,193

2015 New Orders 2014

* The backlog above is on a delivery basis

New Orders by Division (Non-Consolidated)

New Orders and Backlog (Mil. USD)

slide-55
SLIDE 55

55

Shipbuilding demand declined YoY, due to a slowdown in the global economic growth, imbalance of supply and demand in the market, falling shipping rates, and weak new-building

  • rder momentum.
  • LNG Carrier : Demand is expected to grow, spurred by LNG

project plans in regions including the US, and Australia.

  • Large-sized containership : Alliance of top tier shipping

companies is expected to intensify competition and to boost large-sized containership demand to take advantage of economies of scale. 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,

  • il and gas investments will continue to maintain and expand

market share and production level.

  • 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.

Shipbuilding Offshore & Engineering

Industrial Plant & Engineering

Business Overview & Outlook

2014 2015 Outlook

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SLIDE 56

56

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. 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. 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. 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.

2014 2015 Outlook

Electro Electric Systems Construction Equipment Engine & Machinery Green Energy

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. Economic recessions and political uncertainties dampened demand in the emerging markets, and Japanese makers who Benefitted from the weak yen increased competition. 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.

Business Overview & Outlook

slide-57
SLIDE 57

57

Q & A

slide-58
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58

Thank You

http://www.hhiir.com

*For More Information IR Team E-mail: hhiir@hhi.co.kr Tel: +82-2-746-7568, 7508, 4728 Fax: +82-746-4662 Website: www.hhi.co.kr (Company) /www.hhiir.com (IR)