October. 2012

Doosan Heavy Industries

3Q12 Financial Result

1

Disclaimer

This presentation contains preliminary figures which may be materially different from the final figures.

While the statements in this presentation represent our current assumptions, plans and expectations,

and we believe these judgments are reasonable, they are not guarantees of future performance and

involve known and unknown risks, uncertainties such as FX & raw material costs, and other factors

that may cause actual results to differ materially from the results, performance, achievements or

financial position expressed or implied in this presentation

This presentation is provided only as a reference material. Doosan Heavy Industries and

Construction assumes no responsibility for investment decisions. We trust your decisions will be

based on your own independent judgment.

Financial data in this presentation is on a IFRS consolidated basis.

2

1.’12 Q3 Result Review

2. Key Activities

Contents

3

Q3 Business Result Summary

item

Quarterly YTD

’12.2Q ’12.3Q YoY QoQ ’11.3Q ’12.3Q YoY

Order 799 1,710 -61.5% +114.1% 6,516 3,239 -50.3%

Sales 2,456 2,196 +10.7% -10.6% 5,708 6,725 +17.8%

OP

(OPM, %)

170 (6.9%)

113 (5.1%)

+16.2%

(0.2%p)

-33.6% (-1.8%p)

372 (6.5%)

426

(6.3%) +14.7% (-0.2%p)

NP 117 33 turnaround -71.8% 201 234 +16.4%

Wbn, %

Although 3Q business result slightly declined QoQ due to weak seasonality,

quarterly and YTD sales, OP, and NP show steady growth YoY.

4

204 216 335

65 37

304

179 141

131

93

17

27

3,894

388

914

4,436

799

1,710

11.3Q 12.2Q 12.3Q

Power

Ind.

C/F

Cons.

DPS, etc.

2,675 2,720 2,675

1,896 1,674 1,810

588 583 577

2,077 1,319 1,121

15,900

14,071 13,439

23,135

20,366 19,622

11.3Q 12.2Q 12.3Q

114%

Order/ Order Backlog

Order (quarter) Order Backlog (quarter)

Wbn

New order increased over 2 times QoQ mainly thanks to power equipments.

Order backlog maintains 2.5 times yearly sales excluding C/F and DPS, etc.

423 379 414 408

214 162 162 149

173

136 137 132

251

266 301

209

1,009 1,041

1,442

1,299

2,070 1,984

2,456

2,196

11.2Q 11.3Q 12.2Q 12.3Q

5

Sales

Power

Ind.

C/F

Cons.

DPS, etc,

Wbn

Sales (quarter) Weight in Sales by Division

59.1%

58.7%

52.5%

18.6%

16.9%

19.1%

9.5%

12.3%

13.4%

6.0%

5.6%

6.8%

6.8%

6.6%

8.2%

12.3Q

12.2Q

11.3Q

72%

76%

78%

Power related sales

YoY sales growth shows 19% in 2Q, and 11% in 3Q. Noticeably, power related sales(including DPS, etc.)

portion increased to approximately 80%, which is the core and lucrative business.

6

Power

80

176

111

7.7%

12.2%

8.5%

11.3Q 12.2Q 12.3Q

Industrial

5

-6

2

1.7%

-2.0%

0.8%

11.3Q 12.2Q 12.3Q

C/F

14

2

7

10.0%

1.6%

5.0%

11.3Q 12.2Q 12.3Q

Construction

-0.1

-11 -11

-0.1%

-6.5% -7.4%

11.3Q 12.2Q 12.3Q

DPS, etc.

-1

9 5

-0.1%

2.2%

1.2%

11.3Q 12.2Q 12.3Q

Total

97

170

113

4.9%

6.9%

5.1%

11.3Q 12.2Q 12.3Q

Operating Profit

(6.3%) (11.1%) (6.5%)

(8.0%)

Quarterly OPM shows some fluctuation based on product mix change, but overall maintains last year‟s

level, whereas power OPM improved significantly to 11% level fueled by increased power equipment

and nuclear sales

() : YTD OPM

426

-145

-32

+82

-15

317

-83

234 201

7 7

+16%

Wbn

Pre-tax Profit and Net Profit (IFRS consolidated)

* Interest income 26, interest expense 171

** Derivative- 29, F/X -3

OP

(YTD) Net

Interest*

Pre-tax

Profit

Equity

Method

Tax F/X,

Derivatives**

Etc. NP

(YTD)

NP

(YoY)

YTD NP increased 16% YoY backed by solid operating profit

8 8

item 2011 12.3Q

Current Assets 5,264 5,839

Cash & Cash

Equivalents 914 791

Non-current Assets 8,326 8,356

Investments 4,093 4,083

Property, Plant

& Equipment 2,690 2,692

Total Assets 13,589 14,196

Total Liabilities 8,792 9,287

Total Debt 3,584 4,590

(Net Debt) 2,670 3,799

Total Equity 4,797 4,909

Total Equity &

Liabilities 13,589 14,196

Debt Ratio 183.3% 189.2%

item 11.3Q YTD 12.3Q YTD YoY(%)

Sales 5,708 6,725

+17.8

Gross Income 868 948 +9.3

SG & A 496 522 +5.3

OP 372 426 +14.7

OPM 6.5% 6.3% -0.2%p

Non-OP *-75 -109 -

Pre-tax Profit *297 317 +6.9

Tax 96 83 -13.0

Net Profit 201 234 +16.4

I/S B/S

Summary of Financial Statements

Wbn Wbn

YTD sales, OP, and NP increased over 15% YoY, respectively.

Year end net debt to decrease considerably despite of net debt increase in 3Q resulted from temporary

working capital increase.

*Figure adjusted the impact of Doosan E&C‟s de-consolidation in 2011

9

1. ’12 Q3 Result Review

2. Key Activities

Contents

10

Power Water

Thermal RO Total

MENA

N. Africa

Central/

S. America

E. Asia

Total

693

693

529

93

299

140

1,061

1,222

93

299

140

1,754

India

MENA

E. Asia

Domestic

US/Europe

Total

60

34

31

12

17

154

TPP

6

14

14

4

78

116

CCPP

26

4

4

2

89

125

Wind

7

10

3

13

25

58

Nuclear

99

62

52

31

209

453

Total

(Unit: MIGD) (Unit : GW)

Power and Water Market Outlook (’13~’17)

DHIC‟s accessible market is estimated yearly 90GW in power, and 350MIGD in water for the next 5

years, providing sustainable and rich business opportunities.

DHIC’s Competitiveness (fundamental technologies and track record)

11

Based on proposals for 6th long term power development plan, large scale and high efficiency coal-fired

power demand is to increase in domestic power market, benefiting DHIC the most backed by strong track

record and fundamental technologies

ㅏ

TPP

(coal/oil)

Steam Turbine

Generator

Boiler

Sub-Critical

Super-Critical

Ultra Super-Critical

CFB (Circulating Fluidized Bed)

IGCC (Integrated Gasification CC)

Gas Turbine

Generator

HRSG

CCPP

(gas)

Item

• Fundamental technology from SKODA Power

• Manufacture up to 1.4GW massive size

• Strong track record

• Rich domestic track record

• Fundamental technology from Babcock

• Successful overseas market penetration

since 2007

• Pre-qualified vendor of SEC (2012)

• Shin-Boryung USC (1GW*2) (on-going)

- the only domestic company

• Fundamental technology from DPS

• Multiple track record including Yeosu CFB

• Taean IGCC (on-going)

• Manufacture MHI type, won 9 units

• Strong track record

• World M/S top 3, original model

Note

Alstom, MHI, Hitachi, GE,

Siemens, etc.

Alstom, MHI, Hitachi, GE,

Siemens, F/W, etc.

Alstom, MHI, Hitachi, Foster

Wheeler, etc.

GE, Siemens, etc.

Alstom, MHI, Hitachi, GE,

Siemens, F/W, etc.

Nooter, BHI, Vogt Power etc.

Competitors

270MW Class Gas Turbine Manufacturer

• Successfully manufactured 270MW class gas

turbine, the largest in S.Korea (Sep. 25th)

• Manufacturing took 1.5 years in collaboration with MHI

for Pocheon CCTP

• Production of 270MW class GT demonstrates top-tier

level manufacturing ability. Stand-alone engineering

capability is under development, concurrently.

12

Gas Turbine order: 9 units

• Yeong-wol CCPP

- 183MW × 3

- HRSG, STG(300MW), BOP, etc.

• Pocheon CCPP

- 270MW × 1

- STG(270MW×2)

• Yangju CHP

- 185MW × 2

- HRSG, STG(194MW), BOP, etc.

• Sejong CHP

- 185MW × 2

- HRSG, STG(196MW), BOP, etc.

• Hanam CHP

- 267MW × 1

- HRSG, STG(130MW)

Key Activities

• Awarded wind farm pjt in Yeongheung, Incheon,

including 8 units of 3MW wind turbine (Oct. 17th)

• WinDS3000TM is the only 3MW wind turbine with

international classification in domestic market

• To lead domestic renewable market with fundamental

technology and original model

Yeosu CFB PJT

• Won main equipments, including 350MW class CFB

boiler, turbine, and generator, for Yeosu power #1 PJT

from KOSEP (July 27th), followed by GLOW PJT,

Thailand

• To be engineered and manufactured by DHIC,

securing preemptive opportunities for increasing

low quality coal use and CFB market expansion

On-shore Wind Farm PJT of 24MW

13

Key Activities

50th Anniversary of DHIC

14

Thermal Power Nuclear Power Water Green Energy

• Fundamental technology

secured through M&A

„06 Babcock(BLR), UK

„09 Skoda Power(ST), Czech

‟11 Lentjes, Germany

• Global manufacturing centers

„09 Doosan Vina, Vietnam

„11 DCW, India

• Annual production capa.

Boiler 9.7GW / ST 5.5GW /

Generator 5.5GW (2011 end)

• World No. 1 nuclear core

equipment supplier

Total supply 20.7GW

5 units of capacity per

annum (world‟s largest)

• Sole provider of APR1400

and AP1000

„95 Uljin #3, first in Korea

„09 UAE nuclear export

„10 MMIS developed

„12 first delivery of AP1000

(China)

• Top in water desalination

Global M/S 24%

Total supply 5.8M ton/day

• Completed 27 PJTs in M. E.

• Possess major technologies

(MSF, MED, RO) and track

records

„08 “Desalination Company

of the Year” by GWI

‟10 Awarded world‟s largest

Ras Al Khair PJT

(228MIGD)

• The only original wind

turbine model in S. Korea

(WinDS3000TM)

3MW original model with

international off-shore

classification

• Taean IGCC pilot plant

‟11 Won the first IGCC

PJT in Korea

• Obtained fundamental

technology of CFB, FGD*

* CFB : Circulating Fluidized Bed

FGD : Flue Gas Desulfurization

Q & A