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

(2015.7) 1

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

Contents  HHI at a Glance  Business Performance  Financial Performance 3

HHI at a Glance 4

Summary  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 5

History 12. 1973 02. 2002 04. 2011    Establishment of Hyundai Shipbuilding Separation from Hyundai Group and Completion of World’s largest Saudi & Heavy Industry Co., Ltd. foundation of HHI Group MARAFIQ power plant (2,750MW) 04. 1975 05. 2002 04. 2011    Establishment of Hyundai Mipo Acquisition of Samho Heavy Industries Achievement of a 100 million GT in Dockyard Co., Ltd. delivery of ships, the first in the world 06. 1994 10. 2004 02. 2014    Delivery of Korea’s first LNG Carrier Launch of World’s first ship built on the Delivery of the world’s first LNG-FSRU ground (105K DWT Crude Oil Carrier) 1970~2002 2002~2010 2011~2015 08. 1999 02. 2009 01. 2015    Listed on the Korean Stock Exchange Completion of ‘H-Dock’, eligible for Recognition as the World’s Significant 1,000K Ton FPSO construction Ship for 32 consecutive years 11. 2000 12. 2009 02. 2015    Selected as a main contractor of the Acquisition of Hyundai Corporation Completion of the World’s largest next Korean submarine builder cylindrical FPSO 02. 2001 08. 2010 03. 2015    Completion of the World’s largest Acquisition of Hyudai Oilbank Co., Ltd. Breakthrough the production of deep-sea FPSO (343K Tons) (70% of ownership and management) accumulating 9,000 HiMSEN Engines 6

Business Highlights Achievement of a 100 million GT in Recognition of the ‘World Significant delivery of ships, the very first in the Ship’ for 32 consecutive years world (Apr. 2011) • World shipbuilding publications, Maritime Report and Maine Log Delivery of Korea’s first LNG Carrier Delivery of World’s Biggest Jacket (Jun. 1994) (May .1989) • Exxon (USA) • 125,000 m 3 • 40,000 ton Completion of World’s largest cylindrical Completed World’s largest Saudi FPSO (Feb. 2015) MARAFIQ power plant (Apr. 2011) • Power generation of 2,750 MW • Desalination of 176 MIGD Formation of the world record in Achievement of domestic record in production of 2-stroke marine engines production of Transformers(Feb. 2010) (Sep. 2010) • 600,000 MVA • 100 million BHP 7

Ownership Structure (As of December 31, 2014) Hyundai Mipo Chung Mong-joon Dockyard Co., Ltd. 10.15% 7.98% National Pension Service 4.69% Others 46.78% 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

Business Structures Divisions Main Products Main Clients Competitors Capacity Shipbuilding VLCCs, Tankers, Product Carriers, Chemical Tankers Hapag-Lloyd (DEU) DSME (KOR) 10 mil. GT • • • • Containerships, Bulk Carriers, OBO Carriers C.P. Offen (DEU) SHI (KOR) • • • Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers CMA CGM (FRA) • • LPG Carriers, LNG Carriers A.P. Moller (DEN) • • Drill Ships, Semi-Submersible Rigs Seaspan (CAN) • • Submarines, Destroyers, Frigates Enesel S.A. (GRC) • • Offshore & Floating Units : FPSO, FLNG, FPU, TLP, Semi Submersible Unit BP (GBR) DSME (KOR) Floaters : 1~2 units • • • • Fixed Platforms : Topsides Jacket & Pile, Jack-up, Exxon Mobil (USA) SHI (KOR) Fixed Platform : 3~4 units Engineering • • • • : Modules & Quarters Shell (USA) Technip (FRA) Pipeline Laying : 30km • • • Pipelines & Subsea Facilities, Land-based Modules Chevron (USA) Saipem (ITA) • • • Offshore Installations Total (FRA) Mc Dermott (USA) • • • ENI Norge (NOR) • Industrial Power Plants t : Combined-Cycle, Thermal Power Plants Shell (USA) Siemens (DEU) Power Plant : 1,000MW • • • • Process Units t : Oil and Gas Refinery, Tank Farm, MEW (KWT) Hyundai E&C (KOR) (4~5 PJTs) Plant & • • • GTL and LNG Facilities SEC (SAU) Doosan Heavy (KOR) • • Engineering Plant Equipment : Industrial Boiler, HRSG, CFBF, Boiler, Samsung C&T Corp. (KOR) • • Regenerator and Reactor Engine & Marine Engines : 2-Stroke and 4-Stroke(HiMSEN) Engines, HMD (KOR) Doosan (KOR) Large Engines (500 units) • • • • Components, Marine Propulsion & Equipment DSME (KOR) STX (KOR) : 18 mil. BHP Machinery • • Industrial Machinery : Pump, Compressor SHI (KOR) Mitsui (JPN) Medium (1,800 units) • • • • Robot & Automation : Processor, Conveyor System, Robot Shanghai (CHN) Hudong Dalian (CHN) : 5 mil. BHP • • • Electro Transformers, Gas Insulated Switchgear, Switchgear Aramco (SAU) ABB (SWE) Transformer (620 units) • • • • Low- and Medium-Voltage Circuit Breakers KEOCI (KOR) Siemens (DEU) : 121,400 MVA Electric • • • Rotating Machinery DSME (KOR) Hyosung (KOR) Wind Turbine : 600MW • • • • Systems Power Electronics and Control Systems, Wind Power Systems Daelim (KOR) • • Construction Excavator Komatsu (JPN) 42,900 units • • • Wheel Loader, Skid Loader Caterpillar (USA) (Excavator 26,200 units) Equipment • • Forklift Doosan Infracore (KOR) • • Solar Power Systems Wagner & Co. Solartechnik (DEU) Suntech (CHN) Solar Cell/Module : 600MW Green Energy • • • • Albatech (ITA) Vestas (DEU) • • Refinery Petroleum : LPG, Gasoline, Kerosene, Jet Fuel SK Innovation (KOR) 390,000 B/D • • • Petrochemicals : Propylene, Alkylate, BTX, Naphtha GS-Caltex (KOR) • • S-Oil (KOR) • Financial Securities Brokerage • Asset Management, Leasing Services • Futures • Corporate Finance • 9

Sales Breakdown Financial Services Others (KRW 206.2 bil.) (KRW 742.5 bil.) 1.4% 0.4% 31.3% 40.1% Refinery Shipbuilding (KRW 21,087.1 bil.) (KRW 16,432.2 bil.) 8.8% 0.6% Green Energy Offshore & Engineering (KRW 4,653.4 bil.) (KRW 312.3 bil.) 4.5% 2.9% 4.6% 5.5% Construction Equipment Industrial Plant & Engineering (KRW 2,409.2 bil.) (KRW 2,866.8 bil.) Electro Electric Systems Engine & Machinery (KRW 2,354.6 bil.) (KRW 1,518.1bil.) (2014 Consolidated basis, preliminary results) 10

Affiliates  26 affiliated companies in Hyundai Heavy Industries Group (HHI included, overseas corporations excluded) 11

Global Network 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 [HHI] Overseas Incorporated Production / Region Total office firm Sales(14) Europe 5 9 14 Sales (3) America 3 4 7 Construction(4) Asia 3 12 15 【 Europe 】 R&D(2) Middle East / 6 3 9 Management(3) Africa Agriculture(2) Oslo Total 17 28 45 Moscow Offices (17) Rotterdam London Khorol Agro, Mikhailovka Agro, Germany Hyundai Electrosystems Belgium Hungary France Vladivostok Hyundai Ideal Electric Co. Beijing Bulgaria Istanbul Tai’an Shandong Yantai New Jersey Tokyo Alabama Weihai Chanzhou Athens Yangzhong Osaka Atlanta Kuwait (office, incorporated) Riyadh Houston HHI China Investment Co., Ltd. Al Khobar Dubai Hyudai Heavy Industries Shanghai R&D Co., Ltd. (office, incorporated) Jebel Ali Hyundai Financial Leasing Co., Ltd. India Nigeria Jakarta Singapore Luanda Brazil 【 Asia 】 【 Middle East / Africa 】 【 America 】 12

Business Performance 13