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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