Hyundai Heavy Industries...2 Important Notice This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHI’s operations that are based

1

Hyundai Heavy Industries IR Presentation

(Apr. 2017)

2

Important Notice

This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHI’s operations that are based on

management’s current expectations, estimates and projections. Words such as “anticipates”, “expects”, “intends”, “plans”, “projects”,

“schedules”, “estimates” and similar expressions are intended to identify such forward-looking statements. These statements are not

guarantees of future performance and are subject to certain risks, uncertainties, and other factors including new order flows, FX rates,

steel plate prices and so on, some of which are beyond company’s control and are difficult to predict. Therefore, actual outcomes and

actual results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place

undue reliance on these forward-looking statements. HHI undertakes no obligation to update any forward-looking statements to reflect

subsequent events.

3

INDEX

I. HHI at a Glance

II. Financial Performance

III. Business Performance

IV. Current Issues

4

HHI at a Glance

5

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 11,058 bil. (As of December 31, 2016)

Credit Rating : A (Corporate Bond), A2 (Commercial Paper)

Korea’s large conglomerate ranking : 9th

(Excluding public companies, based on total assets)

No. of employees : 23,538 (As of December 31, 2016)

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

At a Glance

Financial Perf.

Business Perf.

Current Issues

6

History

1970 ~ 2001 2002 ~ 2011 2012 ~ 2016

12. 1973 Establishment of Hyundai Shipbuilding & Heavy Industry Co., Ltd.

11. 2000 Selected as a main contracter of the next Korean submarine builder

04. 2011 Completion of World`s largest Saudi MARAFIQ power plant (2,750MW)

02. 2014 Delivery of the World`s first LNG-FSRU

04. 1975 Establishment of Hyundai Mipo Dockyard

05. 2002 Acquisition of Samho Heavy Industries Co., Ltd.

10. 2004 Launch of World`s first ship built on the ground (105K DWT Crude Oil Carrier)

02. 2015 Completion of the World`s largest Cylindrical FPSO

08. 1999 Listed on the Korean Stock Exchange

02. 2001 Completion of the World`s largest deep-sea FPSO (343K Tons)

08. 2010 Acquisition of Hyundai Oilbank Co., Ltd. (70% of ownership and management)

02. 2002 Separation from Hyundai Group and foundation of HHI group

12. 2015 Produced Eco-friendly ‘Tier-III’ engine for the first time in the world

03. 2016 breakthrough the production of accumulating 10,000 HMSEN Engines

05. 2015 Delivery of 2,000 ships, for the first time in the world

01. 2015 Recognition as the World`s Significant Ship for 32 consecutive years

06. 1994 Delivery of Korea`s first LNG Carrier

02. 2009 Completion of ‘H-Dock’, eligible for 1,000K Ton FPSO construction

05. 1989 Delivery of World`s biggest Jacket (Exxon, 40,000ton)

12. 2001 Top Spot in China Excavator Market

At a Glance

Financial Perf.

Business Perf.

Current Issues

7

Ownership Structure

Treasury Stock 13.37 Asan Nanum

Foundation 0.6

POSCO 1.9

Asan Foundation 2.5

Hyundai Motors 2.9

National Pension 8.1

KCC 7.01

Hyundai Mipo Dockyard

7.98

Mong-Joon, Chung 10.2

Others 45.44 (Foreign Ownership : 14.8%)

* As of Dec. 31, 2016

At a Glance

Financial Perf.

Business Perf.

Current Issues

8

Business Structure

Shipbuilding

Offshore &

Engineering

Industrial Plant

& Engineering

Engine &

Machinery

Electro Electric

System

Green Energy

Construction

Equipment

Refinery

Financial

Services

Division

• VLCCs, Tankers, Product Carriers, Chemical Tankers • Containerships, Bulk Carriers, OBO Carriers • Ro-Pax Ships, Ro-Ro Ships, Pure Car and Truck Carriers • LPG Carriers, LNG Carriers • Drill Ships, Semi-Submersible Rigs • Submarines, Destroyers, Frigates

• Floating Units : FPSO, FLNG, FPU, TLP, Semi Submersible Unit • Fixed Platform : Topsides Jacket & Pile, Jack-up, : Modules & Quarters • Pipelines & Subsea Facilities, Land-based Modules • Offshore Installations

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

• Marine Engines : 2-Stroke and 4-Stroke(HiMSEN) Engines, Components, Marine Propulsion & Equipment • Industrial Machinery • Robot & Automation : Processor, Conveyor System, Robot

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

• Excavator • Wheel Loader, Skid Loader • Forklift

• Solar Power Systems

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

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

Main Products

• Hapag-Lloyd (DEU) • C.P. Offen (DEU) • CMA CGM (FRA) • A.P. Moller (DEN) • Seaspan (CAN) • Enesel S.A. (GRC) • BP (GBR) • Exxon Mobil (USA) • Shell (USA) • Chevron (USA) • Total (FRA) • ENI Norge (NOR)

• Shell (USA) • MEW (KWT) • SEC (SAU)

• HMD (KOR) • DSME (KOR) • SHI (KOR) • Shanghai (CHN)

• Aramco (SAU) • KEOCI (KOR) • DSME (KOR) • Daelim (KOR)

Main Clients

• DSME (KOR) • SHI (KOR)

• DSME (KOR) • SHI (KOR) • Technip (FRA) • Saipem (ITA) • Mc Dermott (USA)

• Siemens (DEU) • Hyundai E&C (KOR) • Doosan Heavy (KOR) • Samsung C&T Corp. (KOR)

• Doosan (KOR) • STX (KOR) • Mitsui (JPN) • Hudong Dalian (CHN)

• ABB (SWE) • Siemens (DEU) • Hyosung (KOR)

• Komatsu (JPN) • Caterpillar (USA) • Doosan Infracore (KOR)

• LG, Hanwha (KOR) • SolarWorld (GER)

• SK Innovation (KOR) • GS-Caltex (KOR) • S-Oil (KOR)

Competitors Capacity

• 10 mil. GT

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

• Power Plant : 1,000MW (4~5 PJTs)

• Large Engines (500 units) : 18 mil. BHP • Medium (1,800 units) : 5 mil. BHP

• Transformer (620 units) : 121,400 MVA • Wind Turbine : 600MW

• 42,900 units (Excavator 26,200 units)

• Solar Cell/Module : 600MW

• 390,000 B/D

At a Glance

Financial Perf.

Business Perf.

Current Issues

9

Sales Breakdown

37.3% 0.7%

2.0%

29.7%

0.8%

5.5% 5.5%

3.5%

6.2%

8.8%

Shipbuilding (KRW14,679.4 bil)

Offshore & Engineering (KRW 3,448.6 bil)

Industrial Plant & Engineering (KRW 2,422.2 bil)

Engine & Machinery (KRW 1,387.9 bil)

Electro Electric System (KRW 2,143.9 bil)

Construction Equipment (KRW 2,171.2 bil)

Green Energy (KRW 325.3 bil)

Refinery (KRW 11,672.8 bil)

* 2016 Preliminary results in consolidated basis Others

(KRW 290.6 bil)

Financial Services (KRW 775.3 bil)

At a Glance

Financial Perf.

Business Perf.

Current Issues

10

Affiliates

▶ 25 affiliated companies in Hyundai Heavy Industries Group (Including HHI, excluding overseas corporations)

* As of Dec. 21, 2016

At a Glance

Financial Perf.

Business Perf.

Current Issues

11

▶ Established 15 overseas offices and 28 incorporated firms, a total 43 global network

Global Network

New Jersey

●

●◆ Atlanta

Houston ●

Brazil ▼

Alabama ▼

Hyundai Ideal Electric Co.▼

[ America ]

London ●

Oslo ●

● Moscow ▼VGF

● Athens

▼Germany ◆ Netherland

▼ Bulgaria

◆ Belgium France■

Hungary ◑

[ Europe ]

▼ India

Nigeria ■

■Kuwait ■● Al Khobar

Riyadh ● ●●Dubai, Jebel Ali

●Ruwanda

[ Middle East / Africa ]

M-Agro, K-Agro ◎◎

●Tokyo ● Osaka

●Singapore ◆Jakarta

Beijing▼ Tai`an, Yantai, Weihai▼▼▼

▼▼▼ ◈◈

[ Asia ]

● Oversea Office 15

▼ Production/Sales 14

◆ Sales 4

■ Construction 4

◎ Agriculture 2

◑ R&D 2

◈ Management 2

As of Dec. 31, 2015

Jiangso, Yangzhong, Shangdong

HHI China Investment Co., Ltd. Hyundai Financial Leasing Co., Ltd. HHI Shanghai R&D Co., Ltd.

Region Europe America AsiaMid. East/ Africa

Total

Oversea Office 4 3 3 5 15

Incorporated Firm 9 4 12 3 28

Total 13 7 15 8 43

At a Glance

Financial Perf.

Business Perf.

Current Issues

12

Financial Performance

At a Glance

Financial Perf.

Business Perf.

Current Issues

13

Financial Summary (Consolidated)

Operating Profit Sales

Liabilities to Equity Ratio Debt to Equity Ratio

4,561

2,006 802

-3,250 -1,540 1,642

8.5%

3.6% 1.5%

-6.2% -3.3%

4.2%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

-4,000

-2,000

0

2,000

4,000

6,000

'11 '12 '13 '14 '15 '16

Operating Profit(Left) OP Margin(Right)

53,711.7 54,973.7 54,188.1 52,582.4

46,231.7

39,317.2

0.0

10,000.0

20,000.0

30,000.0

40,000.0

50,000.0

60,000.0

'11 '12 '13 '14 '15 '16

30,824 30,532 34,175 36,746 34,234 31,360

169.6% 162.9% 179.6%

220.8% 220.9%

175.3%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

0

10,000

20,000

30,000

40,000

'11 '12 '13 '14 '15 '16

Liabilities(Left) L/E Ratio(right)

11,057 14,827 15,843 16,543 16,852 16,073

60.8%

79.1% 83.3% 99.4%

108.7%

89.8%

0.0%

50.0%

100.0%

150.0%

0

5,000

10,000

15,000

20,000

'11 '12 '13 '14 '15 '16

Debt(Left) D/E Ratio(Right)

(Unit: Bil. KRW)

At a Glance

Financial Perf.

Business Perf.

Current Issues

14

Quarterly Operating Income Margin

▶ Recorded KRW 3.2 tril. of operating loss in 2014 reflecting KRW 1.6 tril. of provision mostly for three

semi-submersible rigs, two power plant projects and offshore production facilities

▶ Recorded KRW 1.5 tril. of operating loss in 2015 reflecting KRW 396 bil. of loss due to cancellation of

two semi-submersible rigs and 1.3 tril. of loss from offshore production facilities

13.5%

7.7%

7.0%

6.1% 7.1%

2.6% 4.5%

0.4%

2.9%

2.2%

1.7%

-0.6% -1.4%

-8.6%

-15.6%

-0.2%

-1.6%

-1.4%

-8.2%

-2.5%

3.2%

5.7% 3.6% 4.2%

0

4,000

8,000

12,000

16,000

-20.00%

-10.00%

0.00%

10.00%

20.00%

(Unit: Bil. KRW, %)

At a Glance

Financial Perf.

Business Perf.

Current Issues

15


(Unit: Bil. KRW)

54,973.7 100.0% 54,188.1 100.0% 52,582.4 100.0% 46,231.7 100.0% 39,317.2 100.0%

2,005.5 3.6% 802.0 1.5% (3,249.5) -6.2% (1,540.1) -3.3% 1,641.9 4.2%

Shipbuilding 1,047.1 5.9% 12.6 0.1% (1,895.9) -11.5% (648.3) -3.9% 564.1 4.7%

Offshore 319.3 7.3% 282.4 5.9% (230.3) -4.9% (1,294.5) -29.0% 150.2 3.0%

Industrial Plant 106.5 7.4% 61.4 5.0% (1,130.8) -46.9% (76.3) -1.8% (211.9) -11.9%

Engine & Machinery 347.7 17.3% 118.3 6.9% (10.9) -0.7% 66.7 3.8% 276.6 22.6%

Electro Electric Systems (74.3) -2.6% 90.5 3.3% 86.3 3.7% 143.6 5.7% 163.9 7.8%

Construction Equip. 276.5 7.3% 194.3 5.9% (33.4) -1.2% (116.2) -5.2% 109.0 6.6%

Green Energy (106.3) -31.5% (103.2) -32.8% (16.5) -5.3% 16.3 4.9% 5.2 -0.1%

Refinery 308.7 1.4% 404.4 1.8% 228.4 1.1% 628.7 4.9% 967.0 8.2%

Finance 94.9 15.0% 34.5 5.2% 36.3 4.9% 53.3 5.1% 24.3 3.2%

Others (314.6) - (293.2) - (282.7) - (313.4) - (406.5) -

0.0% 346.5 0.7% 346.5 0.7% 346.5 0.7% 346.5 0.9%

1,029.6 1.9% 146.3 0.3% (2,206.1) -4.2% (1,363.2) -2.9% 656.7 1.7%

2016

Operating Profit

Sales

Income Before Income Taxes

Net Income

2012 20152013 2014

At a Glance

Financial Perf.

Business Perf.

Current Issues

16


(Unit: Bil. KRW)

2012 2013 2014 2015 2016

49,273.1 53,205.0 53,384.4 49,732.8 49,249.2

Current Assets 25,278.6 29,254.2 29,871.6 27,174.5 26,044.3

Cash & Cash Equivalents 1,107.7 1,336.6 3,229.3 3,105.3 4,326.9

Non-Current Assets 23,994.5 23,950.8 23,512.8 22,558.3 23,204.9

30,531.8 34,175.4 36,745.8 34,233.8 31,359.5

Current Liabil ities 22,174.0 26,516.4 27,702.7 23,060.6 23,187.2

Non-Current Liabil ities 8,357.8 7,659.0 9,043.1 11,173.2 8,172.3

18,741.3 19,029.6 16,638.6 15,499.0 17,889.7

162.9% 179.6% 220.8% 220.9% 175.3%

Debt-to-Equity Ratio 79.1% 83.3% 99.4% 108.7% 89.8%

Total Debt 14,826.5 15,843.2 16,543.1 16,852.1 16,073.3

※ Debt Status of major consolidated subsidiar ies (Unit: Bil KRW)

　As of Dec. 31, 2016 : HHI 7,957(57.4%) / HMD 1,269 (58.7%) / HSHI 1,377 (47.4%)

Total Assets

Total Liabil ities

Total Shareholder's Equity

Liabil ities-to-Equity Ratio

At a Glance

Financial Perf.

Business Perf.

Current Issues

17

Business Performance

At a Glance

Financial Perf.

Business Perf.

Current Issues

18

New Order Trend (Parent)

(Unit : Mil. USD)

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 5,984 3,877

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

8,554

5,269 6,400

5,777

9,817

13,405

16,107

18,706

25,020

27,473

10,735

17,208

25,324

19,567

27,363

19,834

14,538

9,146

'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Shipbuilding Non-shipbuilding

-37.1%

At a Glance

Financial Perf.

Business Perf.

Current Issues

19

2017 Orders & Backlog by Division (Parent)

▶ Achieved lower new orders than expected in Shipbuilding, Offshore and Industrial Plant divisions due to

market downturn in 2016.

(Unit: Mil USD)

Backlog

2017

Mar. YoY Target Mar. Annual Mar.

Shipbuilding 763 - 3,389 234 3,877 11,852

Offshore & Engineering 51 -65.8% 237 149 395 9,788

Industrial Plant & Engineering 1 -50.0% 410 2 316 9,743

Engine & Machinery 287 -17.3% 1,614 347 979 1,555

Electro Electric Systems 412 -20.0% 1,864 515 1,685 2,036

Construction Equipment 530 27.7% 1,685 415 1,617 -

Total 2,044 23.0% 9,199 1,662 8,869 34,974

(*Backlog above is on delivery basis)

2017

New Orders

2016

At a Glance

Financial Perf.

Business Perf.

Current Issues

20

Shipbuilding

Bulk Carrier LPGC LNGC Naval Vessels PCTC Containership Drill ship VLCC Rig

At a Glance

Financial Perf.

Business Perf.

Current Issues

21

World shipbuilding Market share

<Output in 2016>

(No. of Vessels) (1,000 CGT)

1 Hyundai Heavy Industries Co., Ltd.(KOR) 58 2,474 7.2%

2 Daewoo Shipbldg. & Maritime Engineering (KOR) 40 2,113 6.1%

3 Hyundai Samho Heavy Industreis. Co., Ltd.(KOR) 43 1,894 5.5%

4 Samsung Heavy Industries Co., Ltd.(KOR) 24 1,442 4.2%

5 Hyundai Mipo Dockyard Co., Ltd.(KOR) 66 1,441 4.2%

6 Imabari Shipbuilding(JPN) 51 1,072 3.1%

7 Japanes Marine United Corportation (JPN) 31 975 2.8%

8 Sungdong Shipbuilding(KOR) 36 953 2.8%

9 Dalian shipbuilding Industry (CHN) 32 884 2.6%

10 Shanghai Waigaoqiao Shipbuilding (CHN) 20 712 2.1%

1,232 20,491 59.5%

1,633 34,451 100.0%

HHI Group 167 5,809 16.9%

(Source : Clarkson)

Market Share(%)

Total

Rest

ShipbuilderRankOutput in 2016

At a Glance

Financial Perf.

Business Perf.

Current Issues

22

Demand

177.2

111.4

34.6

95.9

62.8

41.3

117.1

78.9 68.5

19.3 6.0

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17.03

Global Demand (Unit : Mil. GT)

Bulkers Tankers Containers LNGC's LPGC's Others

4

0.6

0 0.0 0.0

1

0.4

3.1

0.2 0.5

0.0

1.8

Bulkers Tankers Containers LNGC's LPGC's Others

New Orders by Shiptype (Unit: Mil. GT)

03. 2016 03. 2017

<Global Demand> (Unit : Mil. GT)

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 YoY '16.03 '17.03 YoY

Total 177.2 111.4 34.6 95.9 62.8 41.3 117.1 78.9 68.5 19.3 -13.2% 5.6 6.0 7.1%

Bulkers 92.6 57.0 21.1 58.6 23.7 13.8 56.7 34.9 9.9 6.5 -71.6% 4.0 0.4 -90.0%

Tankers 28.0 29.9 8.6 20.7 6.1 9.1 21.5 15.2 25.1 5.0 65.1% 0.6 3.1 416.7%

Containers 35.0 12.7 1.0 6.6 20.1 4.6 23.1 11.4 22.5 2.0 97.4% 0.0 0.2 -

LNGC 2.5 0.6 0.0 0.5 5.4 4.1 4.1 7.1 3.5 0.8 -50.7% 0.0 0.5 -

LPGC 0.7 0.6 0.1 0.6 0.4 1.1 2.8 3.4 2.3 0.3 -32.4% 0.0 0.0 -

Others 18.4 10.6 3.8 8.9 7.1 8.6 8.9 6.9 5.2 4.7 -24.6% 1.0 1.8 80.0%

* Others : Offshore, Cruise vessels, Ro-Ro ferries, MPP, Reefers, PCC (Source : Clarkson)

At a Glance

Financial Perf.

Business Perf.

Current Issues

23

Competition

41% 37%

13%

32% 36%

22%

31%

44%

17%

30%

41%

21%

44%

19% 17%

24%

47%

29%

Korea China Japan

Global Market Share

2011

2012

2013

2014

2015

2016

Backlog (Mar. 2017) (Unit : Mil. GT) Backlog (Mar. 2017)

38% 24% 24%

2% 38% 38% 20%

26% 22% 31%

3% 11%

Korea China Japan * Source : Clarkson

Tanker Bulk Container Gas Offshore Others Total

한국 12.7 0.6 6.7 10.2 2.1 1.1 33.4

중국 12.5 20.0 13.5 1.6 2.3 3.0 52.9

일본 8.7 13.9 8.2 4.1 0.2 1.6 36.7

33.4 Mil. GT 52.9 Mil. GT 36.7 Mil. GT

At a Glance

Financial Perf.

Business Perf.

Current Issues

Container

LNG&LPG

Bulker

Tanker

24

Price Trend

0

50

100

150

200

250

300

0

50

100

150

200

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Bulker180K dwt (Left)

Tanker 320K dwt (Left)

Container 13,000

teu(Left)

LPG carrier 78-84K ㎥

(Left)

LNG carrier 160K ㎥

(Right)

<Price Trend> (Unit : Mil. USD)

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 YoY '17.02 s ince16/12/31

Clarkson Index 185.1 177.7 138.0 142.4 139.0 126.3 133.2 137.7 131.0 123.0 -4.9% 121.0 -7.6%

Bulker(180K) 97.0 88.0 56.0 57.0 48.5 46.0 53.5 54.0 46.0 42.0 -14.8% 42.0 -8.7%

Tanker(320K) 146.0 150.0 101.0 105.0 99.0 93.0 94.0 97.0 93.5 84.5 -3.6% 80.0 -14.4%

Container(13,000TEU)

- 166.0 118.0 129.0 128.0 107.0 113.5 116.0 116.0 109.0 0.0% 109.0 -6.0%

LPGC(82K㎥) 93.0 92.0 72.0 72.8 73.0 70.0 74.5 79.0 77.0 71.0 -2.5% 70.0 -9.1%

LNGC(160K㎥) 237.0 245.0 211.5 202.0 202.0 199.5 198.0 200.0 199.0 192.0 -0.5% 186.0 -6.5%

* Index=100 in year 1988 (Source: Clarkson)

(Unit : Mil. USD)

At a Glance

Financial Perf.

Business Perf.

Current Issues

25

Shipbuilding Overview

Shipbuilding

36%

Sales Contribution (2016)

* Parent

Sales Breakdown by Product (2016)

Annual Sales & New Orders

(Unit : Sales – bil. KRW, New order – Mil. USD)

* 별도기준

Main Products

• VLCCs, Tankers, Product Carriers, Chemical Tankers

• Containerships, Bulk Carriers, OBO Carriers

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

• LNG Carriers, LPG Carriers

• Drillships, Semi-Submersible Rigs

• 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)

Recorded delivery of 100 million GT in ships (Mar. 2011)

Delivery of the World’s first LNG-FSRU (Feb. 2014) • Parent basis, 2005 ~ 2009 sales are based on K-GAAP.

7,557

9,084 9,003 7,849

9,487 9,766 10,159 9,349 8,736

7,536

15,730

13,635

444

4,061

10,905

6,143

9,512

6,192 5,984

3,877

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales New order

Container 16%

Tanker 31%

Drillship 4%

LNG 24%

LPG 15%

Semi-Rig 1%

Bulker 1%

Naval 6%

Others 2%

At a Glance

Financial Perf.

Business Perf.

Current Issues

26

Performance (2016)

2015 Jan. Feb. Mar. Apr. May Jun. Jul . Aug. Sep. Oct . Nov. Dec. Total TarketAchieve

-ment

# ofShips

60 0 1 2 0 4 1 1 0 0 2 1 12 24 -

Amount 5,984 0 77 157 0 497 261 243 0 -4 337 571 1,739 3,878 3,389 114.4%

Ner Orders in 2016 (in Mil. USD)

Tanker

9% Container

12%

Gas Carrier

16% Others

63%

New orders by Shiptype (2016)

Tanker

24%

Container

17% Gas Carrier

37%

Others

22%

Backlog by Shiptype (2016)

• Based on the amount • Backlogs as of Dec. 2016(YTD) : 103 vessels, USD 13.1 bil

• Based on the amount

At a Glance

Financial Perf.

Business Perf.

Current Issues

27

Performance (2017)

2016 Jan. Feb. Mar. Apr. May Jun. Jul . Aug. Sep. Oct . Nov. Dec. Total

# ofShips

24 3 3 0 6

Amount 3,878 391 367 5 763

Ner Orders in 2017 (in Mil. USD)

Tanker

42%

Gas Carrier

58%

New orders by Shiptype (2017)

Tanker

18%

Container

18%

Gas Carrier

31%

Others

33%


• Based on the amount • Backlogs as of Mar. 2017(YTD) : 92 vessels, USD 11.9 bil


At a Glance

Financial Perf.

Business Perf.

Current Issues

28

Delivery

Annual Delivery (Mil. GT) Annual Delivery (# of vessels)

2008 2009 2010 2011 2012 2013 2014 2015 2016

Ulsan 88 80 55 71 69 44 46 50 47

Offshore(On-ground

Bui lding)14 25 14 13 4 0 0 0 0

Gunsan - - - 9 11 12 10 15 13

Total# of Ships

102 105 79 93 84 56 56 65 60

6.4 6.2

4.8

6.2 6

3.7 4.6 4.9

3.9

0.8 1.8

0.9

1.1

0.3 0.9

0.8

1.2

1.2

0.7

1.3

1.4

7.2

8.0

6.6

8.1

7.5

4.9 5.3

6.2

5.3

'08 '09 '10 '11 '12 '13 '14 '15 '16

Ulsan Offshore Gunsan

At a Glance

Financial Perf.

Business Perf.

Current Issues

29

Offshore & Engineering

FPSO Modules Fixed Platform Subsea Pipelines Installation

At a Glance

Financial Perf.

Business Perf.

Current Issues

30

Offshore & Engineering Overview

Offshore &

Engineering

18%

Sales Breakdown by Products (2016) Sales Contribution (2016)

Fixed

Platform

59%

Floaters

39%

Subsea

Pipeline

2%

* Parent basis * Parent basis


2,222

3,095 3,423 3,413

3,729

4,373 4,753 4,653 4,467

3,448

1,102

2,978 2,352

3,069

4,480

2,072

6,503 6,005

1,572 395

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales New Orders

• 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


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)


• Parent basis, 2005 ~ 2009 sales are based on K-GAAP.

At a Glance

Financial Perf.

Business Perf.

Current Issues

31

History

2010 2011 2013 2014

Gorgon LNG

- LNG Processing - modules fabrication - $2.1 bil. (Chevron)

Goliat FPSO

- Cylindrical Floating Production Storage Offloading unit

- &1.1bil. (ENI)

Barzan Offshore Project

- Fabrication and Installation of Wellhead Platforms, Living Quarters, Onshore & Offshore Pipeline (EPC)

- $860 mil. (RasGas)

Q204 FPSO

- Construction of FPSO (EPC), Processing 0.32 million bpd, storing 0.8 million bbls

- $1.2 bil. (BP)

Clair Ridge Platform

- Fabrication and Installation of drilling and Quarters Platforms (EPC)

- $620 mil. (BP)

A/H Spar Topside

- Fabrication and Installation of Spar Topside(EPC)

- $1.1 bil. (Statoil)

MHN TLP

- Fabrication and Installation of Tension Leg Platform and Floating Production Unit(EPC)

- $1.9 bil. (Total)

NASR Package 2

- Offshore Super Complex Platforms & Power Distribution Platform(EPCI)

- $1.9 bil. (Abu Dhabi Marine)

Bergading Project

- Central Processing Platform, Wellhead Platform, Bridge(EPCIC)

- $700 mil. (Hess E&P)

Nasr Field Umm

Lulu

At a Glance

Financial Perf.

Business Perf.

Current Issues

32

Performance

New orders by Type

($ mil.) 2010 2011 2012 2013 2014 2015 2016 '17 .03

Fixed 1,501 2,121 1,621 454 4,406 718 69 21

Floating 1,303 1,819 412 5,735 1,470 657 298 30

Subsea Pipeline 252 539 31 292 129 197 28 0

Others 13 1 8 22 0 0 0 0

Total 3,069 4,480 2,072 6 ,503 6 ,005 1,572 395 51

# of projects

Major Projects

Platforms 88· SHWE Platform (Daewoo Intl., 2013)· Cla ir R idge Platform (BP, 2016)

Onshore Faci l i ties& Others

16· Gorgon LNG Plant Modules (Chevron, 2016)

Jack-up R ig 2 · MSC Jack-up R ig (A. P. Moller 2004)

FPSO 12· Gol iat FPSO (Eni Norge AS, 2015)· Quad 204 FPSO (BP, 2016)

FPU 5· Moho Bi londo FPU (Total E&P Congo, 2008)

TLP 1 · West Seno TLP (Unocal, 2003)

Semi-SubmersibleDri l l ing R ig

3 · Deepwater Horizon (R&B Falcon, 2000)

35· Offshore Gas Spur Line (PTT PCL, 2011)

Fixed

Floating

Subsea Pipel ines

Type

Performance Record (1976~현재)

(The end of Mar. 2017, Unit : Mil. USD)

DeliveryBasis

SalesBasis

Gorgon (Chevron)

Quad 204 (BP)

Goliat (ENI)

Clair Ridge (BP)

Moho Nord FPU (Total)

Moho Nord TLP (Total)

DSO (Chevron)

Odoptu Stage 2 (Exxon)

BCP (Caligali Hess)

Bergading (E&P)

Baronia (Petro. Caligali)

2018~(1 Projects)

NASR 2 (ADMA-OPCO) 1,889 1,617 14%

Others 0 63

Total (11 Projects) 9,788 2,637

ExpectedDelivery

Complet ion

BacklogMajor Project

(Owner)

88%2017

(10 Projects)7,899 957

10,042 (Delivered)2015 ~ 2016(9 Projects)

Backlog by Delivery

At a Glance

Financial Perf.

Business Perf.

Current Issues

33

Industrial Plant & Engineering

Combined Cycle Power Plant

Thermal Power Plant

Co-generation Power Plant

RFCC Plant Equipment

Oil & Gas Process Plant

At a Glance

Financial Perf.

Business Perf.

Current Issues

34

Industrial Plant Overview

Industrial

Plant &

Engineering

11%

Power Plant

65%

Oil & Gas

27%

Plant

Equipment

8%

Sales Breakdown by Product (2016) Sales Contribution (2016)



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


• 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)

• Received a USD 1.1 bil. NRP order (Oct. 2015)

1,017 1,374

1,898

2,645 2,761

1,480 1,259

2,429

4,174

2,240

1,544

2,076

2,826

2,010

1,014

4,077 4,396

1,256 1,258

316

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales New Orders



At a Glance

Financial Perf.

Business Perf.

Current Issues

35

Performance

Performance Record (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 Plant

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 Power Plant

· 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 Power Plant

· 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)

(Mil. USD) 2010 2011 2012 2013 2014 2015 2016 17 .03

Power Plandts 1,601 9 3,510 4,285 6 5 1 0

Chemical Plants/ Plant Equip.

409 1,005 567 111 1,250 1,253 315 1

Total 2,010 1,014 4,077 4,396 1,256 1,258 316 1

New Orders by Type

Main 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

Zor Refinery Project (Oct. 2015)

- 1.1 bil. USD / Kuwait National Petroleum Company, Kuwait - Refinery power plant Package 2(Ancillary process), package 3(Utilities & Offsite facilities)

At a Glance

Financial Perf.

Business Perf.

Current Issues

36

Industrial Plant Projects in Backlog

Two non profitable mega projects(Jeddah, Shuqaiq) are in the final process and scheduled to be

delivered in 2017

(The end of Mar. 2017, Unit: Mil. USD)

DeliveryBasis

SalesBasis

Jeddah South Thermal Power Plant SEC (Saudi) Oct. 20122017(PAC*)

Shuqaiq Steam Power Plant SEC (Saudi) Aug. 20132017(PAC*)

Jazan Refinery & Thermal Project** Aramco (Saudi) Dec. 2012 2017

Clean Fuel Project KNPC (Kuwait) Apr. 2014 2018

ZOR Refinery Project KNPC (Kuwait) Oct. 2015 2019

804 443

9,743 2,383

* PAC : Preliminary Acceptance Certificate

** Jazan Refinery & Thermal Project : constructed by HHI's overseas Corp.

Total (5 projects)

Others

Completion

Backlog

OwnerProjectContract

DateExpectedDelivery

1,4182,511

6,428 522 92%

44%

At a Glance

Financial Perf.

Business Perf.

Current Issues

37

Engine & Machinery

Marine Engine Power Plant Engine Marine Propeller Robotics Industrial Machinery

At a Glance

Financial Perf.

Business Perf.

Current Issues

38

Engine & Machinery Overview Sales Breakdown by Product (2016) Sales Contribution (2016)

Large-sized

Engine

72%

Mid-sized

Engine

11%

Robotics

10% Power

Plant

Engine

3%

Industrial

Machinery

4% System

1%

Engine &

Machinery

10%

Main Products & Capacity


• 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

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)

Annual Sales &

1,646

2,522 2,772 2,835

3,096 2,967

2,313 2,110 2,414

2,060

3,248

4,646

1,452

2,283

3,176

1,858 2,425

1,996 1,860

979

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales New Orders




At a Glance

Financial Perf.

Business Perf.

Current Issues

39

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

- USD 70 mil. order for 70 MW Diesel Power Plants from Bangladesh Power Development Board (BPDB)

Eco-friendly Engine Products

Major Projects

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

- USD 74 mil. order for 140 MW Diesel Power Plants from Equitatis, Equador

Diesel Power Plants order from Bangladesh (Apr. 2010)

PPS order from Venezuela (Apr. 2010)

Diesel Power Plants order from Ecuador (May 2011)

- USD 32 mil., order for 57MW, 34 Packaged Power Station from JINRO, Panama

PPS order from JINRO, Panama (Jun. 2015)

Large-sizedMaring Engine

Mid-sizedMarine Engine

Diesel PowerPlant

Domestic 67 53 -

Global 35 21 8

Marekt Share in 2015 (%)

33.2% 35.7% 36.8%

56.7%

10.9% 13.1% 7.9%

15.3%

55.9% 51.2% 55.4%

28.0%

'12 '13 '14 '15

New Orders by Region

Domestic China Others

At a Glance

Financial Perf.

Business Perf.

Current Issues

40

Electro Electric System

Transformer Switchgear Circuit Breaker Rotating Machinery

At a Glance

Financial Perf.

Business Perf.

Current Issues

41

Electro Electric Sys. Overview

Electro

Electric Sys.

10%


Transformer

27%

High Voltage

Circuit

Breaker 18% Low Voltage

Circuit

Breaker 7%

Switchgear

14%

Rotating

Machinery

14%

Others

20%

* Parent basis

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)


Main Products

• 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


1,453 1,925

2,712 3,242

2,319 2,843 2,609

2,241 2,354 1,986

1,766

2,281 2,556

3,793

2,625 2,318

1,820 2,006 1,873

1,685

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales New Orders

* Parent basis



At a Glance

Financial Perf.

Business Perf.

Current Issues

42

Performance

• 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

Sales by Region(%)

41.5 34.2

50.6 46.4 54.1 58.3 57.4

6.9

3.0

11.4 11.6

9.6 6.8 8.9

4.4

2.9

6.4 9.0 5.3 7.7 6.0

8.7

6.3

4.7 7.0 4.6 6.3 5.4

18.5

7.2

17.8 21.2 22.9 20.6 22.0 20.0

46.5

9.0 4.8 3.5 0.3 0.3

'09 '10 '11 '12 '13 '14 '15

Domestic America Asia Europe Middle East Others

Project Type

Generator Installation · West Generating Project (USA)

Power Transmiss ion& Mutation Installation

·Br it ish Columbia Hydro & Power Author ity(Canada)

I ron ManufactureInstallation

·Nueva Ventanas 240MW Coal Fired PowerProject (Chile)

Water Treatment, Cement& Petrochemical Installation

· KODECO IKC Project (Indonesia)

Automotive Goods · Seoul Metro (South Korea)

Mar ine Goods · Royal Nedlloyd Group (Netherlands)

Ocean Installation ·Al-Jubail Saline Water Conversion(Saudi Arabia)

Mar ine Steam Turbine ·Hyundai Merchant Mar ine LNGC 22,000MWMar ine Steam Turbine (South Korea)

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

Fresh Water Installation · Shuweihat S2 IWPP Project (UAE)

Major Projects

Major Project

• ’09년 sales is based on K-GAAP. • The sales of Green Energy division is not included since ‘11. • The sales from wind power sales has been included since ’15.

At a Glance

Financial Perf.

Business Perf.

Current Issues

43

Construction Equipment

Mid Excavator Forklift Electric Excavator Skid Loader Wheel Loader Small Excavator Roller

At a Glance

Financial Perf.

Business Perf.

Current Issues

44

Construction Equip. Overview

Construction

Equip.

8%


Excavator

51%

Forklift

21%

Wheel

Loader

9%

CKD

8%

Others

10%

Skid Loader

1%

* Parent basis


Main Products

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)

• Excavators (Local 16,000 units, China 17,000 units, India 3,000 units) • Wheel Loaders (2,900 units) • Forklifts (9,500 units) • Skid Loaders (600 units)

Annual Sales

(Unit : Bil. KRW)

1,512 1,769

1,190

2,275

3,052 3,120

2,723

2,215

1,844 1,852

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

* Parent basis


At a Glance

Financial Perf.

Business Perf.

Current Issues

45

Performance

71,767 93,237

162,908 169,182

104,908

162,908

84,573 53,014 62,993

8,377 10,101

18,467 17,294

8,540 7,532

3,743

1,889 1,956

0

5,000

10,000

15,000

20,000

25,000

30,000

0

40,000

80,000

120,000

160,000

200,000

'08 '09 '10 '11 '12 '13 '14 '15 '16

Market size(Left) HHI(right)

Construction Equip. Sales by Region

Excavator Sales in China

Mar. 2016 Mar. 2017 YoY

Market 18,814 38,454 104.4%

H H I 621 1,233 98.6%

M/S 3.3% 3.2% -0.1%p

(Source: China construction machinery association)

Excavator Sales in China

HHI`s Excavator Market Share by Region

2012 2013 2014 2015

Domestic 27.5% 27.9% 25.1% 21.2%

Global(Excluding Japan)

9.0% 7.8% 6.2% 5.8%

China 8.1% 7.2% 4.4% 3.8%

India 17.7% 19.7% 20.4% 18.1%

(Source: Company data)6.1 3.2 4.3 6.6 9.9 10.5 10.2 10.7

29.2

6.0 12.4

19.6 23.5 24.3 23.7 17.7

10.7

25.9

27.4 19.4 4.2 5.4 2.7

1.8

7.8

12.4 6.2 3.6

5.7 8.5 11.9

8.6

8.7

4.3 5.4 11.0

14.4 9.6 12.5

15.6

13.0

8.4 10.8

9.6 7.9 5.1 4.5

6.1

16.7

28.9 23.1 17.3

16.7 18.2 20.1 23.8

7.8 10.9 10.4 12.8 17.7 18.5 14.5 15.7

'08 '09 '10 '11 '12 '13 '14 '15

Others

Domestic

Latin America

Middle East

Africa

China

Europe

N. America

At a Glance

Financial Perf.

Business Perf.

Current Issues


46

Subsidiaries

Hyundai Oilbank Hyundai Samho

At a Glance

Financial Perf.

Business Perf.

Current Issues

47

Hyundai Oilbank

At a Glace

• Heavy Oil Upgrading Ratio 39.1%

• Domestic Market Share 22.2%

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

• HHI`s management Control 91.1% Acquired by HHI in Aug. 2010

Competitors : SK Innovation, GS Caltex, S-Oil

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 : KRW 2.6 tril.

(Jul. 2006~ Feb. 2011)

Facilities & Products

With the completion of #2 HOU plant in Jan. 2011, Hyundai Oilbank achieved a ratio of 39.1% (the highest HOU ratio in the industry)

At a Glance

Financial Perf.

Business Perf.

Current Issues

48

Hyndai Oilbank (Parent)

Income Statement (Unit: Bil. KRW)

2011 2012 2013 2014 2015 2016

Sales 18,958.6 21,523.9 20,295.6 18,258.0 12,106.8 11,242.1

Operating Profit 594.7 308.4 403.3 192.8 575.8 800.4

Margin(%) 3.1% 1.4% 2.0% 1.1% 4.8% 7.1%

Net Income 360.7 156.5 152.4 31.1 433.7 563.7

Margin(%) 1.9% 0.7% 0.8% 0.2% 3.6% 5.0%

Financial Position (Unit: Bil. KRW)

2011 2012 2013 2014 2015 2016

Total Assets 8,642.6 8,506.5 8,597.9 7,701.2 7,079.9 8,131.8

Total Liabil ities 5,899.5 5,618.8 5,544.5 4,633.1 3,369.1 3,937.8

Total Shareholder's Equity 2,743.1 2,887.7 3,053.4 3,068.1 3,710.8 4,194.0

Liabil ities-to-Equity Ratio(%) 215.1% 194.6% 181.6% 151.0% 90.8% 93.9%

At a Glance

Financial Perf.

Business Perf.

Current Issues

* 2016 Preliminary results

49

Hyundai Samho

At a Glance

• Production Capacity 3.3 mil. GT - Delivered 43 vessels in 2016 - # of dry docks : 2

• 2017 Sales Target 2,725 bil. KRW • Backlogs as of Mar. 2017(YTD) : 54 vessels, USD 5.05 bil


2016 Jan. Feb. Mar. Apr. May. Jun. Jul . Aug. Sep. Oct . Nov. Dec. Total

# ofships

15 0 4 4

Amount 1,124 0 240 240

New Orders in 2017 (in mill ion USD)

Tanker

48%

Container

8%

Gas Carrier

15%

PCTC

11%

FPU

7%

Others

11%


At a Glance

Financial Perf.

Business Perf.

Current Issues

50

Hyundai Samho (Parent)

Income Statement (Unit: Bil. KRW)

2011 2012 2013 2014 2015 2016

Sales 4,828.7 4,231.8 3,506.2 4,172.1 4,504.0 3,868.6

Operating Profit 804.3 254.0 -35.6 -502.2 -350.0 171.5

Margin(%) 16.7% 6.0% -1.0% -12.0% -7.8% 4.4%

Net Income 551.0 -12.5 -52.1 -215.2 -276.0 50.4

Margin(%) 11.4% -0.3% -1.5% -5.2% -6.1% 1.3%

Financial Position (Unit: Bil. KRW)

2011 2012 2013 2014 2015 2016

Total Assets 6,954.7 6,978.9 6,782.7 7,268.7 7,169.3 5,733.7

Total Liabil ities 3,741.7 3,641.1 3,428.9 4,192.4 4,506.7 2,814.7

Total Shareholder's Equity 3,213.0 3,337.8 3,353.8 3,076.3 2,662.6 2,919.0

Liabil ities-to-Equity Ratio(%) 116.5% 109.1% 102.2% 136.3% 169.3% 96.4%

At a Glance

Financial Perf.

Business Perf.

Current Issues

* 2016 Preliminary results

51

Hyundai Green Energy

Solar Cell Solar Module

Picture

Facilities Solar Cell Plant

(Eumseong, Korea) Solar Module Plant (Eumseong, Korea)

Annual Capacity (2016) 600MW 600MW

Details Production of Mono & Poly-crystalline Production of 54cell(6X9), 60cell(6X10), 72cell(6X12)

module

- 600MW capacity of solar cell & solar modules to provide total solution - Solar cell & solar modules, solar inverter production facility in 2016

Capacity and Sales

2005 2007 2008 2009 2010 2011 2012 2013 2014 2015

Capacity

Cell (MW)

30 30 60 370 370 580 600 600 600 600

Module (MW)

20 30 70 170 510 560 600 600 600 600

Sales (Bil. KRW)

% 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%

335

1.4%

Solar Product Certificate - UL (UL 1703/USA, Canada) - VDE (IEC 61215, IEC 61730-1/61730-2/International) - CE Declaration (International) - J-PEC (Japan) - JET (IEC 61215, IEC 61730-1/61730-2/Japan) - JIS Q 8901:2012 (Japan) - KS Q 8003 (Korea) - MCS (IEC 61215, IEC 61730-1/61730-2/UK) - CSTB (France) - INMETRO (IEC 61215/Brazil) - OPGE (IEC 61215/Puerto Rico) - Ammonia resistance (IEC 62716) - Salt mist (IEC 61701) - Sand & Dust (IEC 60068) - PID(IEC TS 62804-1) - Fire test (UN9177/Italy)

At a Glance

Financial Perf.

Business Perf.

Current Issues

52

Current Issues

At a Glance

Financial Perf.

Business Perf.

Current Issues

53

Business Structure after Split At a Glance

Financial Perf.

Business Perf.

Current Issues

Oilbank Global Service

Electric & Energy Sys.

Construction Equipment

Robotics

HSHI

Green Energy

HHI

Foreign affiliates

Foreign affiliates

HMD

< After Split >

Turbo Machinery

MOS

HYMS

Others

Industrial Vehicle

Oilbank

Before Split

Corporate Governance Restructuring

- Hyundai Robotics will become a holding

company.

- To abide by the Fair-trade law, Hyundai

Robotics will acquire shares of affiliates (more

than 20% of the listed, and 40% of others) by

investment in kind through takeover bid and

acquisition of HMD`s stake in operating

companies.

- All the shareholders will be guaranteed equal

rights to take part in the investment in kind.

(Capital increase by allotment to the 3rd parties

is not considered.)

54

Semi-Submersible Rigs Status

The prolonged weak oil prices caused the delay & cancellation of the E&P investment.

Two semi-submersible rigs out of three in the backlog were cancelled and KRW 396 bil. of losses

from the cancellation were incurred in 2015

The last rig(Diamond) was successfully delivered in July of 2016.

HSHI

Diamond(U.S.) Fred Olsen Energy(NOR) Seadrill Mira(NOR)

Contract date 25-May-2013 25-May-2012 11-Jun-2012

Contract price USD 629 mil. USD 621 mil. USD 568 mil.

Advance received USD 189 mil. (30%) USD 186 mil. (30%) USD 170 mil. (30%)

Cancellation notice from owner - 27-Oct-2015 14-Sep-2015

Loss incurred on cancellation - KRW 219.2 bil. KRW 177.0 bil.

Current status DeliveredSettled

(Returned $176M ofAdvance Received.)

Settled(Returned $170M ofAdvance Received.)

HHI

At a Glance

Financial Perf.

Business Perf.

Current Issues

55

Documents

Hyundai Heavy Industries...2 Important Notice This presentation of Hyundai Heavy Industries (HHI) contains forward-looking statements relating to HHI’s operations that are based