1. No category

(2015.2)
1
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.
2
Contents
 HHI
at a Glance
 Business
Performance
 Financial
Performance
3
HHI at a Glance
4
Summary

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 8,740 bil. (As of December 31, 2014)

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, 2013)

No. of employees : 25,663 (Average 18.5 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
5
History

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
6
Business Highlights
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)
First to build LNG Carrier in Korea
(Jun. 1994)
Delivery of the World’s Biggest Jacket
(May, 1989)
• 125,000 m3
• Exxon (U.S.A)
• 40,000 ton
Completion of World’s Largest Elf
Girassol FPSO (Feb. 2001)
• 343,000 Ton
Completed World’s largest Saudi
Marafiq power plant (Apr. 2011)
• power generation 2,750 MW + desalination
176 MIGD
Achieved world record production in 2-stroke
Markne engines (Sep. 2010)
• 100 million bhp
Achieved domestic record production in
Transformers (Feb. 2010)
• 600,000 MVA
7
Ownership Structure
(As of December 31, 2014)
Chung Mong-joon
Hyundai Mipo
10.15%
Dockyard Co., Ltd.
7.98%
National Pension
Service 4.69%
Others 46.78%
KCC 3.04%
(Foreign Ownership : 12.14% )
Hyundai Motors 2.88%
Asan Foundation 2.53%
Treasury Shares 19.36%
POSCO 1.94%
Asan Nanum
Foundation 0.65%
8
Business Structure
Division
Main Products
Major Clients
• 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
Offshore &
Engineering
• 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
Industrial Plant &
Engineering
• 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
Shipbuilding
Engine &
Machinery
Electro Electric
Systems
Construction
Equipment
Green Energy
Refinery
Financial
Services
• 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
Competitors
Capacity
 HAPAG-LLOYD (GER)
 C.P. OFFEN (GER)
 AP MOLLER (Denmaark)
 Seaspan (Canada)
 Diamond Offshore (USA)
 DSME (KOR)
 SHI (KOR)
 8.00 mil. GT
 BP(UK)
 ExxonMobile(USA)
 SHELL(USA)
 TOTAL (FR)
 CHEVRON (USA)
 ENI NORGE (NOR)
 DSME, SHI (KOR)
 Technip (FR)
 Saipem (Italy)
 McDermott (USA)
 Floaters : 1~2 units
 Fixed Platform : 3~4 units
 Pipeline laying : 30km
 SHELL (US)
 MEW (KUWAIT)
 SEC (SAUDI)
 Siemens (GER)
 Power plant : 1,000MW
 Hyundai E&C (KOR)
(4~5 projects)
 Doosan Heavy (KOR)
 Samsung C&T Corporation(KOR)
 HMD(KOR)
 Shanghai (CHINA)
 DSME, SHI (KOR)
 State-Owned Power company
 Utility, IPP company
• Excavators
• Wheel Loaders
• Forklifts
• Skid Loaders
• Solar/Wind Power Systems
• Petroleum: LPG, Gasoline, Kerosene, Jet Fuel
• Petrochemicals: Propylene, Alkylate, BTX, Naphtha
 Wagner&Co Solartechnik(GER)
 MHH Solartechnik (GER)
 Sun Energy Europe (GER)
 Albatech (Italy)
 Doosan, STX (KOR)
 Mitsui (JPN)
 Hudong, Dalian(China)
 Large Engines (500 units)
:18 mil bhp
 Medium (1800 Units)
: 5 mil bhp
 ABB (Sweden)
 Siemens (GER)
 Hyosung (KOR)
 Transformer (620 units)
120,000 MVA
 Komatsu (JPN)
 Caterpillar (USA)
 Terex (USA)
 Doosan Infracore (KOR)
 29,000 units
(Excavators 16,000 units)
 Suntech, Yingli (CHN)
 Vestas (DEN), GE (USA)
 Solar Cell/module : 510 MW
 Wind Turbine : 600 MW
 SK Innovation (KOR)
 GS-Caltex (KOR)
 S-Oil (KOR)
 390,000 B/D
• Securities Brokerage
• Asset Management
• Futures
• Corporate Finance
• Leasing
9
Sales Breakdown
Financial Services
Others
(KRW 742.5 bil.)
(KRW 206.2 bil.)
1.4%
0.4%
31.3%
40.1%
Refinery
Shipbuilding
(KRW 21,087.1 bil.)
(KRW 16,432.2 bil.)
8.8%
Green Energy
0.6%
Offshore & Engineering
(KRW 4,653.4 bil.)
(KRW 312.3 bil.)
5.4%
4.5%
2.9%
Industrial Plant & Engineering
Construction Equipment
(KRW 2,866.8 bil.)
4.6%
Electro Electric Systems
(KRW 2,354.6 bil.)
Engine & Machinery
(KRW 1,518.1bil.)
(KRW 2,409.2 bil.)
(2014 Consolidated basis, preliminary results)
10
Affiliates

27 affiliated companies in Hyundai Heavy Industries Group (HHI included, overseas corporations excluded)
• 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
11
Global Network
Established 21 Overseas offices and 26 Incorporated firms, a total of 47 global network.
• 21 overseas offices - Europe : 7, America : 3, Asia : 4, Middle East / Africa : 7
• 26 Incorporated firms - Production/sales : 14, Sales : 2, Construction : 3, R&D : 2, Management : 3, Agriculture: 2
[HHI]
Region
Europe
America
Asia
Middle East /
Africa
Total
【Europe】
Oslo
Moscow
Hungary
France
Spain
Bulgaria
7
2
9
21
26
47
Total
16
7
15
Production /
Sales(14)
Sales (2)
Construction(3)
R&D(2)
Management(3)
Agriculture(2)
Khorol Agro, Mikhailovka Agro,
Hyundai Electrosystems
Germany
Belgium
Incorporated
firm
9
4
11
Offices (21)
Rotterdam
London
Overseas
office
7
3
4
Athens
Riyadh
Al Khobar
(office, incorporated)
Nigeria
Vladivostok
Beijing
Istanbul
Tai’an
Kuwait
Dubai
Jebel Ali
Abu Dhabi
Shandong Yantai
Weihai
Yangzhong
Chanzhou
Mumbai
India
Tokyo
Hyundai Ideal Electric Co.
Alabama
Osaka
HHI China Investment Co., Ltd.
Hyudai Heavy Industries Shanghai R&D Co., Ltd.
Houston
New Jersey
Atlanta
(office, incorporated)
Hyundai Financial Leasing Co., Ltd.
Singapore
Luanda
【Middle East / Africa】
Brazil
【Asia】
【America】
12
Business Performance
13
New Orders Trend
(Mil. USD)
35,000
27,473
30,000
27,363
25,020
25,324
17,851
14,419
18,706 9,290
20,000
9,817
5,000
0
6,400
5,777
4,357
2,968
2,043
2,809
`01
`02
7,835
10,735
15,730
13,147
8,488
11,470
10,291
13,635
10,905
8,272
444
`03
13,642
4,917
3,025
6,792
19,834 14,600
13,424
7,236
13,405
19,567
17,209
16,107
15,000
10,000
22,950
13,838
25,000
+15.7% YoY
`04
`05
`06
Shipbuilding
`07
`08
`09
6,192
6,143
4,061
`10
9,512
`11
`12
`13
8,350
`14`15 (Target)
Non-Shipbuilding
14
Shipbuilding
Drillship
VLCC
Containerships
Bulk Carrier
LNG
LPG
Car Carriers
Naval Ships
Special Vessels
15
Market
Shipbuilding
Global Demand
(Unit: Mil. GT)
200.0
since 2007
(Unit: Mil. GT)
Others
LPG Carrier
LNG Carrier
Containers
Tankers
Bulkers
-23%
150.0
95.5
100.0
39.9
50.0
0.0
'07
'08
'09
'10
'11
'12
'13
'14
`07
`08
`09
`10
`11
`12
`13
`14.12
Total
176.6
110.9
33.1
94.1
62.5
39.9
95.5
73.6
-22.9%
Bulkers
92.5
56.8
20.3
57.3
24.1
14.2
43.7
32.7
-25.2%
Tankers
27.7
29.8
8.0
20.3
5.9
7.9
18.5
14.6
-21.1%
Containers
35.0
12.7
1.0
6.6
20.1
4.7
19.4
9.5
-51.0%
LNG
2.5
0.6
0.0
0.5
5.1
3.8
4.1
7.1
73.2%
LPG
0.7
0.6
0.1
0.6
0.4
1.1
2.8
3.3
17.9%
others
18.2
10.4
3.7
8.8
6.9
8.2
7.0
6.4
-8.6%
YoY
* Others : offshore, cruise vessels, ro-ro ferries, MPP, Reefers, PCC
* Source : Clarkson
Newbuilding Price Trend
180
since 2007
Capesize 176-180K DWT (Left, Mil. USD)
VLCC 315-320K DWT (Left, Mil. USD)
160
Containership 8,500-9,100 TEU (Left, Mil. USD)
LPG Carrier 82,000m³ (Left, Mil. USD)
LNG Carrier 160,000m³ (Right, Mil. USD)
140
120
100
80
250
240
* Source : Clarkson
'12
'13
`11
`12
`13
`14.12
YoY
185
178
138
142.4
139
126.3
133.2
138.5
4.0%
56.0
57.0
48.5
46.0
53.5
54.0
0.9%
220
VLCC(320K)
146.0
150.0
101.0
105.0
99.0
93.0
94.0
97.0
3.2%
210
Container(8,800teu)
134.0
129.0
86.5
95.0
92.5
76.5
85.5
89.0
4.1%
LPG(82,000m³)
93.0
92.0
72.0
72.8
73.0
70.0
74.5
79.0
6.0%
LNG(160,000m³)
237.0
245.0
211.5
202.0
202.0
199.5
198.0
200.0
1.0%
180
'11
`10
88.0
40
'10
`09
97.0
190
'09
`08
Capesize Bulk(180K)
60
'08
Price Index
`07
230
200
'07
(Unit: Mil. USD)
260
* Index : 1988=100
16
Overview
Shipbuilding
Sales Breakdown by Product (2014)
Sales Contribution(2014)
Special
Shipbuilding
Semi-sub Purpose
40.0%
Rig 7%
3%
Tanker
Special 1%
5%
Bulk 5%
P/C 2%
LNG 17%
Others 1%
LPG 10%
Drillship
Containership
20%
29%
* Non-Consolidated basis,
preliminary results
Annual Sales & New Orders
Main Products
(Unit : sales - bil. KRW, New order – mil. USD)
20,000
15,730
13,635
15,000
11,470
10,000
6,443
7,557
9,084
9,003
7,849
10,905
9,487 9,766
10,159
9,349
9,512
6,143
6,192
444
0
2006
2007
2008
Sales
2009
2010
• 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
4,061
5,000
* Non-Consolidated basis,
preliminary results
2011
2012
2013
2014
New Orders
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results
 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)
17
Performance
Shipbuilding
New Orders by Shiptype (2014.12)
Others 9%
Backlog by Shiptype (2014.12)
Semi
Submersible
RIg
Special &
Others
7%
Naval
2%
11%
Containership 8%
Tanker 26%
LPG Carrier
Container ship
16%
Tanker
13%
Drillship 6%
32%
Bulkers 3%
Bulker
LPG Carrier
16%
4%
LNG Carrier
LNG Carrier
26%
21%
• Backlogs as of Dec. 2014 on a delivery basis : 145 vessels, USD 18.55 bil.
• The above data is based on the amount
• The above data is based on the amount
New Orders in 2014
# of ship
Amount
(mil. USD)
2013
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
85
19
14
5
1
4
5
0
3
3
0
5
1,127
511
78
279
644
0
220
528
0
916
9,512 1,549
Dec
Total
Target
Achievement
1
60
-
-
340
6,192
9,150
67.7%
Details (mil. USD)
-
26 LPG Carriers (1,964)
18 Tankers (1,598)
5 Containerships (501)
6 LNG Carriers (1,294)
3 Bulkers (242)
2 Special Vessel (529)
Others (64)
18
Performance
Shipbuilding
New Orders by Shiptype (2015.1)
Backlog by Shiptype (2015.1)
Semi
Submersible
Container
Special &
Others
RIg
ship
Naval
2%
7%
15%
12%
Drillship 3%
Tanker
15%
Bulkers 3%
Tanker
100%
LPG Carrier
17%
LNG Carrier
26%
• Backlogs as of Jan. 2015 (YTD) : 139 vessels, USD 17.53 bil
• The above data is based on the amount
• The above data is based on the amount
New Orders in 2015
# of ship
Amount
(mil. USD)
2014
Jan
Total
Target
Achievement
60
2
2
-
-
6,192
198
198
8,350
2.4%
Details (mil. USD)
-
2 Tankers (198)
5 Containerships (501)
6 LNG Carriers (1,294)
3 Bulkers (242)
2 Special Vessel (529)
Others (64)
19
Delivery
Shipbuilding
Annual Delivery (number of vessels)
Annual Delivery (mil. GT)
2007 2008 2009 2010 2011 2012 2013 2014
10
9
8
Gunsan
Offshore
Ulsan
7.2
0.8
7
6
5
8.1
8.0
1.8
0.8
6.6
1.1
0.9
5.4
0.3
7.5
1.2
0.3
4.9
0.9
2
0.7
75
88
80
55
71
69
44
46
Offshore
(on-ground
building)
6
14
25
14
13
4
1
0
Gunsan
-
-
-
10
9
11
12
10
Total
# of Ship
81
102
105
79
93
84
57
56
1.2
4
3
5.3
Ulsan
5.1
6.4
6.2
4.8
6.2
6.0
3.7
4.6
1
0
2007 2008 2009 2010 2011 2012 2013 2014
20
Offshore & Engineering
FPSO
Drilling Rig
Semi-Submersible Unit
Subsea Pipeline
21
Overview
Offshore & Engineering
Sales Contribution (2014)
Sales Breakdown by Product (2014)
Offshore &
Subsea Pipeline
Engineering
7%
20.0%
Fixed Platforms&
Floaters
93%
* Non-Consolidated basis,
preliminary results
Main Products
Annual Sales & New Orders
(Unit : sales - bil. KRW, New order – mil. USD)
7,000
6,503
6,005
6,000
4,480 4,373
5,000
4,000
3,000
2,000
1,997
1,935
2,222
3,729
3,413
3,069
2,352
4,753
4,653
2007
2008
2009
Sales
2010
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
Operational Highlights
2,072
0
2006
•
•
•
•
•
3,423
3,0952,978
1,102
1,000
* Non-Consolidated basis,
preliminary results
2011
2012
2013
2014
New Orders
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results







Received
Received
Received
Received
Received
Received
Received
USD
USD
USD
USD
USD
USD
USD
1.1
0.9
1.2
0.6
1.1
1.9
1.9
bil.
bil.
bil.
bil.
bil.
bil.
bil.
of
of
of
of
of
of
of
Goliat FPSO order (Feb. 2010)
Barzan offshore platform order (Jan. 2011)
BP Q204 FPSO order (Feb. 2011)
BP Clair Ridge platform order (Mar. 2011)
Aasta Hansteen Topside order (Jan. 2013)
Moho Nord TLP & FPU order (Mar. 2013)
Rosebank FPSO order (Apr. 2013)
22
Performance
Offshore & Engineering
Major Projects in 2009/2010
 Gorgon LNG (Oct. 2009)
- LNG processing modules
fabrication
($2.1 bil. from Chevron)
New Orders by Type
($ mil.)
2009
2010
2011
2012
2013
2014
2015.Jan
Fixed
2,196
1,501
2,121
1,621
454
4,406
17
Floating
46
1,303
1,819
412
5,735
1,470
18
Subsea Pipeline
100
252
539
31
292
129
14
Others
9
13
1
8
22
0
0
Total
2,351
3,069
4,480
2,072
6,503
6,005
49
Performance Record
(1976 ~ present)
 Myanmar SHWE Field development project (Feb. 2010)
- Installation of gas production &
processing platform,
pipeline & onshore terminal
($1.4 bil. from
Daewoo International Corp.)
Type
Fixed
- Cylindrical Floating
Production Storage Offloading unit
($1.1 bil. from ENI Norge AS)
Floating
Major Projects
Platforms
87
· SHWE Platform
(Daewoo Inter, 2013)
Onshore Facilities
10
· Sakhalin-1 OPF Onshore Modules
Fabrication(ExxonMobil, 2006)
Jack-up rig
 Goliat FPSO (Feb. 2010)
Total number
of projects
3
· Harsh Environment Jack-up Rig 2nd
(A.P.Moller, 2004)
Semi-submersible
Drilling Rig
10
· Deepwater Horizon SemiSubmersible Drilling Unit
(R & B Falcon, 2000)
FPSO
10
· Usan FPSO (TOTAL, 2012)
TLP
2
· West Seno Field Development
(Chevron, 2003)
FPU
5
· Moho Bilondo FPU (TOTAL, 2008)
Subsea Pipelines
5,452 km
· Barzan Offshore Project
(RasGas, 2013)
23
Performance
Offshore & Engineering
Major Projects Awarded in 2011
 Qatar, Barzan Offshore Project
 UK, Q204 FPSO
 UK, Clair Ridge Platform
- Date : Jan. 2011
- Date : Feb. 2011
- Date : Mar. 2011
- Price : USD 860 million
- Price : USD 1.2 billion
- Price : USD 620 million
- Owner : RasGas Company
- Owner : BP
- Owner : BP
- Completion : Nov. 2013
- Completion : May 2016
- Completion : Nov. 2014
- Details : Fabrication and Installation of
- Details : Construction of FPSO (EPC),
- Details : Fabrication and Installation of
Wellhead Platforms, Living Quarters,
Onshore & Offshore pipeline (EPC)
Processing 0.32 million bpd, storing
Drilling and Quarters Platforms (EPC)
0.8 million bbls
24
Performance
Offshore & Engineering
Major Projects Awarded in 2013
 Norway, Aasta Hansteen
Spar Topside
 Congo, Moho Nord TLP & FPU
 UK, Rosebank FPSO
 TLP
(Tension Leg Platform)
 FPU
(Floating Production Unit)
- Date : Jan. 2013
- Date : Mar. 2013
- Date : Apr. 2013
- Price : USD 1.1 billion
- Price : USD 1.9 billion
- Price : USD 1.9 billion
- Owner : Statoil
- Owner : Total
- Owner : Chevron
- Completion : Feb. 2016
- Completion : May 2015 (TLP)
- Completion : Nov. 2016
- Details : Fabrication and Installation of
Spar Topsides (EPC)
Jun. 2016 (FPU)
- Details : Fabrication and Installation of
- Details : Construction of FPSO (EPC)
Processing 100,000 BOPD (Oil),
Tension Leg Platform and
190 MMSCFD (Gas),
Floating Production Unit (EPC)
storing 1.05 million bbls
25
Performance
Offshore & Engineering
Major Projects Awarded in 2014
 Indonesia, Jangkrik FPU
 Malaysia, Bergading Project
-
 Russia, Odoptu Stage 2 Project
-
-
Date : Feb. 2014
Price : USD 250 million
Owner : Eni Muara Bakau B.V.
Completion : Feb. 2016
Details : Hull/LQ (EPC)
Date : Jun. 2014
Price : USD 270 million
Owner : Exxon Neftegas Limited
Completion : Jun. 2017
Details : Onshore Modules (EPC)
Date : May. 2014
Price : USD 700 million
Owner : Hess E&P Malaysia
Completion : Nov. 2016
Details : Central Processing Platform,
Wellhead Platform, Bridge (EPCIC)
 Abu Dhabi, NASR Package 2
Nasr Field
Umm Lulu
- Date : Jul. 2014
- Price : USD 1.9 billion
- Owner : Abu Dhabi Marine
Operating Company
- Completion : May. 2019
- Details : Offshore Super Complex
Platforms & Power Distribution
Platform (EPCI)
26
Industrial Plant & Engineering
Thermal Power Plant
Co-Generation Plant
Process Plant
Combined Cycle Power Plant
27
Overview
Industrial Plant & Engineering
Sales Contribution (2014)
Sales Breakdown by Product (2014)
Plant
Industrial Plant &
Equipments
Engineering
Oil & Gas
10.0%
11%
2%
Power
Plant
87%
* Non-Consolidated basis,
preliminary results
Annual Sales & New Orders
Main Products
(Unit : sales - bil. KRW, New order – mil. USD)
5,000
4,077
4,396
4,000
2,826
3,000
2,076
1,898
2,000
1,000
2,645
2,761
2,429
1,480
1,017
1,014
1,259
1,256
0
2006
2007
2008
Sales
2009
 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
2,010
1,544
1,374
846
602
* Non-Consolidated basis,
preliminary results
2010
2011
2012
2013
2014
New Orders
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results
Operational Highlights
•
•
•
•
•
•
Received a USD 1.0
Received a USD 2.6
Signed an MOU for
Received a USD 1.6
Received a USD 3.2
Received a USD 3.3
bil. Das Island order (Jul. 2009)
bil. Sabiya order (Sept. 2009)
supplying ITER vacuum vessel (Jan. 2010)
bil. Riyadh order (Jun. 2010)
bil. Jeddah South order (Oct. 2012)
bil. Shuqaiq order (Aug. 2013)
28
Performance
Industrial Plant & Engineering
Performance Record
New Orders by Type
(1976 ~ present)
Project Type
Major Projects
· Integrated Gas Development (IGD) Project (ADGAS, UAE, 2013)
Oil & Gas
Oil
&
Gas
Tank Farm
· Escravos Gas Plant Phase Ⅲ (Chevron Nigeria Ltd., Nigeria, 2010)
· Bonny Terminal Integrated Project
(Shell Petroleum Development, Nigeria, 2008)
· KOC Crude Oil Export Facilities Project (Kuwait Oil Company, 2008)
· JPR Zarpa Tank Farm Project (Jordan Petroleum Company, 2000)
2009
2010
2011
2012
2013
2014
2015.Jan
Power Plants
1,412
1,601
9
3,510
4,285
6
0
409
1,005
567
111
1,250
13
2,826 2,010 1,014 4,077 4,396 1,256
13
Chemical Plants/
1,414
Plant equipment
Total
· Clean Fuel Project (Kuwait National Petroleum Company, 2018(E))
· Jazan Refinery and Terminal Project, Package 2 (Saudi Aramco, 2016(E))
Refinery & · HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013)
Petrochemical
· 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)
· Riyadh PP 11 Independent Power Project
(Dhuruma Electricity Company, Saudi Arabia, 2013)
· Sabiya Combined Cycle Gas Turbine Project
(Ministry of Electricity and Water, Kuwait, 2013)
Combined
Cycle/
· Al Dur Independent Water and Power Project
Simple Cycle (Al Dur Power & Water Co., Bahrain, 2012)
Power Plant · Marafiq Independent Water and Power Project
(Jubail Water and Power Company, Saudi Arabia, 2010)
· Shaybah Power Generation Project
(Saudi Aramco, Saudi Arabia, 2008)
· Tihama Cogeneration Expansion Project Stage II
Power
(Tihama Power Company, Saudi Arabia, 2015(E))
Cogeneration
· Saudi Aramco 3rd party Cogeneration Program
(Tihama Power Company, Saudi Arabia, 2006)
· Jeddah South Power Plant
(Saudi Electricity Company, Saudi Arabia, 2017(E))
· Shuqaiq Power Plant
(Saudi Electricity Company, Saudi Arabia, 2018(E))
Thermal
· Namjeju #3&4 Thermal Power Plant (KEPCO, Korea, 2007)
· Makkah-Taif Thermal Power Plant
(Saline Water Conversion Corporation, Saudi Arabia, 1989)
Desalination Plant
(mil. USD)
· 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)
Major Projects in 2012/2013/2014
 Jeddah South (Oct. 2012)
- 3.2 bil. USD / Saudi Electricity Company,
Saudi Arabia
- 2,400MW Oil fired Conventional
Power Plant
 Shuqaiq Power Plant (Aug. 2013)
- 3.3 bil. USD / Saudi Electricity Company,
Saudi Arabia
- 2,640MW Oil fired Conventional
Power Plant
 Clean Fuel Project (Apr. 2014)
- 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait
- Upgrade and expansion of Refinery
29
Engine & Machinery
Marine Engine & Equip.
Marine & Industrial Turbine
Industrial & Marine Pump
Industrial Robot & System
Marine Propeller
30
Overview
Engine & Machinery
Sales Breakdown by Product (2013)
Sales Contribution (2013)
Engine &
Machinery
Hydraulic
Robotics
Machinery
9%
7%
9.0%
Power Plant
Engine 6%
Marine
Engine
78%
* Non-Consolidated basis,
preliminary results
Main Products & Capacity
Annual Sales & New Orders
(Unit : sales - bil. KRW, New order – mil. USD)
4,646
5,000
4,000
3,248
3,000
2,000
2,522
1,880
1,646
2,772
3,176
2,835 3,096 2,967
2,283
2,313
1,858
2,425
0
2007
2008
2009
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
Operational Highlights
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)

1,000
2006
•
•
•
•
•
•
•
2,241
2,006
1,452
1,220
* Non-Consolidated basis,
preliminary results
2010
2011
2012
2013
2014
Sales
New Orders
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results
31
Performance
Engine & Machinery
Market Share in 2013 (%)
Major Projects in 2010, 2011

- USD 70 mil. order for 70 MW diesel power plants from
Bangladesh Power Development Board (BPDB)


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
Eco-friendly Engine products


Large-size
Marine
Engine
Medium-size
Marine
Engine
Propeller
Diesel
power
plant
Domestic
68
48
90
86
Global
36
18
23
6
Diesel Power Plants order from Bangladesh (Apr. 2010)
Ship Engine New Orders by Region
3%
33%
39%
8%
9%
4%
9%
6%
14%
28%
17%
66%
69%
2013
2014
44%
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
8%
11%
92%
57%
2007
67%
83%
87%
2011
2012
45%
2008
2009
Domestic
2010
China
Others
32
Electro Electric Systems
Transformers
Switchgears
High Voltage Circuit Breakers
Marine Electrical Equip.
33
Overview
Electro Electric Systems
Sales Breakdown by Product (2014)
Sales Contribution (2014)
Others 9%
Electro Electric
Transformer
Rotating
Systems 10.0%
28%
Machinery
22%
High Voltage
Switchgear
Circuit
17%
Breaker
Low Voltage
Circuit
Breaker
* Non-Consolidated basis,
preliminary results
Annual Sales & New Orders
3,793
3,242
2,712
2,556
2,281
3,000
2,000
1,274
1,057
1,766
1,453
2,625
2,319
1,925
2,843
2,609
2,318
1,820
• 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
Operational Highlights
1,000

0
2006
2007
* Non-Consolidated basis,
preliminary results
Main Products
(Unit : sales - bil. KRW, New order – mil. USD)
4,000
6%
18%
2008
Sales
2009
2010
2011
New Orders
2012
2013
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results




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)
34
Performance
Electro Electric Systems
Major Projects
Major performance
• US transformer long-term supply contract (May 2010)
- USD 600 mil. Order for supplying transformers ranging from
230kV to 500kV to Southern California Edison(SCE) for 10 years
Project Type
Major Projects
Generator Installation
· West Generating Project
(U.S.A)
Power Transmission &
Mutation Installation
· British Columbia Hydro & Power Authority
(Canada)
from 2010 to 2019
- Largest transformer order to date
Sales by Region
35%
3%
29%
11%
38%
51%
54%
58%
4%
18%
8%
18%
20%
4%
3%
2%
4%
14%
14%
11%
2009
2010
2011
Others
Middle East
2%
21%
23%
7%
3%
5%
0%
21%
12%
1%
5%
10%
6%
0%
8%
7%
2012
2013
2014
Asia
North America
9%
Europe
Africa
* The sales of Green Energy division is not included in 2011 & 2012 results
* 2007 ~ 2009 sales are based on K-GAAP.
* 2014 preliminary results
· NUEVA VENTANAS 240MW Coal Fired Power Project
(Chile)
Water Treatment &
· KODECO IKC Project
Cement & Petrochemical
(Indonesia)
Installation
Automotive Goods
2%
5%
1%
6%
Domestic
46%
Iron Manufacture
Installation
Marine Goods
Ocean Installation
Marine Steam Turbine
Know-how Export
Fresh Water
Installation
· Seoul Metro
(South Korea)
· Royal Nedlloyd Group
(Netherlands)
· Al-Jubail Saline Water Conversion
(Saudi Arabia)
· Hyundai Merchant Marine LNG Carrier –
22,000MW Marine Steam Turbine (South Korea)
· Gas Insulated Switchgear : TATUNG Company
(Taiwan)
· Shuweihat S2 IWPP Project
(U.A.E.)
35
Construction Equipment
Mini Excavator
Crawler Excavator
Wheel Excavator
Wheel Loader
Forklift Truck
Skid Steer Loader
36
Overview
Construction Equipment
Sales Contribution (2014)
Sales Breakdown by Product (2014)
Construction
Equipment
9.0%
CKD
Others
Skid
10%
Loader 1%
6%
Wheel
Loader
10%
Excavator
Folk Lift
56%
17%
* Non-Consolidated basis,
preliminary results
* Non-Consolidated basis,
preliminary results
Annual Sales
Main Products
(Unit : sales - bil. KRW)
3,052 3,120
3,500
3,000
2,275
2,500
2,000
1,500
1,198
1,512
•
•
•
•
2,723
2,215
1,769
Operational Highlights
1,190
1,000

500


0
2006 2007 2008 2009 2010 2011 2012 2013 2014


•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP.
•2014 preliminary results
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)

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)
37
Performance
Construction Equipment
Excavators Sales in China
Market size(Left)
HHI(Right)
180,000
150,000
120,000
60,856 71,767
90,000
60,000
30,000
162,908 162,908
93,237
35,000
18,467
104,908
17,294
104,917
8,540
9,495 8,377
10,101
25,000
84,573
7,532
3,743
10,000
5,000
0
2007
2008
2009
Dec 2014
YoY
Market
104,925
84,573
-19.4%
HHI
7,532
3,743
-50.3%
M/S
7.2%
4.4%
-2.8%p
20,000
15,000
0
2006
Dec 2013
30,000
41,500
9,138
Excavator Sales in China
2010
2011
2012
2013 2014.Dec
Construction Equipment Sales by Region
(Source : China construction machinery association)
HHI’s Excavator Market Share by Region
Others
39%
49%
11%
21%
38%
48%
54%
45%
43%
25%
27%
19%
17%
28%
22%
17%
6%
4%
3%
7%
6%
3%
2010
2011
17%
6%
6%
3%
3%
2%
2007
2008
2009
5%
4%
China
6%
5%
18%
16%
10%
3%
19%
9%
12%
10%
3%
15%
2%
10%
3%
2012
2013
2014
8%
※ 2007 ~ 2009 sales are based on K-GAAP, 2014 preliminary results
※ Others includes Middle East (12%), Africa (11%), Russia (6%),
Asia, Turkey and etc.
2010
2011
2012
2013
Domestic
28.0%
32.1%
27.5%
27.9%
Global
(Exclude Japan)
9.7%
10.0%
9.0%
7.8%
China
11.3%
10.2%
8.1%
7.2%
India
11.1%
14.4%
17.7%
19.7%
Brazil
Domestic
14%
20%
39%
Europe
North America
India
(Source : Company data)
38
Green Energy
Solar Power
Wind Power
39
Solar Power


600MW capacity of solar cell & solar modules and solar inverter to provide total solution
Solar cell & solar modules, solar inverter production facility in 2013
Solar Cell
Solar Module
Thin-film
Solar module
Solar System
(Inverter)
Facilities
Solar Cell Plant
(Eumseong, Korea)
Solar Module Plant
(Eumseong, Korea)
Hyundai Avancis
(Ochang, Korea)
Electro Electric Systems
Division (Ulsan, Korea)
Annual Capacity
(2013)
600MW
600MW
100MW
500MW
Picture
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
 Capacity and Sales
Capacity
 Solar Product Certification
2005
2007
2008
2009
2010
2011
2012
2013
2014
Cell (MW)
30
30
60
370
370
580
600
600
600
Modules
(MW)
20
30
70
170
510
560
600
600
600
50
0.4%
107
0.6%
150
1.3%
591
2.6%
399
1.6%
344
1.4%
312
1.3%
317
1.4%
Sales (KRW bil.)
% of total HHI
Sales
- Grid-Tied Solar Inverter
with/without transformer
- UL 1703
- IEC 61215 edition 2, IEC 61730 (TUV)
- J-PEC
•The above capacity expansion and sales plan is subject to change according to the market situation.
•The above sales is total sales of Green Energy division.
• 2014 preliminary results
- JET Cert
- CE Declaration
- MCS (UK)
- CSTB (France)
- Ammonia resistance (IEC 62716)
- Salt mist (IEC 61701 ed.2)
40
Wind Power
 Wind Turbine Production facilities
Company Name
Wind Turbine System Structure
Details
Wind Turbine plant - Located in Gunsan, Korea
(HHI)
- Annual Capacity: 600MW
Nacelle Part
(Installed in Tower)
- Located in Weihai, China
- Annual Capacity: 600MW (2MW X 300 units)
- JVC with Datang Shandong Power Generation
(80% by HHI)
Weihai Hyundai
Wind Power
Technology
Jahnel-Kestermann - Located in Bochum, Germany
(Jake)
- Annual Capacity: approx. 500 units of gearbox
 HHI’s Products & Certification
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
Feb. 2014
Gear box
(Jake)
Generator
(HHI)
Power converter
(HHI)
Transformer
(HHI)
- HHI’s production : Nacelle part
- Outsourcing : Rotor Part (Blade, Hub), Tower
* On Market: based on proto-type installation date
41
Subsidiaries
42
Hyundai Oilbank
Facilities & Products
At a Glance
•
Production Capacity
390,000B/D
#1 : 110,000 B/D, #2 : 280,000 B/D
•
Completion of # 2 HOU Plant
Crude oil
100%
(390,000
b/d)
Refining
Unit
LPG, Naphtha,
Gasoline 19%
Kerosene, Diesel
37%
34.4%
Upgrading Unit
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
•
Diesel
37%
Propylene
9%
Others
8%
Bunker C
44%
Domestic Light Oil Market Share
22.1%
Gasoline,
LPG 46%
Total CAPEX : KRW2.6 tril.
(Jul. 2006 ~ Feb. 2011)
 HHI’s Management Control
Acquired by HHI in Aug., 2010
91.1%
43
Hyundai Oilbank
Income Statement
Sales
Operating Income
%
Net Income
%
(Unit: KRW billion)
2011
2012
2013
2014
18,958.6
21,523.9
20,295.6
18,258.0
594.7
308.4
403.3
192.8
3.1
1.4
2.0
1.1
360.7
156.5
152.4
31.1
1.9
0.7
0.8
0.2
21,523.9
18,958.6
20,295.6
18,258.0
Operating
income
Sales
594.7
308.4
2011
403.3
2012
2013
194.6%
181.6%
192.8
2014
Financial Position
(Unit: KRW billion)
2011
2012
2013
2014
Total Assets
8,642.6
8,506.5
8,597.9
7,701.2
Total Liabilities
5,899.5
5,618.8
5,544.5
4,633.1
Total
Shareholder’s Equity
2,743.2
2,887.6
3,053.5
3,068.1
215.1
194.6
181.6
151.0
Liabilities-toEquity Ratio(%)
215.1%
8,642.6
8,506.5
8,597.9
151.0%
7,701.2
Assets
Liabilities-toEquity Ratio
2011
2012
2013
2014
* The financial information of 2009 is based on K-GAAP.
* 2014 preliminary results.
44
Hyundai Samho
Backlog by Shiptype (2015.1)
At a Glance
•
Semi
Submersible
Rig/ HLV /
F Dock
FPU
Containership
10%
3%
19%
2.9 mil. GT
Production Capacity
- Delivered 30 vessels in 2014
- # of dry docks : 2
•
PCTC 8%
LPG Carrier
11%
4,599 bil. KRW
2015 Sales Target
Tanker
22%
LNG Carrier
19%
Bulker
8%
•
• Backlogs as of Jan. 2015 on a delivery basis : 85 vessels, USD 8.84 bil.
• The above data is based on the amount
3,800 mil. USD
2015 Order Target
New Orders in 2015
2014
Jan
Total
Target
Achievement
# of ship
31
2
2
-
-
Amount
(mil. USD)
2,726
159
159
3,800
4.2%
Details (mil. USD)
New Orders in 2015
-2 Tankers (156)
-Others (3)
New Orders in 2014 (31 vessels)
-10 Containerships (1,119)
-12 Tankers (975)
-4 PCTCs (298)
-4 Bulk Carriers (246)
-1 LPG Carrier (79)
-Others (9)
45
Hyundai Samho
Income Statement
Sales
Operating Income
%
Net Income
%
(Unit: KRW billion)
2011
2012
2013
2014
4,828.7
4,231.8
3,506.2
4,172.1
804.3
254.0
-35.6
-502.2
16.7
6.0
-1.0
-12.0
551.0
-12.5
-52.1
-215.2
11.4
-0.3
-1.5
-0.5
Financial Position
2012
2013
2014
Total Assets
6,954.7
6,978.9
6,782.7
7,076.1
Total Liabilities
3,741.7
3,641.1
3,428.9
4,192.4
Liabilities-toEquity Ratio(%)
4,172.1
4,231.8
3,506.2
Operating
income
Sales
804.3
254.0
-35.6
2011
2012
116.5%
109.1%
6,954.7
6,978.9
2013
-502.2
2014
(Unit: KRW billion)
2011
Total
Shareholder’s Equity
4,828.7
3,213.0
3,337.7
3,353.9
2,883.7
116.5
109.1
97.8
145.4
102.2%
6,782.7
145.4%
7,076.1
Assets
Liabilities-toEquity Ratio
2011
2012
2013
2014
* The financial information of 2009 is based on K-GAAP.
* 2014 preliminary results.
46
Financial Performance
47
Financial Summary
(Consolidated)
Sales
Operating Profit
(Bil. of KRW)
60,000.0
Net Income
(Bil. of KRW)
53.711.7 54,973.7 54,188.1 52,582.4
40,000.0
37,342.4
(Bil. of KRW)
OP
60,000.0
OP Margin
14.8%
30%
60,000.0
20%
40,000.0
8.5%
40,000.0
20,000.0
5,531.8 4,561.0
20,000.0
2010
2011
2012
-20,000.0
0.0
2010
2011
2012
2013
802.0
2013
0%
4,562.7 2,743.4
2010
-10%
30%
20%
5.1%
2014
-3,249.5
-6.2%
2014
0.0
NI Margin
12.2%
20,000.0
1.5%
2,005.5
0.0
10%
3.6%
NI
2011
10%
1.9%
0.3%
1,029.6 146.3
2012
2013
0%
2014
-2,206.1
-4.2%
-20,000.0
-10%
(Bil. of KRW)
2010
2011
2012
2013
2014
Sales
37,342.4
100.0%
53,711.7
100.0% 54,973.7
100.0% 54,188.1
100.0% 52,582.4
100.0%
Operating Profit
Shipbuilding
Offshore
Industrial Plant
Engine & Machinery
Electro Electric
Construction
Equipment
Green
Energy
Refinery
Finance services
Others
Net Income
5,531.8
2,687.2
764.0
344.3
754.9
566.9
388.7
184.8
80.2
(239.2)
4,562.7
14.8%
17.4%
22.3%
13.0%
38.7%
17.2%
11.6%
3.0%
19.2%
12.2%
4,561.0
2,494.3
391.0
252.4
602.2
153.2
461.9
(175.0)
595.6
89.7
(304.3)
2,743.4
8.5%
13.6%
10.5%
9.4%
28.0%
6.4%
10.8%
-46.0%
3.2%
13.0%
5.1%
3.6%
5.9%
7.3%
7.4%
17.3%
-2.6%
7.3%
-31.5%
1.4%
15.0%
1.9%
1.5%
0.1%
5.9%
5.0%
6.9%
3.3%
5.9%
-32.8%
1.8%
5.2%
0.3%
-6.2%
-11.5%
-4.9%
-46.9%
-0.7%
3.7%
-1.2%
-5.3%
1.1%
4.9%
-4.2%
2,005.5
1,047.1
319.3
106.5
347.7
(74.3)
276.5
(106.3)
308.7
94.9
(314.6)
1,029.6
802.0
12.6
282.4
61.4
118.3
90.5
194.3
(103.2)
404.4
34.5
(293.2)
146.3
(3,249.5)
(1,895.9)
(230.3)
(1,130.8)
(10.9)
86.3
(33.4)
(16.5)
228.6
36.3
(282.9)
(2,206.1)
* 2014 preliminary results.
48
Financial Summary
(Consolidated)
Assets
Liabilities & Total Debt
(Bil. of KRW)
60,000.0
53,384.4
46,853.9 49.000.8 49,273 .1 53,205.0
(Bil. of KRW)
60,000.0
40,000.0
40,000.0
20,000.0
20,000.0
0.0
0.0
30,831.0
(Bil. of KRW)
60,000.0
30,824.3 30,531.8
9,844.4
2010
2011
2012
2013
11,057.0
34,175.4
36,745.8
14,826.5 15,843.2 16,543.1
40,000.0
20,000.0
18,741.3 19,029.6 16,638.6
16,022.9 18,176.5
0.0
2010
2014
Shareholder’s Equity
2011
2012
2013
2014
2010
2011
2012
2013
2014
(Bil. of KRW)
2010
2011
2012
2013
2014
46,853.9
49,000.8
49,273.1
53,205.0
53,384.4
22,929.1
23,076.4
25,278.6
29,254.2
29,871.6
1,878.8
1,609.9
1,107.7
1,336.6
3,229.3
23,924.8
25,924.4
23,994.5
23,950.8
23,512.8
30,831.0
30,824.3
30,531.8
34,175.4
36,745.8
26,011.7
25,490.8
22,174.0
26,516.4
27,702.7
4,819.3
5,333.5
8,357.8
7,659.0
9,043.1
16,022.9
18,176.5
18,741.3
19,029.6
16,638.6
Liabilties-to Equity Ratio
192.4%
169.6%
162.9%
179.6%
220.8%
Debt-to-Equity Ratio
61.4%
60.8%
79.1%
83.3%
99.4%
9,844.4
11,057.0
14,826.5
15,843.2
16,543.1
Total Assets
Current Assets
Cash& Cash Equivalents
Non Current Assets
Total Liabilities
Current Liabilities
Non-Current Liabilities
Total Shareholder's Equity
Total Debt
* 2014 preliminary results.
49
Financial Summary
(Non-Consolidated)
Sales
Operating Profit
(Bil. of KRW)
Net Income
(Bil. of KRW)
(Bil. of KRW)
OP
40,000.0
40,000.0
25,019.6
30,000.0
22,408.1
OP Margin
NP
20%
15.9%
10.5%
12.7%
10%
5.2%
20,000.0
20,000.0
20%
30,000.0
30,000.0
25,055.0 24,282.7
23,463.5
7.8%
10%
20,000.0
4.4%
3.0%
10,000.0
10,000.0
2011
2012
2013
2014
0%
734.8
2010
2010
1.9%
3,563.6 2,628.5 1,292.9
0.0
0.0
2011
NP Margin
40,000.0
2012
-10,000.0
2013
10,000.0
0.0
2014
-1,923.3 -10%
-8.2%
0%
2,835.4 1,945.9
1,111.4 451.7
2010
2011
-10,000.0
2012
2013 2014
-1,754.7
-7.5%
-10%
(Bil. of KRW)
2010
2011
2012
2013
2014
Sales
22,408.1
100.0%
25,019.6
100.0%
25,055.0
100.0%
24,282.7
100.0%
23,463.5
100.0%
Operating Profit
3,563.6
15.9%
2,628.5
10.5%
1,292.9
5.2%
734.8
3.0%
(1,923.3)
-8.2%
1,221.8
759.9
330.3
754.9
546.4
195.6
(245.3)
17.4%
22.3%
13.0%
38.7%
17.2%
11.6%
-
1,321.7
391.4
244.9
637.3
155.9
320.7
(172.7)
(270.7)
13.6%
10.5%
9.4%
28.0%
6.4%
10.8%
-46.0%
-
698.2
319.3
102.9
381.0
(58.7)
243.8
(103.1)
(290.5)
7.1%
7.3%
7.0%
12.8%
-2.1%
7.8%
-30.0%
-
311.0
280.0
64.1
145.8
124.7
194.6
(100.8)
(284.6)
3.1%
5.9%
5.1%
6.3%
4.8%
7.1%
-32.3%
-
(492.4)
(230.5)
(1,068.8)
4.6
110.0
70.0
(13.6)
(302.6)
-5.3%
-5.0%
-44.0%
0.2%
4.9%
3.2%
-4.3%
-
2,835.4
12.7%
1,945.9
7.8%
1,111.4
4.4%
451.7
1.9%
(1,754.7)
-7.5%
Shipbuilding
Offshore
Industrial Plant
Engine &
Machinery
Electro
Electric
Construction
Equipment
Green
Energy
Others
Net Income
* 2014 preliminary results.
50
Financial Summary
(Non-Consolidated)
Assets
Liabilities & Total Debt
(Bil. of KRW)
Shareholder’s Equity
(Bil. of KRW)
(Bil. of KRW)
40,000.0
40,000.0
28,570.1 29,920.5 30,637.9
40,000.0
32,131.7 31,999.3
30,000.0
30,000.0
20,000.0
20,000.0
10,000.0
10,000.0
30,000.0
15,497.5
15,201.2 15,448.0 16,551.4
3,447.3
3,962.7
6,542.1
18,226.2
7,397.8 7,300.5
0.0
0.0
2010
2011
2012
2013
15,189.9 15,580.3 13,773.2
13,072.6 14,719.3
10,000.0
0.0
2010
2014
20,000.0
2011
2012
2013
2014
2010
2011
2012
2013
2014
(Bil. of KRW)
2010
2011
2012
2013
2014
28,570.1
29,920.5
30,637.9
32,131.7
31,999.3
11,511.1
11,605.9
624.5
17,059.0
608.3
18,314.6
13,260.6
522.9
17,377.3
14,815.7
730.7
17,316.0
14,778.7
1,407.9
17,220.6
15,497.5
15,201.2
15,448.0
16,551.4
18,226.2
14,180.0
14,029.1
12,289.4
13,522.9
13,554.1
1,317.5
1,172.1
3,158.6
3,028.5
4,672.1
13,072.6
14,719.3
15,189.9
15,580.3
13,773.2
Liabilties-to Equity Ratio
118.5%
103.3%
101.7%
106.2%
132.3%
Debt-to-Equity Ratio
26.4%
3,447.3
26.9%
3,962.7
43.1%
6,542.1
47.5%
7,397.8
53.0%
7,300.5
Total Assets
Current Assets
Cash& Cash Equivalents
Non Current Assets
Total Liabilities
Current Liabilities
Non-Current Liabilities
Total Shareholder's Equity
Total Debt
* 2014 preliminary results.
51
2015 Business Plan
Sales
30,000
2014
(bil. KRW)
40,000
23,463.5
8,305.5
-11.2%
Offshore & Engineering
4,653.2
4,920.7
5.7%
+3.7%
Industrial Plant
2,429.2
3,290.0
35.4%
24,325.9
Engine & Machinery
2,110.2
2,417.1
14.5%
Electro Electric Systems
2,241.0
2,510.6
12.0%
Construction Equipment
2,214.7
2,370.0
7.0%
Green Energy
317.0
354.0
11.7%
Others
148.8
158.0
6.2%
23,463.5
24,325.9
3.7%
0
40,000
20,000
2015(E)
19,834.0
Total
2014
(mil. USD)
+15.7%
30,000
22,950.0
10,000
2015(E)
2015(E)
Change
Shipbuilding
6,192.0
8,350.0
34.9%
Offshore & Engineering
6,005.0
5,300.0
-11.7%
Industrial Plant
1,256.0
1,650.0
31.4%
Engine & Machinery
1,996.0
2,571.0
28.8%
Electro Electric Systems
2,006.0
2,445.0
21.9%
Construction Equipment
2,071.0
2,298.0
11.0%
308.0
336.0
9.1%
19,834.0
22,950.0
15.7%
Green Energy
0
2014
Change
9,349.4
10,000
New Orders
2015(E)
Shipbuilding
20,000
2014
(Non-Consolidated)
Total
52
Sales by Division
(Non-Consolidated)
Sales
(bil. KRW)
2015
2014
Target
Jan.
Achievement
Target
Jan.
Achievement
Shipbuilding
8,305
734
8.8%
9,619
760
7.9%
Offshore & Engineering
4,921
377
7.7%
5,134
283
5.5%
Industrial Plant &
Engineering
3,290
337
10.2%
3,130
65
2.1%
Engine & Machinery
2,417
136
5.6%
2,463
94
3.8%
Electro Electric
Systems
2,511
153
6.1%
2,638
90
3.4%
Construction Equipment
2,370
185
7.8%
3,100
205
6.6%
Green Energy
354
29
8.2%
334
22
6.6%
Others
158
10
6.3%
152
11
7.2%
Total
24,326
1,961
8.1%
26,570
1,530
5.8%
* The financial information above is based on K-IFRS
* The backlog above is on a delivery basis
53
New Orders by Division
(Non-Consolidated)
New Orders and Backlog
(Mil. USD)
New Orders
2015
Backlog
2014
2015
Target
Jan.
Achievement
Target
Jan.
Achievement
Jan.
Shipbuilding
8,350
198
2.4%
9,150
1,549
16.9%
17,525
Offshore & Engineering
5,300
49
0.9%
6,900
79
1.1%
21,752
Industrial Plant
& Engineering
1,650
13
0.8%
5,000
4
0.1%
9,994
Engine & Machinery
2,571
212
8.2%
2,900
178
6.1%
3,095
Electro Electric
Systems
2,445
180
7.4%
2,424
153
6.3%
2,229
Construction Equipment
2,298
173
7.5%
2,837
182
6.4%
-
Green Energy
336
34
10.1%
354
20
5.6%
32
Total
22,950
859
3.7%
29,565
2,165
7.3%
54,627
* The financial information above is based on K-IFRS
* The backlog above is on a delivery basis
54
Business Overview & Outlook
2014
Shipbuilding
Offshore &
Engineering
Industrial Plant
& Engineering
Shipbuilding demand declined YoY, due to a slowdown in
the global economic growth, imbalance of supply and demand
in the market, falling shipping rates, weak newbuild order
momentum.
2015 Outlook
- LNG Carrier: Demand is expected to grow, spurred by LNG project
plans in regions including the US, Australia.
- Large-sized containership: Alliance of top tier shipping companies
is expected to intensify competition and boost large-sized
containership demand to take advantage of economies of scale.
Shale gas production, fall in oil prices raised volatility risks in the
market and limited the growth. HHI had total 7 projects which
amount 6.0 bil. USD of new orders in 2014 and the market
remained highly competitive.
Fall in oil prices, over budget of some large-sized offshore
projects put pressure on oil majors to reduce their CAPEX
and cut costs, as a short term action. In the long term,
oil and gas investments will continue to maintain and expand
market share and production level.
- Power: Competition among South Korean E&C Companies
has eased and the market prices in the Middle East have
recovered gradually.
- Oil & Gas: Competition among South Korean E&C Companies
in the Middle East has eased, investments for Shale Gas,
LNG Plant have increased especially in the North America.
- Power: Demand for power is expected to grow in the Middle East,
facing high energy needs and also in the Southeast Asia markets,
suffering for energy thirst brought by industrialization.
- Oil & Gas: Demand for the Middle East Upstream and refinery
is expected to slow down slightly but demand for LNG and
Gas projects is expected to pick up steam.
55
Business Overview & Outlook
2014
Engine &
Machinery
Electro Electric
Systems
Construction
Equipment
Green Energy
2015 Outlook
As the shipbuilding industry continued to see a slow newbuild
growth, demand for marine engines stayed weak.
Demand for non-marine engines has shrunk due to global
economic recessions.
Dual Fuel Engine(ME-GI, DF Engine) sector will see growing
demand with the rise of demand for high efficiency & eco vessels.
Demand for LNG Carrier and large-sized containership engines
is expected to grow but demand for non-marine engines is
likely to remain weak due to global economic recessions.
Demand for new high-voltage transmission line in the North
America, replacement demand for aging equipments and
demand for power infrastructures in the Middle East continued,
but the new players in the market intensified competition.
Replacement demand for aging equipments in developed countries
will continue but with the falling prices of oil, investments for oil
producing infrastructures and electricity markets in the Middle East
looks uncertain. In addition, economic slowdown in Russia and
western economic sanctions are expected to scale back investments.
Economic recessions and political uncertainties dampened
demand in the emerging markets, and Japanese makers who
Benefitted from the weak yen increased competition.
North America and the UK are expected to see signs of economic
recovery but demand in the emerging markets is expected to shrink
due to China and Russia’s economic recessions, political unrest etc.
In addition, the price competition from Japanese and Chinese
makers is expected to intensify.
A growth in global market size and a decrease in new investments
for production facilities helped to improve supply-demand balance
And the market saw signs of recovery. The main target markets
were Japan and the U.S.A.
Active government incentives across the world and industry
consolidation are expected to accelerate market recovery but the
polarization between top tier companies and small companies is
expected to get more intense.
56
Q&A
57
Thank You
http://www.hhiir.com
*For More Information
IR Team
E-mail: [email protected]
Tel: +82-2-746-4728, 4546, 7858
Fax: +82-746-4662
Website: www.hhi.co.kr (Company) /www.hhiir.com (IR)
58