j.p. morgan korea ceo conference 2015 february 23~24, 2015 · 2015. 2. 25. · hhi china investment...
TRANSCRIPT
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J.P. Morgan Korea CEO Conference 2015 February 23~24, 2015
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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.
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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 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
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
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Ownership Structure
(As of December 31, 2014)
Chung Mong-joon
10.15%
Hyundai Mipo
Dockyard Co., Ltd.
7.98%
National Pension
Service 4.69%
KCC 3.04%
Hyundai Motors 2.88%
Asan Foundation 2.53%
POSCO 1.94%
Asan Nanum
Foundation 0.65%
Treasury Shares 19.36%
Others 46.78%
(Foreign Ownership : 12.14% )
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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
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Sales Breakdown
Shipbuilding
(KRW 16,432.2 bil.)
Offshore & Engineering
(KRW 4,653.4 bil.)
Industrial Plant & Engineering
(KRW 2,409.2 bil.) Engine & Machinery
(KRW 1,518.1bil.)
Electro Electric Systems
(KRW 2,354.6 bil.)
Construction Equipment
(KRW 2,866.8 bil.)
Green Energy
(KRW 312.3 bil.)
Others
(KRW 206.2 bil.)
Financial Services
(KRW 742.5 bil.)
Refinery
(KRW 21,087.1 bil.)
31.3%
8.8%
4.6%2.9%4.5%5.4%
0.6%
40.1%
1.4% 0.4%
(2014 Consolidated basis, preliminary results)
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27 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
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Vladivostok
Tokyo
Beijing
Hyundai Financial Leasing Co., Ltd.
Singapore
Mumbai
Atlanta
(office, incorporated)
New Jersey
Houston
Istanbul
Athens
Luanda
Nigeria
Oslo
Rotterdam London
France Hyundai Ideal Electric Co.
Osaka
Moscow
HHI China Investment Co., Ltd.
Tai’an
Riyadh
Al Khobar
(office, incorporated)
Alabama
Kuwait
Spain
Hungary
Offices (21)
Production / Sales(14)
Management(3)
Construction(3)
Sales (2)
R&D(2)
Region Overseas
office Incorporated
firm Total
Europe 7 9 16
America 3 4 7
Asia 4 11 15
Middle East / Africa
7 2 9
Total 21 26 47
India
Bulgaria
Belgium Germany
Hyudai Heavy Industries Shanghai R&D Co., Ltd.
Khorol Agro, Mikhailovka Agro,
Hyundai Electrosystems
Brazil
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
【Europe】
【Middle East / Africa】 【Asia】
【America】
[HHI]
Yangzhong
Global Network
Agriculture(2)
Dubai
Jebel Ali
Abu Dhabi
Shandong Yantai
Weihai Chanzhou
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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
6,192 8,350 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
13,642
14,600
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`15 (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
+15.7% YoY
19,567
27,363
19,834
22,950
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□ 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)
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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)
0.0
50.0
100.0
150.0
200.0
'07 '08 '09 '10 '11 '12 '13 '14
Others LPG Carrier LNG Carrier
Containers Tankers Bulkers
(Unit: Mil. GT)
39.9
95.5
-23%
* Index : 1988=100
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 `14.12 YoY
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%
`07 `08 `09 `10 `11 `12 `13 `14.12 YoY
Price Index 185 178 138 142.4 139 126.3 133.2 138.5 4.0%
Capesize Bulk(180K) 97.0 88.0 56.0 57.0 48.5 46.0 53.5 54.0 0.9%
VLCC(320K) 146.0 150.0 101.0 105.0 99.0 93.0 94.0 97.0 3.2%
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%
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Special
Purpose
3%
Containership
29%
Tanker
1%
LNG 17%
LPG 10%
Special
5%Bulk 5%
P/C 2%
Drillship
20%
Semi-sub
Rig 7%
Others 1%
Shipbuilding
40.0%
Overview
Annual Sales & New Orders
(Unit : sales - bil. KRW, New order – mil. USD)
Main Products
Sales Breakdown by Product (2014)
• 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(2014)
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
* Non-Consolidated basis, preliminary results
6,443 7,557
9,084 9,003 7,849
9,487 9,766 10,159 9,349 11,470
15,730
13,635
444
4,061
10,905
6,143
9,512
6,192
0
5,000
10,000
15,000
20,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales New Orders
* Non-Consolidated basis, preliminary results
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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%
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Backlog by Shiptype (2014.12)
Performance
New Orders in 2014
2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Target Achievement Details (mil. USD)
# of ship 85 19 14 5 1 4 5 0 3 3 0 5 1 60 - -
Amount
(mil. USD)9,512 1,549 1,127 511 78 279 644 0 220 528 0 916 340 6,192 9,150 67.7%
New Orders by Shiptype (2014.12)
Shipbuilding
• The above data is based on the amount • Backlogs as of Dec. 2014 on a delivery basis : 145 vessels, USD 18.55 bil.
• The above data is based on the amount
- 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)
Container ship16%
Tanker13%
LNG Carrier26%
LPG Carrier16%
Drillship 6%
Special & Naval11%
Others2%
Semi Submersible
RIg7%
Bulkers 3%
Others 9%
Bulker
4%
Containership 8%
Tanker 26%LPG Carrier
32%
LNG Carrier
21%
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5.16.4 6.2
4.8
6.2 6.0
3.74.6
0.3
0.81.8
0.9
1.10.3 0.9
0.8
1.2
1.20.7
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011 2012 2013 2014
Gunsan
Offshore
Ulsan
5.4
7.2
8.0
6.6
7.58.1
4.95.3
Delivery
Annual Delivery (mil. GT) Annual Delivery (number of vessels)
2007 2008 2009 2010 2011 2012 2013 2014
Ulsan 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 Ship81 102 105 79 93 84 57 56
Shipbuilding
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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 4,653
1,997
1,102
2,978
2,352 3,069
4,480
2,072
6,503 6,005
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales New Orders
Offshore &
Engineering
20.0%
Sales Contribution (2014)
Overview
(Unit : sales - bil. KRW, New order – mil. USD)
Annual Sales & New Orders
Sales Breakdown by Product (2014)
• 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
93%
Subsea Pipeline
7%
* Non-Consolidated basis, preliminary results
* Non-Consolidated basis, preliminary results
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
24
Performance
New Orders by Type
($ mil.) 2008 2009 2010 2011 2012 2013 2014.Dec
Fixed 1,113 2,196 1,501 2,121 1,621 454 4,406
Floating 1,704 46 1,303 1,819 412 5,735 1,470
Subsea Pipeline 145 100 252 539 31 292 129
Others 16 9 13 1 8 22 0
Total 2,978 2,351 3,069 4,480 2,072 6,503 6,005
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 ~ present)
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 5 · Moho Bilondo FPU (TOTAL, 2008)
5,452 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
Performance
Indonesia, Jangkrik FPU
- Date : Feb. 2014
- Price : USD 250 million
- Owner : Eni Muara Bakau B.V.
- Completion : Feb. 2016
- Details : Hull/LQ (EPC)
Offshore & Engineering
Major Projects Awarded in 2014
Abu Dhabi, NASR Package 2
- 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)
Nasr Field
Umm Lulu
Russia, Odoptu Stage 2 Project
- 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)
Malaysia, Bergading Project
28
Industrial Plant & Engineering
Co-Generation Plant Process Plant Thermal Power Plant Combined Cycle Power Plant
29
Industrial Plant &
Engineering
10.0%
Sales Contribution (2014)
Overview
(Unit : sales - bil. KRW, New order – mil. USD)
Annual Sales & New Orders
Sales Breakdown by Product (2014)
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
87%
Oil & Gas
2%
Plant
Equipments
11%
602
1,017
1,374
1,898
2,645 2,761
1,480 1,259
2,429
846
1,544
2,076
2,826
2,010
1,014
4,077 4,396
1,256
0
1,000
2,000
3,000
4,000
5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales New Orders
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
* Non-Consolidated basis, preliminary results
* Non-Consolidated basis, preliminary results
30
Performance Performance Record New Orders by Type
(mil. USD) 2008 2009 2010 2011 2012 2013 2014.Dec
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 1,250
Total 2,076 2,826 2,010 1,014 4,077 4,396 1,256
Industrial Plant & Engineering
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
(1976 ~ present)
Project Type Major Projects
Oil &
Gas
Oil & Gas
· Integrated Gas Development (IGD) Project (ADGAS, UAE, 2013)
· 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
· Clean Fuel Project (Kuwait National Petroleum Company, 2018(E))
· Jazan Refinery and Terminal Project, Package 2 (Saudi Aramco, 2016(E))
· HCP No.2 BTX Project Daesan (HC Petrochem, Korea, 2013)
· 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)
· Sabiya Combined Cycle Gas Turbine Project (Ministry of Electricity and Water, Kuwait, 2013)
· 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 Power Plant (Saudi Electricity Company, Saudi Arabia, 2017(E))
· Shuqaiq Power Plant (Saudi Electricity Company, Saudi Arabia, 2018(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)
Clean Fuel Project (Apr. 2014)
- 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait - Upgrade and expansion of Refinery
31
Engine & Machinery
Marine Engine & Equip. Marine & Industrial Turbine Industrial & Marine Pump Industrial Robot & System Marine Propeller
32
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%
1,220
1,646
2,522 2,772 2,835 3,096 2,967
2,313 2,241 1,880
3,248
4,646
1,452
2,283
3,176
1,858
2,425
2,006
0
1,000
2,000
3,000
4,000
5,000
2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales New Orders•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
* Non-Consolidated basis, preliminary results
* Non-Consolidated basis, preliminary results
33
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 2013 (%)
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)
- 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% 69%
39%
44%
33%
8% 9% 9%
28% 17%
3% 11% 8% 4% 6% 14%
2007 2008 2009 2010 2011 2012 2013 2014
Domestic China Others
34
Electro Electric Systems
Transformers High Voltage Circuit Breakers Switchgears Marine Electrical Equip.
35
Transformer
28%
High Voltage
Circuit
Breaker
18%Low Voltage
Circuit
Breaker
6%
Switchgear
17%
Rotating
Machinery
22%
Others 9%
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
Sales New Orders
Overview
(Unit : sales - bil. KRW, New order – mil. USD)
Sales Contribution (2014)
Annual Sales & New Orders
Operational Highlights
Main Products
Electro Electric Systems
Sales Breakdown by Product (2014)
• 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 10.0%
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)
* Non-Consolidated basis, preliminary results
* Non-Consolidated basis, preliminary results
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
36
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. * 2014 preliminary results
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% 11% 12% 10% 7%
3% 4% 6% 9%
5% 8%
4% 2% 1%3%
1% 0%
11% 20%5%
7%
5% 6%
29% 18%
18%
21%
23%21%
3%4%
8%
2%
2%0%
35% 38%51% 46%
54% 58%
2009 2010 2011 2012 2013 2014
Domestic Others Middle East Europe Africa Asia North America
37
Construction Equipment
Crawler Excavator Wheel Loader Forklift Truck Skid Steer Loader Mini Excavator Wheel Excavator
38
Construction Equipment
9.0%
Overview
(Unit : sales - bil. KRW)
Annual Sales
Operational Highlights
Main Products
Construction Equipment
Sales Breakdown by Product (2014)
• 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 (2014)
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
56%Folk Lift
17%
Wheel
Loader
10%
CKD
6%
Others
10%
Skid
Loader 1%
1,198 1,512
1,769
1,190
2,275
3,052 3,120
2,723
2,215
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2006 2007 2008 2009 2010 2011 2012 2013 2014
* Non-Consolidated basis, preliminary results
* Non-Consolidated basis, preliminary results
•Non-Consolidated basis, 2005 ~ 2009 sales are based on K-GAAP. •2014 preliminary results
39
6% 6% 2% 3% 3% 3% 2% 3%3% 4% 6% 10% 15% 10%
21% 17%3% 6% 7%
8%9% 12%
20%17%
28% 22% 17%16%
18% 19%
14%
11%25% 27%
19%4%
5% 3%5%
6% 10%
39%49%
39% 38%48%
54%45% 43%
2007 2008 2009 2010 2011 2012 2013 2014
Others
Brazil
China
Domestic
Europe
North America
India
Construction Equipment Sales by Region
Performance Construction Equipment
Excavators Sales in China
※ Others includes Middle East (12%), Africa (11%), Russia (6%), Asia, Turkey and etc.
Dec 2013 Dec 2014 YoY
Market 104,925 84,573 -19.4%
H H I 7,532 3,743 -50.3%
M/S 7.2% 4.4% -2.8%p
Excavator Sales in China
HHI’s Excavator Market Share by Region
※ 2007 ~ 2009 sales are based on K-GAAP, 2014 preliminary results
(Source : Company data)
(Source : China construction machinery association)
41,500
60,856 71,767
93,237
162,908 162,908
104,908 104,917
84,573
9,138 9,495 8,377 10,101
18,467 17,294
8,540 7,532
3,743
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.Dec
Market size(Left)
HHI(Right)
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%
40
Green Energy
Solar Power Wind Power
41
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
(2013) 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 600MW capacity of solar cell & solar modules and solar inverter to provide total solution
Solar cell & solar modules, solar inverter production facility in 2013
Capacity and Sales
2005 2007 2008 2009 2010 2011 2012 2013 2014
Capacity
Cell (MW) 30 30 60 370 370 580 600 600 600
Modules (MW)
20 30 70 170 510 560 600 600 600
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%
312
1.3%
317
1.4%
Solar Product Certification
•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
- UL 1703
- IEC 61215 edition 2, IEC 61730 (TUV)
- J-PEC
- JET Cert
- CE Declaration
- MCS (UK)
- CSTB (France)
- Ammonia resistance (IEC 62716)
- Salt mist (IEC 61701 ed.2)
42
Wind Power
- HHI’s production : Nacelle part
- 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
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
Nacelle Part
Wind Turbine System Structure Company Name Details
Wind Turbine plant (HHI)
- Located in Gunsan, Korea
- Annual Capacity: 600MW
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
43
Subsidiaries
44
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
45
8,642.6 8,506.5 8,597.97,701.2
215.1% 194.6% 181.6%151.0%
Assets
Liabilities-to-
Equity Ratio
2011 2012 2013 2014
Sales 18,958.6 21,523.9 20,295.6 18,258.0
Operating Income 594.7 308.4 403.3 192.8
% 3.1 1.4 2.0 1.1
Net Income 360.7 156.5 152.4 31.1
% 1.9 0.7 0.8 0.2
(Unit: KRW billion)
Income Statement
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
Liabilities-to- Equity Ratio(%)
215.1 194.6 181.6 151.0
(Unit: KRW billion)
Financial Position
Hyundai Oilbank
* The financial information of 2009 is based on K-GAAP. * 2014 preliminary results.
594.7
308.4403.3
192.8
18,958.6
21,523.920,295.6
18,258.0
Operating
income
Sales
2011 2012 2013 2014
2011 2012 2013 2014
46
2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Target Achievement Details (mil. USD)
# of ship 65 15 2 1 2 10 0 0 0 1 0 0 0 31 47 66.0%
Amount
(mil. USD)5,350 1,600 134 87 143 683 0 0 0 79 0 0 0 2,726 4,000 68.2%
Containership20%
Bulker8%
PCTC 9%
LNG Carrier20%
LPG Carrier 11%
Semi Submersible Rig/ HLV /
F Dock9%
FPU 3%
Tanker20%
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 (2014.12)
4,000 mil. USD
4,563 bil. KRW
• Backlogs as of Dec. 2014 on a delivery basis : 87 vessels, USD 9.14 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) -1 LPG Carrier (79) -Others (9)
47
804.3 254.0
-35.6-502.2
4,828.7
4,231.8
3,506.2
4,172.1
Operating
income
Sales
6,954.7 6,978.9 6,782.77,076.1
116.5% 109.1%102.2% 145.4%
Assets
Liabilities-to-
Equity Ratio
2011 2012 2013 2014
Sales 4,828.7 4,231.8 3,506.2 4,172.1
Operating Income 804.3 254.0 -35.6 -502.2
% 16.7 6.0 -1.0 -12.0
Net Income 551.0 -12.5 -52.1 -215.2
% 11.4 -0.3 -1.5 -0.5
(Unit: KRW billion) Income Statement
2011 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
Total Shareholder’s Equity
3,213.0 3,337.7 3,353.9 2,883.7
Liabilities-to- Equity Ratio(%)
116.5 109.1 97.8 145.4
(Unit: KRW billion)
Financial Position
Hyundai Samho
* The financial information of 2009 is based on K-GAAP. * 2014 preliminary results.
2011 2012 2013 2014
2011 2012 2013 2014
48
Financial Performance
49
37,342.4
53.711.754,973.7 54,188.1 52,582.4
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
4,562.7 2,743.41,029.6 146.3
-2,206.1
12.2%
5.1%
1.9%0.3%
-4.2%-10%
0%
10%
20%
30%
-20,000.0
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
NI NI Margin
5,531.8 4,561.0
2,005.5 802.0
-3,249.5
14.8%8.5%
3.6%1.5%
-6.2%
-10%
0%
10%
20%
30%
-20,000.0
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
OP OP Margin
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% 52,582.4 100.0%
5,531.8 14.8% 4,561.0 8.5% 2,005.5 3.6% 802.0 1.5% (3,249.5) -6.2%
Shipbuilding 2,687.2 17.4% 2,494.3 13.6% 1,047.1 5.9% 12.6 0.1% (1,895.9) -11.5%
Offshore 764.0 22.3% 391.0 10.5% 319.3 7.3% 282.4 5.9% (230.3) -4.9%
Industrial Plant 344.3 13.0% 252.4 9.4% 106.5 7.4% 61.4 5.0% (1,130.8) -46.9%
Engine & Machinery 754.9 38.7% 602.2 28.0% 347.7 17.3% 118.3 6.9% (10.9) -0.7%
Electro Electric 566.9 17.2% 153.2 6.4% (74.3) -2.6% 90.5 3.3% 86.3 3.7%
Construction
Equipment388.7 11.6% 461.9 10.8% 276.5 7.3% 194.3 5.9% (33.4) -1.2%
Green Energy - - (175.0) -46.0% (106.3) -31.5% (103.2) -32.8% (16.5) -5.3%
Refinery 184.8 3.0% 595.6 3.2% 308.7 1.4% 404.4 1.8% 228.6 1.1%
Finance services 80.2 19.2% 89.7 13.0% 94.9 15.0% 34.5 5.2% 36.3 4.9%
Others (239.2) - (304.3) - (314.6) - (293.2) - (282.9) -
4,562.7 12.2% 2,743.4 5.1% 1,029.6 1.9% 146.3 0.3% (2,206.1) -4.2%
Operating Profit
Sales
Net Income
2011 20142010 2012 2013
(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)
Sales
(Bil. of KRW)
* 2014 preliminary results.
50
46,853.9 49.000.8 49,273 .153,205.0 53,384.4
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
30,831.0 30,824.3 30,531.8
34,175.436,745.8
9,844.4 11,057.0 14,826.5 15,843.2 16,543.1
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
16,022.9 18,176.5 18,741.3 19,029.6 16,638.6
0.0
20,000.0
40,000.0
60,000.0
2010 2011 2012 2013 2014
Assets Liabilities & Total Debt Shareholder’s Equity
2010 2011 2012 2013 2014
46,853.9 49,000.8 49,273.1 53,205.0 53,384.4
Current Assets 22,929.1 23,076.4 25,278.6 29,254.2 29,871.6Cash& Cash Equivalents 1,878.8 1,609.9 1,107.7 1,336.6 3,229.3
Non Current Assets 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
Current Liabilities 26,011.7 25,490.8 22,174.0 26,516.4 27,702.7
Non-Current Liabilities 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
192.4% 169.6% 162.9% 179.6% 220.8%
Debt-to-Equity Ratio 61.4% 60.8% 79.1% 83.3% 99.4%
Total Debt 9,844.4 11,057.0 14,826.5 15,843.2 16,543.1
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)
* 2014 preliminary results.
51
2,835.4 1,945.91,111.4 451.7
-1,754.7
12.7%
7.8%
4.4%
1.9%
-7.5%-10%
0%
10%
20%
-10,000.0
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
NP NP Margin
3,563.6 2,628.5 1,292.9 734.8
-1,923.3
15.9%
10.5%
5.2%
3.0%
-8.2%
-10%
0%
10%
20%
-10,000.0
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
OP OP Margin
22,408.1
25,019.625,055.0 24,282.7 23,463.5
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
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% 23,463.5 100.0%
3,563.6 15.9% 2,628.5 10.5% 1,292.9 5.2% 734.8 3.0% (1,923.3) -8.2%
Shipbuilding 1,221.8 17.4% 1,321.7 13.6% 698.2 7.1% 311.0 3.1% (492.4) -5.3%
Offshore 759.9 22.3% 391.4 10.5% 319.3 7.3% 280.0 5.9% (230.5) -5.0%
Industrial Plant 330.3 13.0% 244.9 9.4% 102.9 7.0% 64.1 5.1% (1,068.8) -44.0%
Engine &
Machinery754.9 38.7% 637.3 28.0% 381.0 12.8% 145.8 6.3% 4.6 0.2%
Electro Electric 546.4 17.2% 155.9 6.4% (58.7) -2.1% 124.7 4.8% 110.0 4.9%
Construction
Equipment195.6 11.6% 320.7 10.8% 243.8 7.8% 194.6 7.1% 70.0 3.2%
Green Energy - - (172.7) -46.0% (103.1) -30.0% (100.8) -32.3% (13.6) -4.3%
Others (245.3) - (270.7) - (290.5) - (284.6) - (302.6) -
2,835.4 12.7% 1,945.9 7.8% 1,111.4 4.4% 451.7 1.9% (1,754.7) -7.5%
Operating Profit
Sales
Net Income
2011 20142010 2012 2013
(Bil. of KRW) (Bil. of KRW) (Bil. of KRW)
Sales
(Bil. of KRW)
* 2014 preliminary results.
52
13,072.6 14,719.3 15,189.9 15,580.3 13,773.2
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
15,497.515,201.2 15,448.0 16,551.4
18,226.2
3,447.3 3,962.7 6,542.1 7,397.8 7,300.5
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
28,570.1 29,920.530,637.9 32,131.7 31,999.3
0.0
10,000.0
20,000.0
30,000.0
40,000.0
2010 2011 2012 2013 2014
Assets Liabilities & Total Debt Shareholder’s Equity
2010 2011 2012 2013 2014
28,570.1 29,920.5 30,637.9 32,131.7 31,999.3
Current Assets 11,511.1 11,605.9 13,260.6 14,815.7 14,778.7
Cash& Cash Equivalents 624.5 608.3 522.9 730.7 1,407.9
Non Current Assets 17,059.0 18,314.6 17,377.3 17,316.0 17,220.6
15,497.5 15,201.2 15,448.0 16,551.4 18,226.2
Current Liabilities 14,180.0 14,029.1 12,289.4 13,522.9 13,554.1
Non-Current Liabilities 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
118.5% 103.3% 101.7% 106.2% 132.3%
Debt-to-Equity Ratio 26.4% 26.9% 43.1% 47.5% 53.0%
Total Debt 3,447.3 3,962.7 6,542.1 7,397.8 7,300.5
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)
* 2014 preliminary results.
53
19,834.0 22,950.0
0
10,000
20,000
30,000
40,000
2014 2015(E)
+15.7%
23,463.5 24,325.9
0
10,000
20,000
30,000
40,000
2014 2015(E)
+3.7%
2014 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%
Green Energy 308.0 336.0 9.1%
Total 19,834.0 22,950.0 15.7%
2015 Business Plan (Non-Consolidated)
Sales (bil. KRW)
New Orders (mil. USD)
2014 2015(E) Change
Shipbuilding 9,349.4 8,305.5 -11.2%
Offshore & Engineering 4,653.2 4,920.7 5.7%
Industrial Plant 2,429.2 3,290.0 35.4%
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%
Total 23,463.5 24,325.9 3.7%
54
Sales by Division (Non-Consolidated)
* The financial information above is based on K-IFRS
* The backlog above is on a delivery basis
Target Dec. Achievement Target Dec. Achievement
Shipbuilding 9,619 9,349 97.2% 10,475 10,159 97.0%
Offshore & Engineering 5,134 4,653 90.6% 4,900 4,753 97.0%
Industrial Plant &
Engineering3,130 2,429 77.6% 1,358 1,259 92.7%
Engine & Machinery 2,463 2,110 85.7% 2,821 2,313 82.0%
Electro Electric
Systems2,638 2,241 85.0% 3,134 2,609 83.2%
Construction Equipment 3,100 2,215 71.5% 3,600 2,723 75.6%
Green Energy 334 317 94.9% 385 312 81.0%
Others 152 149 98.0% 184 155 84.2%
Total 26,570 23,463 88.3% 26,857 24,283 90.4%
2014 2013
Sales (bil. KRW)
55
Backlog
2014
Target Dec. Achievement Target Dec. Achievement Dec.
Shipbuilding 9,150 6,192 67.7% 7,750 9,512 122.7% 18,550
Offshore & Engineering 6,900 6,005 87.0% 6,000 6,503 108.4% 21,704
Industrial Plant
& Engineering5,000 1,256 25.1% 6,000 4,396 73.3% 9,983
Engine & Machinery 2,900 1,996 68.8% 3,100 2,425 78.2% 3,242
Electro Electric
Systems2,424 2,006 82.8% 3,160 1,820 57.6% 2,076
Construction Equipment 2,837 2,071 73.0% 3,272 2,469 75.5% -
Green Energy 354 308 87.0% 394 238 60.4% 141
Total 29,565 19,834 67.1% 29,676 27,363 92.2% 55,696
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)
56
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.
- 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.
Shipbuilding
Offshore & Engineering
Industrial Plant & Engineering
Business Overview & Outlook
2014 2015 Outlook
57
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.
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.
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.
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.
2014 2015 Outlook
Electro Electric Systems
Construction Equipment
Engine & Machinery
Green Energy
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.
Economic recessions and political uncertainties dampened demand in the emerging markets, and Japanese makers who Benefitted from the weak yen increased competition.
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.
Business Overview & Outlook
58
Q & A
59
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)