IR Presentation SAMSUNG ENGINEERING 2 0 1 5

CONTENTS

Introduction 1

Business Update 2

Appendix 3

Ethylene

EO/EG

Coal Gasification

GOSP

Pipeline

Offshore

CDU/VDU

Aromatics

Heavy Oil Upgrading

IT

Industrial Manufacturing

Bio-pharmaceutical

Desalination

Solid Water

Water & Wastewater Treatment

Introduction

Business Portfolio

Hydrocarbon

Non Hydrocarbon

Refinery Gas Petrochemical Upstream

Power Industrial Facility Water Treatment

Water Reuse

Air Pollution Prevention

HDS

Alkylation

3/14

Gas Processing

Liquefaction

LNG Terminal

Reforming

Polymers

Polysilicon

PDH

Fertilizers

Fine Chemicals

CCPP

Coal-fired

Oil-fired

IGCC

Co-gen

Metallurgy Ultrapure Water

Business Results Business Update

Sales

’14

6,377 9,806

37%

71%

29%

New Order

’14 ’13

Operating Profit

66%

34%

’13

6,288

63%

’14 ’13

162

△1,028

(\ billion)

8,912

60%

40%

4/14

(\ billion)

Hydrocarbon

Non Hydrocarbon

Business Outlook Business Update

Sales

’15(E)

7,000

8,000

34%

60%

40%

New Order

Hydrocarbon

Non Hydrocarbon ’15(E) ’14

60%

40%

’14

6,377

66%

8,912

65%

35%

5/14

(\ billion)

Business Update

\12.8 trillion

2010 4%

2011 7%

2012 38%

2014 31%

Year Awarded

2014

Before 3%

Yr. Awarded

Category Project Award

($ million) Completion

2011

Gas Shaybah PKG #1, #2 1,335 ‘15. 06

Power Shaybah PKG #3 554 ’15. 06

Upstream Shaybah PKG #4 1,066 ‘15. 06

Upstream Banyu Urip (GOSP) 355 ‘15. 01

Petrochemical UGCC PKG #B(GSP, PE/PP) 752 ‘15. 07

Upstream Iraq West Qurna Ph.2 (GOSP) 1,359 ’15. 09

2012

Power Balkash Thermal Power Plant 1,275 ’20. 03

Upstream Senoro Gas 233 ’15. 04

Petrochemical Bolivia YPFB Ammonia and Urea 844 ’17 .08

Refinery UAE Carbon Black & Delayed Coker 2,477 ’16. 01

Power Yanbu Power Plant Phase 3 1,506 ’16. 12

2013

Gas Iraq Badra CPF Phase 2 879 ’16. 01

Petrochemical Azerbaijan Ammonia & Urea 645 ’16. 06

Refinery Riyadh Clean Transportation Fuel 218 ’16. 05

Power Cogen IPP 359 ’16. 07

Gas Malaysia TGAST 644 ’16. 09

2014

Power Chile Kelar BHP 442 '16. 10

Upstream Algeria Timimoun 802 '17. 04

Upstream Iraq Eni Zubair Oil Field 840 '16. 10

Refinery KNPC Clean Fuel 1,634 '18. 04

’14 Order Backlog Breakdown

Major Ongoing Projects

6/14

2013 17%

Product

Domestic 11% CIS 15%

America 7%

Asia 7%

MENA 30% GCC 30%

’14

(MENA : Iraq + Africa)

Region Domestic 15%

America 5%

Asia 10%

MENA 7%

GCC 41%

CIS 22%

’13

\15.6 trillion

Non Hydrocarbon 19%

Gas 11%

Petrochemical 17%

Refinery 19%

Upstream 6%

’13

Power 28%

Power 25%

Gas 9% Petrochemical 10%

Refinery 25%

Upstream 15%

’14

Non Hydrocarbon 16%

7/14

Business Update

\15.6 trillion

\12.8 trillion

\12.8 trillion

Order Backlog Breakdown

Debt & Credit Line

Business Update

’14 ’13

1,100

950

Net Debt

’14 ’13

Credit Line

2,500

2,600

Available

In Use

56% 59%

44% 41%

’14 ’13

1,400

1,500

Debt

8/14

(\ billion) (\ billion)

(\ billion)

Foreigner Ratio

Per Capita Sales

(\ billion)

SECL

Subsidiary

720 634

302 267

SEI(India) SESA(Saudi) SET(Thai)

146 122

SEA(USA)

104 92

18.8%

16.4%

1.08 1.06

8,414

’13 ’14 ’15(E)

7,550

1.17

Manpower Update Business Update

Manpower Trend Manpower Breakdown

Foreigner Ratio & Per Capita Sales Global Operation

2014

17.4%

’13 ’14 ’15(E)

8,255

’14 ’15(E) ’13

661

126 126 87

8,255

Hydrocarbon 63%

Non Hydrocarbon

27%

Admin 10%

8,255

Support 10%

Engineering 35%

Procurement 7%

Product Division

Construction 24%

PM 16%

9/14

Marketing 2%

Quality/Safe 4%

’14 ’15(E) ’13 ’14 ’15(E) ’13 ’14 ’15(E) ’13

RM 2%

(\ billion)

Statement of Profit or Loss

Business Update

2012 2013 2014

Revenue 11,440 9,806 8,912

Gross Profit 1,291 △547 546

Operating Profit 737 △1,028 162

Pre-tax Profit 705 △917 61

Net Income 525 △709 56

Gross Profit(%) 11.3 % △5.6 % 6.1 %

Operating Profit(%) 6.4 % △10.5 % 1.8 %

Pre-tax Profit(%) 6.2 % △9.4 % 0.7 %

Net Income(%) 4.6 % △7.2 % 0.6 %

10/14

Statement of Financial Position Business Update

2012 2013 2014

Total Assets 5,674 5,929 6,152

Current Assets 4,188 4,266 4,557

Non-current Assets 1,486 1,663 1,595

Total Liabilities 3,985 5,023 5,199

Current Liabilities 3,554 4,277 4,722

Long-term Liabilities 431 746 477

Total Equities 1,689 906 953

Capital Stock 200 200 200

Capital Surplus 57 57 57

Retained Earnings 1,776 958 1,013

Capital Adjustment △344 △309 △317

(\ billion)

11/14

Financial Index Capex

Business Update

’12 ’13 ’14

Gross Profit Margin

11.3% △5.6% 6.1%

Pre-tax Profit Margin

6.2% △9.4% 0.7%

ROE 31% △78% 6%

EPS 14,264 △19,128 1,487

DPS 3,000 - -

‘13 ’14 ’15(E)

Facilities 70 77 76

Capital Expenditure

10 4 1

R&D 6 5 5

Total 86 86 82

(\) (\ billion)

Financial Index & Capex

12/14

※ DPS from separated financial statement

Major Ongoing Projects Appendix

13/14

Yr. Awarded

Category Project Region Client Award

($ million) Completion

2011

Gas Shaybah PKG #1, #2 Saudi Arabia Saudi Aramco 1,335 ‘15. 06

Power Shaybah PKG #3 Saudi Arabia Saudi Aramco 554 ’15. 06

Upstream Shaybah PKG #4 Saudi Arabia Saudi Aramco 1,066 ‘15. 06

Upstream Banyu Urip (GOSP) Indonesia MCL(Exxon Mobil) 355 ‘15. 01

Petrochemical UGCC PKG #B(GSP, PE/PP) Uzbekistan UZ-Kor Gas Chemicals LLC 752 ‘15. 07

Upstream Iraq West Qurna Ph.2 (GOSP) Iraq Lukoil(Russia) 1,359 ’15. 09

2012

Power Balkash Thermal Power Plant Kazahstan Samruk-Energy 1,275 ’20. 03

Upstream Senoro Gas Indonesia Pertamina 233 ’15. 04

Petrochemical Bolivia YPFB Ammonia and Urea Bolivia YPFB 844 ’17 .08

Refinery UAE Carbon Black & Delayed Coker UAE Takreer 2,477 ’16. 01

Power Yanbu Power Plant Phase 3 Saudi Arabia SWCC 1,506 ’16. 12

2013

Gas Iraq Badra CPF Phase 2 Iraq Gazprom 879 ’16. 01

Petrochemical Azerbaijan Ammonia & Urea Azerbaijan SOCAR 645 ’16. 06

Refinery Riyadh Clean Transportation Fuel Saudi Arabia Saudi Aramco 218 ’16. 05

Power Cogen IPP Saudi Arabia Saudi Aramco 359 ’16. 07

Gas Malaysia TGAST Malaysia Petronas 644 ’16. 09

2014

Power Chile Kelar BHP Chile Kelar 442 '16. 10

Upstream Algeria Timimoun Algeria Groupement Timimoun 802 '17. 04

Upstream Iraq Eni Zubair Oil Field Iraq Eni 840 '16. 10

Refinery KNPC Clean Fuel Kuwait KNPC 1,634 '18. 04

Subsidiary & Branch Office (18)

Global Engineering Center(4)

Head Office

North America

United States

Mexico

Latin America

Venezuela

Brazil

Europe CIS

Russia

Middle East & Africa

Saudi Arabia

UAE

Kuwait

Iraq

Algeria

Italy

Asia

India

Vietnam

Indonesia

Thailand

Malaysia

China

Japan

Global Operations

Appendix

14/14