2008/9 HULL RENEWAL

2

Overview of HMM

■ Hyundai Merchant Marine Co., Ltd.

(“HMM”) was established in 1976 and is

one of the leading global logistics

company

■ “HMM” has a highly diversified and

stable revenue ; Container, Tanker,

LNG carrier and Ore/Coal carrier

■ HMM is a member of The New World

Alliance (TNWA) with APL&MOL, and

Grand Alliance(GA) with OOCL, NYK,

MISC and HLC

■ 2007 Revenue Breakdown

USD 5,480 Mil.

3

Revenue

■ 2007 USD revenue rose by 11% YoY to USD 5,480 Mil. from USD 4,955 Mil.

■ Reasons for change in revenue

① Addition of container capacity (mainly in Asia-Europe)

② Increase in container freight rates (Asia-Europe & Intra Asia)

③ Strong Baltic Dry Index (BDI)

■ Revenue

Quarterly Accumulative

804988 1,015

271

231 265176

225248

-

500

1,000

1,500

2,000

4Q06 3Q07 4Q07

Dry Bulk

Wet Bulk

Container

(USD Mil.)

1,251

1,4441,527

4,955

3,938

5,480

3,0812,590

3,619

1,169

731

995

705

617

865

-

1,000

2,000

3,000

4,000

5,000

6,000

4Q06 3Q07 4Q07

(USD Mil.)

4

Operating Profit

■ Operating Profit

Quarterly Accumulative

■ 2007 Operating Profit grew by 231% to USD 338 Mil. from USD 102 Mil. in the same

period of 2006

■ What caused the strong OP?

① Better than expected Asia-Europe and Intra-Asia market, resulting in multiple GRIs

② Super cycle in dry bulk market caused BDI to record all time high

-44

663440

1141

-2

25 36

-70

-20

30

80

130Dry BulkWet BulkContainer

(USD Mil.)

4Q06 3Q07 4Q07

-92

77 112

20695

136

-13

55

90

-150

-50

50

150

250

350

(USD Mil.)

4Q06 3Q07 4Q07

102227

338

-6

101111

5

Business Result in 2007

(USD Mil.) 2005 2006 2007 YoY growth

Total revenue 4,686 4,955 5,480 11%

Operating profit 451 102 338 232%

OP margin 9.6% 2.1% 6.2% 4.11%P

0

0.5

1

0 0 0

Non-Container Container

0

2000

4000

6000

8000

2002 2003 2004

Non-Container Others Dry bulk Tanker/LNG Container

(USD Mil.) 2007 2008E Growth

Total revenue 5,480 6,941 +27%

Operating profit 338 423 +25%

OP margin 6.2% 6.1%

■ 2008 Guidance

6

Container – volume continues to rise

■ Thanks to increasing new container ships to the fleet, 2007 volume increased by 9.8% YoY

to 2.37 Mil. Teu; Transpacific, Asia-Europe and Intra-Asia volume increased by 8.1%,

10.2% and 12.9% YoY respectively

■ 2008 expected container capacity increase 29.6% YoY, and expected volume increase to

2.94 Mil. TEU (24% ↑)

■ Container volume breakdown

26%

51%

23%

Asia Europe US

2.15 Mil. Teu

27%

23%

50% 2.37 Mil. Teu

2006 2007

7

Tanker – drastic index movement continues

■ The market WS averaged 82 in 2007 vs. 99 of same period 2006

■ 175 new VLCCs are to be delivered between 2007-2012, this is about 36% of existing

VLCCs operating in the market

■ Psychological factors pushed up the WS, however, due to relatively mild winter season

and lack of spot activity resulted in a sharp decline of WS.

3529

18 17

38

66

53

2004 2005 2006 2007 2008 2009 2010

■ VLCC deliveries

8

Dry bulk – slowing down but still high

■ BDI averaged 7,106 in 2007 vs. 2,951 of 2006

■ BDI is recovering

- Iron-ore negotiation closed by Korean, Japanese and Chinese steel producers

- Australian coal exports resume

- Queue increases due to port congestion in New Castle, Australia

- Delays in deliveries of bulk vessels by Chinese ship yards

■ Baltic Dry Index (BDI)

2,262 2,4653,050

4,028 4,4625,754

6,572

10,4259,742

7,170 6,874

Jan-

06

Apr

-06

Jul-0

6

Oct

-06

Jan-

07

Apr

-07

Jul-0

7

Oct

-07

Dec

-07

Jan-

08

Feb

-08

9

HMM fleet profile(As of December 2007)

Type Ownership Size No. of vessels Gross Tonage

Container Own >5,000 Teu 7 45,049<5,000 Teu 7 25,366Subtotal 14 70,415

Charter >5,000 Teu 13 80,439<5,000 Teu 15 44,985Subtotal 28 125,424

Container total (teu) 42 195,839

Tanker Own VLCC 8 2,319,289Otehrs 3 205,462

Subtotal 11 2,524,751 Charter VLCC 12 3,454,077

Otehrs 12 1,154,947Subtotal 24 4,609,024

Tanker total (dwt) 35 7,133,775

LNGC Own 125,000~135,000 cbm 6 1,040,000 Charter 126,000 cbm 1 126,000 LNGC total (cbm) Subtotal 7 1,166,000

LPGC Charter (dwt) 51,000 1 50,743 Chemical tanker Charter (dwt) 12,000~14,000 4 53,408

Dry bulk Own Cape size 10 1,593,484Others 1 37,450

Subtotal 11 1,630,934 Charter Cape size 3 485,876

Others 18 922,280Subtotal 21 1,408,156

Dry bulk total (dwt) 32 3,039,090 Total 121

※ Owned & chartered over two years

10

New Vessel Delivery in 2008

TEU GRT

HYUNDAI BRAVE 8,600 94,511 10 January 2008

HYUNDAI COURAGE 8,600 94,511 15 February 2008

HYUNDAI FAITH 8,600 94,511 28 February 2008

HYUNDAI FORCE 8,600 94,511 25 March 2008

HYUNDAI DYNASTY 4,700 52,581 11 April 2008

HYUNDAI VOYAGER 4,700 52,581 18 April 2008

HYUNDAI GOODWILL 4,700 52,581 30 April 2008

HYUNDAI INTEGRAL 4,700 52,581 20 June 2008

HYUNDAI SUPREME 4,700 52,581 27 June 2008

LNG HYUNDAI ECOPIA 150,000 CBM 100,200 28 November 2008

CONTAINER

DELIVERY DATETYPE VESSELCAPACITY

11

Fleet Expansion Plan (Owned)

Fixed Projecting

2007 2008 2009 2010 2011

Container 2,200 teu 3 - 3

4,700 teu 4 5

5,500 teu 4

6,800 teu 3

8,600 teu 4

Tanker 17 9

Bulk H-Coil 1

Capesize 12 4

Handymax 3

Panamax

Heavy MPC 2 2

Box Type 2 1

LNG 6 1

Total no. of vessels 7 0 4 17 (G/T) (676,316) (102,012) (1,183,716)

Total in Dec 2007 : 52 Grand Total in Dec 2011 : 80(4,751,056) (6,713,100)

Type Size

12

Fleet Expansion Plan (Chartered)

Fixed Projecting

2007 2008 2009 2010 2011

Container 3,500 teu 15 - 3 5 2

4,500 teu 8 - 1 3

5,500 teu 3 - 1

6,800 teu 10 4 1

8,600 teu 4

10,000 teu 5

Tanker 19 4 7 1

Bulk Capesize 1 3 1

Panamax 1 4 3 1

Handymax 3 3 1 2 1

LNG 2 6

Total no. of vessels 9 25 10 13

Total in Dec 2007 : 64 Grand Total in Dec 2011 : 121

(3,251,968)

Type Size

13

HMM Vessel List

(As of May 2008)

VESSEL GRT VESSEL GRT VESSEL GRT VESSEL GRT

HYUNDAI OCEANIA 74,052 HYUNDAI STAR 151,592 HYUNDAI GLORY 53,352 HYUNDAI UTOPIA 103,764

HYUNDAI ISLAND 67,897 HYUNDAI BANNER 151,977 HYUNDAI FREEDOM 64,054 HYUNDAI GREENPIA 103,764

HYUNDAI COSMOS 85,678 HYUNDAI SUN 156,692 HYUNDAI GENERAL 64,054 HYUNDAI TECHNOPIA 113,988

HYUNDAI OLYMPIA 93,005 MILLENNIUM 156,692 HYUNDAI HIGHNESS 64,054 HYUNDAI COSMOPIA 113,998

HYUNDAI CONTINENTAL 101,466 PACIFIC COURAGE 145,403 HYUNDAI CONFIDENCE 64,845 HYUNDAI AQUAPIA 113,998

HYUNDAI UNIVERSAL 101,604 VL MALIBU 137,024 HYUNDAI FORWARD 52,581 HYUNDAI OCEANPIA 113,998

HYUNDAI PROSPEPITY 77,650 EL JUNIOR 149,896 HYUNDAI UNITY 52,581 LNG (6 VSL) 341,994

PACIFIC SUCCESS 24,790 LA ESPERANZA 158,475 HYUNDAI GRACE 52,581 HYUNDAI ECOPIA 100,200

HYUNDAI SPIRIT 68,093 LA PAZ 158,475 HYUNDAI COLOMBO 74,651

HYUNDAI ATLAS 76,068 UNIVERSAL HOPE 158,475 HYUNDAI BANGKOK 74,651

HYUNDAI POWER 76,068 UNIVERSAL PEACE 158,475 HYUNDAI JAKARTA 74,651

GLOBAL VICTORY 76,068 PACIFIC SUPERIOR 146,849 HYUNDAI BRAVE 94,511

GLOBAL WINNER 81,152 ASIAN JADE 57,164 HYUNDAI COURAGE 94,511

PACIFIC CHAMP 25,503 ORIENTAL EMERALD 30,971 HYUNDAI FAITH 94,511

PACIFIC ROYAL 25,503 ORIENTAL RUBY 30,971 HYUNDAI FORCE 94,511

BULK (15 VSL) 1,054,597 UNIVERSAL QUEEN 163,465 HYUNDAI DYNASTY 52,581

UNIVERSAL CROWN 163,465 HYUNDAI VOYAGER 52,581

TANKER (17 VSL) 2,276,061 HYUNDAI GOODWILL 52,581

COANTAINER (18 VSL) 1,227,842

HYUNDAI INTEGRAL 52,581

HYUNDAI SUPREME 52,581

* Total : 56 Vessel / 4,900,494 GRT

(20 Jun)

(27 Jun)

(28 Nov)

14

HMM Legal Affairs & Insurance Team

.General Manager

D B Park

Legal PartManager

S C Hwang

Cargo ClaimManagerY S Roh

Chris Paik Jason Lee Seti Min Kevin Kang Rachel HongJustin Roh Joanna Kim Yulia Hwang

AHQ (Denver)ManagerS H Park

EHQ (London)Manager

Shane Kweon

- C/P Disputes

- Litigation

- Casualties

- Contract / Legal Matters

- CNTR Cargo Claim

- Bulk Cargo Claim

- CNTR Box Claim

- Recovery Claim

- Hull Insurance

- P&I Insurance

- TT Club

- Terminal Insurance

15

What would shipping companies want its lawyers?

■ Little information on Chinese Maritime Law and Practice

■ Little information on Chinese Law Firm’s evaluation & Costs

■ Still depend on P&I Club’s recommendation

■ Shipping companies’ concerns

- Difficulties to prepare evidences, when filed in court.

- Huge (Overestimated) deposit or guarantee without presentation of claim breakdown

- MSA (government authorities) involvement and slow progression

- Quick response from the lawyers