DAEWOO E&C

Investor Relations

CONTENTS Investor Relations 2011

[Appendix] Financial Statement

I. Company Introduction

II. Performance and Strategy

III. Competitiveness

2

3

WHO IS

Ⅰ. Company Introduction

1. Introduction

2. Company milestones & Major shareholder(KDB)

3. Business networks

5. Divisions & Products

4. ENR rank

4

A global E&C leader, creating the highest corporate value with the best technologies and human resources

1. Introduction

(1) Main business : General contractor

(2) Foundation : 1973/ Seoul, Korea

(3) Manpower : 6,116 (FY2011.1Q end)

(4) Assets : KRW 9,830 bn. (USD 9,145 mn., FY2011. 1Q end)

(5) Annual sales revenues : KRW 6,734 bn. (USD 6,265 mn., FY2010)

(6) Awards

2006~2008 Ranked first in the “National construction capacity”

2008 Received grand prize in the “Korea residential service award”

Company overview

This year, we are facing the turning point by KDB‟s acquisition of 50.8% shares

of Daewoo E&C. Also, the synergies between the best technologies/human

resources of Daewoo E&C and the fluent financing know-how of KDB are

expected in the future. Through the strategies of “expanding overseas

business”, “reinforcing development business”, and “talented human resource

management”, we pursue the targets of new order KRW 14 tn., sales revenues

KRW 7.2 tn., and operating margin 5.2% in 2011.

It is the time to focus on the corporate value of Daewoo E&C, which is about

to leap forward as a global top contractor.

President & CEO

Seo, Jong-Uk

Vice President & CFO

Cho, Hyun-Eek

1973 Established Daewoo Construction Co., Ltd.

1976 Started overseas construction business with projects in Ecuador

1970~1980s Expanded the overseas markets into Nigeria, Algeria, UAE, Iran, Libya,

USA, Japan, Taiwan, Cameroon, Bangladesh, Singapore, Malaysia, etc.

1990s Expanded the overseas markets in China, Laos, Pakistan, etc.

2006.12 Incorporated into Kumho Asiana Group

2006~2008 Ranked 1st in “National Construction Capacity” for three consecutive yrs

2011.1 Acquired by Korea Development Bank(KDB)

KDB 50.8%

KAG 24.7%

Free Float 24.5%

With KDB‟s acquisition, Daewoo E&C will be a global top contractor

2. Company milestones & Major shareholder, KDB

5

Shareholders (after M&A)

Foundation : 1st January, 1954

Capital : KRW 16,228 bn.

Assets : KRW 113,206 bn.

Credit rating : Moody‟s A1, S&P A, Fitch A+

(BIS Capital ratio 17.56%)

Shareholder : Korea government 100%

Overview Korea Development Bank (KDB)

World class Corporate & Investment Bank

Corporate banking specialist, leading Korea‟s PF market

Biggest arranger in syndicated loans and bond issuance

M&A advisement pioneer in the banking industry

6

3. Business networks

Operate 30 overseas sites & 20 branches / subsidiaries

Business sites & networks

7

4. ENR rank

The 38th Global contractors in 2010

Rank Company

China Railway Construction Corp. Ltd., Beijing, China

China Railway Group Ltd., Beijing, China

Vichi, Rueil-Malmaison, France

Bouygues, Paris, France

China Communications Construction Ltd., Beijing, China

Daewoo E&C Co. Ltd., Seoul, S. Korea

Consolidated Contractors Group, Athens, Greece

Jacob, Pasadena, Calif., USA

Chiyoda Corp., Japan

Total revenue*

53,990.0

52,869.7

45,247.1

34,271.0

33,462.5

6,055.5

5,739.1

5,558.2

2,573.0

International revenue*

3,542.0

1,781.4

17,237.7

13,509.0

7,477.8

1,746.0

5,739.1

1,801.3

1,558.0

1st

2nd

3rd

4th

5th

38th

39th

42th

97th

Total and International revenue, new orders* : Based on the annual results in 2009 (USD mn.)

New orders*

82,701.0

88,111.3

37,477.7

33,867.0

56,611.3

9,977.4

5,725.6

10,000.0

4,146.0

2010 ENR The top 225 Global contractors

8

5. Divisions & Products

Well-diversified business portfolio

Busan sea links bridges & immersed tunnel

Civil works

Zener Heim zero energy house

Housing Based on its differentiated capabilities

in Housing Division, we have led the

market for several years in various

areas such as apartment, urban

renewal, luxurious villas, green houses,

etc.

*Main products & business

apartments, redevelopment &

reconstruction, urban residential &

commercial complexes, etc.

Civil division has participated in

national development projects from

1970s with roads, railways and harbors.

Also, we expanded our business to

turn-key, alternative design, BTL, BTO,

other SOC and development projects.

*Main products & business

highways, railways & subways, harbors

& reclamation, water supply & drainage

systems, leisure, roads & bridges, etc.

North East Asia Trade Tower skyscraper (305m)

Architecture

*Main products & business

offices, hotels, education & medical,

sports complexes, conventions, factories,

transportation infra., r&c complexes, etc.

With excellent planning, design and

construction capabilities, our architecture

division has been in the vanguard of

domestic and overseas market. Particularly,

we have unrivaled competency in the areas

of high-rise buildings and the intelligent

building system.

Plant division has achieved in diversified

area of projects beginning with Ulsan

thermal power plant in 1977. We began

bio facilities, petrochemical plant and

renewable energy and overseas

development projects.

*Main products & business

power plants, nuclear power plants,

oil & gas plants, Industrial plants,

environmental plants, etc.

Nigeria Bony island LNG LNG train #1,2,3,5,6

Plant

9

1. 1Q. 2011 Performance

2. Mid to long term plans Growth / Profitability

3. Market conditions & Strategies Overseas / Domestic

WHERE IS

Ⅱ. Performance and Strategies

10

1,304

20.4%

5.8%

28.2%

0.5%

45.1%

1,584

21.7%

17.3%

18.5%

8.4%

33.9%

35,071

47.0%

19.7%

12.7%

2.0%

18.6%

1Q. 2010 1Q. 2011

157

147

8.9%

9.9%

72

52

3.1%

4.6%

* included others (revenues KRW 2.7bn., GP KRW 3 bn.)

Housing

Civil

Arch.

Plant

Overseas

Total

266

76

368

6

588

1,304

New orders

343

274

293

133

537

1,584*

Sales revenues

16,485

6,916

4,456

690

6,524

35,071

Backlogs

57 32

19 27

23 26

20 9

24 63

147* 157

1Q10 1Q11

Gross profit

1. 1Q. 2011 Performance

Expanding business in Vietnam, starting with winning Hanoi Cleve Apt. project. Sharp recovery of housing and overseas business margin.

Remarks

· New orders : Hanoi Cleve Apt./KRW 212 bn., Nigeria Obite IPP/KRW 82 bn. (initial contract, remains KRW 631bn. in 2Q), etc. · Sales revenues of rehabilitation biz. and public housing projects : KRW 205 bn. (60% of total housing revenues) · Power plant projects in progress : 16 projects, revenues KRW 174 bn. · Improved performance due to sharp recovery of housing and overseas businesses‟ profitability. · likely to achieve 2011 annual target operating profit: KRW 374 mn. , OP Margin: 5.2% · K-GAAP-based operating profit in 1Q, 2011 : KRW 81.4 bn. , OP Margin: 5.1%

Housing Civil Arch. Plant Overseas

[unit : KRW bn.]

2. Mid to long term plans – Growth

The overseas portion of new orders will increase up to 46% by 2014. 2014 target: new orders KRW 19,000 bn. , sales revenues KRW 11,500 bn.

New Orders Sales Revenues

[unit : KRW bn.]

Housing Domestic Overseas

2010 2012(F) 2014(F) 2011(F) 2013(F)

CAGR 12.9%

2010 2012(F) 2014(F) 2011(F) 2013(F)

CAGR 14.3%

Focus on more competitive businesses (development, power plant, LNG plant)

New growth drivers with high technology & abundant experiences

Strengthen global EPC capability & overseas sales networks ⇒ The portion of the overseas business will be above 50% from 2015

11,697

14,000

31.2%

34.9%

33.8%

26%

32%

42%

15,000

25%

32%

43%

16,500

23%

32%

45%

19,000

22%

32%

46%

6,734

23.6%

49.1%

27.3%

7,200

21%

44%

35%

8,400

19%

44%

37%

9,770

17%

43%

40%

11,500

16%

43%

41%

11

Expecting improvement of overseas business profitability from 2011. 2014 Targets: Gross profit KRW 1,311 bn., Operating profit KRW 805 bn.

2011(F) 2013(F) 2010 2012(F)

374

496

631

2011(F) 2013(F) 2010 2012(F)

-5.4%

5.2%

5.9%

6.5%

-363

Domestic GP margin

Overseas GP margin

GP margin

Gross profit(GP)

Operating profit(margin)

OP margin

Operating profit(OP)

Gross profit(margin)

Enhance financial structure through disposal of non-core assets

Secure new orders in high and stable profit level

Increase profitability through advanced management system

2014(F)

123

724

882

1,062

-6.8%

9.1% 5.0%

11.8% 11.7% 11.7%

9.8%

10.4%

1.8%

10.1%

10.5% 10.9%

1,311

12.0%

11.0%

11.4%

805

2014(F)

7.0%

[unit : KRW bn.]

12

2. Mid to long term plans – Profitability

1 2

3 3

3. Market conditions & Strategies – Overseas

Diversifying disciplines & regions. Fulfilling individualized strategies upon each market conditions.

Market Conditions

-Intensified competition in Middle East market

-Growing infrastructure market such as harbors, roads, power plant and etc.

-Expecting increase of new orders launching in Iraqi reconstruction market

Strategy

-Regional strategy

① Africa: securing primary market with competitive edge

② Middle East (UAE, Oman, Qatar, Saudi, Iraq): expansion

③ Asia & South America: market & segment diversification

-Strategic partnership: engineering companies,

major IPP developers and equipment suppliers

-Enhance competence in oil/gas segment:

focus on high value added projects (LNG, GTL etc.)

strengthen partnership with downstream engineering company

Major Target Project

-2Q : Singapore Downtown Subway (USD 250 mn.), Nigeria Obite CCPP (USD 640 mn.)

-3Q : Vietnam THT New Town (USD 171 mn.), Oman Sur IPP (USD 1.2 bn.)

-4Q : Nigeria Brass LNG (USD 4.5 bn.)

13

3. Market conditions & Strategies – Domestic

Market Condition

(1) Housing

-In provincial area, the housing demand is recovering

-The supply in both public and private sector is decreasing

-The rent rise in Seoul-metro area seems to increase

the house purchase (2) Others domestic sectors

-The government orders decrease due to budget cut

-The private investment SOC sector will revitalize

with government‟s support

⇒ To boost the construction economy, the government is considering deregulation and

several supporting plans (e.g. Construction economy soft land plan was announced on May 1st )

Housing supply / Unsold APT

Strategies

-Reinforcing risk management: PF guarantee amount, unsold apartment units

-Avoid fierce competition and focus on more lucrative project

-Discovering new biz opportunities in architecture division: residence leasing project, BTL project, etc. -Receiving of turnkey/alternative project based on selection and concentration strategies -Developing & discovering large-scale private SOC businesses e.g. railroads, renewable energy, etc.

Starting from provincial area and small unit, housing demand recovers. To boost the construction economy, the government considers new plans.

2006 2007 2008 2009 2010 2011(F)

Housing supply (units) Unsold APT (units, Seoul&Mtro.) Unsold APT (units, provincial area)

14

15

1. KDB Synergy

2. Power plant

3. LNG plant

4. Vietnam business

5. Daewoo institute of construction technology

WHY

Ⅲ. Competitiveness

1. KDB Synergy

Corporate financing support

-Support from KDB in overseas bidding process through issuance of bid/performance bond and L/C

-Upgrade of credit rating and lower the interest costs (credit rating / average interest rate)

before the deal, A-/6.0%+ → after the deal, A0/5.5% → 2011 end expected, A+/5.2%

-Decrease financial burden with refinancing and credit facility agreement

Major projects supported by KDB

-Vietnam THT project: to provide PF Loan(USD 200 mn.)

-Gwangkyo central commercial district: PF loan agreement (KRW 440 bn.)

-Busan Seokdae industrial complex: FI participation through capital increase & PF loan arrangement

-More projects under cooperation: 20 projects, approximate budget KRW 25.9 tn.

Creating construction/finance synergy

Improve development capacity and seek new business opportunities

-KDB: predominant market leader in domestic PF market

-KDB to provide project financing to domestic/overseas development project or participate in those

projects with Daewoo E&C

-Secure new profit sources via new business model

-Domestic business : develop new business models such as large-scale PF projects and design & PFI

project through developed plan & management ability with KDB

-Overseas business : financing capability is the key factor and KDB has strengths of development finance

16

Market

-In Middle East, Asia, and emerging countries, the demand of electricity increases

-Financial market recovery brings new IPP business opportunities to power plan EPC contractor

Competitiveness

-Proven track records: installed capacity 27,577 MW

(6,180 MW under construction, total electricity capacity in Korea 63,962 MW)

-Wide Product Range: Thermal(CCPP, Conventional Thermal), Hydro, Tidal, Nuclear, Bio-Gas

-World-wide experience: UAE, Nigeria, Morocco, Libya, Pakistan, Iran, Laos, Taiwan, etc.

-No. of Power Plant Experts: 508 ppl (including 108 design/engineering experts)

-Accumulated technology & know-how in nuclear power plant

Strategy

-Enhance reputation with proven track record & capacity

-Strengthen partnership with major developers in growing IPP market

-Preoccupy the Tidal Power Market through the Experience of the World Biggest Sihwa PJ

*Expected New PJ : Ganghwa 420MW Tidal Plant (established SPC)

Major projects

-Capacity: 700MW (350MW x 2)

-Client: Morocco Electricity

-Period: 2010.12.24~2014.04.28

-Amount: USD 1,038 mn.

Jorf Lasfar Power Plant -Capacity: 1,600MW -Client: ADWEA -Developer: Sumitomo + Kepco -Period: 2011.3.1~2014.3.1 -Amount: USD 1,134mn. (Portion: 57.4%)

UAE, Shuweihat 3 IPP

2. Power plant

World class power plant contractor with experiences & manpower

17

2-1. Nuclear plant

Market

- Additional 430 units are planned till 2030 (approx. USD 1.1 trillion).

- Gov. plans to increase NPP to 39 units from current 20 units by 2030 (60% of total power)

- Nuclear Business shall be a new export industry from the support of gov.

- UAE NPP awarded to Korean firms with the support of government, and additional orders are

expected in Turkey, South Africa, India, Romania, Finland, Thailand, China, etc.

- Daewoo E&C has ample experiences and capabilities in leading construction works for NPP

- Amongst Korean construction companies, only Daewoo E&C and Hyundai E&C can play such a role.

Strategy

- Joint marketing with KEPCO, KHNP to advance into commercial nuclear market

- Target on receiving 8 units of NPP by 2020 (4 in domestic & 4 in overseas market)

- Advance into high level radioactive waste disposal facility

- Making utmost effort to secure Research Reactor Project based on experience of JRTR

- 55 units of Research Reactors are expected in more than 40 countries till 2025

- Participated in government-initiated SMART Project exclusively (North Africa, Middle East, etc.)

Expand the nuclear power business with experience and advanced technology

- Wolsong NPP #3,4 completed (700MW X 2 Units, Feb. 1992~Sep. 1999)

- Shin Wolsong NPP #1,2 in progress (1,000MW X 2 Units, Aug. 2003~Nov.2013)

- Wolsong Low-intermediate Level Radioactive Waste Disposal Facility

- Jordan Research and Training Reactor in Progress (Mar. 2010~Mar. 2014)

- Technical consulting in Qinshan NPP (700MW X 2 Units), Lungmen NPP (1,350MW X 2 Units)

Major projects

18

• Korea‟s Marine Energy

-Planning West coast tidal belt “Shihwa-Garorim-Ganghwa-Asanman-Saemangeum-Hwaseong”

• Business status

-The first domestic Shihwa Tidal Power Plant to be completed/ SPC established for

“Ganghwa” Tidal Power Plant / approval step for Asanman

-Maintain our position of a top leader in Tidal Power Market based on our performance of

the Korea‟s first and the world‟s largest Shihwa Tidal Power Plant

DW E&C Main Projects

-Capacity -Amount -Partners

Shihwa

-254MW -KRW 400 bn. -K-Water Co.

Ganghwa

-420MW -KRW 1,200 bn. -KOMIPO

Asanman

-254MW -KRW 800 bn. -EWP

Garorim

-520MW -KRW 1,800 bn.

Saemangeum

-430MW -KRW 800 bn. -KOMIPO

Tidal Power

Renewable energy business

Hydro Power

-Gov. planning marine power on west coast

-World wind power growing around America, Europe

-Jeonnam SPC for 5GW offshore wind power project

-Completed total 4 Projects, 1,330MW HPP

-On-going : Pakistan Patrind Hydro Power Plant

Total amount USD 320 mn. (DW USD 130 mn.)

-Kapangan/Kibungan Project, Philippines being pursued

MBT /RDF

-Technology that turns waste into fuel

-Completed Mechanical biological treatment project

-Related market growth expected by change of waste

treatment system

-Secure competitiveness based on our own tech., DBS

-Turning business type into combined process, waste

process & energy generating

-Planning to advance into overseas market

※ MBT*:Mechanical Biological Treatment / RDF*: Refuse Derived Fuel

2-2. Renewable energy

Constructed the world biggest tidal power plant, Shihwa project

Wind Power

Bio Gas

19

3. LNG plant

Strong LNG Contractor in both export & receiving terminal

Competitiveness - A reliable construction partner among oil majors

- Excellent performance of LNG export & import terminal

- Differentiated technology and experience retained for

LNG plant construction

20

Major projects • Overseas project experiences

- 5 out of 6 major LNG plant trains completed in Nigeria

- 2nd phase of EGGS pipeline completed in Nigeria

- Completed projects in Russia, Yemen

/ on-going projects in Algeria, Papua New Guinea

• Domestic Project Experience

- Contracted 64% of domestic LNG storage tank

(„98~09 consortium total, Daewoo E&C share : 41%) 2009 2015(F) 2020(F)

190mn. ton

270mn. ton

340mn. ton

Market - In 6 years LNG production will increase

by 42.1% in the world.

Tongyoung LNG Terminal

Korea

Receiving terminal

Incheon LNG Terminal

Korea

Bonny LNG Train #1,2,3,5,6

Nigeria

Sakhalin LNG Train

Russia

Arzew LNG Plant

Algeria

Export terminal

4. Vietnam business

Market

-Expected high growth of economy: Goldman Sachs “Next 11”, Business Insider “MAVINS”

-Decreasing economic uncertainties

-Increasing housing demand

Competitiveness

-Knowledge and know-how about Vietnam construction market

-Capability in development business : experiences and human resources

-KDB‟s financial supports: PF loan agreement and FI participation

Strategy

-Establish the status as a “Top Developer” in Vietnam through landmark projects

-Actively seek new profitable projects based on KDB synergy effect

-Effective risk management including FX management

-Amount: USD 2,528 mn. (1st Phase : USD 1,068 mn.) -Area 207.66ha (1st Phase : 117ha) -Scope: Multi Complex -Period: 2010~2020

Hanoi THT New Town Project

-Amount: USD 188 mn.

-Client: HIBRAND VINA Co., Ltd.

-Scope: 36 story apartment x 4EA

-Period: 2011~2014

Hanoi Van Phu Cleve Apt. Project

Expanding Vietnam businesses with real estate development project

21

5. Daewoo institute of construction technology (DICT)

The first and top class of private construction technology institution in Korea

22

Introduction of DICT

-The first private total construction technology institution in Korea, founded in Nov. 1983

-Participating in government-led core technology development program

-Expanding R&D in renewable energy sector

-Manpower : core researcher 82 (PhD. 37, master 32 included)

Core technology and patents of Daewoo EnC

-Infrastructure : whole pre-fabricable bridge, suction pile, immersed tunnel, etc.

-Green energy : bio-waste total solution(DBS), advance wastewater treatment(DMBR), etc.

-Building : high-rise building moving control, technology to conserve energy by building envelope

Technologies of Busan sea link project (immersed tunnel)

World records

-The longest tunnel block (180m)

-The first open sea project

-The lowest point under the sea (48m)

-The softest soil ground

-The first double joint between blocks

[Appendix] Financial Statement

Account 2010 2011 Q1

Cash & Cash Eq.

Account Receivable

Investment Security

Total Asset

Payable

Borrowing

Total Liability

Capital

Retained Earning

Total Equity

Balance Sheet

3,322

28,494

13,854

98,301

5,474

23,891

64,474

20,781

7,164

33,827

Sales

Gross Profit

SG&A

Operating Profit

Net Income before Tax

Net Income

15,836

1,567

753

721

660

485

Income Statement

Account 2010 Q1 2011 Q1

4,952

27,283

14,469

95,336

7,752

22,896

62,044

20,781

6,681

33,292

16,520

1,466

805

517

179

125

23

[unit : KRW 100mn.]

Thank You