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(06.2016)
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.
3
Contents
HHI at a Glance
Financial Performance
Business Performance
Current Issues
4
HHI at a Glance
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 6,672 bil. (As of December 30, 2015)
Credit Rating : A (Corporate Bond), A2 (Commercial Paper)
Korea’s large conglomerate ranking : 8th
(Excluding public companies, based on total assets)
No. of employees : 25,236 (Average 16.3 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
6
History
1970~2002 2002~2011 2012~2016
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
04. 2011 Completion of World’s largest Saudi MARAFIQ power plant (2,750MW)
02. 2014 Delivery of the world’s first LNG-FSRU
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. 2015 Completion of the World’s largest cylindrical FPSO
05. 2015 Delivery of 2,000 ships, for the first in the world.
08. 1999 Listed on the Korean Stock Exchange
02. 2001 Completion of the World’s largest deep-sea FPSO (343K Tons)
08. 2010 Acquisition of Hyudai Oilbank Co., Ltd. (70% of ownership and management)
02. 2002 Separation from Hyundai Group and foundation of HHI Group
12. 2015 Produced Eco-friendly ‘Tier-III’ engine for the first in the world
03. 2016 breakthrough the production of accumulating 10,000 HMSEN Engines
01. 2015 Recognition as the World’s Significant Ship for 32 consecutive years
7
Delivery of 2,000 ships, for the first in the world (May. 2015)
Achievement 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
Delivery of the world’s largest containership (Nov. 2014)
Business Highlights
Completed world’s largest Saudi MARAFIQ power plant (Apr. 2011)
• Power generation of 2,750 MW
• Desalination of 176 MIGD
Achievement of the domestic record in production of transformers (Feb. 2010)
• 600,000 MVA
Completion of world’s largest cylindrical FPSO (Feb. 2015)
8
Ownership Structure
Chung Mong-joon
10.15%
Hyundai Mipo
Dockyard 7.98%
KCC 7.01%
National Pension
Service 5.33%
Hyundai Motors 2.88%
Asan Foundation 2.53%
POSCO 1.94%
Asan Nanum
Foundation 0.65% Treasury Shares 13.37%
Others 48.16%
(Foreign Ownership : 9.82%)
* As of Dec. 31, 2015
9
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)
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)
• LG, Hanwha (KOR) • SolarWorld (GER)
• 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
10
Sales Breakdown
36.1%
9.7%
9.1% 3.8% 5.4%
4.8%
0.7%
27.8%
2.2% 0.4%
Shipbuilding (KRW 16,672.6 bil.)
Offshore & Engineering (KRW 4,466.0 bil.)
Industrial Plant & Engineering (KRW 4,186.4 bil.)
Refinery (KRW 12,831.8 bil.)
Green Energy (KRW 330.3 bil.)
Construction Equipment (KRW 2,225.1 bil.)
Electro Electric Systems (KRW 2,507.3 bil.)
Engine & Machinery (KRW 1,776.6 bil.)
Other (KRW 196.2 bill)
Financial Services (KRW 1,039.4 bil)
* 2015 consolidated basis
11
Affiliates ▶ 26 affiliated companies in Hyundai Heavy Industries Group (Including HHI, excluding overseas corporations)
12
Global Network
▶ Established 15 overseas offices and 28 incorporated firms, a total of 43 global network.
New Jersey
■
■■ Atlanta
Houston■
Brazil ■
Alabama ■
Hyundai Ideal Electric Co. ■
[America]
London ■
Oslo ■
■Moscow ■VGF
■ Athens
■Germany ■Netherlands
■Bulgaria
■ Belgium
France■ Hungary■
[Europe]
■ India
Nigeria■
Kuwait ■
Riyadh■■Al Khobar ■
■■ Dubai,
Jebel Ali
■Ruwanda
[Middle East / Africa]
M-Agro, K-Agro ■■
■Tokyo ■ Osaka
■ Singapore
■Jakarta
Beijing■
Tai’an, Yantai, Weihai■■■ ■■■ ■■■
[Asia]
■ Oversea Office (15)
■Production
/Sales(14)
■ Sales (4)
■ Construction (4)
■ Agriculture (2)
■ R&D (2)
■ Management (2)
As of the end of 2015
Region Europe America AsiaMid. East
/ AfricaTotal
Oversea Office 4 3 3 5 15
Incorporated Firm 9 4 12 3 28
Total 13 7 15 8 43
Jiangso, Yangzhong, Shangdong
HHI China Investment Co., Ltd. Hyundai Financial Leasing Co., Ltd. HHI Shanghai R&D Co., Ltd.
13
Financial Performance
14
Quarterly Operating Income Margin (Consolidated)
13.47%
7.69%
6.99%
6.05%
7.07%
2.64%
4.55%
0.41%
2.87% 2.21%
1.69% -0.59%
-1.40%
-8.62%
-15.60%
-0.16% -1.57%
-1.43%
-8.22%
-2.51%
3.17%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
▶ Recorded KRW 3.2 tril. of operating loss in 2014 reflecting KRW 1.6 tril. of provision mostly for three semi-submersible
rigs, two power plant projects and offshore production facilities.
▶ Recorded KRW 1.5 tril. of operating loss in 2015 reflecting KRW 396 bil. of loss due to cancellation of two
semi-submersible rigs and 1.3 tril. of loss from offshore production facilities.
15
Financial Summary (Consolidated)
Operating Profit Sales
Liabilities to Equity Ratio Debt to Equity Ratio
4,561
2,006
802 -3,250
-1,540 325
8.5%
3.6% 1.5%
-6.2% -3.3%
3.2%
-10%
-5%
0%
5%
10%
15%
-4,000
-2,000
0
2,000
4,000
6,000
'11 '12 '13 '14 '15 '16.1Q
Operating Profit(Left) OP Margin(Right)
53,711.7 54,973.7 54,188.1 52,582.4
46,231.7
10,272.8
0
10,000
20,000
30,000
40,000
50,000
60,000
'11 '12 '13 '14 '15 '16.1Q
30,824 30,532 34,175 36,746 34,234 34,370
169.6% 162.9% 179.6%
220.8% 220.9% 218.8%
0%
50%
100%
150%
200%
250%
0
10,000
20,000
30,000
40,000
'11 '12 '13 '14 '15 '16.1Q
Liabilities(Left) Liabilities to Equity(Right)
11,057 14,827 15,843 16,543 16,852 17,200
60.8%
79.1% 83.3% 99.4%
108.7% 109.5%
0%
50%
100%
150%
0
5,000
10,000
15,000
20,000
'11 '12 '13 '14 '15 '16.1Q
Debt(Left) Debt to Equity Ratio(Right)
(Unit : Bil. KRW)
16
Financial Summary (Consolidated) (Unit: Bil. KRW)
54,973.7 100.0% 54,188.1 100.0% 52,582.4 100.0% 46,231.7 100.0% 10,272.8 100.0%
2,005.5 3.6% 802.0 1.5% (3,249.5) -6.2% (1,540.1) -3.3% 325.2 3.2%
Shipbuilding 1,047.1 5.9% 12.6 0.1% (1,895.9) -11.5% (648.3) -3.9% 191.3 4.6%
Offshore 319.3 7.3% 282.4 5.9% (230.3) -4.9% (1,294.5) -29.0% (71.4) -7.7%
Industrial Plant 106.5 7.4% 61.4 5.0% (1,130.8) -46.9% (76.3) -1.8% (58.5) -6.6%
Engine & Machinery 347.7 17.3% 118.3 6.9% (10.9) -0.7% 66.7 3.8% 67.7 18.7%
Electro Electric
Systems(74.3) -2.6% 90.5 3.3% 86.3 3.7% 143.6 5.7% 50.5 10.1%
Construction Equip. 276.5 7.3% 194.3 5.9% (33.4) -1.2% (116.2) -5.2% 1.6 0.3%
Green Energy (106.3) -31.5% (103.2) -32.8% (16.5) -5.3% 16.3 4.9% 8.3 10.0%
Refinery 308.7 1.4% 404.4 1.8% 228.4 1.1% 628.7 4.9% 202.3 8.1%
Finance 94.9 15.0% 34.5 5.2% 36.3 4.9% 53.3 5.1% 26.7 10.7%
Others (314.6) - (293.2) - (282.7) - (313.4) - (93.3) -
1,029.6 1.9% 146.3 0.3% (2,206.1) -4.2% (1,363.2) -2.9% 244.5 2.4%
2016. 1Q
Operating Profit
Sales
Net Income
2012 20152013 2014
17
Financial Summary (Consolidated)
(Unit: Bil. KRW)
2012 2013 2014 2015 Mar. 31, 2016
49,273.1 53,205.0 53,384.4 49,732.8 50,075.9
Current Assets 25,278.6 29,254.2 29,871.6 27,174.5 27,744.2
Cash & Cash Equivalents 1,107.7 1,336.6 3,229.3 3,105.3 4,596.1
Non-Current Assets 23,994.5 23,950.8 23,512.8 22,558.3 22,331.7
30,531.8 34,175.4 36,745.8 34,233.8 34,369.5
Current Liabilities 22,174.0 26,516.4 27,702.7 23,060.6 23,569.8
Non-Current Liabilities 8,357.8 7,659.0 9,043.1 11,173.2 10,799.7
18,741.3 19,029.6 16,638.6 15,499.0 15,706.4
162.9% 179.6% 220.8% 220.9% 218.8%
Debt-to-Equity Ratio 79.1% 83.3% 99.4% 108.7% 109.5%
Total Debt 14,826.5 15,843.2 16,543.1 16,852.1 17,200.2
※ Debt Status of major consolidated subsidiaries (Unit: Bil KRW)
As of Mar. 31, 2016 : HHI 8,467(66.3%) / HMD 1,081 (59.2%) / HSHI 1,854 (69.7%)
Total Assets
Total Liabilities
Total Shareholder's Equity
Liabilities-to-Equity Ratio
18
Business Performance
19
New Order Trend
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 5,984
8,468 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
8,554
11,027
6,400 5,777
9,817
13,405
16,107
18,706
25,020
27,473
10,735
17,208
25,324
19,567
27,363
19,834
14,538
19,495
0
5,000
10,000
15,000
20,000
25,000
30,000
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Shipbuilding Non-shipbuilding
+34.1% YoY
(Unit: Mil. USD)
(Target)
20
2016 Orders & Backlog by Division (Non-Consolidated)
(Unit: Mil USD)
Backlog
2016
Target May.Achieve-
mentTarget Annual May. May.
Shipbuilding 8,468 731 8.6% 8,350 5,984 2,283 13,917
Offshore & Engineering 3,200 303 9.5% 5,300 1,572 797 13,109
Industrial Plant &
Engineering1,000 2 0.2% 1,650 1,258 88 10,625
Engine & Machinery 2,407 482 20.0% 2,571 1,860 891 1,988
Electro Electric Systems 2,291 870 38.0% 2,445 1,873 740 2,071
Construction Equipment 1,814 713 39.3% 2,298 1,692 890 -
Green Energy 315 124 39.4% 336 299 118 39
Total 19,495 3,225 16.5% 22,950 14,538 5,807 41,749
(*Backlog above is on delivery basis)
2016
New Orders
2015
▶ Achieved lower new orders than expected in Offshore and Industrial Plant divisions due to low oil price in 2015.
21
Shipbuilding
Bulker LPGC LNGC Naval Ship Car Carrier Containership Drill ship VLCC Semi-Rig
22
World shipbuilding Market share Shipbuilding
<Output in 2015>
(No. of Vessels) (1,000 CGT)
1 Hyundai Heavy Industries(KOR) 64 2,905 7.9%
2 Hyundai Mipo Dockyard(KOR) 81 1,899 5.2%
3 Samsung Heavy Industries(KOR) 32 1,895 5.2%
4 Daewoo Shipbuilding & Marine Engineering(KOR) 30 1,786 4.9%
5 Hyundai Samho Heavy Industries(KOR) 35 1,491 4.1%
6 Dalian Shipbuilding(CHN) 23 890 2.4%
7 Jiangsu New YZJ(CHN) 31 666 1.8%
8 Imabari Shipbuilding(JPN) 47 584 1.6%
9 Shanghai Waigaoqiao(CHN) 16 584 1.6%
10 Japanese Marine United(JPN) 29 512 1.4%
1,454 23,446 64.0%
1,842 36,658 100.0%
HHI Group 180 6,295 17.2%
(Source : Clarkson)
Market Share
(%)
Total
Rest
ShipbuilderRankOutput in 2015
23
Demand
1.1
8.3 8.4
1.6
0.4 1.3
5.9
1 0.1 0 0.2
2.7
0
2
4
6
8
10
Bulkers Tankers Containers LNGC's LPGC's Others
New Orders by ship type (Unit: Mil. GT)
May. 2015 May. 2016
177.2
111.4
34.6
95.9
62.8
41.3
117.1
78.9
59.2
21.1 9.9
0.0
50.0
100.0
150.0
200.0
'07 '08 '09 '10 '11 '12 '13 '14 '15 May.
'15
May.
'16
Global Demand (Unit : Mil. GT)
Bulkers Tankers Containers LNGC's LPGC's Others
<Global Demand> (Unit: Mil. GT)
'07 '08 '09 '10 '11 '12 '13 '14 '15 YoY '15.5 '16.5 YoY
Total 177.2 111.4 34.6 95.9 62.8 41.3 117.1 78.9 69.5 -11.9% 21.1 9.9 -53.1%
Bulkers 92.6 57.0 21.1 58.6 23.7 13.8 56.7 34.9 10.0 -71.3% 1.1 5.9 436.4%
Tankers 28.0 29.9 8.6 20.7 6.1 9.1 21.5 15.2 25.8 69.7% 8.3 1.0 -88.0%
Containers 35.0 12.7 1.0 6.6 20.1 4.6 23.1 11.4 22.5 97.4% 8.4 0.1 -98.8%
LNGC 2.5 0.6 0.0 0.5 5.4 4.1 4.1 7.1 3.5 -50.7% 1.6 0.0 -100.0%
LPGC 0.7 0.6 0.1 0.6 0.4 1.1 2.8 3.4 2.3 -32.4% 0.4 0.2 -50.0%
Others 18.4 10.6 3.8 8.9 7.1 8.6 8.9 6.9 5.4 -21.7% 1.3 2.7 107.7%
* Others : Offshore, Cruise vessels, Ro-Ro ferries, MPP, Reefers, PCC (Source : Clarkson)
Shipbuilding
24
Competition Shipbuilding
* Source : Clarkson
(%) (%) (%) (%) (%) (%)
Korea 26 41.4 13.3 32.2 36.3 31.1 24.1 29.7 23.1 33.7 0.5 5.1
China 23.5 37.4 14.9 36.1 51.7 44.3 33.2 40.9 20.5 29.9 6.5 65.7
Japan 8.1 12.9 8.9 21.5 19.7 16.9 17.3 21.3 19.1 27.9 0.6 6.1
Others 5.2 8.3 4.2 10.2 9.1 7.8 6.5 8.0 5.8 8.5 2.3 23.2
Total 62.8 - 41.3 - 116.8 - 81.1 - 68.5 - 9.9 -
May.
'16Region '11 '12 '13 '14 '15
41.4 37.4
12.9
32.2 36.1
21.5
31.1
44.3
16.9
29.7
40.9
21.3
33.7 29.9 27.9
0.0
10.0
20.0
30.0
40.0
50.0
Korea China Japan
Global Market Share (%)
2011
2012
2013
2014
2015
19.9 16.3 8.5
2.1
39.3
21.1 10.0
1.3
3.5 11.5
13.6
7.9
0.0
50.0
100.0
Korea China Japan
Backlog (May. 2016) (Unit: Mil. GT)
Tanker Bulk LNGC
LPGC Containership Offshore
25
Price Trend Shipbuilding
0
50
100
150
200
250
300
0
50
100
150
200
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Capesize180K dwt (Left)
VLCC 320K dwt (Left)
Containership 13,000
teu(Left)
LPG carrier 78-84K ㎥
(Left)
LNG carrier 160K ㎥
(Right)
<Price Trend> (Unit: Mil USD)
'07 '08 '09 '10 '11 '12 '13 '14 '15 YoY '16.5Since
15/12/31
Clarkson Index 185.1 177.7 138.0 142.4 139.0 126.3 133.2 137.7 131.0 -4.9% 129.0 -1.5%
Bulker(180K) 97.0 88.0 56.0 57.0 48.5 46.0 53.5 54.0 46.0 -14.8% 44.0 -4.3%
Tanker(320K) 146.0 150.0 101.0 105.0 99.0 93.0 94.0 97.0 93.5 -3.6% 90.0 -3.7%
Containership(13,000TEU)
- 166.0 118.0 129.0 128.0 107.0 113.5 116.0 116.0 0.0% 112.5 -3.0%
LPGC(82K㎥) 93.0 92.0 72.0 72.8 73.0 70.0 74.5 79.0 77.0 -2.5% 74.0 -3.9%
LNGC(160K㎥) 237.0 245.0 211.5 202.0 202.0 199.5 198.0 200.0 199.0 -0.5% 197.0 -1.0%
* Index=100 in year 1988 (Source: Clarkson)
26
Annual Sales & New Orders
Sales Breakdown by Product (2015) Sales Contribution(2015)
• 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 8,736
11,470
15,730
13,635
444
4,061
10,905
6,143
9,512
6,192 5,984
0
5,000
10,000
15,000
20,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales New Orders
19%
14%
4%
19%
25%
5%3%
8%4%
Container
Tanker
Drillship
LNGC
LPGC
Semi-Rig
Bulk Carrier
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)
Shipbuilding
36%
(Unit : sales - bil. KRW, New order – mil. USD)
27
• Based on the delivery amount
Performance Shipbuilding
33.0%
29.3%
27.6%
10.1%
New Orders by Shiptype (2015)
Tanker
Containership
Gas Carrier
Others
23.4%
12.3%
41.8%
1.3% 3.7%
17.5%
Backlog by Shiptype (2015)
Tanker
Containership
Gas Carrier
Bulk
Semi-Rig
Naval & Others
• Backlogs as of Dec. 2015(YTD) : 141 vessels, USD 16.8 bil. • Based on the amount
2014 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total TargetAchieve-
ment
# of
ships60 2 6 0 4 10 8 9 2 7 7 4 1 60 -
Amount 6,192 198 411 27 435 1,212 902 1,083 142 515 519 408 132 5,984 8,350 71.7%
New Orders in 2015 (in million USD)
28
2015 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total TargetAchieve-
ment
# of
ships60 0 1 2 0 4 7 -
Amount 5,984 0 77 157 0 497 731 8,468 8.6%
New Orders in 2016 (in million USD)
25.6%
12.9%
39.3%
1.2% 4.3%
16.7%
Backlog by shiptype (May. 2016)
Tanker
Containership
Gas Carrier
Bulk
Semi-Rig
Naval & Others
Performance Shipbuilding
• Backlog as of May. 2016 (YTD) : 114 vessels, USD 13.9 bil.
• Based on the delivery amount
• Based on the amount
39.5%
59.4%
1.1%
New Orders by Shiptype (May.2016)
Tanker
Gas Carrier
Others
29
Annual Delivery (Mil. GT) Annual Delivery (number of vessels)
2007 2008 2009 2010 2011 2012 2013 2014 2015
Ulsan 75 88 80 55 71 69 44 46 50
Offshore
(on-ground
building)
6 14 25 14 13 4 0 0 0
Gunsan - - - 10 9 11 12 10 15
Total
# of Ship81 102 105 79 93 84 56 56 65
Delivery Shipbuilding
5.1
6.4 6.2
4.8
6.2 6.0
3.7 4.6 4.9
0.3
0.8 1.8
0.9
1.1
0.3 0.9
0.8
1.2
1.2
0.7
1.3 5.4
7.2
8.0
6.6
8.1
7.5
4.9 5.3
6.2
0
1
2
3
4
5
6
7
8
9
10
'07 '08 '09 '10 '11 '12 '13 '14 '15
Gunsan
Offshore
Ulsan
30
Offshore & Engineering
FPSO Modules Fixed Platform Subsea Pipelines Installation
31
Offshore &
Engineering
18%
1,935
2,222
3,095 3,423 3,413
3,729
4,373 4,753 4,653
4,467
1,997
1,102
2,978
2,352
3,069
4,480
2,072
6,503 6,005
1,572
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales New Orders
Sales Contribution (2015)
(Unit : sales - bil. KRW, New order – mil. USD)
Annual Sales & New Orders
• 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…
Subsea
Pipeline
11%
* Non-Consolidated basis * Non-Consolidated basis
• Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
Overview Offshore & Engineering
Sales Breakdown by Product (2015)
32
New Orders by Type
($ mil.) 2009 2010 2011 2012 2013 2014 2015 May.16
Fixed 2,188 1,501 2,121 1,621 454 4,406 718 153
Floating 47 1,303 1,819 412 5,735 1,470 657 146
Subsea Pipeline 108 252 539 31 292 129 197 4
Others 9 13 1 8 22 0 0 0
Total 2,352 3,069 4,480 2,072 6,503 6,005 1,572 303
Major Projects in 2009/2010 (Delivered)
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)
Performance Offshore & Engineering
# of
projectsMajor Projects
Platforms 86· Bonkot 4A Platform (PTTEP, 2011)
· SHWE Platform (Daewoo Intl., 2013)
Onshore Facilities
& Others16
· Gorgon LNG Plant Modules
(Chevron, 2009)
Jack-up Rig 2 · MSC Jack-up Rig (A. P. Moller 2004)
FPSO 12· Goliat FPSO (Eni Norge AS, 2015)
· Quad 204 FPSO (BP, 2015)
FPU 4· Moho Bilondo FPU
(Total E&P Congo, 2008)
TLP 1 · West Seno TLP (Unocal, 2003)
Semi-Submersible
Drilling Rig3 · Deepwater Horizon (R&B Falcon, 2000)
33· Offshore Gas Spur Line
(PTT PCL, 2011)
Fixed
Floating
Subsea Pipelines
Type
Performance Record (1976~Present)
33
Major Projects Awarded in 2011
Qatar, Barzan Offshore Project (Delivered)
- 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
(Delivered) UK, Clair Ridge Platform (Delivered)
- 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
34
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
35
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
36
Industrial Plant & Engineering
Combined Cycle Power Plant
Thermal Power Plant
Co-generation Power Plant
RFCC Plant Equipment
Oil & Gas Process Plant
37
Industrial Plant
& Engineering
17%
Sales Contribution (2015)
(Unit : sales - bil. KRW, New order – mil. USD)
Annual Sales & New Orders 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
Power Plant
87%
Oil & Gas
8%
Plant
Equipments
6%
602
1,017 1,374
1,898
2,645 2,761
1,480 1,259
2,429
4,174
846
1,544
2,076
2,826
2,010
1,014
4,077 4,396
1,256 1,258
0
1,000
2,000
3,000
4,000
5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Sales New Orders
• Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
* Non-Consolidated basis * Non-Consolidated basis
Overview Industrial Plant & Engineering
• 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)
• Received a USD 1.1 bil. NRP order (Oct. 2015)
Sales Breakdown by Product (2015)
38
Performance Record (1976~Present) New Orders by Type
Major Projects in 2012/2013/2014 /2015
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
Clean Fuel Project (Apr. 2014)
- 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait - Upgrade and expansion of Refinery
Performance Industrial Plant & Engineering
(Mil. USD) 2009 2010 2011 2012 2013 2014 2015 May.16
Power Plants 1,412 1,601 9 3,510 4,285 6 5 0
Chemical Plants
/Plant Equip.1,414 409 1,005 567 111 1,250 1,253 2
Total 2,826 2,010 1,014 4,077 4,396 1,256 1,258 2
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
· 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 Plant
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 Power Plant
· Saudi Aramco 3rd party Cogeneration Program (Tihama Power Company, Saudi Arabia, 2006)
Thermal Power Plant
· 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)
Zor Refinery Project (Oct. 2015)
- 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait - Refinery power plant Package 2(Ancillary process), package 3(Utilities & Offsite facilities)
39
Engine & Machinery
Marine Engine Power Plant Engine Marine Propeller Robotics Industrial Machinery
40
Engine &
Machinery 10%
(Unit : sales - bil. KRW, New order – mil. USD)
Annual Sales & New Orders 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 (2015)
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
2,441
1,880
3,248
4,646
1,452
2,283
3,176
1,858
2,425
1,996 1,860
0
1,000
2,000
3,000
4,000
5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales New Orders
• Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
* Non-Consolidated basis * Non-Consolidated basis
Overview Engine & Machinery
Sales Breakdown by Product (2015)
41
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
- 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)
Performance Engine & Machinery
- USD 32 mil., order for 57MW, 34 Packaged Power Station from JINRO, Panama
PPS order from JINRO, Panama (Jun. 2015)
Large-sized
Marine Engine
Mid-sized
Marine Engine
Diesel Power
Plant
Domestic 67 53 -
Global 35 21 8
Market Share in 2015 (%)
33.2% 35.7% 36.8%
56.7%
10.9% 13.1% 7.9%
15.3%
55.9% 51.2% 55.4%
28.0%
'12 '13 '14 '15
New Orders by Region (%)
Domestic China Others
42
Electro Electric Systems
Transformer Switchgear Circuit Breaker Rotating Machinery
43
Electro Electric
Systems 10%
Transformer
28%
High
Voltage
Circuit
Breaker
18%
Low Voltage
Circuit
Breaker
6%
Switchgear
17%
Rotating
Machinery
20%
Others 9%
1,057
1,453
1,925
2,712
3,242
2,319
2,843 2,609
2,241 2,354
1,274
1,766
2,281 2,556
3,793
2,625
2,318
1,820 2,006 1,873
0
1,000
2,000
3,000
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales New Orders
(Unit : sales - bil. KRW, New order – mil. USD)
Sales Contribution (2015)
Annual Sales & New Orders
Operational Highlights
Main Products
Sales Breakdown by Product (2015)
• 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
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
44
• 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
Performance Electo Electric Systems
Sales by Region (%)
41.5 34.2
50.6 46.4 54.1 58.3 57.4
6.9
3.0
11.4 11.6
9.6 6.8 8.9
4.4
2.9
6.4 9.0 5.3 7.7 6.0
8.7
6.3
4.7 7.0 4.6 6.3 5.4
18.5
7.2
17.8 21.2 22.9 20.6 22.0 20.0
46.5
9.0 4.8 3.5 0.3 0.3
'09 '10 '11 '12 '13 '14 '15
Domestic America Asia Europe Mid. East Others
Project Type
Generator Installation · West Generating Project (USA)
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 LNGC 22,000MW
Marine Steam Turbine (South Korea)
Know-how Export ·Gas Insulated Switchgear : Tatung Company
(Taiwan)
Fresh Water Installation · Shuweihat S2 IWPP Project (UAE)
Major Projects
Major Projects
• ’09년 sales is based on K-GAAP. • The sales of Green Energy division is no included since ‘11. • The sales from wind power sales has been included since ’15.
45
Construction Equipment
Mid Excavator Forklift Electric Excavator Skid Loader Wheel Loader Small Excavator Roller
46
(Unit : sales - bil. KRW)
Annual Sales
Operational Highlights
Main Products
Sales Breakdown by Product (2015)
• 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 (2015)
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
20%
Wheel
Loader
9%
CKD
6%
Others
10%
Skid Loader
1%
* Non-Consolidated basis * Non-Consolidated basis
• Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
Overview Construction Equipment
Construction
Equipment 8%
1,198
1,512 1,769
1,190
2,275
3,052 3,120
2,723
2,215
1,844
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
47
Construction Equipment Sales by Region
Excavators Sales in China Excavator Sales in China
HHI’s Excavator Market Share by Region
※ ‘08 ~ ‘09 sales are based on K-GAAP.
2012 2013 2014 2015
Domestic 27.5% 27.9% 25.1% 21.2%
Global(Excluding Japan)
9.0% 7.8% 6.2% 5.8%
China 8.1% 7.2% 4.4% 3.8%
India 17.7% 19.7% 20.4% 18.1%
(Source: Company data)
Performance Construction Equipment
May. 2015 May. 2016 YoY
Market 29,457 30,066 2.1%
H H I 1,395 1,185 -15.1%
M/S 4.7% 3.9% -0.8%p
(Source: China construction machinery association)
6.1 3.2 4.3 6.6 9.9 10.5 10.2 10.7
29.2
6.0 12.4
19.6 23.5 24.3 23.7 17.7
10.7
25.9
27.4 19.4 4.2 5.4 2.7
1.8
7.8
12.4 6.2 3.6
5.7 8.5 11.9
8.6
8.7
4.3 5.4 11.0
14.4 9.6 12.5
15.6
13.0
8.4 10.8
9.6 7.9 5.1 4.5
6.1
16.7
28.9 23.1 17.3
16.7 18.2 20.1
23.8
7.8 10.9 10.4 12.8 17.7 18.5 14.5 15.7
'08 '09 '10 '11 '12 '13 '14 '15
Others
Domestic
Mid. & South
AmericaMid. East
Africa
China
Europe
North
America
71,767 93,237
162,908 169,182
104,908
162,908
84,573
49,009
30,066
8,377 10,101
18,467 17,294
8,540 7,532
3,743
1,889 1,185
0
5,000
10,000
15,000
20,000
25,000
30,000
0
40,000
80,000
120,000
160,000
200,000
'08 '09 '10 '11 '12 '13 '14 '15 '16.05
Market Size (Left) HHI(Right)
48
Green Energy
Solar Power Wind Power
49
Solar Cell Solar Module
Picture
Facilities Solar Cell Plant
(Eumseong, Korea)
Solar Module Plant
(Eumseong, Korea)
Annual Capacity (2015) 600MW 600MW
Details - Mono-crystalline, Poly- crystalline solar cells produced
- 54 cell(6X9), 60 cell(6X10), 72 cell(6X12) modules produced
Solar Power 600MW capacity of solar cell & solar modules to provide total solution
Solar cell & solar modules, solar inverter production facility in 2016
Capacity and Sales
2005 2007 2008 2009 2010 2011 2012 2013 2014 2015
Capa-
city
Cell (MW)
30 30 60 370 370 580 600 600 600 600
Module (MW)
20 30 70 170 510 560 600 600 600 600
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%
335
1.4%
Solar Product Certification
- UL (UL 1703/USA, Canada) - VDE (IEC 61215, IEC 61730-1/61730-2/International) - CE Declaration (International) - J-PEC (Japan) - JET (IEC 61215, IEC 61730-1/61730-2/Japan) - JIS Q 8901:2012 (Japan) - KS Q 8003 (Korea) - MCS (IEC 61215, IEC 61730-1/61730-2/UK) - CSTB (France) - INMETRO (IEC 61215/Brazil) - OPGE (IEC 61215/Puerto Rico) - Ammonia resistance (IEC 62716) - Salt mist (IEC 61701) - Sand & Dust (IEC 60068) - PID(IEC TS 62804-1) - Fire test (UN9177/Italy)
50
Subsidiaries
Hyundai Oilbank Hyundai Samho
51
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
• Heavy Oil Upgrading Ratio 39.1% With the completion of #2 HOU plant in Jan. 2011, Hyundai Oilbank achieved a ratio of 39.1% (the highest HOU ratio in the industry)
• Domestic Light Oil Market Share 22.2%
• 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. 2010
Competitors : SK Innovation, GS Caltex, and S-Oil
52
Hyundai Oilbank (Non-Consolidated)
Income Statement (Unit: Bil. KRW)
2011 2012 2013 2014 2015 2016.1Q
Sales 18,958.6 21,523.9 20,295.6 18,258.0 12,106.8 2,365.7
Operating Profit 594.7 308.4 403.3 192.8 575.8 176.9
Margin(%) 3.1% 1.4% 2.0% 1.1% 4.8% 7.5%
Net Income 360.7 156.5 152.4 31.1 433.7 158.1
Margin(%) 1.9% 0.7% 0.8% 0.2% 3.6% 6.7%
Financial Position (Unit: Bil. KRW)
2011 2012 2013 2014 2015 Mar. 31, 2016
Total Assets 8,642.6 8,506.5 8,597.9 7,701.2 7,079.9 7,532.6
Total Liabilities 5,899.5 5,618.8 5,544.5 4,633.1 3,369.1 3,982.1
Total Shareholder's Equity 2,743.1 2,887.7 3,053.4 3,068.1 3,710.8 3,550.5
Liabilities-to-Equity Ratio(%) 215.1% 194.6% 181.6% 151.0% 90.8% 112.2%
53
At a Glance
Hyundai Samho
• Backlogs as of May. 2016 on a delivery basis : 72 vessels, USD 7.2 bil.
• The above data is based on the amount
• Production Capacity 3.3 mil. GT - Delivered 36 vessels in 2015 - # of dry docks : 2
• 2016 Order Target
• 2016 Sales Target
4.0 bil. USD
4,083 bil. KRW 44.0%
12.6%
19.7%
11.1%
1.6% 3.8%
7.2%
Backlog by Shiptype (May. 2016)
Tanker
Containership
Gas Carrier
PCTC
Bulker
FPU
Others
2015 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total TargetAchieve-
ment
# of
ships41 0 2 0 0 0 2 -
Amount 3,643 0 129 0 4 0 133 4,000 3.3%
New Orders in 2016 (in million USD)
54
Hyundai Samho (Non-Consolidated)
Income Statement (Unit: Bil. KRW)
2011 2012 2013 2014 2015 2016.1Q
Sales 4,828.7 4,231.8 3,506.2 4,172.1 4,504.0 1,090.1
Operating Profit 804.3 254.0 -35.6 -502.2 -350.0 24.2
Margin(%) 16.7% 6.0% -1.0% -12.0% -7.8% 2.2%
Net Income 551.0 -12.5 -52.1 -215.2 -276.0 -4.7
Margin(%) 11.4% -0.3% -1.5% -5.2% -6.1% -0.4%
Financial Position (Unit: Bil. KRW)
2011 2012 2013 2014 2015 Mar. 31, 2016
Total Assets 6,954.7 6,978.9 6,782.7 7,268.7 7,169.3 65,998.0
Total Liabilities 3,741.7 3,641.1 3,428.9 4,192.4 4,506.7 3,941.0
Total Shareholder's Equity 3,213.0 3,337.8 3,353.8 3,076.3 2,662.6 2,658.8
Liabilities-to-Equity Ratio(%) 116.5% 109.1% 102.2% 136.3% 169.3% 148.2%
55
Current Issues
56
Semi-Submersible Rigs Status
HSHI
Diamond(U.S.) Fred Olsen Energy(NOR) Seadrill Mira(NOR)
Contract date 25-May-2013 25-May-2012 11-Jun-2011
Contract price USD 629 mil. USD 621 mil. USD 568 mil.
Advance received USD 189 mil. (30%) USD 186 mil. (30%) USD 170 mil. (30%)
Cancellation notice from owner - 27-Oct-2015 14-Sep-2015
Loss incurred on cancellation - KRW 219.2 bil. KRW 177.0 bil.
Current status under consturction Arbitration submitted Arbitration submitted
HHI
The prolonged weak oil prices caused the delay & cancellation of the E&P investment.
Two semi-submersible rigs out of three in the backlog were cancelled and KRW 396 bil. of losses
from the cancellation were incurred in 2015
The last rig in our backlog is scheduled to be delivered within 2Q 2016.
→ Final delivery of the drilling facility will improve margin visibility of Shipbuilding sector
57
Offshore Orders and Profit Trend
(Unit: orders, backlog-mil. USD, Sales, OP-bil. KRW)
2008 2009 2010 2011 2012 2013 2014 2015 2016(E)
2,978 2,352 3,069 4,480 2,072 6,503 6,005 1,572 3,200
9,017 6,792 7,027 8,221 7,045 8,557 10,288 7,830 7,697
3,095.1 3,423.5 3,412.8 3,729.3 4,372.7 4,753.0 4,653.1 4,466.5 3,303.0
289.0 462.7 737.8 392.8 319.3 280.0 -230.5 -1,294.7 -
Margin 9.3% 13.5% 21.6% 10.5% 7.3% 5.9% -5.0% -29.0% -
Operating Profit
Sales
Orders
Backlog (Sales Basis)
Orderbook hit the historically high level in 2014 on the back of high oil prices
KRW 1.5 tril. of losses incurred in 2014~2015 due to the cost overruns stemming from i) delayed construction of mega sized projects by frequent specification changes which leads to work overloads ii) delayed cost compensations of owners due to the tight budget
58
Offshore Projects in Backlog
(The end of May. 2016, Unit: Mil. USD)
Delivery
Basis
Sales
Basis
Gorgon Chevron
Quad 204 BP (Delivered)
Goliat ENI Norge
Clair Ridge BP
DSO Chevron
Moho Nord TLP Total 81%
Bergading Hess E&P
Moho Nord FPU Total
Baronia Petronas Carigali 56%
Aasta-Hansteen Spar Hull Statoil
Aasta-Hansteen Spar Topside Statoil
NASR 2 ADMA-OPCO 24%
Rosebank Chevron
Others 133
Total (16 projects) 13,109 6,779
Expected
DeliveryCompletion
Backlog
OwnerMajor Project
2015~Jan. 2016
(5 projects)
2017
(5 projects)
2018~
(3 projects)
8,626
2016
(8 projects)4,270
1,2412,814
4,5966,025
809
Major mega projects (Goliat, Gorgon, Q204) are completed and additional eight projects are
scheduled to be delivered timely in 2016
→ Normalized level of workload is expected to lead to a production stability
59
Industrial Plant Projects in Backlog
(The end of May. 2016, Unit: Mil. USD)
Delivery
Basis
Sales
Basis
Jeddah South Thermal Power Plant SEC (Saudi) Oct. 20122017
(PAC*)
Shuqaiq Steam Power Plant SEC (Saudi) Aug. 20132017
(PAC*)
Jazan Refinery & Thermal Project** Aramco (Saudi) Dec. 2012 2017
AZ Zour North Phase 1 IWPP MEW (Kuwait) Dec. 2013 2016
Clean Fuel Project KNPC (Kuwait) Apr. 2014 2018
ZOR Refinery Project KNPC (Kuwait) Oct. 2015 2019
707 250
10,625 3,447
* PAC : Preliminary Acceptance Certificate
** Jazan Refinery & Thermal Project : constructed by HHI's overseas Corp.
Total (6 projects)
Others
Completion
Backlog
OwnerProjectContract
Date
Expected
Delivery
1,9823,468
6,450 1,215 81%
43%
Two non profitable mega projects(Jeddah, Shuqaiq) are in the final process and scheduled to be
delivered in 2017
60
Thank You http://www.hhiir.com
*For More Information
IR Team
E-mail: [email protected]
Tel: +82-2-746-7568, 7508, 4728
Fax: +82-746-4662
Website: www.hhi.co.kr (Company) /www.hhiir.com (IR)