Post on 17-Aug-2020
Investor Relations 2011
I. BUSINESS OVERVIEW
II. BUSINESS STRATEGY
III. CORE STRENGTH
IV. NEW GROWTH ENGINE
** APPENDIX
CONTENTSInvestor Relations 2011
2
Expect a sharp rise in 2011 earnings followed by restructuring in 2010
(unit: KRW Bil.)
I. Business Overview - Summary
New OrdersNew OrdersSales RevenueSales Revenue
Gross Profit & Margin
2010
31%
15%17%3%
34%
2011(F)
26%
13%15%5%
41%
HousingCivilArchitecturePlantOverseas
11,69714,000
19.7%
HousingCivilArchitecturePlantOverseas
2010
24%
24%
16%
9%
27%
2011(F)
20%
21%
17%7%
35%
6,734 7,200
6.9%
123
724
2010 2011 (F)
1.8%
10.1%
488.6%
3
Operating Profit & Margin
374
2010 2011 (F)
-5.4%
5.2%
-363
I. Business Overview – Investment Highlights
The forthcoming sale of Korea Express will be a positive share-price catalyst
Continuous disposal of non-core assets to ease a financial liability burden
Lowered housing risk by reflecting potential loss in 2010
Write-back gains expected from a recent improving domestic housing market
Write-offs of W877bn in 2010 will contribute to the positive 2011 earnings
Strong new overseas orders in last 2 yrs will pave the way for earning growth
An abundant overseas project opportunities from a lot of experiences and good track-record
Overseas orders will drive sustainable earnings growth
More project opportunities with reinforced financing capability under KDB
The better access to government-led projects (mega civil projects, etc.)
Synergy effect with Korea Development Bank(KDB)
Accelerating improvement in financial soundness in 2011
4
The Government-led KDB Holds the Majority Shares of Daewoo E&C
I. Business Overview – Ownership Structure
Dec. 2006 Kumho Asiana Group(KAG) acquired Daewoo E&C
Jun. 2009 KAG announced to separate Daewoo E&C from KAG due to the liquidity problem
Dec. 2009 KAG applied for workout to KDB
KDB announced takeover 50%+1 share of Daewoo E&C
Apr. 2010 Due diligence completed
Jan. 2011 KDB’s acquisition completed
24.7%
22.6%
1.9%
50.8%
Free Float
FI 1.9% KDB PEF
KAG.
FIs
Free float
Total
Category
31.6%
39.6%
28.8%
100.0%
Before M&A
50.8%
24.7%
1.9%*
22.6%
100.0%
After M&A
Shareholders
M&A Procedures
* After M&A, only Lehman Brothers Int. remains among FIs
5
Kumho Asiana
-
One of Leading Contractors in the Global Market
I. Business Overview – Global Status
ENR Top 225 Global Contractors (2010)
Rank Company
China Railway Construction Corp. Ltd., China
China Railway Group Ltd., China
Vichi, France
Bouygues, France
Hyundai E&C Co., Ltd., S. Korea
GS E&C Co. Ltd., S. Korea
Daewoo E&C Co. Ltd., S. Korea
Daelim Industrial Co., Ltd., S. Korea
Samsung C&T Corp., S. Korea
Totalrevenue*
53,990.0
52,869.7
45,247.1
34,271.0
7,946.7
6,398.1
6,055.5
5,600.7
5,226.0
Internationalrevenue*
3,542.0
1,781.4
17,237.7
13,509.0
3,704.0
1,490.1
1,746.0
2,225.0
1,200.6
1st
2nd
3rd
4th
33rd
36th
38th
41th
45th
New orders*
82,701.0
88,111.3
37,477.7
33,867.0
13,446.0
11,154.8
9,977.4
7,648.0
8,484.3
* Based on 2009 total firm contracting revenue* unit: USD Mil.
6
Operate Almost 30 Overseas Sites & 20 Branches / Subsidiaries
I. Business Overview – Overseas Sites
Libya
Algeria
Nigeria
Saudi Arabia
Malaysia
Vietnam
China
Japan
Philippines
U.S.A.
Gulf Eng., Const. & Contract
Tripoli Investment. & Dvpt.
Tripoli Branch
BCCP
MCCP
Zwitina CCPP
Tripoli Water Front
Tripoli Hotel
Algiers Branch
Boughzoul New Town
DjenDjen Port
Arzew LNG
Fertilizer
APG
DW Nigeria Ltd.
Port Harcourt Branch
Afam VI Power Plant
Obite IPP – Early Work
EGTL
UUED Pipeline
Gbaran Ubie
Ogbainbiri Flow-Station
Otumara Node
GGGG
Al Khobar Branch
Qatar
Doha Branch
Nakilat Ship Repair YardP
U.A.E.Abu Dhabi Branch
Ruwais Refinery Expansion
Inter Refineries Pipeline II
Guilin DW Hotel
Beijing Lufthansa Center
Tokyo Branch
Manila Branch
Daeha Hotel
DW Hanel
THT Development
Hanoi Branch
Kuala Lumpur Branch
KLCC TowerA
Papua New Guinea
PNG LNGGOman
P Duqm Shipyard &
Drydock
DW America Development
Jordan
Jordan JRTR
PakistanH Patrind Hydro Power
A
A
Morocco
Rabat Branch
Jorf Lasfar TPP
Schuweihat 3 IPP
A Swani Hospital
P
AHG
Overseas Company
Overseas Branch
Petro-Chemical
Oil & Gas
Port & Shipbuilding yard
Dam & Hydro Power
Nuclear
Power Plant New Town & Architecture
G
GG
7
II. Business Strategy – Domestic
Enhance Competitiveness to Overcome Stagnant Domestic Market
Selectively focus on lucrative public projects
Secure mid to long term project such as tidal power
Expand highly profitable projects of reconstruction / redevelopment
Risk management through reducing housing exposure in 2011
Focus on more competitive segment of the business (LNG & Power Plant)
Strengthen new growth drivers
Strengthen strategic partnership with big clients such as KRA(Korea Racing Authority)
Seek new business opportunities through providing one-stop solution
(planning – engineering – construction)
8
New Orders
Sales Revenue
Category
23.6%
2010
31.3%
20.4%
2011(F)
26.1%
High growth
Fierce competition
Market Condition
Threat
Strengthen engineering manpower
- Increasing in-house engineering manpower- Strategic Partnership with leading engineering companies
Market diversification
- Expand Middle-East & Asia exposure - Enter into new market such as Iraq, South America
Increase participation in overseas development projects
Focus on selective countries and business areas to enhance business performance
Effective risk management through various experiences
Strategy
II. Business Strategy – Overseas Market
Expand Overseas Business with Active Strategies & Competitive Advantages
9
Opportunity
Threat
New Orders Will Be Increased and Be Well Diversified.
II. Business Strategy – Overseas Market
(unit: KRW Bil.)
Middle East
Africa
Asia
Etc
Total
Region
2,438 (62%)
282 (7%)
-
3,958 (100%)
2010
1,238 (31%)
2,665 (46%)
1,821 (31%)
347 (6%)
5,820 (100%)
2011(F)
987 (17%)
Oil & Gas
Power
Etc.
Total
Segment
2,608 (66%)
-
3,958 (100%)
2010
1,350 (34%)
2,405 (41%)
1,373 (24%)
5,820 (100%)
2011(F)
2,042 (35%)
Oil & Gas
Power
Etc
34%
66%
2010 2011(F)
24%
35%
41%
Africa
Asia
Etc
31%
62%
2010 2011(F)
7%
17%
46%
31%
6%
Middle East
By Segment
By Region
10
II. Business Strategy – KDB Synergy
Synergy Will Accelerate Daewoo E&C’s Growth
Synergy Details
Financing &Project Participation
Reinforced corporate financing
New business models
Issuance L/C or Corporate Bond underwritten by KDB
Urban development project through asset management or REITs
Provide project financing orparticipate in those projects with Daewoo E&C
Impacts
Support from KDB in overseas bidding
Less financial burden with lower interest rates
Secure new profit sources via new business models
Create new business opportunities
Higher margins than general contract
11
III. Core Strength - Power Plant
The World Class Power Plant Contractor with Experience & Technology
Major EPC Experience Experience Overview
Installed Capacity
- Total 21,397 MW
- 6,180 MW under construction
Experience in various kinds of power plant
- Thermal (CCPP, Conventional TPP)
- Hydro (Patrind Hydro Power Plant, Pakistan)
- Tidal (Sihwa Tidal Power Plant, Korea)
- Nuclear (Wolsong Nuclear Power Plant #3&4)
- Bio-gas (Pyeong-tak DBS Plant)
Experience in more than 10 countries
- Nigeria, UAE, Morocco, Libya, Iran, etc.
Strong relationship with IPP developers &
equipment manufacturers
12
Afam VI CCPPNigeria
670MW
Jorf Lasfa TPPMorocco
670MW
Benghazi North CCPP Libya
300MW
Ulsan TPP #4,5,6Korea
1,200MW
Hwaseong CCPPKorea
500MW
Misurata CCPPLibya
750MW
Strong LNG Contractor in Both Receiving & Export Terminal
Quick Fact
Contracted 64% of domestic LNG Storage Tank
(‘98~’09 consortium total, Daewoo E&C share : 41%)
Various experiences in both over-ground & in-ground type tank
Completed 5 out of 6 Bonny LNG Trains in Nigeria
III. Core Strength – LNG Plant
LNG Receiving Terminal LNG Export Terminal
Experience Overview
13
Tongyeong LNG
TerminalKorea
Incheon LNG
TerminalKorea
Bonny LNG PlantNigeria
Sakhalin LNG Plant
Russia
No.1 Sewage Treatment Plant(STP) Contractor in Korea
New Dubai STPUAE
Quick Fact
Strong both in STP Construction and O&M
Construction Experience : 45 STPs
O&M Experience : 16 STPs
Subsidiary specialization in STP O&M – Daewoo Entec (E&T)
Gulpocheon STPKorea
Anyang STP
Korea
III. Core Strength – Sewage Treatment Plant
STP Construction STP O&M
Experience Overview
Nanji STPKorea
14
Vietnam THT New Town Project
III. New Growth Engine – Overseas Development Project
Budget : USD 2,528 mil. (1st phase – USD 1,068 mil.)
Location : Hanoi, Vietnam
Gross area : 207.66ha (1st phase – 117ha)
Scope: Residential, Commercial facilities
Period: 2010~2020
15
Expected Schedule in 2011
April
May
Nov.
Dec.
Completion of land compensation
1st Phase: 117ha
Commencement of
infrastructure construction
Design completion & commencement
of residential area construction
Apartment: 1,196 Units / Vila: 149 Units
Contract signing for construction part
Approx. USD 264 Mil
Expected New PJs
Lead the Tidal Power Market through the Experience of The World Biggest Sihwa PJ
◎ Under Construction of the World Biggest Tidal Power Plant in Sihwa, Korea (254MW)
◎ Preoccupy the Growing Tidal Power Market
Projects Capacity Amount Status
Ganghwa 420MW W 1.2tn.Established
SPC
Asanman 254MW W 800bn.Signed MOU
Garolim 520MW W 1.8tn. In Planning
Saemangeum 430MW W 800bn. In Planning
IV. New Growth Engine – Tidal Power Plant
West Coast
Tidal-Belt
Woongjinman
Ganghwa
Asanman
Garolim
Samangeum
Haejuman
Incheonman
Sihwa
16
Participate in Growing Market of Wind Power Plant
◎ EPC participation through experiences in Gov. projects
◎ Long-term partnership with domestic turbine markers
IV. New Growth Engine – Wind Power Plant
17
Roadmap for wind power
Rapid growth of global wind power industry
- Domestic KRW 20tn. by 2020
- Overseas KRW 130tn. by 2020
2,500MW wind power facilities by 2019
- Step 1 : 100MW test site by 2013
- Step 2 : 900MW experimental site by 2016
- Step 3 : 1,500MW wind power site by 2019
Seek New Business Opportunities Through the Cutting Edge Technology of GK Fixed Link
◎ Completed The first and only immersed tunnel in Korea
◎ Maintain cutting edge technology & advanced manpower
IV. New Growth Engine – Immersed Tunnel
GK - Immersed Tunnel
Korea-China Tunnel (W125tn. estimated)
- collaborating planning between Gyunggi
Prov. and Central government
Korea-Japan tunnel (W90~100tn. estimated)
-Busan metropolitan, central government
Expected New PJs
PJ title : GK Fixed Link
Total amount : W1,447bn.
The World longest tunnel block (180m)
The World deepest installation under the sea
(48m below)
PJ overview
GK - Bridge
18
Jordan Research Reactor / Jordan
Expected New PJs (2011~2012)Commercial Nuclear Experience
New Wolsong Nuclear Power Plant
Research Reactor Experience
Expand Nuclear Power Business with Experience & Advanced Manpower
◎ One of Two Leading Contractors for Nuclear Power Plant Project in Korea
◎ Strong Relationship with KAERI & KOPEC
Wolsong Nuclear Power Plant # 3&4
Projects Location Type
New Gori #5 & 6 Korea Commercial
PallasResearch Reactor
NetherlandsResearch Reactor
S. Africa Research Reactor
S. AfricaResearch Reactor
Nuclear Power Plant Egypt Commercial
Nuclear Power Plant India Commercial
IV. New Growth Engine – Nuclear Power Plant
19
Appendix – Financial Statement
20
(unit: KRW Bil.)
2009 2010
Balance Sheet
654
2,541
2,040
8,841
921
2,768
5,786
1,629
1,543
3,055
500
2,500
2,037
9,214
775
2,290
5,894
2,078
778
3,320
7,097
561
341
220
133
80
6,734
123
486
-363
-1,056
-749
Income Statement
2009 2010
Account
Cash & Cash Eq.
Account Receivable
Investment Security
Total Asset
Payable
Borrowing
Total Liability
Capital
Retained Earning
Total Equity
Sales
Gross Profit
SG&A
Operating Profit
Net Income before Tax
Net Income
Account
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