2015 Daewoo International
Presentation Material
Ver. 2015-06
Contents
I
▶ Corporate Outlook
▶ Vision 2020
▶ Business Areas
▶ 6 Major Strategic Businesses
▶ Global Network
▶ DWI Company Building
Business Area
Company Profile
II
1
ReferencesIII
Corporate Outlook
 Establishment : 1967
 Employee : 8,128 (Including Worldwide Global Staffs)
 Global Network : Total 122 (58 countries)
2
Sales Volume (2014) : USD 18.3 Billion
 Major Business Sector
· International Trade
· Investment & Project Organizing
· Resources Development
20
16
12
4
$ 18.6 Billion
Operating Profit
$ 342 M8
20102009 20122011 2013
* Since 2011, K-IFRS standard used
2014
Sales Volume
History
‘67 Founded Daewoo Industry Co., LTD.
‘82 Launched Daewoo Corporation
‘99 Dissolved Daewoo Industry Co., LTD.
Began Work-out 12 Daewoo Subsidiaries
‘00 Spun off Daewoo International Corporation
‘10 Became a POSCO Affiliate
‘13 Started Commercial Production in Myanmar Gas Field
Sales Volume (As of May 2015)
Vision 2020
“Challenging towards Global Top Company”
2014 2017 2020
18
28
36
36 Billion
2014 2017 2020
315
600
2014 2017 2020
3.2
10
7
900 Million 10 Billion
1.7%
2.0%
2.5%
(Margin)
SalesDoubleUp
(USD Billion) (USD Million) (USD Billion)
One of the KOSPI Top 20 Companies
3
Sales Operating Profit Enterprise Value
900
DWI, Achieve Sales Volume of USD 36 Billion through Vision 2020
Key items :
Steel, Non-Ferrous Metal, Chemicals,
Machinery, Automobile & Components,
Electronic Communications,
Food & Commodities, etc.
Key Industry :
Infrastructure,
Energy & Industrial Plant,
Power Plant, etc.
Ongoing PJT (Total 18) :
- Oil & Gas(10) : Myanmar Gas Field etc.
- Mineral(7) : Narrabri Coal Mine etc.
- Agro(1) : Indonesia Oil Palm
Key business :
NEAT Tower (Incheon, Korea),
Hotel Project (Yangon, Myanmar), etc.
Business Areas
Korea’s No. 1 Overseas Business Network : 122 Overseas Units in 58 Countries
International Trade Resources Development
Investment & PJT Organizing New Business
Import , Export &
Tripartite Trade
Resources Exploration,
Development and Production
Project Develop, Organize,
Equipment Supply & Management
Real Estate, Logistics &
Overseas Investment
4
5
6 Major Strategic Businesses
6 major strategic businesses have been appointed
for striving to become a ‘Global Integrated Corporation’
6 Strategic Biz Training Strategy Training Target
Energy Steel
Materials
Developing a high value business model of energy
project
IPP
(Independent Power Producer)
Developing and operating IPP business of trading
company type
Automotive
Components
Developing global automobile/automotive
components business
Minerals
Focused promotion of 3 main strategic minerals
(bituminous coal, bronze, nickel)
Food
Advance to the processing industry of
grain/food distribution
Oil / Gas
Business diversification through an expanding
development of new promising gas field Secure Balance of Portfolio
Global Network
 Global Network : 122
 Total Employees : 8,215
Trade
 58 Branches
 14 Subsidiaries
 9 Subsidiaries
 22 Affiliates
Investment
Resources
Development
 10 Oil & Gas Resources
 7 Mineral Resource
 1 Agro Resource
* Total Employees : Includes 6,102 in overseas manufacturing factories (except for minor manufacturing factories)
Overseas Employees
 Koreans : 247
 Global Staffs : 853
(As of May 2015)
6
Head Quarter (KOREA) Overseas Office
Organization
 7 Groups
 11 Departments
 21 Divisions
 82 Teams
HQ Employees
 1013
DWI Company Building
7
66-68F: Machine Room
34-65F: Hotel
2-33F : Office Space
Parking
32 Floors
33 Floors
B3 Floors
3 Floors
(Total Floor Space 22,462py)
(Total Floor Space 36,623py)
○ Scheduled Date of Completion : 2014. 06. 30
○ Shareholders : Daewoo 60%, POSCO E&C 40%
○ Constructor : POSCO E&C, Daewoo E&C
○ Building Size : B3 / 68F
○ Building Height : 305 m
○ Total Floor Space : 59,086 py (195,324㎡)
○ Businesses : Total 10 Companies (As of Feb. 2015)
* Daewoo International, Oakwood Hotel,
Gale International, POSCO A&C, etc.
○ Rate of Occupy : 70% (As of Feb. 2015)
. 1~6F Convenience Facilities
. 12F Cafeteria
. 33F Restaurant
65F : Observation Tower
North East Asia Trade Tower, NEATT
Status of Move-in Businesses
Current Condition of Operation
Contents
I
▶ Business Group
▶ Business Sector
- [1] International Trade
- [2] Invest & Project Organizing
- [3] Resources Development : Oil & Gas
Mineral & Agro-Resources
Business Area
Company Profile
II
8
III References
Business Group
BUSINESS GROUP DIVISION MAIN BUSINESS/ITEM
Steel Business Group
Hot Rolled Steel Division Hot Rolled Steel
Plate & Wire Rod Division Plate, Wire Rod, Slab
Energy Steel Division API Plate & HRC, Offshore/Wind Tower Plate, API Pipe
Cold Rolled Steel Division Cold Rolled Steel, Elctrolytic Galvanized Steel, Electrical Steel, Tin Plate, Black Plate
Automotive Steel Division Automotive Steel Sheets (CR, EG, GI, PO, etc.)
Stainless Steel Division Stainless Steel
Machinery & Infrastructure
Business Group
Machinery & Electronics Division
Machinery/Construction Equipment, Consumer Electronics,
Industrial Electronics
Infrastructure & Plant Division Shipbuilding & Offshore, Infrastructure, Plant IT Projects
Power Energy Division Power Generation Plant Projects
Automotive Component Division Automotive Components
Automotive Division Automotive
Automotive Project Automotive Manufacturing Project (SNAM Project)
Primary Commodities
Business Group
Steel Raw Materials Division Steel Raw Materials, Steel Semi Products , Long Products, Coal
Non-Ferrous Metal Division
Copper, Nickel, Aluminum, Zinc, Lead, Tin,
Finished Products of Copper & Brass
Agro-Commodities Division
Development for Agricultural Resources & Textile Materials,
Grain, General Merchandise
Mineral Resources Division Development for Mineral Resources
Chemical
Business Group
Chemical Division 1 Petroleum Products, Polyester Raw Materials
Chemical Division 2 PE, PP, PET Resin, Petrochemical Raw Materials
Chemical Division 3 Synthetic Rubber, Fertilizer, Olefin
Petroleum E&P
Group
Petroleum Exploration Division Oil & Gas Exploration
Petroleum Production Division Business Development & Management of E&P Project
Petroleum Operation Division Production Operation for Shwe Project (Myanmar)
(As of May 2015)
9
DWI, Trading a Variety of Items / Specialized in Triangular Business
Business Sector - [1] International Trade
100
44
18
10
3
23
Total
Steel
Non-Ferrous
Metal
Machinery/
Automobile
Item
Hot Rolled, Cold Rolled & Stainless Steel
Non-Ferrous Metal, Steel Raw Materials
Machinery, Plant,
Automotive Components, Parts
Petroleum Products, Chemical Raw Materials
PE/PP, PVC, PET Resin, Fertilizer, etc
Chemicals
Food &
Commodities
Grain, Foodstuff, Coal,
Mineral & Construction Materials
Unit
(%)
Export 51%
Triangular 43%
import 6%
43% of Trade is
accomplished
by Triangular Business
10
1
1Textile
Cotton, Cotton Yarn & Fabric
Textile Materials, Woven Apparels
Electronic
Communications
Electronic / IT Products, System Integration
Defense Industry Products
2014 Sales Ratio for Trade Tripartite Trading Business (2014)
Business Areas
11
18 Resources Development Projects & 6 Strategic Overseas Investments
Business Sector - [2] Invest & Project Organizing
10 Oil/Gas Resources Projects 7 Mineral Resources Projects
Canada
Kiggavik (Uranium)
Peru
Block 8 (Oil)
Vietnam
11-2 (Gas)
Myanmar
A-1 / A-3 (Gas)
(Operator)
Myanmar
AD-7 (Gas)
(Operator)
Oman
KOLNG
(Gas)
Madagascar
Ambatovy (Nickel)
Korea
East Sea 6-1C
Bolivia
Corocoro (Copper)
Australia
Marree (Uranium)
Australia
Narrabri (Coal)
(As of May 2015)
1 Agro Resources Projects
Indonesia
Palm Oil (Operator)
Hong Kong
SEAGP
Canada
Calgary (Tight Oil-Gas)
Harmattan (Tight Gas)
Canada
Korea
East Sea 6-1 (Operator)
Indonesia
Wetar (Copper)
Uzbekistan
Textile
Myanmar
Shangalon (Copper)
Myanmar
Hotel
China
Paper Mill
Papua New Guinea
Power Supplier
Brazil
Steel Processing
6 Strategic Investments
• TCF : Trillion Cubic Feet / KNOC : Korea National Oil Corporation / GCA : Gaffney, Cline & Associates / GSPA : Gas Sales & Purchase Agreement
• FDP : Field Development Plan / PSC : Production Sharing Contract / SPC : Special Purpose Company
Business Sector - [3] Resources Development : Oil and Gas
Project Equity Reserves History & Status Remarks
OIL&GASRESOURCES
DEVELOPMENT/PRODUCTION
Peru Block 8
(Oil Field)
11.70% 28 MM bbl
- 1996 : Participation (Operator : Pluspetrol)
- Production : 11,000 bbl/day (Crude Oil)
- Earnings : US$ 3 mm in 2014
Vietnam offshore
Block 11-2
(Gas Field)
4.90%
0.77 TCF
16.6 MM bbl
- 1992 : Participation (Operator : KNOC)
- Dec. 2006 : Commercial Gas Production
- Production : 103 mmscf/day (Gas)
2,218 bbl/day (Condensate)
- Earnings : US$ 1.2 mm in 2014
Myanmar offshore
Block A-1 & A-3
(Gas Field)
51% (*Operator) 4 TCF
- Jan. 2004 : Discovery of Shwe Gas Field
- Mar. 2005 : Discovery of Shwe-Phyu Gas Field
- Jan. 2006 : Discovery of Mya Gas Field
- Aug. 2006 : Reserves Certification in Shwe &
Shwe-Phyu Gas Fields (from GCA)
- Aug. 2007 : Reserves Certification in Mya Gas Field
(from GCA)
- GSPA in Dec. 2008
- Declaration of Commerciality
in Nov. 2009
- EPCIC Contract in Feb. 2010
- FDP Approval in Mar. 2010
- Gas Sales in Jun. 2013
- Earnings : US$ 223 mm in 2014
Canada
Tight Oil-Gas (Baptiste)
12.5% 6.3 MM boe
- Aug. 2013 : Purchase & Sale Contract Signed
- Jan. 2015 : 43 Wells Drilled
- Earnings : US$ 1.9 mm in 2014
Canada
Tight Gas (Harmattan)
32.65% 0.02 MM boe
- Dec. 2014 : Purchase & Sale Contract Signed
- Jan. 2015 : 1 well Drilled
Korea offshore
Block 6-1C
30% 0.02 TCF
- Oct .2014 : Purchase & Sale Contract Signed
- Jan. 2015 : Concession Contract Signed
EXPLORATION
Myanmar offshore
Block AD-7
60% (*Operator) n/a
- Feb. 2007 : PSC Signed
- Mar. 2007~Jun. 2013 : Study Period
- Jul. 2013~Jun. 2015 : Exploration Period
- Farm-out 40% Participating
Interest to Woodside in 2013
Korea offshore
Block 6-1S
70% (*Operator) n/a
- Sep. 2011 : Concession Contract Signed
- Oct. 2011~Sep. 2015 : 1st
Exploration Period
- Completion and Evaluation
of Exploration Drilling in Feb. 2015
MID
STREAM
SEAGP
(South East Asia
Gas Pipeline Company)
25.04% n/a
- Jun. 2010 : Establishment of SEAGP in Hong Kong
(Major Shareholder: CNPC)
- May 2011 : EPC Construction Started
- May 2013 : Completion of Pipeline Construction
- Transportation of Gas Produced
from Myanmar Blocks A-1/A-3 to
Southern Part of China
- Earnings : US$ 47.8mm in 2014
DOWN
STREAM
Oman LNG
(KOLNG)
20%
(1% of OLNG)
n/a
- 1997 : Participation
- 2000 : LNG Production (Dividend Since 2002)
- Annual Capacity : 6.6mmMT
- Earnings : US$ 18 mm in 2014
12
(As of May 2015)
Business Sector - [3] Resources Development : Mineral & Agro-Resource
Project Equity Reserve Remarks
Madagascar Ambatovy
(Nickel)
4.0% 190Mt
- 2006: Participation
- Parties: Sherritt 40%, Sumitomo 27.5%, SNC-Lavalin 5%,
KAC 27.5% (KORES 22.5%, STX 1%)
- Production in 2012 (Production period : 30 years)
- Annual Capacity : Nickel 60,000 t/y, Cobalt 5,600 t/y
Australia Narrabri
(Coal)
5.0% 133Mt
- Aug 2009: Participation
- Parties : Whitehaven 70%, KORES 2.5%, J-power 7.5%, others
- Annual Capacity : 6 Mt/y (Production in 2010)
Canada Kiggavik
(Uranium)
1.7% 40,616t
- 1982: Participation
- 2007~: Environmental assessment study & F/S in progress
Australia Marree
(Uranium)
9.41% n/a
- 2008: Participation
- Exploration in progress
Myanmar Shangalon
(Copper)
60% n/a
- 2013: Participation
- Exploration in progress
Indonesia Wetar
(Copper)
24.1% 8.9Mt
- 2014: Participation
- Parties: Finders 75.9%
- Development in progress
Indonesia
(Oil Palm)
85% 34,200 ha
- Aug. 2011: Contract signed
- Sep. 2012: Initiated Oil Palm planting
- Dec. 2014: Oil Palm tree planted (8,892ha, 1,156,000ea)
•KC: Korean Consortium / KORES : Korea Resources Corporation
MINERALRESOURCES
PRODUCTIONEXPLORATION
AGRO
RESOURCES
DEVELOPMENT
(As of May 2015)
DEVELOP
MENT
13
Contents
I
Company Profile
14
ReferencesIII
II Business Area
Company Profile
▶ Offshore Blocks in Myanmar
▶ Offshore Block 6-1 in Korea
▶ Canada Tight Oil & Gas
▶ Build-up of Asset Backed Commodity Trading
▶ Agro-Trading Business Structure with Infra-Investment
Business Sector – Offshore Blocks in Myanmar
15
A-3
A-1
AD-7
Shwe Phyu
Shwe
Mya
Additional
Exploration Block
[Reference] Capacity of SHWE Platform
- Processing capacity of 640 MMscfd (DCQ: 500 MMscfd)
- Capable of increasing additional 320 MMscfd in future
* MMscfd (Million Standard Cubic feet per day) / DCQ (Daily Contract Quantity)
Myanmar
○ “SHEW” Project (Blocks A-1/A-3)
 Plateau Period (500 MMscfd) commenced in Dec. 2014
 Reserves: 4 Tcf, equivalent to 700MMbbl (oil) or 80MMte (LNG)
- Shareholders : Daewoo (51%, Operator), MOGE (15%),
OVL(17%), GAIL(8.5%), KOGAS (8.5%)
○ Additional Exploration (Blocks A-1/A-3)
 Adjacent to Shwe Project where synergy expected
 Prospective Resources (est.): 5.5 Tcf
 3D seismic survey in 2015 targeting on-stream in 2022~3
- Shareholders : Daewoo (51%, Operator), MOGE (15%),
OVL(17%), GAIL(8.5%), KOGAS (8.5%)
○ Block AD-7
 Farm-out 40% stake to Woodside (Risk & Expense share)
 Prospective Resources (est.): 2~19 Tcf
 Exploration well in 1Q 2016 targeting on-stream in 2021~2
- Shareholders : Daewoo (60%, Operator), Woodside (40%)
Business Sector – Offshore Block 6-1 in Korea
16
○ Block 6-1C, Offshore Korea
 The beginning of production is scheduled in July 2016
 First Gas targeted in July 2016
 Reserves : Gas 22.3 Bcf, Condensate 185 Mbbl
- Shareholders : Daewoo (30%), KNOC (70%, Operator)
- Key Milestones
. ’14. 05. : FEED (Donghae-2 Gas Field) commenced
. ’14. 12. : Daewoo joined in the block
. ’15. 02. : EPIC Awarded (Engineering/Procurement/Installation/Commissioning)
○ Block 6-1S, Offshore Korea
 The beginning of production is scheduled for 2017~18
 Feasibility Study for Gorae D is ongoing
 Exploration drilling targeted in 2017
- Shareholders : Daewoo (70%, Operator), KNOC (30%)
- Key Milestones and Plan
. ’11. 10. : Contracting Concession Agreement & JOA
. ’15. 01. : Appraisal Drilling in Gorae D Gas Discovery;
Feasibility study is ongoing
. ’15. 03. : 3D Seismic Acquisition (910 km2
)
Block 6-1
Pohang
Ulsan
Pusan
Gorae D
Donghae-1 Production Area
KNOC (100%)
Donghae-2
Block 6-1 Center
KNOC (70%)
DWI (30%)
Block 6-1 South
DWI (70%)
KNOC (30%)
Block 6-1 East
KNOC (100%)
Block 6-1 North
KNOC (50%)
Woodside(50%)
Production
License Area
Block 6-1
Exploration
License Area
0 20 40km
Business Sector – Canada Tight Oil & Gas
17
Baptiste area
Harmattan area
150Km
○ Baptiste Area
 Plan for drilling 100 wells until 2016
(as of June 2015: 43 wells drilled)
- Shareholders : Daewoo (12.5%), KIS Devonian (37.5%),
Bellatrix (50%, Operator)
- Estimated Reserves(Daewoo): Gas 22.3 BCF, Oil 648 MBBL
○ Harmattan Area
 4 pilot wells in 2015
(as of June 2015: 1 well drilled)
- Shareholders : Daewoo (50%), Bellatrix (50%, Operator)
- Promoting investment in Harmattan area after reviewing the production
rate with the improved completion technology
[ Oil & Gas Business Strategy in North America ]
 New entry into an unconventional gas/oil business in the region
(Partnering with qualified operators that have oil/liquid-rich assets at exploration stage)
 Growing together with the existing partner
(Expansion of business opportunity as strengthening collaboration with Bellatrix Corp.)
Western Canadian
Sedimentary Basin
Build-up of Asset Backed Commodity Trading
18
[Synergy of Investing & Trading]
Mineral Resources
Division
Developing/Operating Mine
(Coal,Copper,etc.)
Trading Division
(Non-Ferrous & Raw Materials)
Wetar Copper PJT
Wetar
Project
Early Generation of Revenue by
Investing on Developing Mines
- Share Ratio(Off-take) : 24.1% (20%)
- Annual Production : 15kt
- LOM : 8yrs. (‘16~’23)
Ambatovy Nickel PJTNarrabri Coal PJT
Securing Synergies among
Trading-Infrastructure-Mining
- Share Ratio(Off-take) : 4% (39%)
- Annual Production : Ni 60kt
- LOM : 30yrs. (‘12~’42)
- Supply of Power Plant Boiler etc.
Business Sophistication through
Off-take Blending Business
- Share Ratio(Off-take) : 5% (Min 1.2Mt)
- Annual Production : 6Mt
- LOM : 25yrs. (‘12~’37)
*LOM : Life of Mine
Return
On Investment
Off-take
Trading Margin
Agro-Trading Business Structure with Infra-Investment
19
Production/Export Facility Investment in Main Producing Region
Farming
Collection
(Origination)
Sale
Supply/Sourcing Infrastructure Demand Industry
Value Chain expansion by the linkage of Demand
Storage
(Conditioning)
Export/Import
Storage
/Processing
Indonesian Oil Palm Plantation Project Myanmar RPC* Project
Trade Expansion by the High-growth Biz Investment
- Biz content : Oil Palm Plantation 
Production & Sales of CPO(crude palm oil)
- Biz period : 30 yrs.(current contract)
(additional 60 yrs. land lease contract available)
- DWI share 85%, Area 34,195 Ha(planting area 27,000Ha)
- 2015 Biz Plan: CPO Mill Construction,
Searching for New Plantation
- Biz content : Construction and Operation of RPC
& Export of White/Parboiled Rice
- DWI share 60%, Processing CAPA 100 thsd MT/yr.
- 2015 Biz Plan: JV Foundation
Takeover of Existing Facility
Onset of New Facility Construction
Rice Biz Value Chain Consolidation
* RPC (Rice Processing Complex)
21
Thank You!

2015_Daewoo_International_Presentation_Material(20150625)

  • 1.
  • 2.
    Contents I ▶ Corporate Outlook ▶Vision 2020 ▶ Business Areas ▶ 6 Major Strategic Businesses ▶ Global Network ▶ DWI Company Building Business Area Company Profile II 1 ReferencesIII
  • 3.
    Corporate Outlook  Establishment: 1967  Employee : 8,128 (Including Worldwide Global Staffs)  Global Network : Total 122 (58 countries) 2 Sales Volume (2014) : USD 18.3 Billion  Major Business Sector · International Trade · Investment & Project Organizing · Resources Development 20 16 12 4 $ 18.6 Billion Operating Profit $ 342 M8 20102009 20122011 2013 * Since 2011, K-IFRS standard used 2014 Sales Volume History ‘67 Founded Daewoo Industry Co., LTD. ‘82 Launched Daewoo Corporation ‘99 Dissolved Daewoo Industry Co., LTD. Began Work-out 12 Daewoo Subsidiaries ‘00 Spun off Daewoo International Corporation ‘10 Became a POSCO Affiliate ‘13 Started Commercial Production in Myanmar Gas Field Sales Volume (As of May 2015)
  • 4.
    Vision 2020 “Challenging towardsGlobal Top Company” 2014 2017 2020 18 28 36 36 Billion 2014 2017 2020 315 600 2014 2017 2020 3.2 10 7 900 Million 10 Billion 1.7% 2.0% 2.5% (Margin) SalesDoubleUp (USD Billion) (USD Million) (USD Billion) One of the KOSPI Top 20 Companies 3 Sales Operating Profit Enterprise Value 900 DWI, Achieve Sales Volume of USD 36 Billion through Vision 2020
  • 5.
    Key items : Steel,Non-Ferrous Metal, Chemicals, Machinery, Automobile & Components, Electronic Communications, Food & Commodities, etc. Key Industry : Infrastructure, Energy & Industrial Plant, Power Plant, etc. Ongoing PJT (Total 18) : - Oil & Gas(10) : Myanmar Gas Field etc. - Mineral(7) : Narrabri Coal Mine etc. - Agro(1) : Indonesia Oil Palm Key business : NEAT Tower (Incheon, Korea), Hotel Project (Yangon, Myanmar), etc. Business Areas Korea’s No. 1 Overseas Business Network : 122 Overseas Units in 58 Countries International Trade Resources Development Investment & PJT Organizing New Business Import , Export & Tripartite Trade Resources Exploration, Development and Production Project Develop, Organize, Equipment Supply & Management Real Estate, Logistics & Overseas Investment 4
  • 6.
    5 6 Major StrategicBusinesses 6 major strategic businesses have been appointed for striving to become a ‘Global Integrated Corporation’ 6 Strategic Biz Training Strategy Training Target Energy Steel Materials Developing a high value business model of energy project IPP (Independent Power Producer) Developing and operating IPP business of trading company type Automotive Components Developing global automobile/automotive components business Minerals Focused promotion of 3 main strategic minerals (bituminous coal, bronze, nickel) Food Advance to the processing industry of grain/food distribution Oil / Gas Business diversification through an expanding development of new promising gas field Secure Balance of Portfolio
  • 7.
    Global Network  GlobalNetwork : 122  Total Employees : 8,215 Trade  58 Branches  14 Subsidiaries  9 Subsidiaries  22 Affiliates Investment Resources Development  10 Oil & Gas Resources  7 Mineral Resource  1 Agro Resource * Total Employees : Includes 6,102 in overseas manufacturing factories (except for minor manufacturing factories) Overseas Employees  Koreans : 247  Global Staffs : 853 (As of May 2015) 6 Head Quarter (KOREA) Overseas Office Organization  7 Groups  11 Departments  21 Divisions  82 Teams HQ Employees  1013
  • 8.
    DWI Company Building 7 66-68F:Machine Room 34-65F: Hotel 2-33F : Office Space Parking 32 Floors 33 Floors B3 Floors 3 Floors (Total Floor Space 22,462py) (Total Floor Space 36,623py) ○ Scheduled Date of Completion : 2014. 06. 30 ○ Shareholders : Daewoo 60%, POSCO E&C 40% ○ Constructor : POSCO E&C, Daewoo E&C ○ Building Size : B3 / 68F ○ Building Height : 305 m ○ Total Floor Space : 59,086 py (195,324㎡) ○ Businesses : Total 10 Companies (As of Feb. 2015) * Daewoo International, Oakwood Hotel, Gale International, POSCO A&C, etc. ○ Rate of Occupy : 70% (As of Feb. 2015) . 1~6F Convenience Facilities . 12F Cafeteria . 33F Restaurant 65F : Observation Tower North East Asia Trade Tower, NEATT Status of Move-in Businesses Current Condition of Operation
  • 9.
    Contents I ▶ Business Group ▶Business Sector - [1] International Trade - [2] Invest & Project Organizing - [3] Resources Development : Oil & Gas Mineral & Agro-Resources Business Area Company Profile II 8 III References
  • 10.
    Business Group BUSINESS GROUPDIVISION MAIN BUSINESS/ITEM Steel Business Group Hot Rolled Steel Division Hot Rolled Steel Plate & Wire Rod Division Plate, Wire Rod, Slab Energy Steel Division API Plate & HRC, Offshore/Wind Tower Plate, API Pipe Cold Rolled Steel Division Cold Rolled Steel, Elctrolytic Galvanized Steel, Electrical Steel, Tin Plate, Black Plate Automotive Steel Division Automotive Steel Sheets (CR, EG, GI, PO, etc.) Stainless Steel Division Stainless Steel Machinery & Infrastructure Business Group Machinery & Electronics Division Machinery/Construction Equipment, Consumer Electronics, Industrial Electronics Infrastructure & Plant Division Shipbuilding & Offshore, Infrastructure, Plant IT Projects Power Energy Division Power Generation Plant Projects Automotive Component Division Automotive Components Automotive Division Automotive Automotive Project Automotive Manufacturing Project (SNAM Project) Primary Commodities Business Group Steel Raw Materials Division Steel Raw Materials, Steel Semi Products , Long Products, Coal Non-Ferrous Metal Division Copper, Nickel, Aluminum, Zinc, Lead, Tin, Finished Products of Copper & Brass Agro-Commodities Division Development for Agricultural Resources & Textile Materials, Grain, General Merchandise Mineral Resources Division Development for Mineral Resources Chemical Business Group Chemical Division 1 Petroleum Products, Polyester Raw Materials Chemical Division 2 PE, PP, PET Resin, Petrochemical Raw Materials Chemical Division 3 Synthetic Rubber, Fertilizer, Olefin Petroleum E&P Group Petroleum Exploration Division Oil & Gas Exploration Petroleum Production Division Business Development & Management of E&P Project Petroleum Operation Division Production Operation for Shwe Project (Myanmar) (As of May 2015) 9
  • 11.
    DWI, Trading aVariety of Items / Specialized in Triangular Business Business Sector - [1] International Trade 100 44 18 10 3 23 Total Steel Non-Ferrous Metal Machinery/ Automobile Item Hot Rolled, Cold Rolled & Stainless Steel Non-Ferrous Metal, Steel Raw Materials Machinery, Plant, Automotive Components, Parts Petroleum Products, Chemical Raw Materials PE/PP, PVC, PET Resin, Fertilizer, etc Chemicals Food & Commodities Grain, Foodstuff, Coal, Mineral & Construction Materials Unit (%) Export 51% Triangular 43% import 6% 43% of Trade is accomplished by Triangular Business 10 1 1Textile Cotton, Cotton Yarn & Fabric Textile Materials, Woven Apparels Electronic Communications Electronic / IT Products, System Integration Defense Industry Products 2014 Sales Ratio for Trade Tripartite Trading Business (2014) Business Areas
  • 12.
    11 18 Resources DevelopmentProjects & 6 Strategic Overseas Investments Business Sector - [2] Invest & Project Organizing 10 Oil/Gas Resources Projects 7 Mineral Resources Projects Canada Kiggavik (Uranium) Peru Block 8 (Oil) Vietnam 11-2 (Gas) Myanmar A-1 / A-3 (Gas) (Operator) Myanmar AD-7 (Gas) (Operator) Oman KOLNG (Gas) Madagascar Ambatovy (Nickel) Korea East Sea 6-1C Bolivia Corocoro (Copper) Australia Marree (Uranium) Australia Narrabri (Coal) (As of May 2015) 1 Agro Resources Projects Indonesia Palm Oil (Operator) Hong Kong SEAGP Canada Calgary (Tight Oil-Gas) Harmattan (Tight Gas) Canada Korea East Sea 6-1 (Operator) Indonesia Wetar (Copper) Uzbekistan Textile Myanmar Shangalon (Copper) Myanmar Hotel China Paper Mill Papua New Guinea Power Supplier Brazil Steel Processing 6 Strategic Investments
  • 13.
    • TCF :Trillion Cubic Feet / KNOC : Korea National Oil Corporation / GCA : Gaffney, Cline & Associates / GSPA : Gas Sales & Purchase Agreement • FDP : Field Development Plan / PSC : Production Sharing Contract / SPC : Special Purpose Company Business Sector - [3] Resources Development : Oil and Gas Project Equity Reserves History & Status Remarks OIL&GASRESOURCES DEVELOPMENT/PRODUCTION Peru Block 8 (Oil Field) 11.70% 28 MM bbl - 1996 : Participation (Operator : Pluspetrol) - Production : 11,000 bbl/day (Crude Oil) - Earnings : US$ 3 mm in 2014 Vietnam offshore Block 11-2 (Gas Field) 4.90% 0.77 TCF 16.6 MM bbl - 1992 : Participation (Operator : KNOC) - Dec. 2006 : Commercial Gas Production - Production : 103 mmscf/day (Gas) 2,218 bbl/day (Condensate) - Earnings : US$ 1.2 mm in 2014 Myanmar offshore Block A-1 & A-3 (Gas Field) 51% (*Operator) 4 TCF - Jan. 2004 : Discovery of Shwe Gas Field - Mar. 2005 : Discovery of Shwe-Phyu Gas Field - Jan. 2006 : Discovery of Mya Gas Field - Aug. 2006 : Reserves Certification in Shwe & Shwe-Phyu Gas Fields (from GCA) - Aug. 2007 : Reserves Certification in Mya Gas Field (from GCA) - GSPA in Dec. 2008 - Declaration of Commerciality in Nov. 2009 - EPCIC Contract in Feb. 2010 - FDP Approval in Mar. 2010 - Gas Sales in Jun. 2013 - Earnings : US$ 223 mm in 2014 Canada Tight Oil-Gas (Baptiste) 12.5% 6.3 MM boe - Aug. 2013 : Purchase & Sale Contract Signed - Jan. 2015 : 43 Wells Drilled - Earnings : US$ 1.9 mm in 2014 Canada Tight Gas (Harmattan) 32.65% 0.02 MM boe - Dec. 2014 : Purchase & Sale Contract Signed - Jan. 2015 : 1 well Drilled Korea offshore Block 6-1C 30% 0.02 TCF - Oct .2014 : Purchase & Sale Contract Signed - Jan. 2015 : Concession Contract Signed EXPLORATION Myanmar offshore Block AD-7 60% (*Operator) n/a - Feb. 2007 : PSC Signed - Mar. 2007~Jun. 2013 : Study Period - Jul. 2013~Jun. 2015 : Exploration Period - Farm-out 40% Participating Interest to Woodside in 2013 Korea offshore Block 6-1S 70% (*Operator) n/a - Sep. 2011 : Concession Contract Signed - Oct. 2011~Sep. 2015 : 1st Exploration Period - Completion and Evaluation of Exploration Drilling in Feb. 2015 MID STREAM SEAGP (South East Asia Gas Pipeline Company) 25.04% n/a - Jun. 2010 : Establishment of SEAGP in Hong Kong (Major Shareholder: CNPC) - May 2011 : EPC Construction Started - May 2013 : Completion of Pipeline Construction - Transportation of Gas Produced from Myanmar Blocks A-1/A-3 to Southern Part of China - Earnings : US$ 47.8mm in 2014 DOWN STREAM Oman LNG (KOLNG) 20% (1% of OLNG) n/a - 1997 : Participation - 2000 : LNG Production (Dividend Since 2002) - Annual Capacity : 6.6mmMT - Earnings : US$ 18 mm in 2014 12 (As of May 2015)
  • 14.
    Business Sector -[3] Resources Development : Mineral & Agro-Resource Project Equity Reserve Remarks Madagascar Ambatovy (Nickel) 4.0% 190Mt - 2006: Participation - Parties: Sherritt 40%, Sumitomo 27.5%, SNC-Lavalin 5%, KAC 27.5% (KORES 22.5%, STX 1%) - Production in 2012 (Production period : 30 years) - Annual Capacity : Nickel 60,000 t/y, Cobalt 5,600 t/y Australia Narrabri (Coal) 5.0% 133Mt - Aug 2009: Participation - Parties : Whitehaven 70%, KORES 2.5%, J-power 7.5%, others - Annual Capacity : 6 Mt/y (Production in 2010) Canada Kiggavik (Uranium) 1.7% 40,616t - 1982: Participation - 2007~: Environmental assessment study & F/S in progress Australia Marree (Uranium) 9.41% n/a - 2008: Participation - Exploration in progress Myanmar Shangalon (Copper) 60% n/a - 2013: Participation - Exploration in progress Indonesia Wetar (Copper) 24.1% 8.9Mt - 2014: Participation - Parties: Finders 75.9% - Development in progress Indonesia (Oil Palm) 85% 34,200 ha - Aug. 2011: Contract signed - Sep. 2012: Initiated Oil Palm planting - Dec. 2014: Oil Palm tree planted (8,892ha, 1,156,000ea) •KC: Korean Consortium / KORES : Korea Resources Corporation MINERALRESOURCES PRODUCTIONEXPLORATION AGRO RESOURCES DEVELOPMENT (As of May 2015) DEVELOP MENT 13
  • 15.
    Contents I Company Profile 14 ReferencesIII II BusinessArea Company Profile ▶ Offshore Blocks in Myanmar ▶ Offshore Block 6-1 in Korea ▶ Canada Tight Oil & Gas ▶ Build-up of Asset Backed Commodity Trading ▶ Agro-Trading Business Structure with Infra-Investment
  • 16.
    Business Sector –Offshore Blocks in Myanmar 15 A-3 A-1 AD-7 Shwe Phyu Shwe Mya Additional Exploration Block [Reference] Capacity of SHWE Platform - Processing capacity of 640 MMscfd (DCQ: 500 MMscfd) - Capable of increasing additional 320 MMscfd in future * MMscfd (Million Standard Cubic feet per day) / DCQ (Daily Contract Quantity) Myanmar ○ “SHEW” Project (Blocks A-1/A-3)  Plateau Period (500 MMscfd) commenced in Dec. 2014  Reserves: 4 Tcf, equivalent to 700MMbbl (oil) or 80MMte (LNG) - Shareholders : Daewoo (51%, Operator), MOGE (15%), OVL(17%), GAIL(8.5%), KOGAS (8.5%) ○ Additional Exploration (Blocks A-1/A-3)  Adjacent to Shwe Project where synergy expected  Prospective Resources (est.): 5.5 Tcf  3D seismic survey in 2015 targeting on-stream in 2022~3 - Shareholders : Daewoo (51%, Operator), MOGE (15%), OVL(17%), GAIL(8.5%), KOGAS (8.5%) ○ Block AD-7  Farm-out 40% stake to Woodside (Risk & Expense share)  Prospective Resources (est.): 2~19 Tcf  Exploration well in 1Q 2016 targeting on-stream in 2021~2 - Shareholders : Daewoo (60%, Operator), Woodside (40%)
  • 17.
    Business Sector –Offshore Block 6-1 in Korea 16 ○ Block 6-1C, Offshore Korea  The beginning of production is scheduled in July 2016  First Gas targeted in July 2016  Reserves : Gas 22.3 Bcf, Condensate 185 Mbbl - Shareholders : Daewoo (30%), KNOC (70%, Operator) - Key Milestones . ’14. 05. : FEED (Donghae-2 Gas Field) commenced . ’14. 12. : Daewoo joined in the block . ’15. 02. : EPIC Awarded (Engineering/Procurement/Installation/Commissioning) ○ Block 6-1S, Offshore Korea  The beginning of production is scheduled for 2017~18  Feasibility Study for Gorae D is ongoing  Exploration drilling targeted in 2017 - Shareholders : Daewoo (70%, Operator), KNOC (30%) - Key Milestones and Plan . ’11. 10. : Contracting Concession Agreement & JOA . ’15. 01. : Appraisal Drilling in Gorae D Gas Discovery; Feasibility study is ongoing . ’15. 03. : 3D Seismic Acquisition (910 km2 ) Block 6-1 Pohang Ulsan Pusan Gorae D Donghae-1 Production Area KNOC (100%) Donghae-2 Block 6-1 Center KNOC (70%) DWI (30%) Block 6-1 South DWI (70%) KNOC (30%) Block 6-1 East KNOC (100%) Block 6-1 North KNOC (50%) Woodside(50%) Production License Area Block 6-1 Exploration License Area 0 20 40km
  • 18.
    Business Sector –Canada Tight Oil & Gas 17 Baptiste area Harmattan area 150Km ○ Baptiste Area  Plan for drilling 100 wells until 2016 (as of June 2015: 43 wells drilled) - Shareholders : Daewoo (12.5%), KIS Devonian (37.5%), Bellatrix (50%, Operator) - Estimated Reserves(Daewoo): Gas 22.3 BCF, Oil 648 MBBL ○ Harmattan Area  4 pilot wells in 2015 (as of June 2015: 1 well drilled) - Shareholders : Daewoo (50%), Bellatrix (50%, Operator) - Promoting investment in Harmattan area after reviewing the production rate with the improved completion technology [ Oil & Gas Business Strategy in North America ]  New entry into an unconventional gas/oil business in the region (Partnering with qualified operators that have oil/liquid-rich assets at exploration stage)  Growing together with the existing partner (Expansion of business opportunity as strengthening collaboration with Bellatrix Corp.) Western Canadian Sedimentary Basin
  • 19.
    Build-up of AssetBacked Commodity Trading 18 [Synergy of Investing & Trading] Mineral Resources Division Developing/Operating Mine (Coal,Copper,etc.) Trading Division (Non-Ferrous & Raw Materials) Wetar Copper PJT Wetar Project Early Generation of Revenue by Investing on Developing Mines - Share Ratio(Off-take) : 24.1% (20%) - Annual Production : 15kt - LOM : 8yrs. (‘16~’23) Ambatovy Nickel PJTNarrabri Coal PJT Securing Synergies among Trading-Infrastructure-Mining - Share Ratio(Off-take) : 4% (39%) - Annual Production : Ni 60kt - LOM : 30yrs. (‘12~’42) - Supply of Power Plant Boiler etc. Business Sophistication through Off-take Blending Business - Share Ratio(Off-take) : 5% (Min 1.2Mt) - Annual Production : 6Mt - LOM : 25yrs. (‘12~’37) *LOM : Life of Mine Return On Investment Off-take Trading Margin
  • 20.
    Agro-Trading Business Structurewith Infra-Investment 19 Production/Export Facility Investment in Main Producing Region Farming Collection (Origination) Sale Supply/Sourcing Infrastructure Demand Industry Value Chain expansion by the linkage of Demand Storage (Conditioning) Export/Import Storage /Processing Indonesian Oil Palm Plantation Project Myanmar RPC* Project Trade Expansion by the High-growth Biz Investment - Biz content : Oil Palm Plantation  Production & Sales of CPO(crude palm oil) - Biz period : 30 yrs.(current contract) (additional 60 yrs. land lease contract available) - DWI share 85%, Area 34,195 Ha(planting area 27,000Ha) - 2015 Biz Plan: CPO Mill Construction, Searching for New Plantation - Biz content : Construction and Operation of RPC & Export of White/Parboiled Rice - DWI share 60%, Processing CAPA 100 thsd MT/yr. - 2015 Biz Plan: JV Foundation Takeover of Existing Facility Onset of New Facility Construction Rice Biz Value Chain Consolidation * RPC (Rice Processing Complex)
  • 21.