Useful Objects Text Gdfgg Text. 1 STICKER AND OTHERS EXAMPLEESTIMATEBACK UPPROPOSEDCONCEPTUALTENTATIVEPRELIMINARYROUGH ESTIMATEHYPOTHESISILLUSTRATIVETO.

Useful Objects

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STICKER AND OTHERS

EXAMPLE

ESTIMATE

BACK UP

PROPOSED

CONCEPTUAL

TENTATIVE

PRELIMINARY

ROUGH ESTIMATE

HYPOTHESIS

ILLUSTRATIVE

TO BE COMPLETED

CONFIDENTIAL

ONLY FOR DISCUSSION

REVISED

VERY PRELIMINARY

HighMediumLow

EXAMPLE

ESTIMATE

BACK UP

PROPOSED

CONCEPTUAL

TENTATIVE

PRELIMINARY

ROUGH ESTIMATE

HYPOTHESIS

ILLUSTRATIVE

TO BE COMPLETED

CONFIDENTIAL

ONLY FOR DISCUSSION

REVISED

VERY PRELIMINARY

PRELIMINARY

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USEFUL OBJECTS

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USEFUL OBJECTS

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USEFUL OBJECTS

Horizon 1Extend and defend core business

Horizon 2Build emerging businesses

Horizon 3Create vehicle options

1-2 4-6 8-10

L M H

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M

H

Impact on ROE

Implementation

High

Low

High Low

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2

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Header Header Header Header

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Header Header

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erformanceerformancetructuretructure onductonduct

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External shock

S C P

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PRELIMINARY

Attractive

Unattractive

Legend

Legend

Legend

1

2

3

4

5

6.1 point increase in ROIC

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User applications

Personalization

Middleware services

Transaction support

Enabling services

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Management tasks for company-wide and BU level

Establishing task priorities and action plan

Providing methodologies for strategy establishment

Project scope

Project purpose

Through the analysis of environment and diagnosis of

company-wide management, management tasks will be

produced to strengthen the competitiveness of SK E&C, thereby

proposing the roadmap for the implementation.

*Footnote

Source: Source

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Review CRM efforts to date1

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PROCESS GOING FORWARD FOR K2 DEAL

VALUATION AND SYNERGY ESTIMATION• Refine base scenario• Review base scenario with Kronus working level

team• Build multiple scenarios and conduct sensitivity

analysis for negotiation• Review valuation and synergy estimates

scenarios with Kronus working level team• Refine valuation and synergy estimates

scenarios

DEAL STRUCTURE OPTIONSDEVELOPMENT• Refine deal structure options• Conduct quick legal review• Review the options with Kronus leadership team• Refine the options

NEGOTIATION GAME PLAN DEVELOPMENT• Develop game plan draft• Review and refine game plan

TERM SHEET DEVELOPMENT• Write term sheet draft• Conduct legal review• Finalize term sheet

PHASE 1 PROGRESS REVIEW

START NEGOTIATION

5432

April

29282726 3022212019 2315141312 616

March

CEO Chairman

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New business opportunity

Human resource management

Intangible building (knowledge, network, brand)

Operational & financial efficiency enhancement

To improve quality of life

Corporate value maximization through selection and concentration

Sound cashflow, operation management business network, good reputation & culture

*Footnote

Source: Source

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EVALUATION OF CANDIDATES FOR MEGA-MERGER

Hankook Huvis

Hyosung

Hyosung or Huvis

VERY PRELIMINARY

1st screening 2nd screening

Attractiveness

• R&D/specialized products

• Synergies*

Feasibility

• Willingness of the other party

Hankook Huvis Hyosung

Market share

*Includes group-level synergy

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STRONG CEO BENCH 를 위한 주요 구성요소 – BEST PRACTICE

Top management commitment

Performance ethicsCapability development

Capability assessment Upgrading talent pool

• Top management 가 People development 에 쏟는 시간 및 열정

• CEO 의 People development 에 대한 Skill 및 Will

• 명확하고 일관성 있는 Performance ethics 에 대한 전사 차원의 공유

• Performance ethics 를 실제 평가 , 보상 시스템상에 반영

• Job rotation 을 통한 Capability development

• Coaching 및 Training 등을 통한 Capability development

• 객관적이고 공정한 평가 기준을 통한 규칙적 Capability assessment

• Capability assessment 에 대한 규칙적이고 치밀한 Review

• “A player” 를 Attract, retain 할 수 있는 Value proposition

• 외부 인사 영입을 포함한 적극적인 “ A player” 들의 영입

• “C player” 의 지속적 퇴출

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Pump configuration• 2 active• 1 redundant

Pump capacity : 150/pumpPump cost : 133/pump

Total capacity :3pumps 150= 450Total cost :3pumps 133= ~400

Benefits in reduced total cost– Lower total weight – Lower transport cost – Smaller building for pimping

station– Simplified piping – Fewer valves– Simplified cabling– Larger hoist (increased cost*)

Potential 3 pump designCurrent 4 pump design

Pump configuration• 2 active• 1 standby (for peak usage

of 300)• 1 redundant

Pump capacity : 100/pumpPump cost : 100/pump

Total capacity :4pumps 100=400Total cost :4pumps 100=400

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SUMMARY OF CRM ACTIVITIES TO DATE

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Key activities

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Key end products

Quality gate 1: Project selection & development

Quality gate 2: Cost estimation & proposal development

Quality gate 3: Contract and negotiation

Marketing/Sales process

Quality gate 4: Preparation for execution

Quality gate 5: Project execution

E P C

Quality gate 6: Project closing

Execution process

Contract

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Project/risk management team

ReportingRisk management/Quality gates

Risk fightingKnowledge/ HR

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0

100

200

300

400

500

600

700

0 50 100 150 200 250

TitleUnit of measure

Label 1

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0

0

0

0

0

0

0

0

0

0

0

0

0

0

+65

-1.0

+4.4

-0.1

+43

-24

+4.4

-3.4

+25.4

-3.3

+148.2

-25.7

+181.5

-57.5

+43.1

-5.4

0

-2.6

+18.8

-9.2

+0.2

-0.5

+33.2

-1.2

+20.4

-79.1

+115.7

-98

+9.4

-6.3

+5.1

-2.9

+5.9

-9.9

+1.7

-0.5

+3.0

-2.5

0

-74.4

+25.1

-96.5

+48.5

-11.3

0

-9.8

+16.9

-24.1

+0.3

-0.9

+4.7

-12.9

148.2

-31.7

+218.6

-90.7

0

Urgent issues(Phase one)

DHI PRM

4.9%ROIC 매출손실 100 억원

• 총 96 개의 프로젝트중 16 개의 프로젝트에서 100 억원의 매출 손실이 발생하였음

• 그 중 4 개의 프로젝트에서 79억원의 손실이 발생 :– Formosa (40 억 )– Jana Manjung (19

억 )– 부산 복합화력 (15

억 )– Corpus Christi (5

억 )

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Hot spots

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MAPS