Sungmoon Co., Ltd

Kwang Woo Park

Parallel Session 1.1 : Performance of Outstanding Enterprise Participating in the Cluster Program

01 Company Overview

02 Why we decided

to be in the project

03 Supports

04 Outcomes

05 Vision

Contents

Company Overview Company Overview > Introduction

Company

name

CEO

Date of

Establishment

Headcount

Address

Homepage

Contact

SUNGMOON CO., LTD.

Yoon Kyung Soon

Feb 25th 2009

65

105 Sodeung-ro Samho-eup

Youngam-gun Jeollanamdo Korea

Tel : 061) 464 - 9696

Fax: 061) 464 - 9697

http://www.sungmoon.co.kr

Company Overview Company Overview > History

May Applied for trademark of FIRE FREE SYSTEM

Exhibited FIRE FREE SYSTEM at Daegu International Fire

Expo 2012

Jun Obtained permits for R&D center Designated as a

promising SME in technology innovation of Jeollanamdo

province

Jul Registered as an WFI supplier (Wartsila / Finland)

Oct Completed Plant No.2

Nov Received the 7th Corporate Sustainable Management

Award (top prize in labor-management relationship category)

Won OHSAS 18001 accreditation

Feb Founded Sungmoon Co., Ltd

May Registered as a partner of Wartsila-

Hyundai Engine

Nov Won ISO 9001 accreditation

Registered as a partner of HAMWORTHY

COMBUSTION (UK)

Jun Moved to larger office building

Oct Opened company R&D center

Dec Won ISO 14001 accreditation

Mar Certified as clean workplace (KOSHA)

Nov Signed an exclusive agency agreement

with KONUTHERM BV (Netherlands)

Company Overview Company Overview > History

Apr Complete new office building

Registered as a family company of

Industrial Bank of Korea

Oct Received MOTIE Ministerial Award

on Offshore & Shipbuilding Day

Registered as a supplier of Wartsila Korea

Feb Registered as a partner of STX Engine

Aug Designated as IP star company of

Jeollanamdo province

Jul Completed training center

Nov Signed an exclusive agency agreement with

PROSPERO OY (Finland) Certified by INNOBIZ

Dec Certified by MAINBIZ Registered as a partner of

Engine & Machinery Division of Hyundai Heavy

Industries

Company Overview Company Overview > Organization Chart

Corporate

Administrative

Dept.

Purchasing

HR

General

Affairs

Quality & Safety

Dept.

Quality

Safety

Health

Production

Operation Team

Design

Production

Management

Material

Management

Product Dept.

Double Pipe

Manufacturing Team

Piping Manufacturing

Team

R&D Center

Sale Environment Delivery

Management

Insulation

Manufacturing Team

Painting Team

Processing Team

Company Overview Company Overview > Product

Special pipes Registered pipes

Ship engine parts Module Assemblies

Next-generation fire prevention

and control system Environment system

Special pipes for ME-GI and DF engine KR certified pipe

Engine insulation etc Special pipes for ME-GI and DF engine

Oil control valve, gas supply, oil supply, heating equipment Crush apparatus for vessel, waste sterilization treatment equipment

Why we decided to be in the project Why > Context

Year

Daebul National Industrial Complex Relative Importance of Shipbuilding Industry

Output

(KRW100M)

Export

(USD1M)

Employee

(Person)

Output

(KRW100M)

Export

(USD1M)

Employee

(Person)

2010 23,626 896 13,826 10,844 / 72% 343 / 84% 9,063 / 91%

2011 27,006 1,081 14,172 12,787 / 75% 409 / 86% 9,721 / 91%

2012 31,069 1,220 14,270 15,839 / 78% 600 / 86% 9,842 / 89%

2013 29,624 968 12,943 12,406 / 41.9% 360 / 37% 9,059 / 70%

2014 30,166 1,190 12,972 14,308 / 47.4% 272 / 22.9% 8,871 / 68.4%

Focus on the production of block and fittings

Status in Daebul

Industrial Complex

Needed to stop depending on

ship block plant and produce

high-valued products

Funding, facility and technology

were required

Decided to participate

in KICOX project

Why we decided to be in the project Why > Context

Stronger control on marine

environmental pollution

Forecasted growth of

LNG engine market and chose

to focus on related products 1. Anticipated the compulsory use of double wall pursuant to IGC Code

2. Stricter IMO regulations -> Gradually curb the use of diesel engine

3. Increase of offshore gas production

(28% (2004) → 42%(2030) in total gas production)

4. Forecasted growing demand in LNG market

(Issue in the use of nuclear energy)

Support

No. Project Area Descriptions

Total

Expenses

(KRW1000)

Subsidies

(KRW1000) Year

1

Industrial Cluster

Competitiveness

Enhancement Project

Patent/

Certification

Total marketing

(ABS standards/Fuel Pipe) 2,000 1,000 2010

2

Industrial Cluster

Competitiveness

Enhancement Project

Patent/

Certification

Total marketing

(ABS standards/Fuel Pipe) 1,000 0 2010

3

Industrial Cluster

Competitiveness

Enhancement Project

Prototype Product manufacturing support project

(Hybrid crush apparatus for vessel) 57,580 40,300 2014

No. Project Area Sub-project Name

Total

Expenses

(KRW1000)

Subsidies

(KRW1000) Year

1

Industrial Cluster

Competitiveness

Enhancement Project

R&D Development of double-wall gas pipe for

dual fuel engine 230,000 172,000 2010

2

Industrial Cluster

Competitiveness

Enhancement Project

R&D

Development of double-walled high-

pressure fuel injection pipe

without joint for ship engine

160,000 120,000 2011

R&D

Non R&D

Outcomes Outcomes > Increased revenue/employment

Revenue/employment growth

Annual Growth Category 2010 2011 2012 2013 2014 2009 → 2014 Remark

Revenue 300% 150% 348% 24% -32.4% 3660% Growth in

revenue and

employment Employment 150% 150% 68% 55% 9.2% 1675%

Revenue (KRW10M) Employment (person)

Company

R&D center

KICOX

project HHI partner

Wartsila

partner

Outcomes Outcomes > Intellectual property rights

Holds DFDE engine double-pipe related technologies.

Developed high-pressure double pipes, propelling us to be predominant

in Korean market

Two patents on intellectual property

Fuel supply pipe

for vessel engine

Double-pipe for gas supply

and its manufacturing method

Vision Vision > Growth strategy

Profit model

Future value

Pair trawler

strategy

Vision 2020

KRW30 billion

in revenues

Hyundai Heavy

Industries, STX

Engine, Doosan

Engine

MDT Mitsubishi

Diversification of partners

LNG Regas Unit

Offshore

environment system

LNG vessel engine

component

Diversification of businesses

SUNGMOON Co., Ltd.