Samsung Heavy Industries · 250 203 Korea Japan China 67 6 14100 73 5 9130 ... Barge TLP SemiFixed Platform FPSO 18 FPU FPSO Facility Types r r FPSO 64% Semi 17% TLP 13% Barge 7%

May 2013 ※ INPEX CPF(Central Processing Facility) for Ichthys field in Australia

Samsung Heavy

Industries

Shell LNG FPSO (219m ×42m×19)

• Company Overview • Global Market • Future Strategy

Contents

※ Shell LNG FPSO 468m x 74m x 42m

3

· Business Highlights

· Order & Backlog

· Risk Management

· Financial Results

· E&I Division

※ Geoje Shipyard

Company Overview

1.6

4.7

7.1

6.1

10.8

8.7

8.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-

5.0

10.0

15.0

20.0

2006 2007 2008 2009 2010 2011 2012

Offshore

Commercial vessels

Construction

OP margin

Revenue & OP margin

(KRWt) (%)

4

Business Highlights

Revenue of 2012

Offshore

49%

Commercial

Vessel 45%

E&I

6%

(KRWt)

Backlog as of Apr 30, 2013

※ E&I Division excluded

Offshore

62%

Commercial

Vessel 38%

(US$b)

EPS and DPS

(KRW) (KRW)

※ 2010~2012, K-IFRS Consolidated basis

8.5 10.6

13.1 13.1

14.5

6.4

13.4

675

2,178

2,899 2,900

3,848 3,777

3,674

-

200

400

600

0

1000

2000

3000

4000

5000

2006 2007 2008 2009 2010 2011 2012

EPS DPS

'06 '07 '08 '09 '10 '11 '12 '13.Apr

Rigs

Production

LNGC

Container

Tanker

Others(Ferry, WTI)

5

Order & Backlog

(US$b)

Order Backlog

2013 New Order Details

※ As of Apr 30, 2013

Container Ship

(13%)

14.9 15.3 13.5

21.2

1.4

(US$b)

New Order

9.7 $3.1Bil

(17 Units)

Drillship

(19%)

LNG

Carrier

(63%)

Order Backlog Trend (US$b)

26.3

42.1 48.7

37.2 39.3 40.7 Drillship

(36%)

Production

Facility

(26%)

LNG

Carrier

(21%)

Tanker

( 4%)

9.6

38.3

3.1

33.7

Container

Ship

(18%)

'06 '07 '08 '09 '10 '11 '12 13.Apr

Offshore

Commercial Vessels

6

Risk Management

6

Building Event

Time Gap (months) 12 5 3 10

Currency

Receivable

Payable

Raw Material

Main Engine

Machinery

Steel Plate

Bulk Part

■ SHI focuses on minimizing profit volatility

Contract Steel Cutting Keel Laying Launching Delivery

: Hedging, Order : Execution, Delivery

Foreign currency exposure is fully covered through forward transaction at the stage of shipbuilding contract.

Main engine and machinery are ordered within 1~2 months after contract signing.

No hedge tools available for steel plates, SHI put buffer in bidding price to cope with unexpected price hike.

7

Financial Results

(KRWb) ■ Income Statement

2009 2010 2011 2012

2013 1Q 4Q Total

Revenue 13,095 13,146 13,391 3,540 14,490 3,888

Shipbuilding & Offshore

Energy & Infra

12,261

834

12,160

986

12,319

1,072

3,344

196

13,634

856

-

-

Operating Profit

(Margin)

794

(6.1%)

1,432

(10.8%)

1,160

(8.7%)

264

(7.5%)

1,206

(8.3%)

440

(11.3%)

Pre-Tax Income 855 1,298 1,150 119 1,045 383

Non-OP Income

Non-OP Expense

6,222

6,161

85

219

204

214

1,755

1,900

4,534

4,695

-

-

Net Income 670 1,000 851 73 796 300

※ 2010~2013, K-IFRS Consolidated Basis

■ Balance Sheet

8

(KRWb)

Financial Results

2008 2009 2010 2011 (A) 2012(B) B-A

Total Assets 26,084 20,188 18,850 16,414 16,635 221

Cash & Equiv.

Accounts Rceivable

Advance Payments

Hedge Related

Inventories

2,490

1,999

2,880

12,796

778

1,085

3,814

2,405

6,916

579

1,255

5,449

1,638

3,370

607

1,289

4,078

1,675

2,592

540

1,163

5,091

1,501

2,064

699

-126

1,013

-174

-528

159

Total Liabilities 23,760 17,347 14,718 11,770 11,352 -418

Advance Receipts

Debts

Hedge Related

8,632

158

12,518

5,658

2,780

6,817

5,431

2,838

3,578

5,602

1,784

2,452

3,967

3,193

1,458

-1,635

1,409

- 994

Total Equity 2,324 2,841 4,132 4,644 5,283 639

Paid in Capital

Treasury Shares

1,154

-674

1,154

-671

1,154

-662

1,154

-661

1,154

-661

-

-

Total Liab. & Equity 26,084 20,188 18,850 16,414 16,635 221

※ 2010~2012, K-IFRS Consolidated Basis

9

■ Business Overview ■ Business Area

※ As of Apr 30, 2012

Revenue and Profit

Order Backlog

Tril KRW

Building & Housing

70%

Civil & Plant

30%

(KRWb)

E&I(Energy&Infra Solution) Division

(%)

-4

-2

0

2

4

6

8

10

0

200

400

600

800

1000

1200

2006 2007 2008 2009 2010 2011 2012

Revenue OPM

Road Building

Incineration Plant Waste Treatment Plant

Wind Power Structure Energy Plant

10

· Global New Orders

· Major Market Situation

- Commercial Vessel Market

- Offshore Market

※ Major Products of SHI : Container Ship, LNG Carrier, Drillship and FPSO (clockwise from upper left)

Global Market

-

20

40

60

80

100

120

140

160

180

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13.Mar

LNG Carrier

Containership

Tanker

Bulker

Other

11

(Mil. GT)

46

35

77 74 69

116

177

111

30

AVG : 36

30 31

AVG : 73

AVG : 135

Increasing sea trade volume coupled with Chinese effect had lead huge orders during 2003~2008.

After sharp decrease in 2009, new orders has been normalized at around 50mil. GT in average.

While the commercial vessel market has been struggling, orders for specialized vessels

such as Drillship and LNG Carriers have been stable.

76

50

Historical Orders by Ship Type and Country

Korea

China

Japan

Global New Orders

34

13

AVG : 53

13 11

11

10

4

-9

12

8

4 6

7 8

9 10

13

17

14 13

6

10 11 10

4

1

-10

-5

0

5

10

15

20 Trade Growth

Fleet Growth

1,660 1,670 1,740

3,240

1,170

90

580

1,780

450 300

-

500

1,000

1,500

2,000

2,500

3,000

3,500

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13.Apr '14E '15E

New Orders

Commercial Vessel : A Gradual Recovery

12

Container Ship: Rebound in 2013 Source: Clarkson

Recovery

(,000 TEU) (%)

* Trade Growth (‘13~): Clarksons Forecast, Fleet Growth(‘13~): Current Fleet + Annual Supply – Annual Scrapping in Avg.

0

50

100

150

200

250

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 0

20

40

60

80

100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

0

20

40

60

80

100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Recovery Recovery Recovery

(Mil. DWT) (Mil. DWT) (Mil. DWT)

* Supply: Current Fleet + Annual Delivery of Backlog – Annual Demolition in Avg. , Demand: Trading

Tankers: Slow Recovery by sizes

Supply

Demand Supply

Demand

Supply

Demand

< A-Max > < VLCC > < S-Max>

0

50

100

150

200

250

Korea Japan China

203

67

14

73

5 9

Delivery ('96 ~ '13.Apr)

Orderbook

LNG Demand & LNGC Fleet Forecast

13

Energy Consumption & LNG Trading

Source: BP

(Mil. Ton)

2.4 Bil. Ton Consumption)

Pipeline

510 (68%) Trading

753

(Mil.Ton, ’11)

LNG

243(32%)

Source: BP, Andy Flower, SHI

Economical

Eco-

Friendly

LNGC Global M/S (Orderbook)

(Unit)

84%

6% 10%

Source: SHI

LNG Carriers : Solid Demand

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

Oil (34%)

Natural Gas (24%)

Coal (30%)

Hydro Electricity(7%)

Nuclear (5%)

100 110

130 154

165

221

248 279

316

359

410

128 139 176

223

299

363

372 446

521

601

681

-

100

200

300

400

500

600

700

800

-

50

100

150

200

250

300

350

400

450

'00 '02 '04 '06 '08 '10 '12 '14F '16F '18F '20F

LNG Demand

LNG Fleets

(Mil.Ton) (Units)

14

LNG Production & Supply Chain

LNG Derivatives : Convergence of Technology & Business

15

LNG FPSO

Amount 5 Bil $/ vessel

(subject to change)

Target Field Prelude (Australia)

Capacity 3.5 mtpa

Storage 450k cbm

Why LNG FPSO?

CAPEX Forecast for FLNG

Source: FLEX LNG

Natural gas

Pretreatment

Liquefaction

Shell’s 1st LNG FPSO Project

LNG FPSO

Less CAPEX

[25%]

Mobility

[Easily Relocate]

Traditional Onland Plant

+

LNG FPSO Market – New Business Opportunity

0

3

6

9

12

15

18

21

'10 '11 '12 '13(E) '14(E) '15(E) '16(E) '17(E) '18(E) '19(E) '20(E)

(US$b)

* Construction started in 2012.Oct.

Offshore Market – Why Deep Water?

Supply Increase in Deep Water

1930 1950 1972 1993 2007 2014 2030

Global Oil Supply 1930~2030 (Mil Barrels oil/d)

Conventional Onshore

Deep Water

Shallow Water

Oil Sands

<Deep Water Supply Ratio>

‘00 ‘10 ’25(E)

2% 8.5% 13%

0

5

10

15

20

25

30

35

2000 2005 2010 2015F 2020F 2025F 2030F

shallow water

(mil. barrels oil/d) (mil. barrels oil/d)

16

14

12

10

8

6

4

2

0

Source: Douglas Westwood, 2011.May

Global CAPEX for Deep Water

Global Oil Price Forecast

($/Barrel)

(110~160)

(90~110)

(70~90)

Source: EIA 16

Source: Douglas Westwood, Energyfiles

Shallow water

Deep water

-

20

40

60

80

100

120

140

160

2006 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F

(US$b)

* Drilling, Prodution, Subsea included

Korea Singapore China Others

Drillship

Semi Sub

Jack-up

9 15

19

2 6

33 34

1

19 12

10

3

4

12

0

10

20

30

40

50

'06 '07 '08 '09 '10 '11 '12 '13.Apr

Semi-sub

Drillship

17

Jack-Up

Drillship

Semi-Submersible

Rig Types

Deep

Wate

r S

hallo

w W

ate

r

Order History & M/S by country

Jack-Up

20%

Drillship

49% Semi-Sub

31%

※ 2005~2012.3, Floating Rig, value based (Source : RS Platou, SHI)

(50%) (30%) (11%) (9%)

110US$b

Order

Deep Water Rig Order

Drilling Rig – Drillship is the Main Stream

(Unit)

1 (7) (15)

(6) Orders in Brazil

Korea Singapore China Japan Others

Barge TLP

Semi FPSO

18

FPU

FPSO

Fixed Platform

Facility Types

Deep

Wa

ter

Sh

allo

w W

ate

r

FPSO 64%

Semi 17%

TLP 13%

Barge 7%

※ 1996~2012.3, Floating Facility, number based (Source: IMA, Clarkson)

154 Units

Order

(44%) (28%) (2%) (14%) (12%)

Order History & M/S by country

Production Facility – Following the Rigs

Order Forecast for Deep Water Production Facility

Source: Douglas Westwood, 2012.Dec

2013(F) 2014(F) 2015(F) 2016(F) 2017(F)

Demand (*) 31 20 12 22 24

Order Forecast 15 10 6 11 12

Amount(US$b) 16 14 8 16 17

*: New Construction 50%, Conversion 50%

(Unit)

19

· Technological Leadership

· Green Future

· Vision & Growth Strategy

· Appendix

Future Strategy

※ Sakhalin Fixed Platform built by SHI

20

Growing environmental awareness is creating eco-friendly product markets.

Innovative technology and shrinking oil reserves are triggering new arctic oil production era.

Increasing demand for new products provides SHI with new business opportunities.

Ice Drillship Icebreaking Tanker Ice Container Ship

Technological Leadership

LNG FSRU LNG FPSO LNG Fuelled Vessel

21

Green Future – A chance for Better Marketing

* ‘90~’00 Avg: $90/Ton Technological Development

* Hull Design & Structure

*Energy Saving Devices

Propeller Rudder Saver-Fin

- Beyond the EEDI requirements

- improved fuel efficiency by 10% ~ 22%

- For both commercial & special vessels

Samsung “ GF ” launched in 2011

* A new brand to differentiate the technologies that

SHI provides

* More marketing chances in fuel-saving oriented

market * Fuel efficiency 17% improved “GF” Drillship for Ensco

22

Vision 2020

Vision

Objectives

Business

Stream

Revenue : 31 Tril. KRW OP margin : ↑ 10%

Stable Growth Growth Engine

GLOBAL LEADER of OCEAN & POWER in 2020

Reinforcing Shipbuilding & Offshore business and expanding Heavy Electric Machinery business

to consolidate future growth

<LNG

FPSO>

<LNG Fuelled Vessel>

<Electricity Powered Vessel>

<Floaters>

<Subsea Plants>

<Offshore Wind Power >

<Converter, Inverter etc.>

Seeds for Future

Growth Strategy

Shipbuilding

Business Structure in 2020

Shipbuilding

(20%) Heavy Electric

Machinery

(30%)

Offshore

(50%)

Revenue

31 Tril. KRW

High End & Specialized Vessels with Eco-Friendly

and Innovative Technologies

Optimized Global Production System

Shipbuilding Business

Improvement of Offshore Engineering abilities

Diversification related with Offshore Business (Subsea Etc.)

Offshore Business

Offshore Wind Power Business

Converter, Inverter Etc.

Automated Robots for special purposes

Heavy Electric Machinery Business

23

Subsea Plants

24

Global production and engineering bases enable SHI to meet various needs of customers.

Block Factories

in China

Ningbo (Since 1997) – 250,000 tons in 2010

Rongcheng (Since 2007) – 300,000 tons in 2010

Offshore

Engineering Centers

Houston – ASOG (The J/V with AMEC)

India(Noida) – Basic Design Center

Appendix – Global Network

Oslo

London

Athens

Tokyo

Koje

Shipyard

Dubai

Rongcheng

Ningbo

Singapore

Houston

Malaysia

Houston

India (Noida)

Moscow

Brazil

Lagos

Shanghai

Shipyard

Block Factory

Engineering Center

Branch Office

25

■ Site 4.0million ㎡

■ Quay Wall Length: 7.9Km

Berthing Capacity: 24vessels

■ Dock 1 Dock : 283m x 46m

2 Dock : 390m x 65m

3 Dock : 640m x 98m

G1 Dock: 270m x 52m

G2 Dock: 400m x 55m

G3 Dock: 400m x 70m

G4 Dock: 420m x 70m

G5 Dock: 158m x 150m (only for Offshore)

Offshore Facilities

Dry Dock No.2

Floating Dock 3

Dry Dock No.3

Floating Dock 2

Floating Dock 4

Main Building

Dry Dock No. 1

Floating Crane

3,000 ton

3,600 ton

8,000 ton

ShinHanne Factory

Floating Dock 1

Appendix - Shipyard View

Floating Dock 5

26

This presentation has been prepared by Samsung Heavy Industries Co., Ltd. and

contains forward-looking statements, that are subject to risks, uncertainties, and

assumptions. The presentation is solely for your information, subject to change

without notice, and makes no representation or warranty, expressed or implied and no

reliability should be placed on the accuracy, fairness, or completeness of the information

presented herein. The Company, its affiliates or representatives accept no liability for

any losses arising from any information contained in the presentation.

The contents of this presentation may not be reproduced, redistributed or circulated,

directly or indirectly, to any other person or organization, or published, in whole or in

part, for any purpose.

Disclaimer