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Daewoo International December 2010

Daewoo International

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Page 1: Daewoo International

Daewoo International

December 2010

Page 2: Daewoo International

2

Contents

• Daewoo International

• POSCO / POSCO Group

• DWI’s Role in POSCO Group

• Business Opportunity

I

II

III

IV

Page 3: Daewoo International

3

History Established as Daewoo Corporation (1967)

Become a member company of POSCO Group (2010)

Major Business

International Trading

Project Organizing

Natural Resource Development

Manufacturing : Textile, Cement, Steel Processing etc

Global Network

Total : 95

- Asia 46, Middle East 7, Africa 12, Europe 9

CIS 8, America 13

Employee Total : 16,576 (1,638 In Korea, 14,938 Overseas)

Sales (2009) Sales USD 10.0 b

Corporate Outlook

Daewoo International (DWI)

Page 4: Daewoo International

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Core Competency

• 43 years Trading & Investment Know-how

• Trading/PJT Experts Pool

- Global Competency and experience

• Korea’s Number 1 Overseas Biz Network

- 95 Overseas Units in 62 Countries

- 6,000 Partners in 180 Countries

Trading & PJTExpertise

Global BizNetwork

BusinessPortfolio

• Stable & Synergy-creating Biz Portfolio

- Trading : Steel, Metal, Chemical, Machinery etc

- Project Organizing : IPP, Plant, Transportation

- Energy/Resource Development : 15 Sites

Core Competency

The best trading, project organizer, and energy/resources development

company in Korea

Page 5: Daewoo International

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Global Network

:55 Trading Branches

:12 Manufacturing Subsidiaries

:14 Trading Subsidiaries

:14 Energy/Resources Projects

Global Network : Total 95

69 trading units, 12 manufacturing units, 14 energy/resources projects

operating 365 days 24 hours around the world.

Page 6: Daewoo International

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Business Sector

Based on strength in main sectors, DWI diversifies its business model in a way that creates a synergy, like a Package Deal.

Main Business Sector

To Create Synergy

Global TradingEnergy & Resource

Stable Supply

Project Organizing & Development

• Organizing: Industrial/Power Plant, Infrastructure (Ex. Railway, Port)

• Development : Package Deal (Resource + Plant), IPP

Exploration

Development Production

MarketingRaw

MaterialProduction

Distribution&

Processing

Package Supply Marketing

Page 7: Daewoo International

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Steel/Metal

Chemical

Commodity

Machinery/Automotive

Textile

• HR, CR, STS

• Steel Raw Materials, Non-Ferrous Metal

Electronics

• Petroleum Products, Chemical Raw Materials

• PE/PP, PVC, PET Resin, Fertilizer etc

• Grain, Foodstuff

• Mineral & Construction Materials

Item2009 Sales(USD Million)

5,266

2,011

216

• Machinery, Plant

• Automotive Components, Parts790

• Cotton, Cotton Yarn & Fabric

• Textile Materials, Woven Apparels296

• Electronic Products, IT Products

• Defense Industry Products121

Business Sector

-Global Trading

Key Trading Item & Sales Volume

Trading various items from raw materials to end products in

the following key industries.

Total 8,700

Page 8: Daewoo International

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Defense Industry Products

Playing a pivotal role in Korea’s defense industry, exporting 25% of

Korea’s defense export sales for the last 10 years.

• Small Arms, Gun & Artillery

• Combat Vehicles & Logistic Vehicles

• Aircraft (Basic Trainer), Avionics & Simulators

• Naval Vessels (Destroyer, Frigate, Submarine)

Armored Personnel Carriers

Frigates Submarine

Basic Trainers

Country Item Amount

Indonesia Submarine Overhaul 75

6X6 APC 65

KT-1B Basic Trainer 35.5

Parachute etc 17

Columbia Ammunition etc 4.3

Sudan Military Vehicle 12

Thailand Military Vehicle etc 1.9

Nepal Military Vehicle 1.3

Morocco Military Vehicle 2.8

Chile Military Vehicle 3.3

Equator K3 5.56mm LMG etc 1.3

Total 219.4

Contracts (2009~2010) Main Items

(Unit : US$ M)

Business Sector- Global Trading: Defense Industry Products

Page 9: Daewoo International

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Overseas Manufacturing Investment

To create a synergy with trading, operating 12 overseas

manufacturing subsidiaries.

Business Sector

- Global Trading: Manufacturing Investment

CHINAPaper

CHINACement

CHINAInvestment CHINA

Paper

PNGPower Producer

UZBEKTextile

UZBEKTextile

SUDANMedicine

INDONESIAApparel

VIETNAMSTC &Apparel

MYANMARApparel

MYANMARTimber

(As of December 2010)

Subsidiary

Investment

12

USD 266M

Page 10: Daewoo International

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8 Energy Projects 6 Mineral Resources Projects

CANADA

Kiggavik (uranium)

PERU

Block 8 (oil)

MYANMARA-1 (gas)

(Operator)

VIETNAM

11-2 (gas)

MYANMARA-3 (gas)

(Operator)

MYANMAR

AD-7 (gas)

(Operator)

OMANKOLNG(Gas)

MADAGASCAR

Ambatovy (nickel)

UZBEKISTAN

Block 35 (Operator)

UZBEKISTAN

Block 36 (Operator)

AUSTRALIA

White Cliff (nickel)

BOLIVIA

Corocoro (copper)

AUSTRALIA

Marree (uranium)

AUSTRALIA

Narrabri (coal)

(As of December 2010)

Energy & Resources Development Projects

Participating in 14 energy/resources development projects, including

5 projects as main operators.

Business Sector

-Energy & Resource Development

Page 11: Daewoo International

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Myanmar Gas Development Project

As an operator, DWI, has been developing gas reserves ranging

4.5~7.7 TCF* in Myanmar and targeting its first gas in May 2013.

Business Sector

-Energy & Resource Development : Myanmar Gas

A-1

A-3AD-7

• Block

Block A-1 (Aug 2000)

Block A-3 (Feb 2004)

Block AD-7 (Feb 2007)

• Location Northwest Offshore of Myanmar

• Contract Production Sharing Contract

• Investment

Total : 1,728 M (USD)

- Executed : 137 M

- Expected : 1,591M

• Equity

DWI (Operator) 51%

ONGC Videsh 17%

MOGE 15%

GAIL (India) Limited 8.5%

KOGAS 8.5%

(* AD-7 : DWI 100%)

* TCF (Trillion Cubic Feet), 4.5~7.7 TCF is 0.8 ~ 1.4billion barrel of oil equivalent

Page 12: Daewoo International

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Papua New Guinea Power Plant Project

Covering every step of project organizing and capital investments

including financing, plant construction, and maintenance & operation.

Business Sector-Project Organizing + Investment

Finance Local

Government

Electric Power

Supply

Construction/Maintenance

Capital Investment

Insurance

Capital

Investment

Project

Organizing

Papua

Power Plant

• Establishment 1996. 8. 16.

• LocationPort Moresby,

Papua NewGuinea

• Contract BOT

• Investment USD 8 M

• Sales (2009) USD 26 M

• Capacity 24 MW/Year

> Supply 40% of Papua Metropolitan

area electricity demand

Structure Status

Page 13: Daewoo International

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Madagascar Ambatovy Nickel Mine Project

Building a successful Package Deal model in a combination of resource

development and PJT organizing in Ambatovy Nickel mine project.

Business Sector-Resource Development + PJT Organizing

Project OrganizingResource

Development

Capital Investment

EPC

Contractors

O&M

Company

Operation/Maintenance

Sponsors

Lenders

Group

Loan

Guarantee

Ambatovy

Plant

Structure

• Project Madagascar Ambatovy

Nickel Project

• Investment

Total (USD) : 4,650 M

- Executed : 4,370 M

- Expected : 280 M

• Equity DWI 4%

• Reserve125 MMt @ 1.04% Nickel,

0.10% Cobalt

• Production

(2011f)

Nickel 60,000 ton

Cobalt 5,600 ton

> Off-take: 30,000 ton Nickel for Korean

Consortium (Marketing by Daewoo)> Project Organizing

-Order Amount : USD 400 M

- Power Plant, Ammonia Tank

Status

Page 14: Daewoo International

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Vision 2020

1

Trading

4

5

Energy

Resource

2

3

Infra development

Global/Grand project

Korea’s No.1 Trader

Korea’s LeadingDeveloper

Niche Organizer

• Sales Volume: $15 B

• Operating 1 project

(Myanmar gas)

• Power, Paper

manufacturing Plant

Global Major Trader

Energy/ResourcePortfolio Operation

Project Developer

• Top 10 Sales Volume

• Operating 4 projects

• Equity Investment on over 10 projects

• Country marketing

• Large-size, complex project development

~2020~2010

Vision2020, Financial Target, and Strategy

Growing to become a global major trader, project developer,

and competitive resource developer by 2020, with the following strategy.

“World Top-class Trader, Investor, Developer”

- Sales USD 65 Billion , Pre-tax Income 2.2 Billon

Page 15: Daewoo International

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• Daewoo International

• POSCO / POSCO Group

• DWI’s Role in POSCO Group

• Business Opportunity

I

II

III

IV

Contents

Page 16: Daewoo International

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POSCO - Chronology

1968: Establishment

1

1983: Pohang Works built

2

1992: Kwangyang Works built

6

1994: Listed on NYSE (First Korean Company)

4

1998: Global No.1 Steel production

5

3

7

(Unit: Th. Tons)

1988: IPO (First Popular Share)

8

2009 : 34Mil Ton/Year

2010 : Indonesian

Works Construction

beginMyth of Yeongil Bay- Success story of Building integrated

steel works without capital, technology,

and experience

Growth of POSCO

World’s top steel maker with ‘Resource limited, creativity unlimited ’ spirit

Page 17: Daewoo International

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No COMPANY Score High score factor

1 POSCO 7.84Financial Soundness, Technology,

Cost Competitiveness

2 SAIL 7.41Production Competency, Stability, Self-supplied Raw

Material

6 NUCOR 7.28 Downstream Competitiveness, Stability, Technology

12 Arcelor Mittal 7.10 Production Capacity, Cost reduction, M&A

Having a reputation as the most competitive steel maker in the world

Ranking

World’s Best Competitive Steel Maker (2010) - World Steel Dynamics

World’s Top Steel Maker (2010) – Metal Bulletin

Unit: Million Ton

COMPANY Production COMPANY Production

Arcelor

Mittal73.20 Wuhan 38.87

Hebei Steel

Group40.24 POSCO 30.34

Bao Steel 38.87Nippon

Steel29.53

POSCO’s Status in the world

World’s Top STS Maker (2009)

No COMPANY Production

1 TISCO 2.5

2 POSCO 2.2

3 TKS 1.9

4 ACERINOX 1.8

Unit: Million Ton

Page 18: Daewoo International

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Major Steel Maker’s Operating Margin

A-Mittal

11.3

8.40.1

22.1%

19.421.3

11.7

’07 ’08 ’09 ’10.1H

POSCO

0.9

NSC (CY Basis)

11.37.26.2% 5.8%

’07 ’08 ’09 ’10.1H ’07 ’08 ’09 ’10.1H

Cost competitiveness and profitability leading to a sound financial status

and credibility

Financial Status & Credit Rating

* POSCO Individual, Others consolidated Basis

Financial Position Credit Rating

Organization 2008 2009 2010

Moody’s A1 A1 A2

S&P A A A

Debt-to-

Equity

Ratio

Asset

’07 ’08 ’09 ’10.1H

3137

40$45 Billon24.4

33.329.2

34.7%

POSCO - Financial Status

Page 19: Daewoo International

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POSCO - Import of Raw Materials

POSCO imports raw materials in high volume from all over the world

Iron Ore Coal Nickel Chrome Manganese

Volume 42,097 21,729 56 203 136

Amount 3,211 3,359 926 407 169

(‘000 ton, U$ Million)

Quantity of Imported Raw Material

Iron Ore Coal

RUSSIA

CHINA

INDIA

RSA

VIETNAM

AUSTRAILIA

CANADA

AMERICA

BRAZIL

CHILLE

Page 20: Daewoo International

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KOREA

> Pohang : Integrated Mill, 15.5Mt> Gwangyang: Integrated Mill, 18Mt

POSCO - Global Capability

Global Presence with Strong Operational Capability

20

China S.E.A Japan India America Europe

16 11 6 5 5 3

Source: Company Data (As of 31 Dec 2009)

(Global Processing Centers : total 46 as of Sep 2010)

Global Steel Capability

USA> CR Mill, 1.5Mt (JV w/ US Steel)> API Pipe Plant, 270Kt (JV w/ US Steel, SeAH)

MEXICO> CG Line, 400Kt

CHINA> Integrated STS Mill, 800Kt> STS CR Mill, 180K

S.E. Asia> Indonesia Integrated Mill J/V

(1st Stage: 3Mt, Total 6Mt planned; in progress)> Vietnam CR Mill, 1.2Mt

INDIA> Integrated Mill J/V w SAIL (3Mt, in progress)> Orissa Integrated Mill (Total 12Mt planned)> India CG Line, 450Kt (Mar ’10 ~ May ’12)

Page 21: Daewoo International

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Daewoo International joined POSCO group to enhance global network

- Date of Acquisition : September 20th, 2010

- Percentage of shares : 68.2%

- Purchase Amount : $ 3 Billion

Maximize Synergy Effect between POSCO and DWI

Acquisition & Expected Synergy

- Steel Mill Construction & Operation

track record

- Possession of Key Industry Biz :

Steel, Construction, Power etc

- Big Consumer of Raw Material & Energy

- 22 Overseas Steel Works & 46 SCM

Coil centers

- Korea’s Number 1 Trading Volume

- Global Sourcing Competency

- Energy/Resources Development:

Main Operator of Myanmar Gas PJT

- Global Network: 95 offices in

62 Countries

+

POSCO & DWI

Page 22: Daewoo International

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POSCO Group - Business Area

6

POSCO SS, POSCO C&C,

Posteel, DWI,

POSCO TMC, POSCO AST

5POSCO E&C, Sungjin Geotec,

POSCO Plantec, POSCO A&C,

Daewoo Engineering

3POSCO Power, POSCO E&E,

Busan E&E

1 POSCO ICT

1 POSCO Chemtech,

4

Samjung P&A, Poshimetal,

Posfine, PNR

RIST, POSTECH, POSEF,

POSTF

14

ZPSS, QPSS,

DPSC, Gunagdong Steel, VPS,

POSVINA, Myanmar-POSCO,

P-Malaysia, UPP-Mexico,

P-Vietnam, P-VST, P-India,

P-Maharashtra

4POSCO Australia, POSCO Canada,

KOBRASCO, PT MRI

4POSCO America, POSCO Japan,

POSCO Asia, POSCO China

18

China 7 (P-CFPC,CSPC,CWPC etc)

India 3 (POSCO-IPPC,IDPC,ICPC)

Vietnam 2 (POSCO-VHPC,VNPC)

Other 6 (POSCO-TBPC,MKPC etc)

3POSINVEST,P-Urguay,

P-Mexico Humantech

Domestic Overseas

SteelManu-

Facture/Trading

E&C

Energy

IT

Chemical

Material

Others

4

Steel

Manu-

facture

Trading

Raw

Material

SCM

Other

In addition to steel industry, POSCO Group’s main business includes Engineering & Construction, Energy, IT and Chemical.

POSCO Group’s Business Area & Member Companies

Page 23: Daewoo International

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E&C group has 5 member companies specializing in Plant,

Construction, and Infrastructure, totaling USD 14b in order.

Business Area : Plant, Construction, Infrastructure

[ Steel Plant]

Integrated Steel Works Engineering

Construction

Cutting-edge, environment-friendly

steel making method : FINEX

[Chemical Plant]

Oil & Gas Plant Engineering, Equipment

manufacture, Construction

[Power Plant]

Coal Thermal & Complex Thermal Power

Plant

Green Energy : Wind/Nuclear/Solar Power

Desalination Plant

POSCO Group’s Business Area

- Engineering & Construction

2010(f) Orders Amount : USD 14b

- POSCO E&C, Sungjin Geotec, POSCO Plantec, POSCO A&C, Daewoo Engineering

[ Urban development & Architecture]

New town & Complex Development

- Business district, Education facility, Medical/Research

facility, and housing

[ Transportation & Civil engineering]

Railway, Subway, High-rapid railway etc

- Pusan light rail transit, Incheon Int’l airport railway,

Seoul subway

Road, Port, Ground making, Golf course etc

- Expressway, Bridge, Pohang new airport

[ Water Treatment & Environmental Plant]

Water treatment, Resource recycle, Air refining,

Drainage pipeline

Page 24: Daewoo International

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POSCO Group’s Business Area- Engineering & Construction : Main Project(1)

FINEXNo.3 Sintering

Plant, KoreaNew Steel-

marking Plant

ZPSS STS,

CHINA

Prosperity

PGL , Taiwan

POSCO

Vietnam CALIISCO Blast

Furnace

POSCO

Mexico CGL

KOREACHINA

JAPAN

TAIWAN

VIETNAM

INDIAMEXICO

Steel PlantProject

• 10 projects in 7 countries,

• FINEX, Iron Marking, Steel Making,

Continuous Casting, Hot Rolling, Cold Rolling etc.

KOREA

FINEX, 1.5Mt (Jan ’04~Apr ’07) No.3 Sintering Plant, 6.3Mt (Nov ’04-May ’06) New Steel-marking Plant, 4.6Mt (July ’08~Sept ’10) Revamping of No. 3 machine for No. 2 Continuous

Casting Plant, 3.5Mt (June ’06~Nov ’07)

CHINA> ZPSS STS, 0.6MT (Dec ’04~July ’06)

MEXICO> POSCO Mexico CGL, 0.4Mt (Oct ’07~June ’09)

INDIA> IISCO Blast Furnace, 1.4Mt (Oct ’07-Dec ’10)

VIETNAM> POSCO Vietnam CAL, 0.7Mt (Aug ’07~Sept ’09)

TAIWAN> Prosperity PGL, 0.5Mt (June ’07~June ’10)

JAPAN> Asia Special Steel, 1.2Mt (Dec ’07~May ’09)

Page 25: Daewoo International

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POSCO Group’s Business Area

- Engineering & Construction : Main Project(2)

Thermal

Power Plant

Solar Power

PlantWind Power

Plant

Busan RDF

Power Plant

LNG Terminal

Tanks

POSCO

SNG PlantNueva

VentanasAngamos

KOREA

CHILEPERU

• 11 projects in 3 countries,

• Power, Renewable, Chemical & Gas Plant etc.Energy Plant

Project

KOREA

South Jeju Thermal Power Plant, Units 3&4100MW x 2 units (July ’04~Mar ’07)

Yeongam Solar Power Plant, 3,000KW(Nov ’08-Feb ’09)

Taegisan Wind Power Plant, 40MW(July ’07~Nov ’08)

Busan RDF Power Plant, 25MW (Oct ’09~Apr ’13) Gwangyang LNG Terminal Tanks, 165,000kℓ

(July ’07~May ’13) POSCO SNG Plant, 0.5Mt (Nov ’09~Dec ’13)

CHILE> Nueva Ventanas Coal-fired Power Plant, 240MW

(Sept ’06~Dec ’09)> Angamos Coal-fired Power Plant, 260MW x 2 units

(Sept ’06~Dec ’09) > Santa Maria Ⅱ Coal-fired Power Plant, 400MW

PERUKallpa Combined Cycle Power Plant, 830MW

(July ’10~July ’12)Chilca Uno Combined Cycle Power Plant, 810MW

Page 26: Daewoo International

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Urban planning involves large-scale development projects, and can be considered as the centerpiece of general construction.

POSCO Group’s Business Area

- Engineering & Construction : Main Project(3)

Urban Development

Project

Songdo International Business District

Investment Amount : USD 20.8 b Area: 5,740㎢, Project Period: 2003-2014 Specifications

- International Business District(690 ㎢), Residential (1,390 ㎢), Commercial (200 ㎢), Sports & Cultural (1,190 ㎢), Public (1,390 ㎢)Parks & Greens (860 ㎢),

Master plan for Hanoi Metropolitan City

Area: 3,300㎢, Project Period: 2008-2030

Specifications

- Construction of a new capital, including new

city development and all areas such as roads,

water supply and drainage, electricity,

railways, river improvement, and IT projects

Page 27: Daewoo International

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Energy group, Korea’s largest private power plant, advances into

global market and green energy biz to become a global energy

company.

Oil / Gas

Mineral

Energy/Resource Green Energy

IPP

Business Area : Power Plant, LNG Terminal Operation, Fuel Cell

[ POSCO Power]

Korea’s Largest Private Power Plant &

LNG Terminal, Fuel Cell Biz

- LNG complex plant Operation: 3,300MW

Fuel Cell : Domestic 32MW (100MW/year)

Solar Power: World’s largest(300MW) Biz Entry

Overseas Biz : IPP Biz Entry

(South America, Asia, Middle East)

[ POSCO E&E]

Waste Power(37MW)

Sewage sludge Fuel (1,000ton/day)

POSCO Group’s Business Area

- Energy

Page 28: Daewoo International

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IT/LED Group, with competitiveness in both IT and engineering for 30

years, is now creating Green ICT future by making ICT convergence.

Business Area : Engineering, Automation, SI, and IT Outsourcing, LED

[ By Service ]

Engineering : From design to procurement, construction, operation, and post management

- Construction IT, Railway, Plant, Logistics, Power Generation, Energy, Environment IT & Engineering Service

Automation : Solution for process automation

- Integrated management of plant facilities, Quality management, facility automation

System Integration : Diagnosis and design of information systems, S/W development,

H/W and network establishment

IT Outsourcing service : POSCO information system operation

[ By Industry ]

Construction : Intelligent building system establishment, Digital home

Railway, Traffic : Vehicles signals, communications, Railway station automation solutions etc

Logistics : Logistics automation, unmanned system, overall baggage management, transport

control system, and automatic container search system, consulting

Manufacturing/Power generation : Automation systems, power generation system

Environment : Incinerator control, Sewage processing & Waste energy system

National defense, Public : Network-oriented defense knowledge informatization, U-Government

POSCO Group’s Business Area

- Information Technology

Page 29: Daewoo International

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Business Area : Engineering, Automation, SI, and IT Outsourcing, LED

[ Smart Grid] [ U-Eco City] [ LED Lighting]

Power grid optimizing

energy efficiency, through

interactive communication

bet-ween power supplier and

consumer.

Development of eco-friendly

cities: Resource Recycle,

Green Energy, Eco-friendly

transportaion etc

- Specialized in industrial lighting

- Outdoor lighting, Intelligent

road lighting

- LED for marine environment,

- Port, Automobile

* Under construction

LED Material

LED Lighting

IT/LED group is to play a leading role in promoting green growth by

focusing on Smart grid and U-Eco City project, LED.

POSCO Group’s Business Area

- Information Technology

Page 30: Daewoo International

3030

Business Area

General Refractories

Environmental Business

[ Existing Biz]

Manufacturing Refractory's

Maintenance work for Steel Mill

Industrial Furnaces

Engineering and manufacturing

various industrial furnaces

Environment enhancement products

Fertilizers

Inorganic additives

Chemical

Material

[ New Biz]

POSCO steel by-product

Coal Chemical Investment

: Distiller etc

Advance into high value-creating

Area

: Coal chemical, oil refinery etc

Chemical group, a leading manufacturer of refractories and industrial

furnaces, is widening its territory into high value-creation biz.

POSCO Group’s Business Area

- Chemical

Page 31: Daewoo International

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POSCO Group - Global Network

POSCO has a wide business network, domestic 201, overseas 172.

Global Network(China 49, Australia 16, Vietnam 13, Japan 11, India 10, USA 10, Mexico 7 etc )

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POSCO-Japan

POSCO Australia

POSEC NIGERIA

KOBRASCO

POSCO Canada VECTUS

POSCO-China

POSCHROME

POSCO India

POSCO Uruguay

POSCO America

POSCO-Mexico,

l

UPI, USP

NMC

Page 32: Daewoo International

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Expanding business areas/markets from ranging from steel to

comprehensive materials

4 Greats

POSCO - Vision 2020

Expand Market : Existing UI + Africa, Siberia, North/South Pole etc

- Domestic Sales 60% vs Overseas Sales 40%

Sales Volume $200 Billon-sized Global Top Tier Biz Group

- Steel 6 vs Non-steel 4 / Traditional 8 vs New 2 / Manufacturing 6 vs Service 4

Family Management System on Trust, Communication, Innovation, Synergy

- Respected Company by practicing Human Respect and Social Responsibility

Great Voyager

Great Workplace

Great Challenger

Great People

Growth of Company/Employee together by supporting individual Vision

- Individual growth through work, Desirable Work-place Culture, High Life-quality

Page 33: Daewoo International

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• Daewoo International

• POSCO / POSCO Group

• DWI’s Role in POSCO Group

• Business Opportunity

I

II

III

IV

Contents

Page 34: Daewoo International

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- Energy Exploration, Development & Marketing Biz : Oil, Gas etc DWI’s E&P business is to be accelerated through fully support by POSCO (In particular, funding)

- Opportunity for Mineral Marketing & Rare Metal Business

Trade POSCO’ Off-take in raw material

Enter into rare metal biz (include E&P) to assist POSCO’s new material business

Project organizing, resources development, new business search, and

steel trading in the group are to be the main role of DWI.

Project Organizer

Strengthen POSCO Group’s Energy/Resource Biz

+

Control System(IT system, U-City etc)

Social Infra (Motorway,

Railway, Port etc)

Energy Infra(Power Plant)

+

Steel Plant Construction/

Operation

+Government or

Project Owner

Deal Sourcing(Facilitator)

DWI’s Role in POSCO Group

Page 35: Daewoo International

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- POSCO’s Major Overseas Mill

Indonesia (6M ton, Under construction), India(8M ton, In progress), Vietnam(1.2M, ton)

China (STS 1M ton), Mexico (CGL 0.45M ton), Malaysia (EGL 0.18M) etc

- Expand Trading Biz through Joint Venture on Coil Center with POSCO

- Seed Biz : Renewable Energy (Wind, Waste Recycle, Fuel Cell, Bio, SNG etc), LED,

Smart Grid, Sea Material/Energy (Desalination, Wave Power)

- Support Early Commercialization of Seed Biz utilizing DWI’s Global Network

Screen & Incubate New Business for POSCO Group

Trade Steels produced by POSCO’s Overseas Steel Mills

DWI’s Role in POSCO Group

* Apart from local sales, DWI exported 2.1M ton among 30M ton of POSCO’s domestic production (2009)

Page 36: Daewoo International

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• Daewoo International

• POSCO / POSCO Group

• DWI’s Role in POSCO Group

• Business Opportunity

I

II

III

IV

Contents

Page 37: Daewoo International

37

Business Opportunity

Energy/Resource Steel/Chemical Power SOC/IT

Gas, OilIron ore/Coal

Copper/ChromeNickel/Ore/Cobalt

Steel PlantChemical Plant

IPPWater powerSolar energy

Geothermal power

Port

Railway/highway

Building and house

DWI, with POSCO Group, will provide the most competitive total

solution for energy/resource development and project organizing.

Project Organizing & Development

Infra, finance, technologyGovernment or

Project Owner

Energy/Resource Development

energy/resource,business opportunity

Page 38: Daewoo International

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Thank You!