DAEWOO ENGINEERING & CONSTRUCTION 1H 2012 RESULT

September, 2012

I. Overview

II. Performance

1. New Orders

2. Order Backlogs

3. Sales Revenue

4. Gross Profit(Margin)

5. Operating Profit(Margin)

III. Issues

APPENDIX

Table of Contents

1

I . Overview

New Orders Sales Operating Profit(*)

15,000

6,465

8,000

3,805

417

210

2012(F) 2012(F) 2012(F) 2012. 1H 2012. 1H 2012. 1H

2

43%

48%

* Adjusted Operating Profit

Overseas

Arch.

Civil Plant

Housing

[Units : KRW bn.]

12.3%

50.8% Kumho 10.1%

Others 26.8%

II . Performance_New Orders

Successful new order intakes from housing & arch. business Expecting rapid growth of overseas new order from 3Q

Housing

Civil

Arch.

Plant

Overseas

Div. 2011. 1H

2012 Diff. (YoY)

Target 1H

Housing 1,496 3,190 2,464 968

Civil 249 1,900 581 332

Arch. 1,363 2,370 1,836 473

Plant 236 740 276 40

Overseas 2,534 6,800 1,308 (1,226)

Total 5,878 15,000 6,465 587

2012.1H

5,878

2011.1H

3

25.5%

4.2%

23.2%

43.1%

4.0%

6,465

38.1%

9.0%

28.4%

4.3%

20.2%

+ 10.0%

Div. Private Public In-house

Housing 1,934 112 419

Civil 379 203 -

Arch. 1,019 81 735

Plant 31 245 -

Div. Projects Amount

Housing Wirae New City A1 383

Arch. Jeongjadong #3 Officetel 423

Plant Samchuk Power Ph.1&2 170

Overseas Algeria El-Harrach 413

Overseas Morocco ODI Fertilizer 370

[Units : KRW bn.]

[Units : KRW bn.]

Breakdown of new orders

II . Performance_Order Backlogs

Continuous increase of overall order backlogs

Housing

Civil

Arch.

Plant

Overseas

2012.1H 39,770 47.4%

Div. 2011 2012.1H

Housing 18,022 18,844

Civil 6,505 6,464

Arch. 4,628 5,641

Plant 648 714

Overseas 7,568 8,107

Total 37,371 39,770

4

2011 37,371

48.2%

17.4%

12.4%

1.7%

20.3%

Breakdown of housing order backlogs

- Rehabilitation Biz : KRW 14,110 Bil. (74.9%)

- Private : KRW 3,169 Bil. (16.8%)

- Public : KRW 322 Bil. (1.7%)

- In-house: KRW 1,243 Bil. (6.6%)

Breakdown of overseas order backlogs

- Africa 44.5%, ME 39.9%, Asia/Etc. 15.6%

- Power 35.7%, Oil & Gas 29.4%, Civil/Arch. 34.9%

⇒ Well diversified overseas order backlog mix

16.3%

14.2%

1.8%

20.4%

[Units : KRW bn.] [Units : KRW bn.]

Breakdown of order backlogs

II . Performance_Sales Revenue

Rapid sales recognition of housing & arch. projects presold in 2011 Stiff increase of sales revenue from overseas business (’11. 1H 31.3% -> ’12. 1H 42.7%)

Housing

Civil

Arch.

Plant

Overseas

5

Div. 2011.1H 2012 Diff.

(YoY) Target 1H

Housing 701 1,560 717 16

Civil 701 1,280 591 (110)

Arch. 613 1,479 649 36

Plant 259 394 212 (47)

Overseas 1,038 3,277 1,625 587

Etc. 5 10 11 6

Total 3,317 8,000 3,805 488

21.1%

21.1%

18.5%

7.8%

31.3%

2012.1H

3,317

2011.1H

3,805

18.8%

15.5%

17.1%

5.6%

42.7%

Housing / Arch.

- Entering a virtuous cycle

Active supply in 2011 -> Sales growth in 2012

Overseas

- Fast sales recognition from mega-size PJs

- Record high overseas new order intakes in 2011

=﹥Continuous growth of overseas sales revenue

+ 14.7%

[Units : KRW bn.] [Units : KRW bn.]

Breakdown of sales revenue

II . Performance_Gross Profit

Expect to exceed Annual GPM target of 9.7% in 2012

6

Div. 2011.1H Target

(GPM)

2012.1H

GP GPM GP GPM

Housing 93.1 13.3 11.4 109.6 15.3

Civil 73.8 10.5 8.6 43.6 7.4

Arch. 59.6 9.7 9.0 61.9 9.5

Plant 16.9 6.5 9.3 32.5 15.4

Overseas 98.1 9.4 9.8 146.4 9.0

Etc. 0.7 - - 0.3 -

Total 342.2 10.3 9.7 394.3 10.4

27.2%

21.6%

17.4%

4.9%

28.7%

2012.1H 2011.1H

27.8%

11.1%

15.7%

8.2%

37.1%

Housing

Civil

Arch.

Plant

Overseas

342

394

Gross Profit(GP Margin)

10.4%

10.3%

Housing / Arch.

- Expecting volume growth with higher than expected

profit level

Overseas

- Securing new orders in high and stable profit level

- Approx. 10% GPM excluding one-off factor in 2Q

+ 15.2%

[Units : KRW bn.,%]

[Units : KRW bn.]

II . Performance_Operating Profit

Expecting improvement of OPM(K-IFRS) from 3Q 2012

184.0

210.6

5.5%

7

5.5%

2012.1H 2011.1H

241.4

183.3

4.8%

7.3%

2012.1H 2011.1H

K-GAAP

- Maintaining adequate level of SG&A rate

- Expecting margin improvement from overseas biz.

=﹥Positive about achievement of annual target

K-IFRS

- Expecting margin improvement from 3Q

through top line growth & asset disposal

1Q

2Q 51.4

131.9 3.2%

6.0%

Operating Profit (K-GAAP) Operating Profit (K-IFRS)

[Units : KRW bn.] [Units : KRW bn.]

III . Issues_Overseas Business

Power Plant Oil & Gas

Civil Architecture

Top EPC Track Record

Diversified Markets & Products

IPP with KDB

Processing EPC LNG (Liquefaction & Regasfication)

Pipeline & Storage

Market Expansion

High-rise Building

Development PJ

Core Technology

Port, Drydock, Metro, & Water Treatment

SOC Development

< Sur IPP / Oman >

< S3 IPP / U.A.E >

< Bonny LNG / Nigeria >

< RRE Tank PKG / U.A.E. >

8

< Nakilat Drydock / Qatar > < Telekom Tower / Malaysia >

< Trump World Tower / U.S.A > < Djen Djen Port / Algeria >

9

III . Issues_Overseas Business

Front Log of 2H 2012, Min. US$ 23 bn.

Iraq : US$ 4.0 bn.

UAE : US$ 3.0 bn.

Saudi Arabia : US$ 3.2 bn. Morocco : US$ 2.3 bn.

Nigeria : US$ 4.5 bn.

Algeria : US$ 2.5 bn.

South Africa : US$ 1.5 bn.

※ Etc : US$ 1.5 bn.

Croatia : US$ 0.5 bn.

Africa 49.0%

ME 46.5%

Etc. 4.5%

By regions

Oil & Gas 69.6%

Power 28.3%

Etc. 2.1%

By segments

Proposed Overseas Projects

Citi Hall : US$ 124 mn. contracted

SSAGS : US$ 250 mn. contracted

III . Issues_Housing Business

56%

70%

74%

44%

30%

26%

Apartment

Officetel

2012 1H

By Product

77%

64%

64%

14%

19%

21%

9%

16%

15%

General

Recon.

In-house

By Business Type

2012 (F)

2012 (F)

2011 2011

2012 1H

Product Projects Total Cost Land Units Status Selling Rate

Schedule

Apartment

Sejong New City PRUGIO APT 647 121 2,592 Sold-out 100% 2011.10

Seosan Yecheon PRUGIO APT 154 23 680 Sold-out 100% 2011.9

Wirae New City PRUGIO APT 400 212 549 - - 2012.9

Hanam Misa PRUGIO APT 480 210 1,212 - - 2014.3

Officetel

Sejong #1 PRUGIO Officetel 109 13 1,036 Sold-out 100% 2012.3

Jeongjadong #3 PRUGIO Officetel 422 151 1,590 - - 2012.9

Sujin PRUGIO Officetel 203 59 1,100 - - 2012.9

TOTAL 2,416 791 8,759

[Units : KRW bn.] In-house Development Projects

10

Housing Supply

11

List of None-core Assets

Asset Book Value Disposal Price(F)

Disposal Gain(F)

Remark

Hanoi Hotel (Shares : 70%)

17 111 74 May. ’12 Deal Closing

GK Fixed Link (Shares : 43.45%)

187 270 83 Dec. ’11 Received in advance

(Approx. KRW 187 Bil.)

Seoul-Incheon Expressway #3

(Shares : 16.05%) 25 52 27

Dec. ’11 Received in advance (Approx. KRW 62 Bil.)

Korea Express (Shares : 10.34%)

225 n/a n/a Total : 10.34% (AFS: 5.01%)

III . Issues_Disposal of Non-core assets

[Units : KRW bn.]

APPENDIX _Financial Statements

Account

Cash & Cash Eq.

Account Receivable

Assets for disposal

Total Asset

Account Payable

Borrowing

Total Liability

Capital

Retained Earning

Total Equity

Sales

Gross Profit(%)

SG&A(%)

Operating Profit(%)

Net Income before Tax

Net Income

Account

1H 2012

621

2,735

258

9,407

681

2,005

5,950

2,078

903

3,457

Balance Sheet

Income Statement

FY 2011

645

2,595

327

8,985

672

1,638

5,624

2,078

790

3,361

3,318

342(10.3%)

158(4.7%)

241(7.3%)

212

164

1H 2011

3,805

394(10.4%)

184(4.8%)

183(4.8%)

146

113

1H 2012

1,615

187(11.6%)

76(4.7%)

51(3.2%)

48

36

1Q 2012

2,190

207(9.5%)

107(4.9%)

132(6.0%)

98

77

2Q 2012

[Units : KRW bn.]

12

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