1. 2007 Highlights 2. 2007 Performance Review 3. Business ...

DAEWOO E&C 4. Performance & Plan

1. 2007 Highlights

2. 2007 Performance Review

3. Business Strategy & Vision

4. 2008, Mid & Long-term Business Plan

5. Major Issues

6. APPENDIX

This document is provided for the convenience of investors and contains preliminary financial data that may be amended following the release of

the Company's 2007 Audit Report.

While every care has been taken to ensure the reasonableness of our estimates, date on 2008 prospects is based on necessary assumptions and

thus may differ from final reported results.

Investor Relations 2008

DA

EWO

OE&

C

2007 Highlights

DAEWOO E&C 1. 2007 Highlights


No.1 in construction capability evaluation for second consecutive years •Second consecutive designation confirms Daewoo’s status as Korea’s No. 1

construction company.

5thstraight year as No.1 in Housing Sales •Korea’s No.1 homebuilder since 2003.

•Posted a company record with 15 order acceptances for reconstruction/redevelopment projects.

Realizing synergies with Kumho Asiana Group affiliates •BisPhenol-A plant expansion for Kumho P&B; Order accepted to build Phenol &

Acetone Revamping plant

•Effective bridgehead to enter related petrochemicals market

Vision promulgation ceremony •‘Global E&C Leader, creating the beautiful future’

Jong-uk Seo takes the helm as CEO

GK Fixed Road tunnel, successful completion of immersed element immersion andconnection •World’s largest immersed tunnel

•The first new method of construction adopted in Korea

Selected as prefered bidder for Cheonan international business park •KRW 7tn investment to build 2.91 mil m2 complex. Being completed in 2012

Contract to build combined-cycle power plants in Libya •US$ 847 million equivalent order

2007 Performance Review

DAEWOO E&C 2. 2007 Performance Review

Investor Relations 2008 3

•Achieving the 1st position in Sales and Profitability among peers•Ranked 1st in Construction Capability Evaluation for second consecutive years

New Orders Sales

Operating Profit Profit before tax

(Unit : KRW bn)

2006 2007

(Unit : KRW bn)

2006 2007

5,729

6,066

8,447

21%4%9%16%

50%

16%7%14%

18%

45%

2%14%8%16%22%

38%

2%16%8%

22%

41%

10,020

(Unit : KRW bn)

2006 2007

631(11.0%)

1,317(21.7%)

(Unit : KRW bn)

Construction Capability Evaluation: the capability that each company is able to construct, which is represented in a currency, alone with the consideration on previous year s performance,

management and technical capability.

Source : Construction Association of Korea

2006 2007

627(11.0%) 561

(9.3%)

Construction Capability Rank

Housing Civil Architecture Plant Overseas Housing Civil Architecture Plant Overseas

Subject 2003 2004 2007

(Unit : KRW bn)

11%

D a e w o o

S a m s u n g

G S

H y u n d a i

D a e l i m

2nd (3,932)

3rd

4th

1st

5th

3rd (4,232)

1st

6th

2nd

5th

2nd (5,461)

1st (5,936)

5th (4,351)

3rd (5,371)

4th (4,732)

1st (6,730)

2nd (6,210)

4th (5,420)

3rd (5,480)

5th (5,300)

1st (7,664)

2nd (6,815)

3rd (6,160)

4th (6,119)

5th (5,403)

20062005

Domestic & Overseas Market Environment

DAEWOO E&C 3. Business Strategy & Vision


Likely to be weak in Domestic, but strong in Overseas Market

Domestic

(Unit : KRW tn)

2010(F)2009(F)2008(F)2007200620052004

94

62

32

69

30

79

28

74

33

74

34

78

37

83

39

99107 107 108

115 122

•New governmental measures expected to ease regulations on the real estate market

•Private/Public PF deals with local governments expected to increase

•Civil engineering orders will rise with launch of large-scale development projects like Administration Complex cities.

Housing/Architecture Civil

Overseas

(Unit : $US bn)

2010(F)2009(F)2008(F)2007200620052004

291 307322 329 354

370388

•Increasing orders for energy exploration, gas fields and petrochemical plants from the Middle East

•Increasing orders for new city developments and residential complex cities in Vietnam, Algeria, etc.

Housing/Architecture Plant Civil

102

95

94

109

97

100

106

113

102

118

112

108

122

118

114

128

123

119

134

129

125

SOURCE : Bank of Korea, Construction & Industry Research Institute

Source : Ministry of Construction and Transportation, overseas construction associations

Business Strategy



Set up differentiated strategies to optimally response to Domestic andOverseas market environments

Market Environments

Strategy

•Strengthen sales force capability in public sector business- Integrate domestic sales divisions to maximize

success rates for TK/Alternative bids

•Expand Investment- Development Business- Actively promote investment-based business

such as PF

•Maximize Group Synergy- Secure orders from Group affiliates

•Selection & Focus- Focus on Daewoo’s competitive Edges in terms of

countries (Nigeria, Libya, Qatar) and business areas

(Oil & Gas, Power plant)

•Expand Overseas Investment- Development Business

- Aggressively pursue PF projects in China, Vietnam , Algeria

•Reinforce Global EPC capacity - Acquire local or overseas engineering firms, Seek alliances

Low Growth

Domestic

High Growth

Oversea

Strategies by Sectors



Develop effective strategies to actively response toeach market environments

Housing

•Reinforce position in new business segment(Remodeling, City improvement projects)- Yongsan International Business City (KRW 208 bn)

•Enhancing Overseas Development Business leveraged by the capacity for Domestic Housing

•Establish new growth drivers(SOC, Proposal-based development projects)

•Overseas large-scale civil projects (Nigeria Brass LNG PJ)

•Large-scale complex development (PF, City rehabilitation)- Cheonan international business park(KRW 7 tn)

•Expand overseas development business - Vietnam Hanoi new city(U$4.5bn), Giang vo/Metri(U$ 6bn)

•Focusing on areas where Daewoo have enjoyed its dominant competitiveness

•Fostering capacity for new growth business(Photovoltaic power generation facilities)

•New entry into petrochemical sector, leveraging Group affiliates (BR, SBR PJ)

Civil

Architecture

Plant

Overseas SalesHeadquarters

Greater OrderAcceptance

Vision



Global E&C Leader,

Creating the Beautiful Future

Global EPC

•Enhance EPC capability

•Focus on major business areas (Gas, Waste, Power plant)

•Expand overseas business in the areas with competitive edges(Nigeria, Libya , Qatar, Vietnam)

•Expand in-house projects, emphasis on private/public sector PF projects

•Maximize order acceptance inRemodeling, City renovationprojects

•Expand investment development business in Southeast Asia

•Reinforce “Prugio” brand value

•Optimize project management system

•Strengthen external procurement management system

Development BusinessMaintain and improveExisting Capabilities

2008 Business Plan

DAEWOO E&C 4. 2008, Mid & Long-term Business Plan


Achieve the top business results among peers

New Orders

(Unit : KRW bn)

2008(F)20072006200520042003

6,055

14,112

5,592

15,117

8,190

18,472

8,447

21,330

10,020

25,399

12,386

31,188

New orders Order backlog

Sales & Operating Profit Margin

(Unit : KRW bn)

2008(F)20072006200520042003

4,231

7.4%8.9% 8.5%

11.0% 9.3% 9.0%

4,7805,076

5,7296,066

6,777

Sales OP Margin

Mid & Long-term Business Plan

DAEWOO E&C 4. 2008, Mid & Long-term Business Plan


•New orders of KRW 27tn and Sales of KRW 19tn by 2015•Overseas business weight of 40% by 2015, via 31% in 2010

New Orders/Sales

Business portfolio

(Unit : KRW bn)

2015(F)2012(F)2011(F)2010(F)2009(F)2008(F)

12,386

6,777

13,540

7,576

15,334

8,705

84%

41%30%

16%

22%

11%

8%

16%2% 1%

31%

9%

12%17%

7% 10%

12%

30%40%

1%

2007 2010(F) 2015(F)

31%

69%60%

40%

17,001

10,371

19,021

11,440

27,511

18,901

New orders

Housing Civil Architecture Plant Overseas Other

Domestic Overseas

Sales

Order CAGR12.1%

Sales CAGR15.8%

Strategies for Core Corporate Value

DAEWOO E&C 5. Major Issues


Implementing diverse strategies to increase corporate value

Strategies

•Expand into domestic & overseas development projects

•Use overseas strongholds to expand regionally, eg. Kuwait, Saudi Arabia

•Secure new growth driver through the acquisition of Korea Express

•Participate in Kumho Asiana Group projects as well as overseas

development project

•Active Shareholder-friendly measures

•Maintain high level of Dividend Payout Ratio in industry

1. Balanced Business Portfolio

2. Synergies from group affiliates

3. Shareholder-friendly policies

Global E&C Leader

Shareholder-friendly Strategies



Taking active measures to provide shareholder value through Dividend & Share Buyback

•Maintain current level of payout which is highest in industry

•More than KRW 500bn in payouts over a 3 year period

- ’07 : KRW 500 per share

- After ’08 : Though aim to maintain same level of

payout, final decision will only be made after

taking into account market conditions and

company profits

Dividend

Procurement of Funds

•More than KRW 1tn will be spent on share buyback over the next 5 years

- ’08 : KRW 200bn

- ’09 : KRW 300bn

- After ’10 : Remaining amount

•Such repurchased shares will be cancelled by the company so that the value of the remaining number of shares goes up

Share Buyback

Extra Cash

Disposal of

Non-core Assets

•Generation of extra cash through free cashflow expected to total KRW 300bn every year

•Early disposal of non-core assets worth around KRW 750bn in terms ofbook value

Libya

Others

Kuwait

UAE

Others

Others

Overseas Orders Growth



Pursuing opportunities in countries with competitive edges

Business opportunities by Region

Petrochemical Power Plant Civil Architecture

700664

1,769

3,760

150

1,000

148

2,320

Petrochemicals

Power plant

Civil

Power plant/architecture

Petrochemicals

Civil/architecture

Civil

Petrochemicals

Civil

Petrochemicals

Civil

Power plant

Architecture

Petrochemicals

Power plant

Region ValueTypeCountry

(unit : USD mil)

(unit : USD mil)

Africa

Nigeria

Algeria

Qatar

Vietnam

Middle east

Asia

Others

Total

1,767

550

1,489

1,145

529

345

264

669

1,610

1,100

650

500

1,900

700

664

16,600

2,296

1,4501,948

245



Group Synergy

Estimated Value Created by Group Synergy: KRW 3.3tn over next 3 years

by Year

(Unit : KRW bn)

2010(F)2009(F)2008(F)

241

372

598

628722

757

by Affiliate

(Unit : KRW bn)

TiresLogisticsPolychemP&BPetrochemicalAirlines

88

Industrial

1,757

925

210

75194

69

OverseasDomestic

OverseasDomestic

Petro-chemical

•Secure orders from Group affiliates, Participate in construction of petrochemical plantbusiness

•Through intra-Group petrochemical licenses, seize marketing advantages for overseasexpansion

Industrial •Expand order acceptance using brand value of the Group, eg. Vietnam and UAE

Airlines •Relocation of US. military bases (Kunsan (KRW 200bn)/Osan(KRW 50bn))



Synergy from Korea Express Acquisition

•New key drivers for sustainable growth in the stagnant domestic construction market

•Anticipated potential synergies from the Korea Express acquisition

Background

Potential Synergies

•Cooperative development of harbor within Korea Expressoverseas stronghold

•Construct bus and cargo terminal in China, Vietnam

•Share of Libya ANC (Joint company with GMRA(Great Man-Made River Project Authority)and Korea Express) raised to 50%.Huge opportunity for large-scale orders

•Increase the chances of order wins in new logistics terminalprojects in Seoul and Daejeon City

1. Construction of Harbor/logistics

center [KRW 3.1tn]

2. Expansion of business

opportunities in Libya [KRW 2.7tn]

3. Construction of Domestic logistics

center [KRW 0.6tn]

•Actively participate in container port SOC projects byleveraging Korea Express’s port management rights

4. Expansion of private SOC projects

[KRW 1.1tn]

•Utilize Korea Express’s land assets located in some of the keyareas to construct residential complex

5. Utilization of Korea Express’s land

assets [KRW 0.7tn]

Estimated Synergy Value of KRW 8.2tn from the Acquisition of Korea Express over next 5 years.

DAEWOO E&C 6. APPENDIX


FINANCIAL STATEMENTS

Balance Sheet

Income Statement

Cash & CE

Receivables

Inventories

Investments

Land & Buildings

Other Assets

Total Assets

Payables

Borrowings

Other Liabilities

Total Liabilities

Capital

Retained Earnings

Other SE

Total Shareholders’Equity

2005

869

1,380

791

584

729

1,248

5,601

800

900

1,475

3,175

1,696

730

-

2,426

2004

862

1,200

703

530

755

1,167

5,217

678

1,043

1,427

3,148

1,696

523

(-)150

2,069

2003

954

1,036

784

463

794

1,270

5,301

655

1,268

1,475

3,398

1,673

440

(-)210

1,903

2006

980

1,764

646

701

704

1,290

6,085

728

900

1,684

3,311

1,696

1,084

(-)6

2,774

2007

1,013

2,291

664

666

414

1,651

6,699

655

926

2,057

3,638

1,629

1,852

(-)420

3,061

(Unit : KRW bn)

Sales

Gross Profit Margin

(%)

SG&A

Operating Profit

(%)

Non-operating Revenue

Non-operating Expenses

Ordinary Income

(%)

Tax

Net Income

2003

4,231

493

(11.6%)

180

313

(7.4%)

207

292

227

(5.4%)

77

164

2004

4,780

616

(12.9%)

192

425

(8.9%)

236

289

372

(7.8%)

145

248

2005

5,076

667

(13.1%)

236

432

(8.5%)

314

187

558

(11.0%)

152

407

2006

5,729

896

(15.6%)

267

629

(11.0%)

367

353

643

(11.2%)

192

438

2007

6,066

863

(14.2%)

303

561

(9.3%)

948

192

1,317

(21.7%)

379

938

(Unit : KRW bn)



Private Investment SOC

Project

Mokpo new port

Ilsan great bridge

Yongin-seoul expressway

Youngchun-sangju expressway

Wooi - Shinsul light subway

Suboo Expressway

2nd Western Costal Express way

Garorim tidal power generation

Gaya railroad

Seoul expressway

Ulsan new port

3rd Kyongin expressway

GK Fixed Link Road

Myungji great bridge

New Bundang railroads

Share

20.00%

24.50%

14.56%

7.50%

18.54%

4.00%

17.00%

13.77%

23.00%

10.00%

16.90%

17.68%

43.45%

18.38%

13.46%

Investment

4.7

12.8

16.0

0.0

0.0

0.0

3.3

3.0

1.5

46.0

7.6

24.7

186.8

15.8

20.6

Value

18.8

43.4

218.7

96.4

120.5

59.7

105.9

211.1

76.2

161.2

44.1

96.5

730.7

78.5

177.9

Remarks

Completed in ’04

Completed in ’07

To be completed in ’09

To be started in ’08






Completed in ’07






(Unit : KRW bn)



2007 Performance by Sector

(Unit : KRW bn)

2006 2007

New OrdersUnit : KRW bn

2006 2007

Sales

Housing

Civil

Architecture

Plant

Overseas

New Orders

4,253

1,369

788

308

1,729

8,447

4,466

1,829

1,392

720

1,612.

10,020

Housing

Civil

Architecture

Plant

Overseas

Sales

2,175

1,271

898

441

804

5,729

2,388

1,350

657

456

988

6,067

(Unit : KRW bn)

2006 2007

Order Backlog

2006 2007

Gross Margin

Housing

Civil

Architecture

Plant

Overseas

Order Backlog

10,661

5,112

1,646

1,059

2,852

21,330

12,739

5,591

2,381

1,324

3,476

25,512

Housing

Civil

Architecture

Plant

Overseas

Gross Margin

20.3%

15.6%

18.4%

10.0%

7.9%

15.6%

21.9%

12.1%

15.3%

8.0%

3.5%

14.2%



5-year Business Plan

Housing Civil Architecture Plant Overseas


22%

5%

11%

17%

44%

58,203

5%16%

6%

10%

20%

48%

18%

6%

11%

18%

47%

20%

11%

18%

46%

21%

5%

17%

11%

46%

25%7%13%

16%

39%

27%

7%13%

16%

37%

30%

7%

13%

16%

35%

31%

7%

12%

15%

34%

33%

7%

12%

15%

33%

(Unit : KRW bn)

2012(F)2011(F)2010(F)2009(F)2008(F)

New Orders

2008(F) 2009(F) 2010(F) 2011(F) 2012(F)

2008(F) 2009(F) 2010(F) 2011(F) 2012(F)

12,38613,540

15,33417,001

19,021Housing

Civil

Architecture

Plant

Overseas

New Orders

6,332

2,867

2,312

1,261

6,250

19,021

5,810

2,630

2,121

1,157

5,283

17,001

5,312

2,413

1,946

1,061

4,601

15,334

5,028

2,135

1,782

971

3,624

13,540

4,821

1,940

1,638

924

3,063

12,386

(Unit : KRW bn)

2012(F)2011(F)2010(F)2009(F)2008(F)

Order Backlog

31,18837,190

43,871 50,559 Housing

Civil

Architecture

Plant

Overseas

Order Backlog

25,792

9,796

6,647

3,030

12,938

58,203

23,011

8,754

5,710

2,698

10,386

50,559

20,224

7,776

4,838

2,380

8,653

43,871

17,484

6,861

4,026

2,079

6,740

37,191

15,023

6,205

3,225

1,735

5,000

31,188



5-year Business Plan

1,533

23%8%12%

20%

37%

25%

8%13%

20%

34%

31%

9%13%

17%

30%

34%

8%

12%

16%

29%

32%

8%

12%

16%

31%

(Unit : KRW bn)

2012(F)2011(F)2010(F)2009(F)2008(F)

Sales

2008(F) 2009(F) 2010(F) 2011(F) 2012(F)

6,7777,576

8,70510,371

11,440


Housing

Civil

Architecture

Plant

Overseas

Seles

3,551

1,825

1,375

929

3,698

11,440

3,023

1,653

1,249

839

3,550

10,371

2,572

1,498

1,134

761

2,688

8,705

2,567

1,479

982

627

1,884

7,576

2,537

1,326

794

513

1,539

6,777

2012(F)2011(F)2010(F)2009(F)2008(F)

Gross Margin

2008(F) 2009(F) 2010(F) 2011(F) 2012(F)

9321,058

1,1991,387

Housing

Civil

Architecture

Plant

Overseas

Gross Margin

16.4%

10.2%

12.9%

10.7%

13.0%

13.4%

16.4%

10.4%

12.9%

10.8%

13.0%

13.4%

16.4%

12.6%

12.9%

11.7%

13.0%

13.8%

17.0%

13.6%

12.2%

11.6%

11.9%

14.0%

18.0%

12.7%

11.9%

11.9%

9.6%

13.8%

13.8%14.0% 13.8% 13.4% 13.4%

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