Daewoo International Corporation. February 2015

Transcription

1 Daewoo International Corporation February 2015

2 Contents I. II. [Annex] Company Profile Oil & Gas Projects Earning Results (Consolidated) This presentation may contain forward-looking statements. Statements that are not historical facts, including statements about our belief and expectations, are forward-looking statements. Actual results may differ materially from those expressed or implied by these forward-looking statements.

3 Part Ⅰ. Company Profile 3-year Profit & Loss Shareholder Structure / Dividend Policy Key Business & Action Plan Profit Structure Steel Business with POSCO Key Project SNAM

4 3-year Profit & Loss (Wt) 20.0 Sales OP(margin) (1.8%) 3,761 (W 0.1b) 4, (0.8%) 1,397 (0.9%) 1,589 3,000 2, ,000 0 Stock & Oil Price Copper KRW/USD 45,000 40,000 35,000 30,000 DWI DWI 주가 Stock ( 원 ) Price (W) Dubai Oil 두바이유 (U$/bbl) Price (U$/bbl) , ,360 (U$/ton) , ,090 25, ,300 1,

5 Shareholder Structure / Dividend Policy Shareholder Structure Individuals 10.5% ( ) Dividend Policy Dividend Policy History Foreigners 13.3% Dividend per share 200 won 300 won 300 won 500 won Domestic Institutions 7.1% NPS 8.8% POSCO 60.3% * Total Outstanding Shares : 113,876,291 Total Dividend W20.6b W34.2b W34.2b W56.9b Net Profit W160.1b W306b* W132.5b W173.4b Payout Ratio 13% 11% 25% 32.8% Pricedividend Yield 0.7% 0.8% 0.8% 1.6% Major Shareholders Shareholder 2013(%) 2014(%) Variation POSCO NPS % Fidelity % Franklin Templeton % SAMA % GIC % * Adjusted figures excluding Kyobo shares disposal gain : 12 Net Profit W114.6b / Payout Ratio 29.8% Dividend Policy of Key Groups ( 13) Listed Companies (KSE) Distribution Industry POSCO Payout Ratio 38.13% 18.97% 46.00% Price-dividend Yield 1.81% 1.14% 2.45% 5

6 Key Business & Action Plan Establishment of Stable Business Portfolio for Sustainable growth Key Business Export, Triangular trade Key Items : Industrial Materials including Steel, Steel Raw Materials, Nonferrous Metal, Chemicals, Auto Parts, etc. Exploration and Production Ongoing PJT (Total: 19) - Oil / Gas (9) - Mineral/Agro Resources (10) PJT Developer, Organizer Equipment Supply & Operation Key Industry: Plant, Power/IPP, Communication, Ships, SOC(Road, Rail, Bridge, etc.) Real Estate, Logistics, etc. Development of new strategic Biz. (Strengthening of trading synergy) Action Plan 6

7 Profit Structure Int l trading centered, Profit increase in Resource Dev. through ramp-up of Myanmar Gas Field Sales 14 IFRS Parent Only Pre-tax Profit 14 IFRS Parent Only Others 24% [ Geographical Breakdown ] Domestic 8% [ Breakdown in Industry ] Infra 8% Resource Dev. 3% [ Breakdown in Industry ] Infra 3% Trading 19% North America 7% China 22% Asia (Excl. China) 39% Trading 89% Resource Dev. 78% [Overseas Network] [ Breakdown in Item ] [ Breakdown in Items ] (Wt) (Wb) Asia China Europe MENA Africa S.America N.America CIS Japan Steel Commo -dity Chemi -cal Infra Resource Dev. Commodity : Auto-parts/Chemicals/Minerals/ Industrial Electronics/Agro-resources/Steel Raw Materials/Non-ferrous metal Resources Dev. : Energy Steel Commo -dity Infra Chemical Resource Dev. Significant ratio increase in Resource Development(78%) - Resource Dev. ratio in pretax 20% ( 12) 40% ( 13) 78% ( 14) 7 Infra/New Biz. : Machinery&Plant/Power Infra/Etc. Excluded Department Store/Management Dept.

8 [Ref.] Mitsubishi Corp. - Change in Profit Structure Changed to balanced portfolio from trading oriented Business - Decrease in Trading ratio : 90% 25%, Establishment of stable profit structure [ Change in Biz. & Profit Structure of Mitsubishi ] Net Profit Trading Centered Leap in Resource Dev. Profit Balancing of Profit Structure (Billion Yen) 500 Others Others Trading (30%) New Biz. (30%) Trading (25%) Trading (90%) Resource Dev. (60%) Resource Dev. (45%) (100B Yen / 00) (450B Yen / 07) (450B Yen / 13) Efforts on innovating Biz. Model (Reduction of Trading, Strengthening of Resource Dev.) Price leap in Resources Balanced Biz. Structure (Strengthening of New Biz. including infra, etc.) - Establishment of Finance Group ( 07) - Expansion of Infra Division ( 10) '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 8

9 [Ref.] Steel Business with POSCO Joint Venture (Steel Biz) with POSCO (December 2014) Turkey POSCO ASSAN TST Steel Industry Slovenia POSCO-ESDC Malaysia POSCO Malaysia SDN Indonesia POSCO-IJPC Mexico POSCO-MPPC United States POSCO-AAPC Brazil POSCO-BSPC DWIC Sales portion in POSCO Steel Sales and Exports (Unit : mnmt) POSCO Sales POSCO Export 11.1 (35%) 13.3 (39%) 14.6 (42%) 14.5 (43%) 15.9 (47%) DWIC 2.3 (21%) 3.3 (25%) 4.2 (29%) 4.0 (28%) 4.6 (29%) DWIC Sales of POSCO Steel Products (Unit : mnmt / tn KRW) Volume Sales Volume Sales Volume Sales Volume Sales Volume Sales Hot Rolled Products Cold Rolled Products Special Steel Products Total Volume of DWIC sales : POSCO s domestic product sales volume + POSCO s oversea product sales volume(excluded processing mill)

10 Key Project - SNAM Enhancement of Project Capability & POSCO Synergy Creation (1) Purpose : Development of Saudi s independent Auto model & Factory construction (2) PJT Period : 14.11~ 18.9 (1 ST phase : Before production) (3) PJT Size : Total U$1B (Equity : Debt = 4 : 6) - Equity Structure : PIF 35% / SNAM 50% / (4) Production Plan DWI 15% (U$60M) - Model : D-Segment Car & SUV - Prod. Quantity (Annual) : 20,000( 18) 115,000( 22) (5) PJT Status Project Summary Step Ⅰ : Model Car Production, Component Sourcing Step Ⅱ : Component Development, Proto Production & Test, Manufacture of Production Line Step Ⅲ : Factory Completion, Production Line supply & Installation H : Framework Agreement signed (Contracting parties : PIF-SNAM-DWI) H : Main contract signing - Supply of Machinery/Equipment(M&E) (Sales(E) U$850M) - Supply of Automotive Components(K/D) (Expected Sales : U$200M~600M, Quantity : 20,000~150,000) - POSCO Family Synergy CES Global New Car Development CES Global Expected Synergy DWI Machinery & Equipment Engineering & M&E Company Auto Materials& Commodity Makers Order POSCO Family Synergy JV Co. (SNAM/PIF/DWI) Commodity /Component Development Construction of Factory POSCO Engineering 10

11 Part Ⅱ. Oil /Gas Development Oil & Gas Development Schedule Myanmar Gas Field Korea Offshore Block Myanmar Offshore Block

12 Oil & Gas Development Schedule Profit maximization through tight management of production PJTs including Myanmar Gas Field Early entry into production through successful development of Korea offshore Status Block Equity ~ ~ Production A-1/A-3 51%(Operator) Start of Production (6/22) Ramp-up Completion (12/1) Develop -ment Korea offshore block 6-1C (Central) 30% Equity Investment Production (E) Korea offshore block 6-1S (South) 70%(Operator) Exploration (Evaluation drilling) Production (E) Exploration Myanmar offshore block AD-7 A-1/A-3 (Additional) 60%(Operator) 51%(Operator) 3D Seismic Wave Exploration 3D Seismic Wave Exploration Exploration Well Drilling(E) Exploration Well Drilling(E) Korea offshore block 6-1S (Additional) 70%(Operator) 3D Seismic Wave Exploration Exploration Well Drilling(E)

13 Myanmar Gas Field - Overview Successful ramp-up, Entered stable Production Operation stage Initial Gas Production (22 Jun) Initial Gas Sales (15 Jul) * CDD (11/23) (Contractual Delivery Date) Target Production Reached (12/1) Test run of facilities / Gas production Gas Supply / Co-trial run of facilities Build-up Period Plateau Time Overview ㅇ Myanmar Offshore Blocks : A-1 / A-3 ㅇ Certified Reserve : 4TCF * 4TCF : Equivalent to 0.7 billion barrel / 80 million ton of LNG Equivalent to the domestic consumption of natural gas for 3 years ㅇ Contract Type : Production Sharing Contract (PSC) ㅇ Exploration : Discovery of Shwe gas field (Jan 2004) Discovery of Shwe Phyu gas field (Mar 2005) Discovery of Mya gas field (Jan 2006) ㅇ Parties : Daewoo International 51% (Operator) OVL 17%, MOGE 15%, KOGAS 8.5%, GAIL 8.5% * OVL : Oil and Natural Gas Corporation Videsh Ltd. (India) MOGE : Myanma Oil and Gas Enterprise / GAIL : Gas Authority of India Ltd, ㅇ Investment plan - Total Investment : U$4.3bn - Total Investment of DWIC : U$1.7bn (Excluded U$ 0.3bn exploration cost in A-1/A-3) Investment Plan (U$1.7bn) 09~ 14 U$ 1.5bn 15~ U$ 0.2bn GSPA (Gas Sales & Purchase Agreement) 1. Signing Date : 24 Dec Initial Gas Sales Date : 15 Jul Contract Parties - Seller : DWIC / OVL / MOGE / GAIL / KOGAS - Buyer : CNUOC / MOGE * CNPC (China National Petroleum Corporation) CNUOC (China National United Oil Corporation, CNPC Subsidiary) 4. Main Contents 1) Supply Period : 30 years 2) Supply object : Gas from Shwe, Shwe phyu and Mya 3) Supply amount : 500MMscf/day 4) Gas sales price : Floating with International oil price & Inflation index (U.S. CPI/PPI) Reached Daily Production Target (500 million ft 3 ) - Ramp-up completed with Shwe Gas Field Production Drilling - Plateau Period : Approximately 20yrs 13

14 Myanmar Gas Project - Development Concept Myanmar Gas Project is composed with Three Businesses; Gas Production, Offshore Transportation and Onshore Transportation in Myanmar. Upstream (Gas Production) Offshore Midstream (Transportation) Onshore Midstream (Transportation) Chinese Onshore Pipeline Scope Production Platform (Shwe) Seabed Production Facility (Mya N.) 14 Pipeline 32 Offshore Pipeline (Platform~OGT) Onshore Gas Terminal (OGT) 40 Onshore Pipeline (OGT~ Myanmar/Chinese Border) 40 Onshore Pipeline (Ruili ~ Guigang) Overall Field Bangladesh Myanmar Ruili Vietnam Kunming Guigang Laos Form of Biz. Consortium Joint Venture (South-East Asia Gas Pipeline) Unilateral Operation (CNPC) Parties Length Daewoo International 51%(Operator) 13km (Mya North Shwe Platform) OVL 17% / GAIL 8.5% KOGAS 8.5% / MOGE 15% CNPC 50.9%(Major shareholder) Daewoo Int l 25.04% OVL 8.35% / GAIL 4.17% KOGAS 4.17% / MOGE 7.36% CNPC 100% 110km 793km 1,726km (Excluded branch line, Length between Gas Fields and Myanmar/Chinese Border : About 900km 858km) 14

15 Korea Offshore Block Synergy Maximization with 6-1S by Equity Investment in Development Block (6-1C) N Korea Offshore 6-1C (Central) Block 15 Busan 부산 포항 Pohang Ulsan 울산 6-1S 남부 6-1중부6-1C 석유공사 (100%) DWI (30%) KNOC (70%) 대우인터내셔널 Daewoo Int l (70%,Operator) 운영권자 ) 석유공사 KNOC (30%) 8/6-1 8/6-1N 북부 석유공사 KNOC (50%) 우드사이드 Woodside (50%) (50%) 6-1E 동부 석유공사 KNOC (100%) (100%) 동해Donghae-1 가스전 Gas Well 고래 Gorae D 가스 D spot 발견지역 (Gas Discovered) 0 20km 40km - Equity Structure : DWI(30%), KNOC(70% Operator) - Investment(E) : U$ 64.8M - Progress : Start of Development : Agreement signed on Equity Investment. 16.2H : Start of Production(E) Korea Offshore 6-1S (South) Block - Equity Structure : DWI(70% operator), KNOC(30%) - Progress : Signed Concession Agreement & Joint Operation Agreement (The first private entity to have acquired the operator status of Gas Block Development in Korea) : Acquired 3D Seismic Wave Exploration Data (Area of 170 km 2 ) : Evaluation Drilling & Drill stem test completed (Gorae D Structure). 15 ~ 16 : Start of Development. 17 ~ 18 : Start of Production(E)

16 Myanmar Offshore Block Exploration on potential structure based on past experience A-1 Shwe Phyu Sittwe 70 km A-1/A-3 Block - Equity Structure Shwe Mya A km Kyauk Phuy Ramree Island : DWI(51% Operator, equivalent to existing block) - Status : Started 3D Seismic Wave Exploration in Analyzing undrilled high potential structure Planning exploration well drilling based on the analysis AD-7 Block - Location : Myanmar Northwest Offshore (Adjacent to western part of Block A-1) - Equity Structure : DWI(60% Operator), Woodside(40%) - Status : Woodside investment / Joint Operation Agreement : 3D Seismic data processed / Potential analysis. 15 : Decision on evaluation well drilling & Entry into extended exploration period Drilling location is to be decided after analyzing potential structure and economic feasibility (Depth 1,500m) Diversified risk & cost through joint PJT with Woodside 16

17 Consolidated Results Profit & Loss F/X Profit & Loss Financial Position [Annex] Summary of Income Statement [Annex] Summary of Financial Position This presentation may contain forward-looking statements. Statements that are not historical facts, including statements about our belief and expectations, are forward-looking statements. Actual results may differ materially from those expressed or implied by these forward-looking statements.

18 Profit & Loss (K-IFRS Consolidated) Sales OP 5, % 63.9 PP OP Margin 4, % , % , % 32.6 (Wb) 5, % Q 14.1Q 14.2Q 14.3Q 14.4Q Operating Profit (OP) 18 Pre-tax Profit (PP) [Key P&L items, Wb] 4Q13 1Q14 2Q14 3Q14 4Q14 Parent E&P (Oil&Gas) Only 1) Trading & others Consolidated Subsidiaries Hanjung Power PNG Power Plant (Consolidated in Q1) E&P Canada F/X Profit & Loss Interest Income & Expense Investment Myanmar Onshore Midstream in (SEAGP, 25%) Associates Korea LNG (20%) One-off Expense 2) ) OP (Parent Only) : Figures may differ from audit report as management SG & A are allocated to each division on OP ratio basis 2) One-off Cost : 1 Env. law passed regarding strengthened recovery obligation of Peru block 8 2 Reflected future loss on asset held for disposal (Daewoo Dept. Store) Key Variables (KRW, U$/bbl) USD/KRW (Avg. : Year-End) 1,095 : 1,055 1,069 : 1,069 1,050 : 1,014 1,033 : 1,050 1,053 : 1,099 Dubai (Avg. : Year-End) 106 : : : : : 53.6

19 F/X Profit & Loss Myanmar Gas Field (K-IFRS Consolidated) Quarterly F/X related P&L variations Financial Statement (USD 0.1b) Quarterly P&L ( 13 year-end exchange rate : 1,055.30, Wb) Foreign Currency Asset 7.5 Net Cash from Myanmar Gas Field ( 15.E) 3.9 Myanmar Gas Field Position 2.0 Foreign Currency Debt 13.4 <Expected position of Myanmar Gas Field 15 year-end> Effect of F/X fluctuation 1Q14 2Q14 3Q14 4Q14 Exchange Rate 1,069 1,014 1,050 1,099 F/X P&L Classification Aggregate Intangible Asset : Non-monetary item, not subject to foreign currency translation Foreign currency translation P&L occurs at quarter-end Net cash is expected to grow continually Mining right for Myanmar Gas Field is recognized by amortization Inevitable distortion occurs due to non-translation of foreign currency for intangible asset Rise in exchange rate is reflected as increase in sales, offsetting foreign currency translation loss 19

20 Financial Position (K-IFRS Consolidated) Asset Liabilities & Equities (Wb) Debt/Equity Ratio (Wb) 8, , % 6, , % 6, , Q 14.4Q 13.4Q 14.4Q Current Asset -Trade Receivables Variation Cause 4, , ,019.7 YoY 22% increase 3, , Inventories , Increase in sales volume (YoY 19% increase in sales) Current Liabilities - Trade Payable Variation Cause 4, , YoY 20% increase 1, , Non-current Asset - Investment in Associates -Intangible Asset (Exploration & evaluation, Development Assets, Mining Rights) 3, , YoY 20% increase , , Increase in intangible asset - Myanmar Upstream Korea Offshore Block, etc Short-term borrowings Non- Current Liabilities 2, Increase in negotiation borrowings due to increase in sales +1, , , YoY 1.4% increase Equities 2, , YoY 6.5% increase Increase in NP

21 Summary of Income Statement (K-IFRS Consolidated) Classification (Wb) Sales 17, , ,407.8 Operating Profit (OP margin) (0.81%) (0.93%) (1.84%) Profit of Associates Finance Item Gains Interest Income & Expense Foreign Currency Transaction & Transaction Gains Other Operating P&L Pre-tax Profit from Continuing Operations (PP Margin) (1.61%) (1.04%) (1.41%) Continued Operating Profit Discontinued Operating Profit Net Profit (NP Margin) (1.24%) (0.78%) (0.86%) * Discontinued operating profit and loss classification( 11~ 13) : Shandong Cement, Busan factory, Etc. 21

22 Summary of Financial Position (K-IFRS Consolidated) Classification (Wb) Variation(YoY) Current Assets 4, , , ,019.7 Cash equivalents & ST financial inst Trade receivables 2, , , Inventories , Non-Current Assets 3, , , Other non-current financial assets Investments in associates PPE & Investment Property Intangible assets (Exploration & evaluation, Development assets, Mining rights) 1, , , Total Assets 7, , , ,072.3 Current Liabilities 3, , , Trade payable 1, , , ST Borrowings (Trade loan etc.) 2, , , Current Portion of Bonds Payables Non-Current Liabilities 1, , , Long-Term borrowings Corporate Bonds Total Liabilities 5, , , Equities 2, , , * Debt/Equity Ratio 241.0% 270.7% 293.2% 22.5%p

23 Thank you!