1

(2014.7)

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

H H I at a Glance

Business Performance

Financial Performance

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 19,532 bil. (As of December 31, 2013)

Credit Rating : A1 (Commercial Paper), AA+ (Corporate Bond)

Korea’s large conglomerate ranking : 7th

(Excluding public companies, based on total assets, As of December 31, 2012)

No. of employees : 26,013 (Average 18.7 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

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

History

7

First to build LNG Carrier in Korea

(Jun. 1994) • 125,000 m3

Achieved world record production in 2-stroke

Markne engines (Sep. 2010) • 100 million bhp

Delivery of the World’s Biggest Jacket

(May, 1989)

• Exxon (U.S.A)

• 40,000 ton

No.1 in Global shipbuilding Market

(Since 1983) • HHI, HSHI, HMD : 12.16% (2011 delivery basis)

Recognized for building the ‘World Best

Ship’ for the 29th consecutive year

(Since 1983)

• Total 47 ships, World shipbuilding publications (Maritime Report and Marine Log)

Business Highlights

Completed World’s largest Saudi

Marafiq power plant (Apr. 2011)

• power generation 2,750 MW + desalination

176 MIGD

Achieved domestic record production in

Transformers (Feb. 2010)

• 600,000 MVA

Completion of World’s Largest Elf

Girassol FPSO (Feb. 2001) • 343,000 Ton

8

Ownership Structure

(As of December 31, 2013)

Chung Mong-joon

10.15%

Hyundai Mipo

Dockyard Co., Ltd.

7.98%

National Pension

Service 6.31%

KCC 3.12%

Hyundai Motors 2.88%

Asan Foundation 2.53%

POSCO 1.94%

Asan Nanum

Foundation 0.65%

Treasury Shares 19.36%

Others 45.08%

(Foreign Ownership : 18.23% )

9

Business Structure

Shipbuilding

Industrial Plant &

Engineering

Engine &

Machinery

Offshore &

Engineering

Construction

Equipment

Electro Electric

Systems

DSME (KOR)

SHI (KOR)

DSME, SHI (KOR) Technip (FR) Saipem (Italy) McDermott (USA) Siemens (GER) Hyundai E&C (KOR) Doosan Heavy (KOR) Samsung C&T Corporation(KOR) Doosan, STX (KOR)

Mitsui (JPN)

Hudong, Dalian(China) ABB (Sweden) Siemens (GER)

Hyosung (KOR)

Komatsu (JPN) Caterpillar (USA) Terex (USA) Doosan Infracore (KOR) Suntech, Yingli (CHN)

Vestas (DEN), GE (USA)

SK Innovation (KOR)

GS-Caltex (KOR)

S-Oil (KOR)

HAPAG-LLOYD (GER)

C.P. OFFEN (GER)

AP MOLLER (Denmaark)

Seaspan (Canada)

Diamond Offshore (USA)

BP(UK) ExxonMobile(USA) SHELL(USA) TOTAL (FR) CHEVRON (USA) ENI NORGE (NOR) SHELL (US) MEW (KUWAIT) SEC (SAUDI)

HMD(KOR)

Shanghai (CHINA)

DSME, SHI (KOR)

State-Owned Power company

Utility, IPP company

Wagner&Co Solartechnik(GER) MHH Solartechnik (GER) Sun Energy Europe (GER) Albatech (Italy)

8.00 mil. GT

Floaters : 1~2 units Fixed Platform : 3~4 units Pipeline laying : 30km

Power plant : 1,000MW

(4~5 projects)

Large Engines (500 units) :18 mil bhp Medium (1800 Units) : 5 mil bhp

Transformer (620 units)

120,000 MVA

29,000 units

(Excavators 16,000 units)

Solar Cell/module : 510 MW

Wind Turbine : 600 MW

390,000 B/D

Division Main Products Major Clients Competitors Capacity

• Excavators • Wheel Loaders • Forklifts • Skid Loaders

• VLCCs, Tankers, Product Carriers, Chemical Tankers

• Containerships, Bulk Carriers, OBO Carriers

• Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers, Tankers/VLCCs

• LNG Carriers, LPG Carriers

• Drillships

• Submarines, Destroyers, Frigates • 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

• Power Plants: Combined-Cycle, Cogeneration, Thermal Power Plants • Process Plants: Oil and Gas, Refinery, Tank Farm, GTL, and LNG Facilities • Plant Equipments: Industrial Boiler, HRSG, CFBF Boiler, Regenerator & Reactor

• Two-Stroke Diesel Engines, Four-Stroke(HiMSEN)Engines • Propellers and Crankshafts • Steam Turbines and Turbochargers • Diesel and Gas Power Plant Engines • Industrial and Marine Pumps, Industrial Robots, Side Thrusters • Presses, Conveyor Systems, and Steel Strip Process Lines

• Transformers, Gas Insulated Switchgear, Switchgear • Low- and Medium-Voltage Circuit Breakers • Rotating Machinery • Power Electronics and Control Systems

Green Energy

Refinery

Financial Services

• Petroleum: LPG, Gasoline, Kerosene, Jet Fuel • Petrochemicals: Propylene, Alkylate, BTX, Naphtha

• Securities Brokerage • Asset Management • Futures • Corporate Finance • Leasing

• Solar/Wind Power Systems

10

Sales Breakdown

Shipbuilding

(KRW 17,018.3 bil.)

Offshore & Engineering

(KRW 4,756.0 bil.)

Industrial Plant & Engineering

(KRW 1,223,8 bil.) Engine & Machinery

(KRW 1,722.2 bil.)

Electro Electric Systems

(KRW 2,761.3 bil.)

Construction Equipment

(KRW 3,289.6 bil.)

Green Energy

(KRW 314.4 bil.)

Others

(KRW 218.1 bil.)

Financial Services

(KRW 663.6 bil.)

Refinery

(KRW 22,220.8 bil.)

(2013 Sales: Consolidated interim data)

11

26 affiliated companies in Hyundai Heavy Industries Group (HHI included, overseas corporations excluded)

Affiliates

• 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

12

Vladivostok

Tokyo

Beijing

Hyundai Financial Leasing Co., Ltd.

Grand China Shipping (Hong Kong) Company Limited

Chanzhou

Singapore

Mumbai Dubai

Jebel Ali

Abu Dhabi

Atlanta

(office, incorporated)

New Jersey

Houston

Istanbul

Athens

Luanda

Nigeria

Oslo

Rotterdam London

France Hyundai Ideal Electric Co.

Osaka

Moscow

NIKORMA

HHI China Investment Co., Ltd.

Tai’an

Saudi Arabia

Al Khobar

Fujairah

Alabama Shandong Yantai

Kuwait

Kuwait Offset

Spain

Hungary

Offices (22)

Production & Sales(14)

Management(5)

Construction(4)

Sales (3)

R&D(2)

Region Overseas

office Incorporated

firm (*1) Total

Europe 6 7 13

America 3 4 7

Asia 4 13 17

Middle East / Africa

9 4 13

Total 22 28 50

India

Bulgaria

Belgium Germany

Hyudai Heavy Industries shanghai R&D Co., Ltd.

VGF (in process)

Brazil

Established 22 Overseas offices and 28 Incorporated firms, a total of 50 global network.

• 22 overseas offices - Europe : 6, America : 3, Asia : 4, Middle East / Africa : 9

• 28 Incorporated firms - Production/sales : 14, Sales : 3, Construction : 4, Management : 5, R&D : 2

【Europe】

【Middle East / Africa】 【Asia】

【America】

[HHI]

*1: Local site operation basis

Yangzhong

Global Network

Jakarta

13

Business Performance

14

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 9,150 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

20,415

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

`01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 (Target)

Shipbuilding Non-Shipbuilding

6,400 5,777

9,817

13,405

16,107

18,706

25,020

27,473

10,735

25,324

New Orders Trend

(Mil. USD)

17,209

+8.0% YoY

19,567

27,363 29,565

15

□ Achieving 92.2% of annual target, a 39.8% increase YoY on the back of positive order flow of commercial vessels and offshore production facilities

2012

Full

yearTarget Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Full

year

Achieve-

ment

(%)

Shipbuilding 6,143 7,750 937 0 570 1,049 1,733 682 916 865 85 997 1,297 381 9,512 122.7

Offshore 2,072 6,000 1,183 64 2,064 1,907 95 98 41 217 504 66 211 53 6,503 108.4

Industrial Plant 4,077 6,000 37 0 84 2 27 7 19 3,196 5 41 25 953 4,396 73.3

Engine & Machinery 1,858 3,100 162 235 292 170 283 290 200 219 137 211 208 18 2,425 78.2

Electro Electric 2,318 3,160 143 139 208 172 155 215 81 82 111 231 224 59 1,820 57.6

Construction

Equipment2,773 3,272 217 230 286 273 252 242 168 165 172 180 163 121 2,469 75.5

Green Energy 326 394 32 26 17 25 8 26 18 12 13 19 23 19 238 60.4

Total 19,567 29,676 2,711 694 3,521 3,598 2,553 1,560 1,443 4,756 1,027 1,745 2,151 1,604 27,363 92.2

Division

2013

Monthly New Orders in 2013

(unit : mil. of USD)

- Shipbuilding : 27 Containerships, 19 LPGs, 11 Bulk Carriers, 11 Tankers, 9 LNGs, 5 Special Vessels, 1 Offshore Construction Vessel,

1 Accommodation Vessel, 1 Semi Submersible Rig

- Offshore : 1 FPSO (Rosebank, Chevron), 1 TLP & 1 FPU (Moho Nord, Total), 1 Spar Topside (Aasta Hansteen, Statoil)

- Industrial Plant : Shuqaiq Oil fired Conventional Power Plant, Saudi Arabia, Az-Zour North Combined-cycle power plant, Kuwait

- Engine & Machinery : Four-stroke marine engine orders increased YoY due to demand increase for special vessels such as drillship in 2012

- Electro Electric Systems : Orders declined YoY as a result of profit-focused order taking

- Construction Equipment : Demand declined YoY esp. in the Middle East, America, Russia, South East Asia

- Green Energy : The ongoing oversupply problem and slowing demand continued to unfold

Monthly New Orders in 2013 (Non-Consolidated)

16

Shipbuilding

Bulk Carrier Containerships Special Vessels LPG VLCC Naval Ships LNG Car Carriers Drillship

17

180

190

200

210

220

230

240

250

260

40

60

80

100

120

140

160

180

'07 '08 '09 '10 '11 '12 '13

Capesize 176-180K DWT (Left, Mil. USD)

VLCC 315-320K DWT (Left, Mil. USD)

Containership 8,500-9,100 TEU (Left, Mil. USD)

LPG Carrier 82,000m³ (Left, Mil. USD)

LNG Carrier 160,000m³ (Right, Mil. USD)

* Index : 1988=100

0.0

50.0

100.0

150.0

200.0

'07 '08 '09 '10 '11 '12 '13

Others LPG Carrier LNG Carrier

Containers Tankers Bulkers

(Unit: Mil. GT)

39.9

95.5

+139%

Market

Newbuilding Price Trend since 2007

Shipbuilding

Global Demand since 2007

* Source : Clarkson

(Unit: Mil. USD)

* Source : Clarkson

(Unit: Mil. GT)

* Others : offshore, cruise vessels, ro-ro ferries, MPP, Reefers, PCC

`07 `08 `09 `10 `11 `12 `13 YoY `14.6

Price Index 185 178 138 142.4 139 126.3 133.2 5.5% 139.6

Capesize Bulk(180K) 97.0 88.0 56.0 57.0 48.5 46.0 53.5 16.3% 57.5

VLCC(320K) 146.0 150.0 101.0 105.0 99.0 93.0 94.0 1.1% 100.0

Container(8,800teu) 134.0 129.0 86.5 95.0 92.5 76.5 85.5 11.8% 88.5

LPG(82,000m³) 93.0 92.0 72.0 72.8 73.0 70.0 74.5 6.4% 80.0

LNG(160,000m³) 237.0 245.0 211.5 202.0 202.0 199.5 198.0 -0.8% 200.0

`07 `08 `09 `10 `11 `12 `13 YoY `14.6

Total 176.6 110.9 33.1 94.1 62.5 39.9 95.5 139.3% 39.9

Bulkers 92.5 56.8 20.3 57.3 24.1 14.2 43.7 207.7% 19.8

Tankers 27.7 29.8 8.0 20.3 5.9 7.9 18.5 134.2% 7.5

Containers 35.0 12.7 1.0 6.6 20.1 4.7 19.4 312.8% 5.2

LNG 2.5 0.6 0.0 0.5 5.1 3.8 4.1 7.9% 1.5

LPG 0.7 0.6 0.1 0.6 0.4 1.1 2.8 154.5% 2.2

others 18.2 10.4 3.7 8.8 6.9 8.2 7.0 -14.6% 3.7

18

PCTC

3%

Containership

23%

Tanker

4%

LNG 21%LPG 7%

Special

7% Bulk 1%

P/C 1%

Drillship

37%

Semi-sub Rig

2%Others 1%

Shipbuilding

42.0%

Overview

Annual Sales & New Orders

(Unit : sales - bil. KRW, New order – mil. USD)

Main Products

Sales Breakdown by Product (2013)

• VLCCs, Tankers, Product Carriers, Chemical Tankers

• Containerships, Bulk Carriers, OBO Carriers

• Ro-Pax Ships, Ro-Ro Ships, Pure Car Carriers

Tankers / VLCCs

• LNG Carriers, LPG Carriers

• Drillships

• 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)

Shipbuilding

Sales Contribution(2013)

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

* Non-Consolidated basis * Non-Consolidated basis

6,443 7,557

9,084 9,003 7,849

9,487 9,766 10,159 11,470

15,730

13,635

444

4,061

10,905

6,143

9,512

0

5,000

10,000

15,000

20,000

2006 2007 2008 2009 2010 2011 2012 2013(E)

Sales New Orders

19

Backlog by Shiptype (2013)

Performance

New Orders in 2013

2012 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total Target Achievement Details (mil. USD)

# of ship 38 9 0 6 12 9 10 10 7 1 6 13 2 85 - -

Amount

(mil. USD)6,143 937 0 570 1,049 1,733 681 917 865 85 997 1,297 381 9,512 7,750 122.7%

New Orders by Shiptype (2013)

Shipbuilding

-27 Containerships (3,053) -9 LNG Carriers (1,902) -19 LPG Carriers (1,372) -11 Tankers (803) -5 Special Vessel (662) -1 Semi Submersible Rig (629) -11 Bulk Carriers (580) -2 Others (511)

• Backlogs as of Dec. 2013 on a delivery basis : 141 vessels. USD 22.59 bil.

• The above data is based on the amount • The above data is based on the amount

Container ship22%

Tanker4%

LNG Carrier21%

LPG Carrier7%

Drillship

27%

Special & Naval

7%

Others3%

Semi Submersible

RIg6%

Bulkers

3%

Bulker

6%

LPG Carrier

14%

Others 12%Containership

32%

Tanker

9%LNG Carrier

20%

Semi

Submersible

Rig 7%

20

Backlog by Shiptype (2014.6)

Performance

New Orders in 2014

2013 Jan Feb Mar Apr May Jun Total Target Achievement Details (mil. USD)

# of ship 85 19 14 5 1 4 5 48 - -

Amount

(mil. USD)9,512 1,549 1,127 511 78 279 644 4,188 9,150 45.8%

New Orders by Shiptype (2014.6)

- 24 LPG Carriers (1,809) - 14 Tankers (1,203) - 5 Containerships (501) - 3 Bulkers (242) - Others (23)

Shipbuilding

• The above data is based on the amount • Backlogs as of Jun. 2014 on a delivery basis : 163 vessels, USD 22.19 bil.

• The above data is based on the amount

Bulker

6%

Containership

12%

Tanker

29%

LPG Carrier

43%

LNG Carrier

10%

Container ship19%

Tanker9%

LNG Carrier21%LPG Carrier

14%

Drillship 18%

Special & Naval

7%

Others2%

Semi Submersible

RIg6%

Bulkers

4%

21

5.1

6.4 6.2

4.8

6.2 6.0

3.7

0.3

0.81.8

0.9

1.10.3 0.9

0.8

1.2

0

1

2

3

4

5

6

7

8

9

10

2007 2008 2009 2010 2011 2012 2013

Gunsan

Offshore

Ulsan

5.4

7.2

8.0

6.6

7.58.1

4.9

Delivery

Annual Delivery (mil. GT) Annual Delivery (number of vessels)

2007 2008 2009 2010 2011 2012 2013

Ulsan 75 88 80 55 71 69 44

Offshore

(on-ground

building)

6 14 25 14 13 4 1

Gunsan - - - 10 9 11 12

Total

# of Ship81 102 105 79 93 84 57

Shipbuilding

22

Offshore & Engineering

FPSO Semi-Submersible Unit Drilling Rig Subsea Pipeline

23

1,935

2,222

3,095 3,423 3,413

3,729

4,373 4,753

1,997

1,102

2,978

2,352 3,069

4,480

2,072

6,503

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2006 2007 2008 2009 2010 2011 2012 2013(E)

Sales New Orders

Offshore &

Engineering

20.0%

Sales Contribution (2013)

Overview

(Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders

Sales Breakdown by Product (2013)

• 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

Offshore & Engineering

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

88%

Shipbuilding

1%

Subsea

Pipeline

11%

* Non-Consolidated basis * Non-Consolidated basis

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

24

Performance

New Orders by Type

($ mil.) 2008 2009 2010 2011 2012 2013 2014.Jun

Fixed 1,113 2,196 1,501 2,121 1,621 454 1,400

Floating 1,704 46 1,303 1,819 412 5,735 602

Subsea Pipeline 145 100 252 539 31 292 71

Others 16 9 13 1 8 22 0

Total 2,978 2,351 3,069 4,480 2,072 6,503 2,073

Performance Record

Major Projects in 2009/2010

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)

Offshore & Engineering

(1976 ~ )

Total number

of projectsMajor Projects

Platforms 87· SHWE Platform

(Daewoo Inter, 2013)

Onshore Facilities 10· Sakhalin-1 OPF Onshore Modules

Fabrication(ExxonMobil, 2006)

Jack-up rig 3· Harsh Environment Jack-up Rig 2nd

(A.P.Moller, 2004)

Semi-submersible

Drilling Rig10

· Deepwater Horizon Semi-

Submersible Drilling Unit

(R & B Falcon, 2000)

FPSO 10 · Usan FPSO (TOTAL, 2012)

TLP 2· West Seno Field Development

(Chevron, 2003)

FPU 4 · Moho Bilondo FPU (TOTAL, 2008)

5,441 km· Barzan Offshore Project

(RasGas, 2013)

Fixed

Floating

Subsea Pipelines

Type

25

Performance

Major Projects Awarded in 2011

Qatar, Barzan Offshore Project

- Date : Jan. 2011

- Price : USD 860 million

- Owner : RasGas Company

- Completion : Nov. 2013

- Details : Fabrication and Installation of

Wellhead Platforms, Living Quarters,

Onshore & Offshore pipeline (EPC)

Offshore & Engineering

UK, Q204 FPSO UK, Clair Ridge Platform

- Date : Feb. 2011

- Price : USD 1.2 billion

- Owner : BP

- Completion : May 2016

- Details : Construction of FPSO (EPC),

Processing 0.32 million bpd, storing

0.8 million bbls

- Date : Mar. 2011

- Price : USD 620 million

- Owner : BP

- Completion : Nov. 2014

- Details : Fabrication and Installation of

Drilling and Quarters Platforms (EPC)

26

Performance

Norway, Aasta Hansteen Spar Topside

- Date : Jan. 2013

- Price : USD 1.1 billion

- Owner : Statoil

- Completion : Feb. 2016

- Details : Fabrication and Installation of

Spar Topsides (EPC)

Offshore & Engineering

Congo, Moho Nord TLP & FPU UK, Rosebank FPSO

- Date : Mar. 2013

- Price : USD 1.9 billion

- Owner : Total

- Completion : May 2015 (TLP)

Jun. 2016 (FPU)

- Details : Fabrication and Installation of

Tension Leg Platform and

Floating Production Unit (EPC)

- Date : Apr. 2013

- Price : USD 1.9 billion

- Owner : Chevron

- Completion : Nov. 2016

- 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

27

Industrial Plant & Engineering

Co-Generation Plant Process Plant Thermal Power Plant Combined Cycle Power Plant

28

Industrial Plant &

Engineering 5.0%

Sales Contribution (2013)

Overview

(Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders

Sales Breakdown by Product (2013)

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

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)

Power

Plant

52%

Oil & Gas

18%

Plant

Equipments

30%

* Non-Consolidated basis * Non-Consolidated basis

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

602

1,017

1,374

1,898

2,645 2,761

1,480 1,259

846

1,544

2,076

2,826

2,010

1,014

4,077 4,396

0

1,000

2,000

3,000

4,000

5,000

2006 2007 2008 2009 2010 2011 2012 2013(E)

Sales New Orders

29

Performance Performance Record New Orders by Type

(mil. USD) 2008 2009 2010 2011 2012 2013 2014.Jun

Power Plants 1,727 1,412 1,601 9 3,510 4,285 6

Chemical Plants/

Plant equipment349 1,414 409 1,005 567 111 1,082

Total 2,076 2,826 2,010 1,014 4,077 4,396 1,088

Industrial Plant & Engineering

Major Projects in 2012/2013

(1976 ~ )

Project Type Major Projects

Oil & Gas

Oil & Gas

· Integrated Gas Development (IGD) Project (ADGAS, UAE, 2013(E))

· 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

· Jazan Refinery and Terminal Project, Package. 2 (Saudi Aramco, 2016(E))

· HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013(E))

· 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

Combined Cycle/ Simple Cycle Power Plant

· Riyadh PP 11 Independent Power Project (Dhuruma Electricity Company, Saudi Arabia, 2013(E))

· Sabiya Combined Cycle Gas Turbine Project (Ministry of Electricity and Water, Kuwait, 2013(E))

· 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

· Tihama Cogeneration Expansion Project Stage II (Tihama Power Company, Saudi Arabia, 2015(E))

· Saudi Aramco 3rd party Cogeneration Program (Tihama Power Company, Saudi Arabia, 2006)

Thermal

· Jeddah South Thermal Power Plant (Saudi Electricity Company, Saudi Arabia, 2017(E))

· 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)

Jeddah South (Oct. 2012)

- 3.2 bil. USD / Saudi Electricity Company, Saudi Arabia - 2,400MW Oil fired Conventional Power Plant

Shuqaiq Steam Power Plant (Aug. 2013)

- 3.3 bil. USD / Saudi Electricity Company, Saudi Arabia - 2,640MW Oil fired Conventional Power Plant

30

Engine & Machinery

Marine Engine & Equip. Marine & Industrial Turbine Industrial & Marine Pump Industrial Robot & System Marine Propeller

31

Engine &

Machinery

9.0%

Overview

(Unit : sales - bil. KRW, New order – mil. USD)

Annual Sales & New Orders

Engine & Machinery

Sales Breakdown by Product (2013)

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 (2013)

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%

* Non-Consolidated basis * Non-Consolidated basis

1,220

1,646

2,522 2,772 2,835 3,096 2,967

2,313 1,880

3,248

4,646

1,452

2,283

3,176

1,858

2,425

0

1,000

2,000

3,000

4,000

5,000

2006 2007 2008 2009 2010 2011 2012 2013(E)

Sales New Orders

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

32

Performance

Eco-Friendly Diesel Engine

-15 % reduction of NOx emission meeting new IMO standards

High output Eco-Friendly HiMSEN Gas Engine

- 20% reduction of CO2 emission compared to diesel engine

- 97% reduction of NOX emission to reach the world’s lowest level

of 50ppm

- 47% improvement in engine performance

Ship Engine New Orders by Region

Engine & Machinery

Market Share in 2012 (%)

Large-size

Marine

Engine

Medium-size

Marine

Engine

Propeller

Diesel

power

plant

Domestic 52 50 90 95

Global 35 23 23 7

Diesel Power Plants order from Bangladesh (Apr. 2010)

- USD 70 mil. order for 70 MW diesel power plants from Bangladesh Power Development Board (BPDB)

Eco-friendly Engine products

Major Projects in 2010, 2011

PPS order from Venezuela (Apr. 2010)

- USD 160 mil. order for 204 MW, 120 Packaged Power Stations from electricity company Electricidad de Caracas, Venezuela

Diesel Power Plants order from Ecuador (May 2011)

- USD 74 mil. order for 140 MW diesel power plants from Equitatis, Equador

57% 45%

67%

92% 83% 87%

66%

39%

44%

33%

8% 9% 9%

28%

3% 11% 8% 4% 6%

2007 2008 2009 2010 2011 2012 2013

Domestic China Others

33

Electro Electric Systems

Transformers High Voltage Circuit Breakers Switchgears Marine Electrical Equip.

34

1,057

1,453

1,925

2,712

3,242

2,319

2,843 2,609

1,274

1,766

2,281 2,556

3,793

2,625

2,318

1,820

0

1,000

2,000

3,000

4,000

2006 2007 2008 2009 2010 2011 2012 2013(E)

Sales New Orders

Overview

(Unit : sales - bil. KRW, New order – mil. USD)

Sales Contribution (2013)

Annual Sales & New Orders

Operational Highlights

Main Products

Electro Electric Systems

Sales Breakdown by Product (2013)

• 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

Electro Electric

Systems 11.0%

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)

Transformer

34%

High Voltage

Circuit

Breaker

19%

Low Voltage

Circuit

Breaker

7%

Switchgear

16%

Rotating

Machinery

19%

Others 5%

* Non-Consolidated basis * Non-Consolidated basis

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

35

Performance

Sales by Region

Electro Electric Systems

• 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

* The sales of Green Energy division is not included in 2011 & 2012 results

* 2007 ~ 2009 sales are based on K-GAAP.

Major Projects

Project Type Major Projects

Generator Installation · West Generating Project (U.S.A)

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 LNG Carrier – 22,000MW Marine Steam Turbine (South Korea)

Know-how Export · Gas Insulated Switchgear : TATUNG Company (Taiwan)

Fresh Water Installation

· Shuweihat S2 IWPP Project (U.A.E.)

14% 14% 14% 11% 12% 10%

4% 3% 4% 6% 9% 5%

6% 4% 2% 1% 3%1%

7%11%

20%

5%

7%

5%

16%29%

18%

18%

21%

23%

3%

3%4%

8%2%

2%

49%35% 38%

51% 46%54%

2008 2009 2010 2011 2012 2013

Domestic Others Middle East Europe Africa Asia North America

36

Construction Equipment

Crawler Excavator Wheel Loader Forklift Truck Skid Steer Loader Mini Excavator Wheel Excavator

37

Construction Equipment

11.0%

Overview

(Unit : sales - bil. KRW)

Annual Sales

Operational Highlights

Main Products

Construction Equipment

Sales Breakdown by Product (2013)

• 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 (2013)

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

54%

Folk Lift

16%

Wheel

Loader

11%

CKD

9%

Others

9%

Skid Loader

1%

1,198 1,512

1,769

1,190

2,275

3,052 3,120

2,723

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2006 2007 2008 2009 2010 2011 2012 2013(E)

* Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.

* Non-Consolidated basis * Non-Consolidated basis

38

6% 6% 2% 3% 3% 3% 2%3% 4% 6% 10% 15%21% 17%

3% 6% 7%8%

9%

20%17%

28% 22% 17%16%

18%

14%

11%25% 27%

19%4%

5%5%

6%

39%49%

39% 38%48%

54%45%

2007 2008 2009 2010 2011 2012 2013

Others

Brazil

China

Domestic

Europe

North America

India

Construction Equipment Sales by Region

Performance Construction Equipment

Excavators Sales in China

※ Others includes Russia (9%), Middle East (9%), Africa (8%), Southeast Asia (7%), Turkey, Australia and etc.

Jun 2013 Jun 2014 YoY

Market 64,664 58,093 -10.2%

H H I 5,055 2,827 -44.1%

M/S 7.8% 4.9% -2.9%p

Excavator Sales in China

HHI’s Excavator Market Share by Region

※ 2007 ~ 2009 sales are based on K-GAAP.

(Source : Company data)

(Source : China construction machinery association)

41,500

60,856 71,767

93,237

162,908 162,908

104,908 104,917

58,093

9,138 9,495 8,377 10,101

18,467 17,294

8,540 7,532

2,827

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

30,000

60,000

90,000

120,000

150,000

180,000

2006 2007 2008 2009 2010 2011 2012 2013 2014.Jun

Market size(Left)

HHI(Right)

2010 2011 2012

Domestic 33.2% 32.4% 27.5%

Global 8.6% 8.0% 8.7%

China 11.3% 10.2% 8.1%

India 11.3% 13.9% 17.3%

39

Green Energy

Solar Power Wind Power

40

Solar Cell Solar Module Thin-film

Solar module Solar System

(Inverter)

Picture

Facilities Solar Cell Plant

(Eumseong, Korea)

Solar Module Plant

(Eumseong, Korea)

Hyundai Avancis

(Ochang, Korea)

Electro Electric Systems

Division (Ulsan, Korea)

Annual Capacity

(2012) 600MW 600MW 100MW 500MW

Details

- Mono-crystalline, Poly- crystalline solar cells produced

- 54 cell(6X9), 60 cell(6X10), 72 cell(6X12) modules produced

- JVC with Saint-Gobain (50:50) - CIGS (Cu, In, Ga, Se) thin- film solar module produced

- Grid-Tied Solar Inverter with/without transformer

Solar Power

Vertically Integrated Solar company with 600MW capacity of polysilicon-based solar modules

Thin-film solar cell production facility with 100 MW capacity in 2013

Capacity and Sales

2005 2007 2008 2009 2010 2011 2012

Capacity

Cell (MW) 30 30 60 370 370 580 600

Modules (MW)

20 30 70 170 510 560 600

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%

Solar Product Certification

- UL Listed

- IEC 61215 edition 2, IEC 61730 (TUV)

- J-PEC

- JET Cert

- CE Declaration

- MCS (UK)

- CSTB (France)

- Ammonia resistance test * The above capacity expansion and sales plan is subject to change according to the market situation.

41

Wind Power

- HHI’s production : Nacelle part (Geared & Gearless)

- Outsourcing : Rotor Part (Blade, Hub), Tower

Generator

(HHI)

Gear box

(Jake)

Power converter

(HHI)

Transformer

(HHI)

(Installed in Tower)

Wind Turbine Production facilities

HHI’s Products & Certification

(Geared Type)

Model

Rated

Power

(MW)

Gear

Type

Installation

Type On Market

HQ1650 1.65 Geared Onshore Jun. 2009

HQ2000 2.0 Geared Onshore Jun. 2010

HQ5500 5.5 Geared Offshore -

Nacelle Part

Wind Turbine System Structure Company Name Details

Wind Turbine plant (HHI)

- Located in Gunsan, Korea

- Annual Capacity: 600MW

- Capex: KRW 110 bil.

Weihai Hyundai Wind Power Technology

- Located in Weihai, China

- Annual Capacity: 600MW (2MW X 300 units)

- JVC with Datang Shandong Power Generation

(80% by HHI)

Jahnel-Kestermann (Jake)

- Located in Bochum, Germany

- Annual Capacity: approx. 500 units of gearbox

* On Market: based on proto-type installation date

42

Subsidiaries

43

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 : KRW2.6 tril.

(JUl. 2006~ Feb. 2011)

• Completion of # 2 HOU Plant 34.4% With the completion of # 2 HOU plant in Jan., 2011, Hyundai Oilbank achieved a ratio of 34.4%, the highest upgrading ratio in the industry

At a Glance

• Domestic Light Oil Market Share 22.1%

• Production Capacity 390,000B/D #1 : 110,000 B/D, #2 : 280,000 B/D

Facilities & Products

HHI’s Management Control 91.1% Acquired by HHI in Aug., 2010

44

2011 2012 2013 2014.1Q

Sales 18,958.6 21,523.9 20,295.6 5,326.5

Operating Income 594.7 308.4 403.3 102.0

% 3.1 1.4 2.0 1.9

Net Income 360.7 156.5 152.4 38.8

% 1.9 0.7 0.8 0.7

(Unit: KRW billion)

Income Statement

2011 2012 2013 2014.1Q

Total Assets 8,642.6 8,506.5 8,597.9 8,289.8

Total Liabilities 5,899.5 5,618.8 5,544.5 5,200.5

Total Shareholder’s Equity

2,743.2 2,887.6 3,053.5 3,089.2

Liabilities-to- Equity Ratio(%)

215.1 194.6 181.6 168.3

(Unit: KRW billion)

Financial Position

Hyundai Oilbank

* The financial information of 2009 is based on K-GAAP.

594.7

308.4403.3

18,958.6

21,523.9 20,295.6

Operating

IncomeSales

2011 2012 2013

8,642.6 8,506.5 8,597.9

215.1% 194.6% 181.6%

Assets

Liabilities-to-

Equity Ratio

2011 2012 2013

45

2013 Jan Feb Mar Apr May Jun Total Target Achievement Details (mil. USD)

# of ship 65 15 2 1 2 10 0 30 47 63.8%

Amount

(mil. USD)5,350 1,600 134 87 143 683 0 2,647 4,000 66.2%

Containership20%

Bulker9%

PCTC 9%

LNG Carrier20%

LPG Carrier 9%

Semi Submersible

Rig/ HLV / F Dock

9%FPU Hull

3%

Tanker21%

New Orders in 2014

At a Glance

Hyundai Samho

• Production Capacity 4.3 mil. GT - Delivered 42 vessels in 2013 - # of dry docks : 2

• 2014 Order Target

• 2014 Sales Target

Backlog by Shiptype (2014.6)

4,000 mil. USD

4,563 bil. KRW

• Backlogs as of Jun. 2014 on a delivery basis : 102 vessels, USD 10.19 bil.

• The above data is based on the amount

New Orders in 2013 (65 vessels) -9 Containerships (1,029) -12 LPG Carriers (907) -6 Tankers (495) -12 PCTCs (841) -11 Bulk Carriers (653) -11 P/Cs (547) -2 LNG Carriers (420) -1 FPU Hull (270) -1 High Lift Vessel (188)

New Orders in 2014 -10 Containerships (1,119) -12 Tankers (975) -4 PCTCs (298) -4 Bulk Carriers (246) - Others (9)

46

2011 2012 2013 2014.1Q

Sales 4,828.7 4,231.8 3,506.2 976.9

Operating Income 804.3 254.0 -35.6 -111.0

% 16.7 6.0 -1.0 -11.4

Net Income 551.0 -12.5 -52.1 2.9

% 11.4 -0.3 -1.5 0.3

(Unit: KRW billion)

Income Statement

2011 2012 2013 2014.1Q

Total Assets 6,954.7 6,978.9 6,782.7 7,153.1

Total Liabilities 3,741.7 3,641.1 3,428.9 3,771.3

Total Shareholder’s Equity

3,213.0 3,337.7 3,353.9 3,381.9

Liabilities-to- Equity Ratio(%)

116.5 109.1 97.8 111.5

(Unit: KRW billion)

Financial Position

Hyundai Samho

* The financial information of 2009 is based on K-GAAP.

804.3

254.0

-35.6

4,828.74,231.8

3,506.2

Operating

IncomeSales

6,954.7 6,978.9 6,782.7

116.5% 109.1% 97.8%

Assets

Liabilities-to-

Equity Ratio

2011 2012 2013

2011 2012 2013

47

Financial Performance

48

Financial Summary (Consolidated)

Operating Profit Net Income

37,342.4 100.0% 53,711.7 100.0% 54,973.7 100.0% 54,188.1 100.0% 13,520.8 100.0%

5,622.3 15.1% 4,574.4 8.5% 2,005.5 3.6% 802.0 1.5% (188.9) -1.4%

4,576.5 12.3% 2,753.4 5.1% 1,029.6 1.9% 146.3 0.3% (91.0) -0.7%

Operating Profit

Sales

Net Income

2011 2014.1Q2010 2012 2013

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Sales

(Bil. of KRW)

37,342.4

53.711.7 54,973.7 54,188.1

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

5,622.3 4,574.4

2,005.5 802.0

15.1%

8.5%

3.6%

1.5%

0%

10%

20%

30%

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

OP OP Margin

4,576.5 2,753.4

1,029.6 146.3

12.3%

5.1%

1.9%0.3%

0%

10%

20%

30%

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

NI NI Margin

49

Assets Liabilities & Total Debt Shareholder’s Equity

2010 2011 2012 2013 2014.1Q

46,853.9 49,000.8 49,273.1 53,205.0 53,307.7

Current Assets 22,929.1 23,076.4 25,278.6 29,254.2 29,306.2Cash& Cash Equivalents 1,878.8 1,609.9 1,107.7 1,336.6 1,271.2

Non Current Assets 23,924.8 25,924.4 23,994.5 23,950.8 24,001.5

30,831.0 30,824.3 30,531.8 34,175.4 34,328.1

Current Liabilities 26,011.7 25,490.8 22,174.0 26,516.4 26,464.8

Non-Current Liabilities 4,819.3 5,333.5 8,357.8 7,659.0 7,863.3

16,022.9 18,176.5 18,741.3 19,029.6 18,979.6

192.4% 169.6% 162.9% 179.6% 180.9%

Debt-to-Equity Ratio 61.4% 60.8% 79.1% 83.3% 79.7%

Total Debt 9,844.4 11,057.0 14,826.5 15,843.2 15,123.8

Total Assets

Total Liabilities

Total Shareholder's Equity

Liabilties-to Equity Ratio

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Financial Summary (Consolidated)

(Bil. of KRW)

46,853.9 49.000.8 49,273 .153,205.0

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

30,831.0 30,824.3 30,531.8

34,175.4

9,844.4 11,057.0 14,826.5 15,843.2

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

16,022.9 18,176.5 18,741.3 19,029.6

0.0

20,000.0

40,000.0

60,000.0

2010 2011 2012 2013

50

Financial Summary (Non-Consolidated)

Operating Profit Net Income

22,408.1 100.0% 25,019.6 100.0% 25,055.0 100.0% 24,282.7 100.0% 5,348.7 100.0%

3,563.6 15.9% 2,628.5 10.5% 1,292.9 5.2% 734.8 3.0% (112.8) -2.1%

2,835.4 12.7% 1,945.9 7.8% 1,105.1 4.4% 451.7 1.9% (9.3) -0.2%

Operating Profit

Sales

Net Income

2011 2014.1Q2010 2012 2013

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Sales

(Bil. of KRW)

3,563.6 2,628.5 1,292.9 734.8

15.9%

10.5%

5.2%

3.0%

0%

5%

10%

15%

20%

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

OP OP Margin

2,835.4 1,945.91,105.1

451.7

12.7%

7.8%

4.4%

1.9%

0%

5%

10%

15%

20%

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

NP NP Margin

22,408.1 25,019.6 25,055.0 24,282.7

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

51

Assets Liabilities & Total Debt Shareholder’s Equity

2010 2011 2012 2013 2014.1Q

28,570.1 29,920.5 30,637.9 32,131.7 32,398.5

Current Assets 11,511.1 11,605.9 13,260.6 14,815.7 15,088.9Cash& Cash Equivalents 624.5 608.3 522.9 730.7 685.7

Non Current Assets 17,059.0 18,314.6 17,377.3 17,316.0 17,309.6

15,497.5 15,201.2 15,448.0 16,551.4 16,893.5

Current Liabilities 14,180.0 14,029.1 12,289.4 13,522.9 13,787.1

Non-Current Liabilities 1,317.5 1,172.1 3,158.6 3,028.5 3,106.4

13,072.6 14,719.3 15,189.9 15,580.3 15,505.0

118.5% 103.3% 101.7% 106.2% 109.0%

Debt-to-Equity Ratio 26.4% 26.9% 43.1% 47.5% 44.4%

Total Debt 3,447.3 3,962.7 6,542.1 7,397.8 6,883.2

Total Assets

Total Liabilities

Total Shareholder's Equity

Liabilties-to Equity Ratio

(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)

Financial Summary (Non-Consolidated)

(Bil. of KRW)

28,570.1 29,920.5 30,637.9 32,131.7

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

15,497.515,201.2 15,448.0 16,551.4

3,447.3 3,962.7 6,542.1 7,082.6

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

13,072.6 14,719.3 15,189.9 15,580.3

0.0

10,000.0

20,000.0

30,000.0

40,000.0

2010 2011 2012 2013

52

24,283.0 26,570.0

-

10,000.0

20,000.0

30,000.0

40,000.0

2013 2014(E)

2013 2014(E) Change

Shipbuilding 10,159.0 9,619.0 -5.3%

Offshore & Engineering 4,753.0 5,134.0 8.0%

Industrial Plant 1,259.0 3,130.0 148.6%

Engine & Machinery 2,313.0 2,463.0 6.5%

Electro Electric Systems 2,609.0 2,638.0 1.1%

Construction Equipment 2,723.0 3,100.0 13.8%

Green Energy 312.0 334.0 7.1%

Others 155.0 152.0 -1.9%

Total 24,283.0 26,570.0 9.4%

27,363.0 29,565.0

-

10,000.0

20,000.0

30,000.0

40,000.0

2013 2014(E)

2014 Business Plan (Non-Consolidated)

Sales (bil. KRW)

2013 2014(E) Change

Shipbuilding 9,512.0 9,150.0 -3.8%

Offshore & Engineering 6,503.0 6,900.0 6.1%

Industrial Plant 4,396.0 5,000.0 13.7%

Engine & Machinery 2,425.0 2,900.0 19.6%

Electro Electric Systems 1,820.0 2,424.0 33.2%

Construction Equipment 2,469.0 2,837.0 14.9%

Green Energy 238.0 354.0 48.7%

Total 27,363.0 29,565.0 8.0%

New Orders (mil. USD)

+9.4%

+8.0%

53

Sales by Division (Non-Consolidated)

* The financial information above is based on K-IFRS

* The backlog above is on a delivery basis

Target June Achievement Full Year June Achievement

Shipbuilding 9,619 4,758 49.5% 10,159 5,260 51.8%

Offshore & Engineering 5,134 1,903 37.1% 4,753 2,292 48.2%

Industrial Plant &

Engineering3,130 883 28.2% 1,259 488 38.8%

Engine & Machinery 2,463 998 40.5% 2,313 1,050 45.4%

Electro Electric

Systems2,638 1,114 42.2% 2,609 1,310 50.2%

Construction Equipment 3,100 1,196 38.6% 2,723 1,656 60.8%

Green Energy 334 158 47.3% 312 142 45.5%

Others 152 74 48.7% 155 74 47.7%

Total 26,570 11,084 41.7% 24,283 12,272 50.5%

2014 2013

Sales (bil. KRW)

54

Backlog

2014

Target June Achievement Full Year June Achievement June

Shipbuilding 9,150 4,188 45.8% 9,512 4,970 52.2% 22,186

Offshore & Engineering 6,900 2,073 30.0% 6,503 5,411 83.2% 17,772

Industrial Plant

& Engineering5,000 1,088 21.8% 4,396 158 3.6% 10,165

Engine & Machinery 2,900 1,405 48.4% 2,425 1,432 59.1% 4,151

Electro Electric

Systems2,424 1,199 49.5% 1,820 1,032 56.7% 2,311

Construction Equipment 2,837 1,115 39.3% 2,469 1,500 60.8% -

Green Energy 354 166 46.9% 238 133 55.9% 142

Total 29,565 11,234 38.0% 27,363 14,636 53.5% 56,727

2014 2013

New Orders

* The financial information above is based on K-IFRS

* The backlog above is on a delivery basis

New Orders by Division (Non-Consolidated)

New Orders and Backlog (Mil. USD)

55

Offshore & Engineering

Engine & Machinery

Industrial Plant & Engineering

Electro Electric Systems

Construction Equipment

Green Energy

Shipbuilding

Sluggish demand - The marine engines market experienced a sluggish demand as it lags behind the shipbuilding demand.

Gradual Improvement in market demand - Marine engine market is expected to improve gradually from the second half of 2014

Oversupply Continued -The global electric market grew but remained oversupplied and highly competitive

Gradual Improvement in market demand - Replacement demand for an aging equipment in developed countries and demand for power infrastructures in the Middle East and Asia will mitigate supply-demand imbalance.

Sluggish demand - Market continued to shrink due to slowing demand in emerging markets, especially China and India.

Gradual recovery - Demand recovery in the US, the Middle East and China is expected despite sluggish demand is expected to continue in Southeast Asia and Latin America.

Gradual recovery - Rapid demand increase in Japan and China, and global market restructuring relieved oversupply and stabilize pricing.

Oversupply eased - Government incentives in Japan, China, U.S markets are expected to drive growth. - Supply-demand imbalance will be continuously mitigated due to the demand increase and market restructuring.

Improvement in volume - The owners took advantage of low vessel prices and demand for the eco-friendly specification increased significantly.

Improvement in pricing - Shipbuilding demand is expected to decline slightly. (2013: 99 mil.CGT, 2014(E): 66 mil. CGT, *Source: Clarkson) - Newbuilding prices are expected to recover as major shipyards secured optimal level of backlog.

Favorable market demand - Bolstered by strong oil prices, offshore resource development continued to increase in Northern Europe, Australia, Southeast Asia and Africa.

Favorable market demand - Shale gas production, fall in oil prices may raise volatility risks in the market. - Offshore resource development will continue to grow and demand for Offshore facilities in Australia & Southeast Asia and deep sea field development in North America & Brazil are expected to rise.

Competition intensified - Market continued to grow, driven by infrastructure for the industry in the Middle East and Southeast Asia, but became increasingly competitive.

Competition eased - Market continued to grow driven by infrastructure for the industry in the Middle East and Southeast Asia. Also, competition among South Korean E&C companies is forecasted to ease to accelerate profit recovery.

2014 Business Outlook

2013 Trend 2014 Outlook

56

Q & A

57

Thank You Http://www.hhiir.com

*For More Information

IR Team

E-mail: hhiir@hhi.co.kr

Tel: +82-2-746-4728, 4546, 7858

Fax: +82-746-4662

Website: www.hhi.co.kr (Company) /www.hhiir.com (IR)