Q2 2013 results

Divisional Sales

Q2’13 Results

Won(Bil) Q2 2013 Q1 2013 Q2 2012

Sales 617 529 604 2.2% ↑ 16.6% ↑

COGS 501 436 484 3.6% ↑ 15.1% ↑

GP 116 94 120 -3.3% ↓ 23.8% ↑

S&A Exp 63 61 61 2.9% ↑ 3.4% ↑

OP 53 33 56 -6.4% ↓ 61.7% ↑

EBT 28 14 46 -39.3% ↓ 100.0% ↑

Net Income 23 13 32 -28.0% ↓ 80.3% ↑

Y-o-Y Q-o-Q

change

8% 8% 8%

19% 20% 16%

4% 3%1%

13% 12%14%

29% 29% 32%

27% 28% 28%

E/E T&D Automation TransportationSOC

LS Metal Other

318

459 427

448

387

453 453

604 574

602

529

617

0

100

200

300

400

500

600

12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2

Sales[Parent] Sales[Con]

29

57

39

26

32

50

30

57

41

27

33

53

0

10

20

30

40

50

60

12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2

OP[Parent] OP[Con]

13’ Q1 13’ Q2 12’ Q2

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Balance Sheet

Liabilities/Equity

Net Debt/Equity

ROE

Asset 2,118 2,020 1,770 98 4.9%

Current 1,263 1,157 920 106 9.2%

Cash & Cash Equi 203 176 125 27 15.3%

Non-Current 855 863 848 -8 -0.9%

Liability 1,267 1,183 993 84 7.1%

Current 625 604 514 21 3.5%

Non-Current 642 579 479 63 10.9%

Equity 851 839 777 12 1.4%

Net Debt 475 470 451 5 1.1%

(%)Won(Bil) 13' Q2 2012 2011 Y-o-Y

148%

141%

55.8%

56.0%

11.6%

8.3%

End of

12’ End of 13’ Q2

2 / 6

Electric Equipment – Q2 Results & Market Outlook

Sales(bil)

• Remained solid sales & operating profits despite of sluggish macro

• Maintained strong market dominance in Korea & exports portion increased to nearly 50% of total sales

• [Domestic] Sales ↓(Y-o-Y) due to sales deferral of Gov’t PJTs & recession in shipment industry

• [Overseas] Sales ↑(Y-o-Y) due to sales growth to emerging market

• 2nd Half Focusing on Local Mega PJTs(SSE, Hynix, Lotte, Kepco, Misc)

• Overall environment favorable as Macro Index expected to improve (CAPEX △1.9% +1.7%, Construction △2.2 +4.2%) in 2nd Half

49 %

51 % 65 %

35 %

65 %

35 %

200

53

14 10 18 20

LV HV Swich Meter Relays Other

S/E Asia, 29%

M/E, 27%Europe,

7%

CIS, 11%

Mid

America,8%

Other, 17%

13’ Q2 Export Region Products(bil) 12’ Q2 13’ Q1 13’ Q2

171

150

165 Korea

3 / 6

Overseas

T & D – Q2 Results & Market Outlook

55 %

45 % 55 %

45 %

47 %

53 %

12’ Q2 13’ Q1 13’ Q2

• Remained robust sales of Iraq substation PJT & PV-products to Japan

• Maintained strong Sales Growth on Q-o-Q base due to seasonality

• Sales ↓(Y-o-Y) due to base effect of one-off PJT in Bulgaria(\30b) in 12 Q2

• [Domestic]

Sales ↓ (Y-o-Y) due to Market recession & Results of fortifying Risk MGT towards Local Construction Companies

• [Overseas] Strong performance at overseas biz(Iraq, Japan solar)

• 2nd Half - Focusing rewarding Ongoing Bids in MENA region with Iraq Ref. - Fortifying Feasible Local PJTs in UHV Market(IIAT\10b, KEPCO S/S \10b) - Solar sales expected to meet target of ’13 largely driven by exports to Japan - Preparing ‘After Iraq’ Market(Saudi, Africa, US) with internalization of Iraq PJT

※Solar Biz included

10

41

14

49 72

117 10

18

34

-

20

40

60

80

100

120

140

160

180

2011' 2012' 2013'(est)

Module PV-Inv Other

Solar Biz Sales Outlook

130 68

31

5

48

Distribution Syst UHV GIS Transfomer SCADA UHV Transformer

Sales(bil) 193

155

180

Products(bil)

4 / 6

Korea

Overseas

Automation – Q2 Results & Market Outlook

30 %

70 % 69 %

31 %

71 %

29 %

12’ Q2 13’ Q1 13’ Q2

• Sales(Q-o-Q) rebounded driven by seasonality

• Remained Leading position in Local Device Market & Secured normal Sales Pace

• Automation System(Order base) sales slowdown due to weak back log

• [Domestic]

Sales ↓(Y-o-Y) due to Slow-paced Macro, downturn in Capex

• [Overseas] Sales Growth at Slow progress due to delaying in finding Key Accounts

• 2nd Half - Focusing on Energy Saving Market(Power Shortage Issues in Korea) - System Sales expected to rebound in 2nd Half as Back log recovering - Expecting high growth in next 5 years as chronic power shortage issue

68

45

13 17

INV PLC Syst Other

Source: Industry Data

Sales(bil)

85

63

78

Products(bil)

0%

5%

10%

15%

20%

25%

Korea Japan Europe US

Inverter Installation Ratio

5 / 6

Korea

Overseas

Transportation SOC - Q2 Results & Market Outlook

44 %

56 % 70 %

30 %

100 %

53 %

12’ Q2 13’ Q1 13’ Q2

• Strong Sales growth driven by Sales recognition of KTX PJT & Bangladesh PJT

• Expected Sales of 13’ \120b largely driven by two PJTs

* KTX : Korea Train eXpress

• New Orders Rewarded from Taiwan PJT(\10b)

• 2nd Half

- Focusing on New orders IIAT(\20b) - New KTX PJT (Suseo-Pyungtaek)expected to place order(\80b)

PJT Plan Sales %

KTX 65 13 20%

Bangladesh 23 14 62%

DIV

12'Q2 12' Q4 13' Q2

T & D Korea 317 271 287

Overseas 345 332 278

Trans SOC Korea 191 317 316

Overseas 35 7 31

Other - 110 160 178

Total 998 1,087 1,090

Order Backlog

Sales(bil)

6

14

24

6 / 6

Korea

Overseas

3 / 5

Business Introduction

Business portfolio

T&D (Transmission & Distribution)

Leading Electric Power, Automation & Green Business Total Solution Provider

Power Plant Primary Substation

Ultra-high voltage power transmission & distribution system equipment like gas insulated switchgear (GIS) and gas circuit breakers (GCB) <Main Product> - Gas Insulated Switchgear (GIS) - Transformer - Remote Monitoring & Diagnosis Equipment - Power Distribution Panels & Switchgears - Railway System

Factory/Building/Household Substation

Top low and medium voltage Electric equipment for electricity users <Main Products> - Vacuum Circuit Breaker - Air Circuit Breaker - Molded Case Circuit Breaker (MCCB) - Contactors

Primary Transmission

Sub-Transmission

Factory

Home

# 1 / 6

Business portfolio

Automation & Drive

Automation systems, which integrate core hardware and software technologies as well as technological services, provide optimum total solutions in a wide range of industrial workplaces <Main Product> - Inverter (Motor Drive) - PLC (Programmable Logic Controller) - HMI (Human Machine Interface) - Automation System (Distributed Control System)

- Power Semiconductor

Photovoltaic System Green Car Solution HVDC System Smart Grid

Factory / Building

Manufacturing Industry

IT Industry

Indutrial Infrastructure

Industrial IT

# 2 / 6

Products portfolio –Electric Equipment

Electric Equipment

MMS MC & TOR ACB MCB MCCB VCB

• AC 690V • Up to 800A • UL 508 IEC 60947-4

• AC 690V • Up to • 6,300A • Up to 150kA • IEC 60947-2

• AC 400V • Up to 125A • Up to 10kA • IEC 60898

• AC 7.2~40.5kV • Up to 4,000A • Up to 50kA • IEC 62271-100

• AC 690V • Up to 100A • Up to 100kA • UL 508 IEC 60947-2/4

• AC 690V • Up to 1600A • Up to 150kA • IEC 60947-2

• 12/17.5/24kV • 630A • 21kA (3s) • IEC62271-1~200

RMU, LBS

Low voltage

- Air Circuit Breakers(ACB)

- Molded Case Circuit Breakers (MCCB)

- Miniature Circuit Breakers (MCB)

- Magnetic Contactors (MC)

- Electronic Motor Protection Relay(EMPR)

High Voltage

- Ring Main Unit(RMU), Load Break Switch(LBS)

- Vacuum Circuit Breakers (VCB)

- Vacuum Interrupter(VI)

- Power Fuses

Measurement / Relay

- Smart Meter, Electronic Watt-Hour Meter

- Digital Protection Relay & Meter

# 3 / 6

Products portfolio –T & D

Transmission & Distribution

Ultra High Voltage Equipment

- Gas Insulated Switchgear

- Gas Circuit Breaker

Transformer

- Mold Transformer

- Cast Resin Transformer

- Oil Immersed Transformer

Power Distribution Panel

- Gas Insulated Switchgear

- Air Insulated Switchgear

- Motor Control Center

Diagnostic Equipment

- Diagnosis & Overhaul,

- Power Monitoring System, Rationalization

- Power Quality Monitoring Solution

Busway

- Susol Busway, GH-P Type

Gas Insulated Switchgear

• 362kV • Up to 8,000A • Up to 63kA

• 245kV • Up to 4,000A • Up to 50kA

• 72.5~170kV • Up to 4,000A • Up to 50kA

Transformer

• 72~550kV • Up to 800MVA • IEC 60076 /

ANSI(IEEE) C57

• 3.3~36kV • Up to 20MVA

Switchgear/Busway

• 7.2~36kV • 630~3150A • up to 170kV • IEC 62271-200 • KERI & KEMA

Certified

• 600V • 630 ~5000A • 80 kA / 1s • ASTA Certified

• Up to 1000 V • 630~6000A (Al)

• 630~7500A (Cu)

• 220 kA / 1 s (Cu 4000A)

# 4 / 6

Products portfolio –Automation

Automation & Drive

PLC (Programmable Logic Controller)

HMI (Human Machine Interface)

Servo Motor/Drive

AC Drive

MV Drive

Power Semiconductor

AC Drive

Drive Solution

PSC module

Power Semiconductor

HMI PLC

Automation Solution

• IGBT Module • MOSFET Module • Diode Module

MV Drive

• 200/400V 0.1~800kW • V/F, Sensorless, Vector Control • Energy Saving

• 2/4/6/10kV 200~11,000kvA • V/F, Sensorless, Vector Control • Energy Saving

Servo

• Standard EtherCAT Network • Accurate Control • Full-Closed • Ethernet / Serial Communication

• Redundancy & Performance • Distributed I/O • Ladder & IEC Language

• 5~15” Touch Screen • 65,536 Colors • Offline Program Simulation

# 5 / 6

Products portfolio –Trans. SOC

T&D(Railway System) AF Track Circuit

- Analog Audio Frequency Track Circuit

- Digital Audio Frequency Track Circuit

CTC

- Centralised Traffic Control(CTC)

Traction Power System

- Scott Transformer, DC Switchgear & DC Rectifier, GIS

Signalling System

- Communication Based Train Control(CBTC)

- Electronic Interlocking System(EIS)

- Automatic Train Protection(ATP)

ATC

- Automatic Train Control System(ATC)

- Automatic Train Operation(ATO)

• Centralised Traffic Control

• Scott Transformer (154kV/55kV) • DC Switchgear • DC Rectifier(1,500V / 750V) • High Voltage Transformer

(154kV/22.9kV) • GIS (170kV, 72.5kV) • Low Voltage Switchgear

• CBTC System • EIS • ATP

• High Speed Train ATC Facility • Korail maintenance train ATC • High speed mainline signaling

system • ATC Ground Control System • ATC Ground Control S/W • ATC/ATO Train Control S/W

• Analog Audio Frequency Track Circuit

• Digital Audio Frequency Track Circuit

CTC Signalling System ATC AF Track Circuit Traction Power System

Electronic Interlocking System(EIS)

# 6 / 6