2. Important Notice
This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHI’s
operations that are based on management’s current expectations, estimates and projections. Words such as
“anticipates”, “expects”, “intends”, “plans”, “projects”, “schedules”, “estimates” and similar expressions are
intended to identify such forward-looking statements. These statements are not guarantees of future performance
and are subject to certain risks, uncertainties, and other factors including new order flows, FX rates, steel plate
prices and so on, some of which are beyond company’s control and are difficult to predict. Therefore, actual
outcomes and actual results may differ materially from what is expressed or forecasted in such forward-looking
statements. The reader should not place undue reliance on these forward-looking statements. HHI undertakes no
obligation to update any forward-looking statements to reflect subsequent events.
2
3. Contents
H H I at a Glance
Business Performance
Financial Performance
Appendix (Quarterly Results)
3
5. 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 18,392 bil. (As of December 28, 2012)
Credit Rating : A1 (Commercial Paper), AA+ (Corporate Bond)
Korea’s large conglomerate ranking : 11th
(Excluding public companies, based on total assets, As of December 28, 2012)
No. of employees : 24,841 (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
5
6. History
1973. 12 Establishment of Hyundai Shipbuilding & Heavy Industry Co., Ltd.
1974. 6 Inauguration of the Shipyard and Simultaneous Naming of First Two Supertankers
1978. 2 Change of Company Name to Hyundai Heavy Industries Co., Ltd.
1975.3~1985.6 Established Special Vessels, Offshore & Engineering, Industrial Plant & Engineering,
Engine & Machinery, Electro Electric Systems, Construction Equipment Divisions
1994. 6 Listed on the Korean Securities Dealers Automated Quotations,
Delivery of Korea’s First LNG Carrier
1999. 8 Listed on the Korean Stock Exchange
2002. 2 Disaffiliated from Hyundai Group and creation of Hyundai Heavy Industries group
(Hyundai Heavy Industries Co., Ltd., Asan Foundation and six other companies)
2002. 5 Acquired Samho Heavy Industries Co., Ltd.
2008. 9 Acquired HI Investment and Securities Co., Ltd. and HI Asset Management Co., Ltd.
(Underwriting company : Hyundai Mipo Dockyard Co., Ltd. )
2009. 12 Acquired Hyundai Corporation
2010. 8 Acquired Hyundai Oilbank Co., Ltd. (70% of Ownership and management)
2011. 2 Became the world’s first shipbuilder to deliver 1,700th ship
6
7. Ownership Structure
(As of December 28, 2012)
Chung Mong-joon KCC
10.15% 3.12%
Hyundai Mipo
Dockyard Co., Ltd.
7.98%
Hyundai Motors
Others 2.88%
51.39% Asan Foundation
2.53%
(Foreign Ownership : 19.28% )
POSCO
Asan Nanum 1.94%
Treasury Shares Foundation
19.36% 0.65%
7
8. Business Portfolio
2005 2010 2013 (E)
Electro Electric Construction
Others
9.0% Equipment Construction Green Energy
Engine& 1.0% Electro Electric Construction Green
1.0% Others 1.0% Others 1.0%
Machinery 12.0% Equipment 3.0% Equipment Energy 1.0%
Engine&
10.0% 10.0% 13.0%
Machinery Electro
Industrial Plant
12.0% Electric
7.0%
Shipbuilding 12.0% Shipbuilding
56.0% Industrial Shipbuilding Engine& 39.0%
Offshore& Plant 12.0% 35.0%
Offshore& Machinery Offshore&
Engineering
Engineering 11.0%
Industrial Engineering
16.0%
15.0% Plant 5.0% 18.0%
Shipbuilding/Engine Shipbuilding/Engine Shipbuilding/Engine
66% 47% 50%
10,354 bil. KRW 22,405 bil. KRW 26,857 bil. KRW
of total sales of total sales of total sales (E)
* 2005 sales are based on K-GAAP.
8
9. Business Highlights
No.1 in Global shipbuilding Market Recognized for building the ‘World Best
(Since 1983) Ship’ for the 29th consecutive year
(Since 1983)
• HHI, HSHI, HMD : 12.16%
(2011 delivery basis) • Total 47 ships, World shipbuilding publications
(Maritime Report and Marine Log)
First to build LNG Carrier in Korea Delivery of the World’s Biggest Jacket
(Jun. 1994) (May, 1989)
• 125,000 m3 • Exxon (U.S.A)
• 40,000 ton
Completion of World’s Largest Elf Completed World’s largest Saudi
Girassol FPSO (Feb. 2001) Marafiq power plant (Apr. 2011)
• 343,000 Ton • power generation 2,750 MW + desalination
176 MIGD
Achieved world record production in 2-stroke Achieved domestic record production in
Markne engines (Sep. 2010) Transformers (Feb. 2010)
• 100 million bhp • 600,000 MVA
9
10. Business Structure
Division Main Products Major Clients Competitors Capacity Sales
2013(E)
• VLCCs, Tankers, Product Carriers, Chemical Tankers HAPAG-LLOYD (GER) DSME (KOR) 8.00 mil. GT
• Containerships, Bulk Carriers, OBO Carriers SHI (KOR)
C.P. OFFEN (GER)
• Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers 39%
Shipbuilding Tankers / VLCCs
AP MOLLER (Denmaark)
• LNG Carriers, LPG Carriers Seaspan (Canada)
• Drillships Diamond Offshore (USA)
• Submarines, Destroyers, Frigates
• Floating Units: FPSOs, FLNGs, FPUs, TLPs, Semi- BP(UK) DSME, SHI (KOR) Floaters : 1~2 units
Offshore & Submersible Units ExxonMobile(USA) Technip (FR) Fixed Platform : 3~4 units
• Fixed Platforms: Topsides, Jackets & Piles, Jack-ups, SHELL(USA) Saipem (Italy) Pipeline laying : 30km 18%
Engineering Modules & Quarters TOTAL (FR)
• Pipelines & Subsea Facilities: Subsea Pipelines
McDermott (USA)
CHEVRON (USA) Stolt Offshore (FR)
• Offshore Installations: Platforms, Pipelines ENI NORGE (NOR)
• Land-Based Modules
• Power Plants: Combined-Cycle, Cogeneration, and Siemens (GER) Power plant
Thermal Power Plants SHELL (US) Hyundai E&C (KOR) : 1,000MW (4~5 projects)
Industrial Plant • Process Plants: Oil and Gas, Refinery, Tank Farm, MEW (KUWAIT) Doosan Heavy (KOR) 5%
GTL, and LNG Facilities SEC (SAUDI) Samsung C&T Corporation
• Plant Equipments: Industrial Boiler, HRSG, CFBF (KOR)
Boiler, Regenerator & Reactor
• Two-Stroke Diesel Engines, Four-
Stroke(HiMSEN)Engines
Large Engines (500 units)
Doosan, STX (KOR) :18 mil bhp
• Propellers and Crankshafts HMD(KOR) 11%
Engine & • Steam Turbines and Turbochargers Mitsui (JPN) Medium (1800 Units)
• Diesel and Gas Power Plant Engines Shanghai (CHINA)
Machinery Hudong, Dalian(China) : 5 mil bhp
• Industrial and Marine Pumps, Industrial Robots, DSME, SHI (KOR)
Side Thrusters
• Presses, Conveyor Systems, and Steel Strip Process Lines
• Transformers, Gas Insulated Switchgear, Switchgear
Electro Electric State-Owned Power company ABB (Sweden) Transformer (620 units)
• Low- and Medium-Voltage Circuit Breakers
• Rotating Machinery Siemens (GER) 120,000 MVA 12%
Systems • Power Electronics and Control Systems Utility, IPP company Hyosung (KOR)
Construction • Excavators Komatsu (JPN) 29,000 units
• Wheel Loaders Caterpillar (USA)
Equipment • Forklifts Terex (USA) (Excavators 16,000 units) 13%
• Skid Loaders Doosan Infracore (KOR)
Wagner&Co Solartechnik(GER) Suntech, Yingli (CHN) Solar Cell/module
• Solar/Wind Power Systems
MHH Solartechnik (GER) Vestas (DEN), GE (USA : 510 MW
Green Energy Sun Energy Europe (GER) 1%
Wind Turbine : 600 MW
Albatech (Italy)
* Others : 1% 10
11. Sales Breakdown by Product
Shipbuilding Offshore & Engineering Industrial Plant & Engineering
LPG 5% LNG 7%
Special Others 1%
PCTC 2% Subsea
Others
4%
Pipeline Fixed 24%
P/C 4% Shipbuilding
Platforms& Power
Container 5% 16%
Floaters Plant
Drillship ship 33%
21% 79% 44%
Oil & Gas
32%
Bulker 2%
Tanker
21%
Engine & Machinery Electro Electric Systems Construction Equipment
Hydraulic Robotics
Machinery 10% Rotating CKD Others
Switchgear
Power Machinery 7% 8%
4% 16%
Plant Low Voltage 25% Wheel
Circuit Loader
Engine 8%
Breaker Others 4% 11%
Marine
Engine 6%
78% Excavator
Folk Lift
High Voltage Transformer 59%
Circuit 15%
34%
Breaker
15%
Green Energy
• Solar Power : 90% * The above results are based on K-IFRS 2012 sales.
• Wind Power : 10%
11
12. 2013 Business Plan
Sales (bil. KRW)
Sales (bil. KRW)
2012 2013(E) Change
+7.2%
Shipbuilding 9,766.4 10,475.0 7.3%
30,000.0 25,086.0 26,857.0 Offshore & Engineering 4,372.7 4,900.0 12.1%
Industrial Plant 1,479.7 1,357.6 -8.3%
20,000.0 Engine & Machinery 2,967.4 2,821.3 -4.9%
Electro Electric Systems 2,842.7 3,134.0 10.2%
10,000.0 Construction Equipment 3,120.2 3,600.0 15.4%
Green Energy 344.2 385.0 11.9%
-
Others 161.7 184.1 13.9%
2012 2013(E)
Total 25,055.0 26,857.0 7.2%
New Orders (mil. USD)
New orders (mil. USD)
2012 2013(E) Change
+51.7%
40,000.0 Shipbuilding 6,143.0 7,750.0 26.2%
29,676.0 Offshore & Engineering 2,072.0 6,000.0 189.6%
30,000.0
19,567.0 Industrial Plant 4,077.0 6,000.0 47.2%
20,000.0 Engine & Machinery 1,858.0 3,100.0 66.8%
Electro Electric Systems 2,318.0 3,160.0 36.3%
10,000.0
Construction Equipment 2,773.0 3,272.0 18.0%
- Green Energy 326.0 394.0 20.9%
2012 2013(E)
Total 19,567.0 29,676.0 51.7%
12
13. Affiliates
25 affiliated companies in Hyundai Heavy Industries Group (Overseas corporations excluded)
• Changjuk Wind Power : As of Jan. 3. 2011, the date of addition as an affiliate
• Hyundai Energy & Resources : As of May. 2. 2011, the date of addition as an affiliate
• New Korea Country Club & Hyundai Oil Terminal Co., Ltd.:
As of March. 2. 2012, the date of addition as an affiliate
• Ownership of Hyundai Energy & Resources :
Hyundai Mipo Dockyard 35%, Hyundai Oilbank 15%, Hyundai Corporation 10%
• Sales and assets : FY2010 , based on K-GAAP
(Hyundai Futures, HI Investment and Securities, HI Asset Management : End of March 2011) 13
14. Global Network
Established 23 Overseas offices and 26 Incorporated firms, a total of 49 global network.
• 23 overseas offices - Europe : 6, America : 4, Asia : 4, Middle East / Africa : 9
• 26 Incorporated firms - Production/sales : 14, Sales : 2, Construction : 3, Management : 5, R&D : 2
[HHI]
Overseas Incorporated Production &
Region Total
office firm (*1) Sales(14)
Europe 6 7 13
Sales (2)
America 4 4 8
Construction(3)
Asia 4 12 16
【Europe】 R&D(2)
Middle East /
9 3 12 Management(5)
Africa
Oslo
Total 23 26 49 Offices (23)
Moscow
Rotterdam *1: Local site operation basis
London
Belgium Germany VGF (in process)
France Hungary
Beijing Vladivostok Hyundai Ideal Electric Co.
Spain Bulgaria Istanbul Tai’an Shandong Yantai
Tokyo New Jersey
Alabama
Athens Kuwait Chanzhou
Yangzhong Osaka Atlanta
Kuwait Offset (office, incorporated)
Saudi Arabia HHI China Investment Co., Ltd. Houston
Al Khobar Mumbai
Dubai Hyundai Financial Leasing Co., Ltd.
Fujairah
Jebel Ali Grand China Shipping (Hong Kong) Company Limited
India
Nigeria Abu Dhabi
Hyudai Heavy Industries shanghai R&D Co., Ltd. Panama
NIKORMA Singapore
Luanda
Brazil
【Asia】
【Middle East / Africa】
【America】
14
17. New Orders & Sales by Division
(Unit: sales -bil. KRW, New Orders & Backlog -mil. USD)
Sales New Orders Backlog
2013 2012 2013 2012 2013
Achieve Achieve
Target January ment
Full Year January Target January ment
Full Year January January
Shipbuilding 10,475 881 8.4% 9,766 704 7,750 937 12.1% 6,143 76 21,769
Offshore&
4,900 340 6.9% 4,373 330 6,000 1,183 19.7% 2,072 27 15,964
Engineering
Industrial Plant
1,358 63 4.6% 1,480 105 6,000 37 0.6% 4,077 5 9,383
&Engineering
Engine &
2,821 133 4.7% 2,967 154 3,100 162 5.2% 1,858 238 3,345
Machinery
Electro Electric
3,134 200 6.4% 2,843 183 3,160 143 4.5% 2,318 197 2,648
Systems
Construction
3,600 234 6.5% 3,120 344 3,272 217 6.6% 2,773 305 -
Equipment
Green Energy 385 36 9.4% 344 28 394 32 8.1% 326 22 135
Others 184 11 72.0% 162 12 - - - - - -
Total 26,857 1,898 7.1% 25,055 1,860 29,676 2,711 9.1% 19,567 870 53,244
* The financial information above is based on K-IFRS
* The backlog above is on a delivery basis
17
18. Shipbuilding
Drillship VLCC Containerships Bulk Carrier LNG LPG Car Carriers Naval Ships Special Vessels
18
19. Market Shipbuilding
Global Demand Global Demand by vessel types in 2011, 2012
<New orders in 2012>
Korea : 7.5 mil CGT 6.0
Global
100 (M/S 35.2 %) 93.5 Others LPGC LNGC CNTR B/C T/K
China : 7.1 mil CGT Korea 5.0
(M/S 33.3 %) Japan
80
Japan : 2.9 mil CGT 67.8 4.0
(M/S 13.6 %) China
3.0
60 54.2
41.9 44.3 45.1
37.8
40
28.1 2.0
26.1
18.4 20.5 21.3
16.7 18.1
20 15.3
1.0
0 0.0
1998 2000 2002 2004 2006 2008 2010 2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(Unit: mil. CGT, Source : Clarkson Research Studies) 2011 2012
(Unit: mil. CGT, Source : Clarkson Research Studies)
Newbuilding Price Trend since 2002
From the beginning of 2012
-VLCC: -7.6% 2011 : Global contracts reached 28.1 mil. CGT, decreasing by 26% YoY
200 VLCC -Capesize B/C: -5.2 %
Bulk Carrier(Capesize) -4,800teu Containership: -25.7%
2012 : Global contracts as of end of December recorded 21.3 mil. CGT
150
Container(4,800TEU)
decreasing by 24% YoY
100
Newbuilding Benchmark price Index
50
As of the end of January 2012, the shipbuilding price has reduced
By 9.4% from the beginning of 2012
0 - 4,800 TEU containerships -25.7%, Capesize bulk carriers -5.2%
02 03 04 05 06 07 08 09 10 11 12 13
(Source: Clarkson Research Studies / As of February 15 2013)
19
20. Overview Shipbuilding
Sales Contribution(2012) Sales Breakdown by Product (2012)
Shipbuilding LPG 5% LNG 7%
Special Others 1%
39.0%
PCTC 2%
4%
P/C 4%
Container
Others
Drillship ship 33%
61.0% 21%
Bulker 2%
Tanker
21%
Annual Sales & New Orders Main Products
(Unit : sales - bil. KRW, New order – mil. USD) • VLCCs, Tankers, Product Carriers, Chemical Tankers
<January 2013> • Containerships, Bulk Carriers, OBO Carriers
- Sales : 881 • Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers
18,000 - New order : 937
15,730 Tankers / VLCCs
16,000
14,000
13,635 • LNG Carriers, LPG Carriers
12,000
11,470
10,475
• Drillships
10,905
10,000 9,084
9,487
9,766
• Submarines, Destroyers, Frigates
8,000 9,003 7,849 7,750
Operational Highlights
6,443 7,557 6,143
6,000
4,061
4,000
2,000
Completion of Gunsan Shipyard (Mar. 2010)
444
0 Investment & Technical Corporation Agreement with OSX (May 2010)
2006 2007 2008 2009 2010 2011 2012 2013(E) 10% of stake in OSX(USD 61.9 mil.) in exchange for technical advise for
Sales New order establishment of a shipyard
Delivery of first drillship (Sept. 2010)
* 2005 ~ 2009 sales are based on K-GAAP. Delivery of 1,700th vessel (Jan. 2011)
20
21. Performance Shipbuilding
New Orders by Shiptype (2013) Backlog by Shiptype (2013)
Semi
Submersible Others
Container
Others 33% Special &
RIg 3% ship
3%
Naval 22%
12%
Containership Tanker
6%
59%
Drillship
33% LNG Carrier
LPG Carrier 17%
LPG Carrier
8% 4%
• Backlogs as of January 2013 on a delivery basis : 117 vessels, USD 22.00 bil.
• The above data is based on the amount • The above data include vessels of Offshore division (1 vessels, USD 0.23 bil.)
• The above data is based on the amount
New Orders in 2013
2012 Jan. Total Target Achievement Details (mil. USD)
-1 LPG Carriers (73)
# of ship 38 9 9 - - -5 Containerships (554)
-3 Special Vessel (310)
Amount
6,143 937 937 7,750 12.1%
(mil. USD)
21
24. Overview Offshore & Engineering
Sales Contribution (2012) Sales Breakdown by Product (2012)
Offshore &
Engineering
Subsea
18.0% Fixed
Pilepline
Shipbuilding
16% Platforms&
5%
Floaters
79%
Others 82.0%
Annual Sales & New Orders Main Products
(Unit : sales - bil. KRW, New order – mil. USD)
• Floating Units: FPSOs, FLNGs, FPUs, TLPs, Semi Submersible Units
• Fixed Platforms: Topsides, Jackets & Piles, Jack-ups, Modules & Quarters
7,000
<January 2013> • Pipelines & Subsea Facilities: Subsea Pipelines
- Sales : 340 6,000
• Offshore Installations: Platforms, Pipelines
6,000
- New order : 1,183
• Land-Based Modules
5,000
4,480 4,373 4,900
4,000
3,413
3,069
3,729
Operational Highlights
2,978
3,095
3,000 3,423
Received USD 1.4 bil. of Myanmar SWHE Field development project (Feb. 2010)
2,352
1,997
1,935
2,072
2,000 2,222
1,102 Received USD 1.1 bil. of Goliat FPSO order (Feb. 2010)
1,000
Received USD 0.9 bil. of Barzan offshore platform order (Jan. 2011)
0 Received USD 0.2 bil. of Dockwise Transportation vessel order (Feb. 2011)
2006 2007 2008 2009 2010 2011 2012 2013(E)
Received USD 1.2 bil. of BP Q204 FPSO order (Feb. 2011)
Sales New order
Received USD 0.6 bil. of BP Clair Ridge platform order (Mar. 2011)
* 2005 ~ 2009 sales are based on K-GAAP.
24
25. Performance Offshore & Engineering
Major Projects in 2009/2010 New Orders by Type
Gorgon LNG (Oct. 2009) ($ mil.) 2008 2009 2010 2011 2012 Jan 2013
- LNG processing modules Fixed 1,113 2,196 1,501 2,121 1,621 1,148
fabrication Floating 1,704 46 1,303 1,819 412 30
($2.1 bil. from Chevron)
Subsea Pipeline 145 100 252 539 31 0
Others 16 9 13 1 8 5
Total 2,978 2,351 3,069 4,480 2,072 1,183
Performance Record
(1976 ~ January 2013)
Myanmar SHWE Field development project (Feb. 2010) Type
Total number
Major Projects
of projects
- Installation of gas production &
· Bongkot 4A Platform
processing platform, Platforms 84
(PTTEP, 2012)
pipeline & onshore terminal · Sakhalin-1 OPF Onshore Modules
Fixed Onshore Facilities 10
($1.4 bil. from Fabrication(ExxonMobil, 2006)
Daewoo International Corp.) Jack-up rig 3
· Harsh Environment Jack-up PDQ
(BP, 1994)
Semi-submersible · Deepwater Horizon Semi-
10 Submersible Drilling Unit
Drilling Rig
(R & B Falcon, 2000)
FPSO 10 · Usan FPSO (TOTAL, 2012)
Floating
Goliat FPSO (Feb. 2010) · West Seno Field Development
TLP 2
(Chevron, 2003)
- Cylindrical Floating
Production Storage Offloading unit FPU 4 · Moho Bilondo FPU (TOTAL, 2008)
($1.1 bil. from ENI Norge AS) · Paradip SPM Pipeline
Subsea Pipelines 5,192 km
(IOCL, 2012)
25
26. Performance Offshore & Engineering
Major Projects Awarded in 2011
Qatar, Barzan Offshore Project UK, Q204 FPSO UK, Clair Ridge Platform
- Date : Jan. 2011 - Date : Feb. 2011 - Date : Mar. 2011
- Price : USD 860 million - Price : USD 1.2 billion - Price : USD 620 million
- Owner : RasGas Company - Owner : BP - Owner : BP
- Completion : Nov. 2013 - Completion : May 2016 - Completion : Nov. 2014
- Details : Fabrication and Installation of - Details : Construction of FPSO (EPC), - Details : Fabrication and Installation of
Wellhead Platforms, Living Quarters, Processing 0.32 million bpd, storing Drilling and Quarters Platforms (EPC)
Onshore & Offshore pipeline (EPC) 0.8 million bbls
26
27. Industrial Plant & Engineering
Thermal Power Plant Co-Generation Plant Process Plant Combined Cycle Power Plant
27
28. Overview Industrial Plant & Engineering
Sales Contribution (2012) Sales Breakdown by Product (2012)
Industrial Plant
& Engineering Others
5.0%
24%
Power
Plant
Others 95.0% 44%
Oil & Gas
32%
Annual Sales & New Orders
(Unit : sales - bil. KRW, New order – mil. USD) Main Products
<January 2013> Power Plants
7,000 - Sales : 63 Combined-Cycle, Cogeneration, and Thermal Power Plants
- New order : 37 • Process Plants
6,000
Oil and Gas, Refinery, Tank Farm, GTL, and LNG Facilities
6,000
5,000 • Plant Equipments
4,000
4,077 Industrial Boiler, HRSG(Heat Recovery Steam Generator),
CFBC(Circulating Fluidized Bed Combustor) Boiler, Regenerator & Reactor
3,000 2,826 2761
2645
2,010
Operational Highlights
2,076
1898
2,000 1,544
1374 1480 1358
1017 1,014
1,000 846
602
• Received a USD 1.0 bil. Das Island order (Jul. 2009)
0
2006 2007 2008 2009 2010 2011 2012 2013(E) • Received a USD 2.6 bil. Sabiya order (Sept. 2009)
Plnat Sales Plnat New order • Signed an MOU for supplying ITER vacuum vessel (Jan. 2010)
• Received a USD 1.6 bil. Riyadh order (Jun. 2010)
* 2005 ~ 2009 sales are based on K-GAAP. • Received a USD 3.2 bil. Jeddah South order (Oct. 2012)
28
29. Performance Industrial Plant & Engineering
Performance Record New Orders by Type
(1976 ~ January 2013)
(mil. USD) 2008 2009 2010 2011 2012 Jan 2013
Project Type Major Projects
· Integrated Gas Development (IGD) Project Power Plants 1,727 1,412 1,601 9 3,510 0
(ADGAS, UAE, 2013(E))
Chemical Plants 117 1,177 145 493 253 0
Oil & Gas · Escravos Gas Plant Phase Ⅲ (Chevron Nigeria Ltd., Nigeria, 2010)
· Bonny Terminal Integrated Project Plant equipment 232 237 264 512 314 37
(Shell Petroleum Development, Nigeria, 2008)
· KOC Crude Oil Export Facilities Project Total 2,076 2,826 2,010 1,014 4,077 37
Tank Farm (Kuwait Oil Company, 2008)
Oil & · JPR Zarpa Tank Farm Project (Jordan Petroleum Company, 2000)
Gas · Jazan Refinery and Terminal Project, Package. 2 Major Projects in 2010/2011/2012
(Saudi Aramco, 2016(E))
Refinery & · HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013(E))
Petrochemical · Mumbai Diesel Hydro-Desulfurization Project Riyadh PP11 (Jun. 2010)
(Hindustan Petroleum Company, India, 2000)
· HPC 2nd Petrochemical Complex Project (Hyundai Oilbank, 1997) - 1.6 bil. USD / Dhuruma Electricity
Gas To Liquid · Pearl GTL Feed Gas Preparation Project (Qatar Shell, 2011) Company,
· Riyadh PP 11 Independent Power Project Saudi Arabia (SEC)
(Dhuruma Electricity Company, Saudi Arabia, 2013(E))
· Sabiya Combined Cycle Gas Turbine Project
(Ministry of Electricity and Water, Kuwait, 2013(E)) - 1,756MW Combined cycle power plant
Combined Cycle/
· Al Dur Independent Water and Power Project
Simple Cycle
Power Plant
(Al Dur Power & Water Co., Bahrain, 2012) HCP BTX (May 2011)
· Marafiq Independent Water and Power Project
(Jubail Water and Power Company, Saudi Arabia, 2010) - 361 mil. USD / HC Petrochem, Korea
· Shaybah Power Generation Project
Power (Saudi Aramco, Saudi Arabia, 2008) - #2 BTX project to increase Benzene,
· Tihama Cogeneration Expansion Project Stage II
(Tihama Power Company, Saudi Arabia, 2015(E))
Toluene, Xylene (BTX) capacity for
Cogeneration HC Petrochem(JV of Hyundai Oilbank
· Saudi Aramco 3rd party Cogeneration Program
(Tihama Power Company, Saudi Arabia, 2006) 50% + Cosmo Oil Japan 50%)
· Jeddah South Thermal Power Plant
(Saudi Electricity Company, Saudi Arabia, 2017(E))
Jeddah South (Oct. 2012)
Thermal · Namjeju #3&4 Thermal Power Plant (KEPCO, Korea, 2007)
· Makkah-Taif Thermal Power Plant - 3.2 bil. USD / Saudi Electricity Company,
(Saline Water Conversion Corporation, Saudi Arabia, 1989) Saudi Arabia
· Taweelah A1 (ADWEA, UAE, 2002)
· Taweelah B (ADWEA, UAE, 1995)
Desalination Plant - 2,400MW Oil fired Conventional
· Umm Al Nar West (ADWEA, UAE, 1982)
· Al Khobar Phase 2 (SWCC, Saudi Arabia,1981) Power Plant
29
31. Overview Engine & Machinery
Sales Contribution (2012) Sales Breakdown by Product (2012)
Engine & Hydraulic Robotics
Machinery Machinery 10%
Power 4%
11.0%
Plant
Engine 8%
Marine
Others 89.0%
Engine
78%
Main Products & Capacity
Annual Sales & New Orders • Two-Stroke Diesel Engines (500 units, 18 mil. BHP)
(Unit : sales - bil. KRW, New order – mil. USD)
• Four-Stroke(HiMSEN) Engines (1,800 units, 5 mil. BHP)
• Diesel and Gas Power Plant Engines
<January 2013>
• Propellers and Crankshafts
-Sales : 133
5,000 4,646 -New order : 162 • Steam Turbines and Turbochargers
4,500
• Industrial and Marine Pumps, Industrial Robots, Side Thrusters
4,000
3,176
• Presses, Conveyor Systems, and Steel Strip Process Lines
3,500 3,248
3,096 2,967 3,100
2,835
Operational Highlights
3,000 2,772 2,821
2,522
2,500 2,283
1,880 1,858
2,000 1,646
1,452
Surpassed cumulative four-stroke engine production of 20 mil. bhp (Mar. 2010)
1,500
Production of eco-friendly marine engine meeting new IMO standards (Mar. 2010)
1,220
1,000
• Received a 95MW PPS order from Venezuela (Apr. 2010)
500
0
• Received a 75MW diesel power plant order from Bangladesh (Apr. 2010)
2006 2007 2008 2009 2010 2011 2012 2013(E) • Development of high output eco-friendly gas engine (May 2010)
Sales New order
- 20% reduction of CO2 emission and 97% reduction of NOX emission
Surpassed cumulative two-stroke engine production of 100 mil. bhp (Sept. 2010)
* 2005 ~ 2009 sales are based on K-GAAP.
Production of 1,000th Packaged Power Station (Jul. 2012)
31
32. Performance Engine & Machinery
Market Share in 2012 (%)
Major Projects in 2010, 2011
Large-size Medium-size Diesel
Diesel Power Plants order from Bangladesh (Apr. 2010) Marine Marine Propeller power
Engine Engine plant
- USD 70 mil. order for 70 MW diesel power plants from
Bangladesh Power Development Board (BPDB)
Domestic 52 50 90 95
PPS order from Venezuela (Apr. 2010)
- USD 160 mil. order for 204 MW, 120 Packaged Power Global 35 23 23 7
Stations
from electricity company Electricidad de Caracas,
Venezuela
Diesel Power Plants order from Ecuador (May 2011)
Ship Engine New Orders by Region
- USD 74 mil. order for 140 MW diesel power plants from
Equitatis, Equador
3% 11% 8% 8% 4%
33% 9% 9%
Eco-friendly Engine products 39%
Eco-Friendly Diesel Engine 44%
-15 % reduction of NOx emission meeting new IMO standards
92% 87%
83%
High output Eco-Friendly HiMSEN Gas Engine 67%
57%
- 20% reduction of CO2 emission compared to diesel engine 45%
- 97% reduction of NOX emission to reach the world’s lowest
level
of 50ppm 2007 2008 2009 2010 2011 2012
- 47% improvement in engine performance
Domestic China Others
32
34. Overview Electro Electric Systems
Sales Contribution (2012) Sales Breakdown by Product (2012)
Switchgear Rotating
Electro Electric 16% Machinery
Low Voltage 25%
Systems 12.0%
Circuit
Breaker Others 4%
6%
Others 88.0% High Voltage
Circuit Transformer
Breaker 34%
15%
Annual Sales & New Orders Main Products
(Unit : sales - bil. KRW, New order – mil. USD)
• Transformers (up to 765kV, 1,300MVA), Gas Insulated switchgear(25.8kV~800kV),
4,000 3,793 Low voltage Switchgear
3,242 3,160 • Low and Medium Voltage Circuit Breakers
3,134
2,712
2,843 • Rotating Machinery
3,000 2,625
2,281
2,556 2,319 2,318 • Power Electronics and Control Systems
1,925
2,000 1,766
1,453
1,274
1,057 <January 2013> Operational Highlights
1,000 - Sales : 200
- New order : 143
Awarded Asia-Pacific Power Transmission Equipment Company of the Year
0
by Frost & Sullivan (Aug. 2009)
Received USD 0.25 bil. transformer order from South Africa (Nov. 2009)
2006 2007 2008 2009 2010 2011 2012 2013(E)
Received USD 0.6 bil. transformer order from the US (May 2010)
Sales New Orders
Reached the transformer production milestone of 700,000MVA (Dec. 2010)
* 2005 ~ 2009 sales are based on K-GAAP. Received 1,000 GIS order from Russia (Jun. 2011)
34
35. Performance Electro Electric Systems
Major Projects
Major performance
• US transformer long-term supply contract (May 2010) Project Type Major Projects
- USD 600 mil. Order for supplying transformers ranging from · West Generating Project
Generator Installation
230kV to 500kV to Southern California Edison(SCE) for 10 years (U.S.A)
from 2010 to 2019
- Largest transformer order to date Power Transmission & · British Columbia Hydro & Power Authority
Mutation Installation (Canada)
Sales by Region
Iron Manufacture
· NUEVA VENTANAS 240MW Coal Fired Power Project
Installation
(Chile)
35% 38% Water Treatment &
· KODECO IKC Project
49% 51% 46% Cement & Petrochemical
(Indonesia)
Installation
3% 4%
3% 18% 2% Automotive Goods · Seoul Metro
29% 8% 21% (South Korea)
16%
7% 20% 18% 7%
11% · Royal Nedlloyd Group
5% Marine Goods
6% 4% 2% 1% 3% (Netherlands)
4% 3% 4% 6% 9%
14% 14% 14% 11% · Al-Jubail Saline Water Conversion
12% Ocean Installation
(Saudi Arabia)
2008 2009 2010 2011 2012
· Hyundai Merchant Marine LNG Carrier –
Marine Steam Turbine
Domestic Others Middle East Europe 22,000MW Marine Steam Turbine (South Korea)
Africa Asia North America
· Gas Insulated Switchgear : TATUNG Company
Know-how Export
(Taiwan)
* The sales of Green Energy division is not included in 2011 & 2012 results
* 2007 ~ 2009 sales are based on K-GAAP. Fresh Water · Shuweihat S2 IWPP Project
Installation (U.A.E.)
35
37. Overview Construction Equipment
Sales Contribution (2012) Sales Breakdown by Product (2012)
Construction CKD Others
Equipment 7% 8%
13.0% Wheel
Loader
11%
Others
Excavator
87.0% Folk Lift
59%
15%
Annual Sales
(Unit : sales - bil. KRW) Main Products
4,000
3,600 • Excavators (Local 16,000 units, China 18,874 units, India 1,800 units)
3,500 • Wheel Loaders (2,900 units)
3,052 3,120 • Forklifts (9,500 units)
3,000 • Skid Loaders (600 units)
2,500 2,275
2,000
1,512
1,769 Operational Highlights
1,500 1,198 1,190 <January 2013>
1,000 - Sales : 234 Introduction of Hi-Mate remote management system (May 2009)
9-series excavators recognized at Korea’s Pin-up Design Awards (Dec. 2009)
500
Introduction of new 9-series wheel loader (May 2010)
0
2006 2007 2008 2009 2010 2011 2012 2013(E)
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)
* 2005 ~ 2009 sales are based on K-GAAP.
37
38. Performance Construction Equipment
Excavators Sales in China Excavator Sales in China
180,000 Market size(Left) 162,908 162,908 35,000 January 2012 January 2013 YoY
HHI(Right)
150,000 30,000
25,000 Market 4,849 4,324 -10.8%
120,000 104,908
93,237 18,467
17,294 20,000
90,000 60,856
71,767
15,000
41,500 HHI 721 447 -38.0%
60,000 8,540
10,000
10,101 4,324
30,000 9,138 9,495 8,377
5,000
447 M/S 14.9% 10.3% -4.5%p
0 0
2006 2007 2008 2009 2010 2011 2012 2013.Jan (Source : China construction machinery association)
Construction Equipment Sales by Region
HHI’s Excavator Market Share by Region
Others
39% 39% 38% Brazil 2010 2011 2012
49% 48%
54%
China
Domestic Domestic 33.2% 32.4% 27.5%
14%
25% 27% Europe
11%
19% 5%
4% Global 8.6% 8.0% 8.7%
20% North America
17% 16%
28% 22% 17% India
China 11.3% 10.2% 8.1%
21% 17% 8%
6% 7%
3%
3% 4% 6% 10%
India 11.3% 13.9% 17.3%
6% 6% 2% 3% 3% 3%
2007 2008 2009 2010 2011 2012
(Source : Company data)
※ 2007 ~ 2009 sales are based on K-GAAP.
※ Others includes Middle East (14%), Russia (9%), South America (7%),
Southeast Asia (6%), Africa (6%), Turkey, Australia and etc.
38
