Doosan Fact Book

Page 1

2008 Doosan Fact Book


Contents

Doosan Group

04_ 17 06 07 08 09

2007 Snapshot Business Portfolio Major Strategies Acquisitions of New Growth Engine

10 Fast & Profitable Growth 13 Global Market Position 14 Successful Business Portfolio Change

15 Vision & Strategy 16 2G Strategy 17 Doosan’s Aspiration


Doosan Corporation

Doosan Heavy Industries & Construction

Doosan Infracore

18_ 23

24_ 31

32_ 41

20 2007 Snapshot 21 Overview 22 Our Businesses

26 27 30 31

34 2007 Snapshot 35 Our Businesses 39 DII

Doosan Construction & Engineering

Doosan Engine

Doosan Mecatec

42_ 44

45_ 47

48_ 51

43 2007 Snapshot 44 Our Businesses

46 2007 Snapshot 47 Our Businesses

49 2007 Snapshot 50 Our Businesses

Doosan Capital

Consumer & Service

Appendix

52_ 56

57_ 59

60_ 64

53 2007 Snapshot 54 Our Businesses

58 Our Businesses

62 Global Network 64 Contact Information

2007 Snapshot Our Businesses Research & Development Network

40 Research & Development 41 Network


Doosan Group Global Expansion that Extends our Reach

Growth and an eye toward the future have been at the heart of Doosan since our beginning Seoul, Korea in 1896. Over the past 112 years we have achieved many milestones, from being Korea’s first modern store to gaining prominence in the global Infrastructure Support Business (ISB) today. Our organization now builds industrial plants, machinery and equipment ; develops infrastructure; produces consumer goods and provides various services. Wherever you may encounter us, you’ll hear the sound of progress, see the results of our people, and feel the rhythm of transformation in everything we do.


Contents 06 07 08 09 10 13 14 15 16 17

2007 Snapshot Doosan Business Portfolio Major Strategies Acquisitions of New Growth Engine Fast & Profitable Growth Global Market Position Successful Business Portfolio Change Doosan’s Vision & Strategy Globalization Strategy Doosan’s Aspiration


Doosan Group

2007 SNAPSHOT KEY FACTS OF DOOSAN GROUP

(Unit: KRW in trillions)

Sales

EBIT

Market Cap.

18.6

1.6

24.1

Total No.of Employees

35,000 (overseas employees included)

SALES

G.total ISB Sales

(Unit: KRW in trillions)

18.6 15.9

100.0% 85.4%

ҟDoosan Heavy Industries & Construction ҟDoosan Infracore ҟDII ҟDoosan Construction & Engineering ҟDoosan Engine ҟDoosan Mecatec

2007

Non-ISB

2.7

14.6%

ҟDoosan Corporation ҟSRS KOREA ҟDoosan Capital ҟOricom

FINANCIAL HIGHLIGHTS (Unit: KRW in trillions)

26.7%

CAGR

26.4%

CAGR

2.1

22.8

24.1

1.6

18.6 11.8

48x

14.2 0.7

1.0 8.7

6.9 3.4

10.8

0.3 0.3 0.5 0.9

Sales

’00 ’02 ’05 ’06 ’07 ’08(E)

EBIT ’00 ’02 ’05 ’06 ’07 ’08(E)

Market Cap.

’00 ’02 ’05 ’06 ’07


Doosan Group

DOOSAN BUSINESS PORTFOLIO

INDUSTRIAL

Doosan Heavy Industries & Construction Doosan Infracore Doosan Mecatec, Doosan Engine Doosan Mottrol

CONSTRUCTION

Doosan Construction & Engineering

CONSUMER & SERVICE

Doosan Corporation Doosan Capital, Doosan Bears SRS Korea, Oricom, Doosan Tower Samhwa Crown & Closure, Neoplux, Doosan Cuvex

7


Doosan Group

MAJOR STRATEGIES MAJOR STRATEGIES OVER THE LAST 10 YEARS AND FUTURE DIRECTIONS

1996 ҟDivestiture of beer and soft drink operations ҟOperation improvement ҟCapital structure improvement (D/E lowered from 688% to 190%)

2000 ҟNew start (2G Strategy) Growth of people Growth of business ҟGrowth strategy through mergers & acquisitions -Korea Heavy Industries (now Doosan Heavy Industries & Construction)

-Koryo Industrial Development (now Doosan Construction & Engineering)

-Daewoo Heavy Industries & Machinery (now Doosan Infracore)

Restructure Successfully

Acquire Growth Engines & Transform the Portfolio

2006 ҟMajor Acquisitions AES (US, ’05) Mitsui Babcock (now Doosan Babcock) (UK, ’06) IMGB (now Doosan IMGB) (Romania, ’06) Yonhap Capital (now Doosan Capital) (Korea, ’06) Yantai Yuhua (China, ’07) CTI Engine (US, ’07) Bobcat, Utility & Attachment (US, ’07) Dongmyung Mottrol (now Doosan Mottrol) (Korea, ’08)

BNG Securities (Korea, ’08) Moxy Engineering AS (Norway, ’08) ҟAcquisitions of global talent, systems, technology

Lay Groundwork for Global Leadership


Doosan Group

ACQUISITIONS OF NEW GROWTH ENGINE DOOSAN GROUP REVENUE

Acquiring Growth Engine 18.6 Inorganic Growth

Major Acquisitions ҟKorea Heavy Industries (now Doosan Heavy Industries & Construction) (2001)

14.2

ҟKoryo Industrial Development

Restructuring

(now Doosan Construction & Engineering) (2003)

ҟDaewoo Heavy Industries & Machinery (now Doosan Infracore) (2005)

7.2

6.9 5.3

ҟMitsui Babcock 78%

71%

4.9 3.4

49%

49%

3.4

(now Doosan Babcock) (2006)

Organic Growth

ҟBobcat, Utility & Attachments (2007)

ҟDongmyung Mottrol ’95

’96

’98

’00

’02

’04

’06

’07

(Unit: KRW in trillions)

(now Doosan Mottrol) (2008)

9


Doosan Group

FAST & PROFITABLE GROWTH _ Doosan Group THE GROUP’S STOCK VALUE HAS SURGED 48-FOLD SINCE 1998.

SALES (Unit: KRW in trillions)

EBIT (Unit: KRW in billions)

MARKET CAP. (Unit: KRW in trillions)

24.1

48X

18.6 1,626 CAGR 33%

CAGR 24%

10.8 6.9

7.2

3.4

280

349 2.0

165 ’98

’02

’04

’07

’98

’02

’04

’07

0.5

’98

0.9 ’02

’04

’06

’07


Doosan Group

FAST & PROFITABLE GROWTH _ Doosan Heavy Industries & Construction * Babcock & IMGB Included

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION HAS GROWN RAPIDLY SINCE ITS ACQUISITION BY THE DOOSAN IN 2001.

SALES (Unit: KRW in trillions)

EBIT (Unit: KRW in billions)

MARKET CAP. (Unit: KRW in trillions)

282 13.2 5.1

CAGR 13%

CAGR 20%

13.5x

221

3.3 150

2.8 2.5 93

4.0

1.0 ’01

’02

’05

’07*

’01

’02

’05

’07*

’01

0.6 ’02

’05

’07

11


Doosan Group

FAST & PROFITABLE GROWTH _ Doosan Infracore DOOSAN INFRACORE HAS GROWN RAPIDLY SINCE ITS ACQUISITION BY THE DOOSAN IN 2005.

* Based on Consolidated Financial Statements, Excluded Doosan Infracore International

SALES* (Unit: KRW in trillions)

MARKET CAP. (Unit: KRW in trillions)

EBIT* (Unit: KRW in billions)

5.0 386

4.3 CAGR 18%

CAGR 34%

303

3.7

3.1

’05

1.7x

3.5 3.0

216

’06

’07

’05

’06

’07

’05

’06

’07


Doosan Group

GLOBAL MARKET POSITION HEADING FOR GLOBAL LEADERSHIP

Doosan Group’s Surging Global Sales

Market Share

(Unit: KRW in trillions)

3.4

18.6

12%

0.4

88%

3.0

53%

9.8

Doosan Heavy Industries & Construction ҟDesalination plants: 1st in world (40%) ҟHRSG*: 1st in world (20.1%)*** ҟCrankshafts: 3rd in world (23%) ҟMold & tool steel: 1st in world (10.1%) ҟWork rolls: 4th in world (10.1%) ҟRudder horns: 2nd in world (22.3%)

Doosan Infracore

47%

8.8

ҟSSL/CTL**: 1st in world (39%) ҟAttachments: 1st in world (8%) ҟPortable air compressors: 1st in world (28%) ҟExcavators: 1st in China (20%) ҟMachine tools: 3rd in US (7%) 5th in world (5%)

Doosan Engine ҟMarine engines: 2nd in world (25%)

Doosan Mottrol 1996

2007 Global Sales

Domestic Sales

ҟTraveling devices for excavators: 3rd in world (13.3%) * HRSG : Heat Recovery Steam Generator ** SSL : Skid Steer Loader, CTL : Compact Track Loader *** Based on the McCoy Power Report 2008

13


Doosan Group

SUCCESSFUL BUSINESS PORTFOLIO CHANGE SUCCESSFUL PORTFOLIO RESTRUCTURING

From Consumer Products & Services to Infrastructure Support Business

ISB 85% (Unit: KRW in trillions)

ISB

33%

ISB

ISB Sales

15.9

ҟDoosan Heavy Industries &

Construction

85%

4.1 4.3

ҟDoosan Infracore ҟDoosan Construction &

Engineering

Consumer products

67% 2007

Non-ISB Sales

Non-ISB

15%

2007

2.7

ҟDoosan Corporation ҟOricom Liquor BG ҟNeoplux Publishing BG ҟDoosan Bears Fashion BG ҟSamwha Crown

Techpack BG 1995

1.8 1.2 0.7 2.7 1.1

ҟDoosan Engine ҟDoosan Mecatec ҟBobcat ҟIMGB / Babcock

& Closure ҟDoosan Capital


Doosan Group

DOOSAN’S VISION & STRATEGY VISION

STRATEGY (Unit: KRW in trillions)

3.4

18.6

5.4x

100

WHERE TO COMPETE Sales

ISB 90%

53%

12%

Global Biz Portion

HOW TO COMPETE 0.16

1.6

6.3x

10

1 2G Strategy 2 Speed-up through M&A 3 Source of income

EBIT 1998

2007

2015(E)

15


Doosan Group

GLOBALIZATION STRATEGY

2G STRATEGY: Virtuous cycle of personnel and business growth

2G

ҟAcceleration through mergers (corporate value enhancement) ҟFocus on income sources ҟTechnology spectrum

Strategy

ҟPeople programs ҟAggressive compensation, meritocracy ҟOpen-door policy ҟDLI-Yonkangwon (HR Development)

Growth of People

Growth of Business

SPEED-UP THROUGH M&A : Acquiring technology, skill, products, and market leadership by paying fair price CONCENTRATING ON SOURCE OF INCOME : Striving to be a world leading ISB company by discovering continuous growth portfolios within the next 5~10 years


Doosan Group

DOOSAN’S ASPIRATION

A company which is operated by

A company whose

global standards

is the source of competitiveness

and transparent accounting standards

talented people

A truly global

competent company ‫ ض‬World # 1 or # 2 player in

ISB within 5~10 years

17


Doosan Corporation Diversified Company that Enriching Life


Contents 20 21 22

2007 Snapshot Overview Our Businesses


Doosan Corporation

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

SALES

Sales

EBIT

Market Cap.

Total No.of Employees

1,881

93

4,786

3,900

G.total Electro-Materials

(Unit: KRW in billions)

1,881 516

100.0% 27.4%

Liquor

342

18.2%

Techpack

289

15.4%

Fashion

199

10.6%

Publishing

217

11.6%

Glonet

136

7.3%

Food

127

6.7%

55

3.0%

2007

Others

FINANCIAL HIGHLIGHTS

(Unit: KRW in billions)

0.7%

CAGR

3.4%

CAGR

1,865 1,928 1,881 1,903

116

105

5.4x 4,786

93

43

1,489 894

Sales

’05

’06

’07

’08(E)

EBIT

’05

’06

’07

’08(E)

Market Cap.

’05

’06

’07


Doosan Corporation

OVERVIEW VALUE STRUCTURE OF DOOSAN CORP. AS A HOLDING COMPANY Operational value, investment value and intangible value are transforming Doosan Corp into a holding company and leading its growth. Doosan Corp. acquired Dongmyung Mottrol, Korea’s leading maker of hydraulic parts and systems, in 2008 and is now focused on developing parts and technologies for the

infrastructure support business as well as on maximizing synergy with other Group companies. A new system is being established to ensure simultaneous profit and growth from ongoing businesses (electronic materials, liquors, food & beverage containers, fashion, publishing, import/export) as well as the latest growth engine (hydraulic parts & systems).

Operation Value Established Businesses

New Growth Engines

Innovate, maximize cash flow, seek new business models

Develop new growth engines that also stimulating growth in other Group companies - Portfolio expansion into ISB parts and technology with Dongmyung Mottrol acquisition (2008)

Operation Value

Investment Value Corporate Value

Investment Value

Intangible Value

Subsidiaries

Other held assets

Doosan Heavy Industries & Construction, Doosan Infracore 100% subsidiaries (SRS Korea, Doosan Feed & Livestock, Doosan Tower)

Real estate, treasury stocks

Intangible Value ‘Doosan’ Brand Management Provide other Group companies with management capabilities and ‘Doosan’ brand value

21


Doosan Corporation

OUR BUSINESSES Doosan Corp. is Korea’s oldest business operation, tracing its roots back to 1896 with the opening of the Park Seung-jik store. The current portfolio consists of five Business Groups (Electro-materials BG, Liquor BG, Publishing BG, Fashion BG, and Techpack BG) and two Business Units (Glonet BU and Information & Communication BU). In addition, the company expanded into ISB parts and technology with the acquisition of Dongmyung Mottrol, Korea’s leading maker of hydraulic parts and systems, in March 2008.

ELECTRO-MATERIALS BG

LIQUOR BG

TECHPACK BG

Major Products

Major Products

Major Products

Copper clad laminate (CCL) for printed circuit boards (PCBs) Materials for flexible PCBs Prism sheet OLED materials

Soju Cheong-Ju (Rice Wine) Maesil-Ju (Plum Wine) Wine Whisky

Glass bottles Cans PET bottles


Doosan Corporation

OUR BUSINESSES

PUBLISHING BG

FASHION BG

GLONET BU

I &C BU

Major Products

Major Products

Major Products

Major Products

Learning tools Dictionaries Textbooks Educational contents & E-learning business Printing

Polo Ralph Lauren

Food sales, distribution and dining facilities

Groupware Networks ERP ASP

Import and sale of chemicals Biotech products

23


Doosan Heavy Industries & Construction Global Leader in Power and Water


Contents 26 27 30 31

2007 Snapshot Our Businesses Research & Development Network


Doosan Heavy Industries & Construction

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

SALES

Sales

EBIT

Market Cap.

Total No.of Employees

4,090

283

13,198

5,200

G.total Power Plants

(Unit: KRW in billions)

2007

4,090 1,773

100.0% 43.3%

Nuclear Power Plants

479

11.7%

Desalination Plants

665

16.3%

Castings & Forgings

482

11.8%

Construction

691

16.9%

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

18.9%

CAGR

28.7%

CAGR

5,757

3.3x

451

13,198

Global

Domestic (Unit: %)

51

54

71

74

29

26

4,090 3,304 3,509

283 221

49 46

208 3,950 4,620

*Sales

’05

’06

’07 ’08(E)

* Based on unconsolidated Financial Statements

*EBIT

’05

’06

’07 ’08(E)

Market Cap.

’05

’06

’07

Global & Domestic Orders ’05 ’06 ’07 ’08(E)


Doosan Heavy Industries & Construction

OUR BUSINESSES Doosan Heavy Industries & Construction was established in 1962 and today the portfolio spans casting and forging, thermal and nuclear power plants, desalination plants, and material handling equipments for customers around the world. Doosan boasts outstanding competitiveness in plant construction as well as infrastructure projects such as roads, ports and railways. To date the company has completed more than 300 power generation units (nuclear, thermal, combined-cycle and hydroelectric) and is currently building sixty more in the US, India, China and elsewhere. Meanwhile, R&D efforts are focused on developing nextgeneration energy sources such as wind power generation and fuel cells. Doosan holds 40 percent share of the world market for multi-stage flashing (MSF) desalination plants and also has acquired the technology to build multi-effect distillation (MED), reverse osmosis (RO) desalination and water treatment plants. Thus, the company’s involvement In water business continues to expand.

POWER PLANTS

The Power Plant BG is equipped to perform all processes, from design and parts manufacturing to installation, structural erection and commissioning. The BG supplies all the major components such boilers, turbines and generators, and it holds the top share (20%) of the world market for heat recovery steam generators. A number of Engineering, Procurement & Construction(EPC) projects for power plants have been received in India, Southeast Asia and the Middle East since 2006, boosting new orders in 2007 to US$4.6 billion. This was the highest figure for overseas plant projects by any Korean company for the year. ƅMajor areas: boilers, HRSG, turbines & generators, material handling equipments

(Unit: KRW in billions)

’05 ’06 ’07 Backlog 2,894 2,998 5,854 Orders 1,408 1,551 4,568 Revenue 1,327 1,446 1,773

27


Doosan Heavy Industries & Construction

OUR BUSINESSES NUCLEAR POWER PLANTS

(Unit: KRW in billions)

The Nuclear Power Plant BG is the sole manufacturer of nuclear power generation facilities in Korea and boasts the nation’s most advanced technology in this field. The BG operates a comprehensive production and management system that covers materials, design, fabrication, construction, commissioning and after-sales services. In addition to domestic projects, the company has received orders for nuclear power facilities from Chinese and US clients. ƅMajor areas: reactor vessels, reactor Internals, steam generators, pressurizer, IHA(Integrated Head Assembly), BOP(Balance Of Plant) equipment

’05 ’06 ’07 Backlog 1,476 1,645 1,767 Orders 146 579 569 Revenue 306 410 479

DESALINATION PLANTS The Desalination BG entered the seawater desalination segment in 1978 by getting an order for the Farasan Desalination Plant in Saudi Arabia and has continued to acquire related technology and Know-how ever since. Today, the Desalination BG is the world’s top supplier of desalination facilities, covering multi-stage flashing (MSF), multi-effect distillation (MED), reverse osmosis (RO) and water treatment system. The BG is exclusively equipped in Korea to provide basic designs, fabrication, construction, commissioning and after-sales service, and adopted a unique “One-module” fabrication method to shorten the time required to manufacture desalination evaporators. In addition, the BG applied the cutting-edge hybrid technology (MSF+RO) to build large-scale desalination plant in UAE. ƅMajor areas: Mulit-stage flashing(MSF), Multi-effect distillation(MED), reverse osmosis(RO)

(Unit: KRW in billions)

’05 Backlog 1,448 Orders 1,136 Revenue 765

’06 813 2 637

’07 378 189 665


Doosan Heavy Industries & Construction

OUR BUSINESSES CASTINGS & FORGINGS

(Unit: KRW in billions)

The Casting & Forging BG began operating in 1982 and today is capable of producing materials and parts for power plants and steel mills, crankshafts for marine engines, mold and tool steel, and various items for industrial use. ƅMain products: hp/lp rotor, shell, crankshaft, work roll, backup roll, mold & tool steels, castings(mill housing, turbine casing, crown, band, tyre, rudder horn)

Backlog Orders Revenue

’05 292 361 319

’06 289 414 417

’07 316 506 482

CONSTRUCTION

(Unit: KRW in billions)

The Construction BG has been building nuclear plants, thermal power plants and hydroelectric plants for more than two decades. The BG also engages in civil works projects such as subway lines, expressways and high-speed railways, and constructs apartment complexes as well as buildings. ƅMajor areas: plant construction, civil works, building construction

’05 ’06 ’07 Backlog 1,676 1,557 2,042 Orders 524 479 1,190 Revenue 588 599 691

29


Doosan Heavy Industries & Construction

RESEARCH & DEVELOPMENT

Korea (Technological Institute) Material Evaluation & Fossil Power Systems Development Center Development Center Year Established

1984

2005

Location

Changwon Head Office Changwon Head Office

Research Areas

Power Plant Materials Ship Materials and Industrial Materials

Test Equipment

Boilers, Turbines, System Engineering

Deadeok R&D Branch

Overseas Suji R&D Branch

2005

2005

Deadeok Science Town

Suji, Yongin

Gas Turbines, Wind Power, Constrol Systems Fuel Cells, IGCC, Control for Nuclear Systems for Thermal Power Plants Power Plants

Material Test Facility, Power Generation Soldering Test Equipment, Test Facility Combustion Test Facility, Energy and Environment Test Facility

Fuel Cell Test Facility, Thermal Power Generation Control System Test Facility

Middle East North America Doosan Babcock R&D Center R&D Center R&D Center

2006

2006

2007

Dubai, UAE Tampa, FL, USA Renfrew, Scotland MSF, MED, Hybrid

RO, Water Reuse

Boilers, Clean Coal Technology

Nuclear Power RO, MED Generation Control Pilot Test System Test Equipment Facility (Changwon)

Laboratory

Multifuel Nurner Test Facility

India E&S

2005 New Deli, India Power & Desalination Plants Engineering

Future Business Technology Development Center Doosan Heavy Industries & Construction is working on government supported projects in cooperation with universities and research institutes to develop technologies for tomorrow (related to new and renewable energy) and key technologies for desalination plants. Current projects include power generation fuel cells, high-capacity RO desalination systems, offshore wind farms, performance enhancement of high-capacity steam turbines and integrated gasification combined cycle plants.

Wind Power Generation ҟ Engage in 2 major national projects ҟ Develop a 3MV offshore wind power system ‫ ض‬The goal is to generate W960 billion a year in sales

by investing W200 billion and hiring 1,000 more R&D, design and production people by 2015.

Fuel Cells

Integrated Gasification Combined Cycle (IGCC) Plants

ҟ Localize technology for 300kW internal reforming

ҟ Invest some W63 billion between 2008 and 2014,

molten carbonate fuel cell (MCFC) stacks and systems (2007-2010)

ҟ Invest an additional W16 billion beyond the government sponsored project

and apply current EPC capabilities for combined cycle power plants to build a 300MW pilot facility, thereby securing the necessary engineering and fabrication competencies.


Doosan Heavy Industries & Construction

NETWORK

(Unit: KRW in billions)

Asia 498(10.0%)

Europe 140 (2.8%)

Riyadh Office Kuwait Office Abu Dhabi Office Dubai Office Desalination R&D Center

Overseas Orders in 2007

Beijing Office Shanghai Office Doosan Babcock Energy Shanghai Doosan Babcock Energy Trading Shanghai Seoul Office Head Office

Doosan Babcock Energy Tripoli Office Frankfurt Office Doosan Babcock Energy Germany Doosan Babcock Energy Polska Doosan IMGB

U.S.A 270

China 265

Middle East 2,610

India 1,007

(52.5%)

(20.3%)

(5.4%)

(5.3%) Doosan Heavy Industries Japan Taipei Office Hanoi Office Han-Viet Heavy Industry & Construction (HANVICO) Doosan Heavy Industries Vietnam (Doosan Vina) Bangkok Office Hanjung Power Limited

New Delhi Office Ceylon Heavy Industries & Construction (CHICO) Doosan Babcock Energy India Doosan Engineering & Services India Mumbai Office

Schenectady Office Windsor Office Doosan Heavy Industries America Doosan Babcock Energy America Doosan HF Controls Doosan Hydro Technology

Elsewhere 183(3.7%)

31


Doosan Infracore Global ISB Innovator


Contents 34 35 39 40 41

2007 Snapshot Our Businesses DII Research & Development Network


Doosan Infracore

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

Sales

EBIT

Market Cap.

Total No.of Employees

4,280

386

5,028

5,100(DII excluded)

G.total

SALES

(Unit: KRW in billions)

2007

Construction Equipment

4,280 100.0% 1,756 41.0%

Machine Tools

1,023

23.9%

Forklifts

523

12.2%

Engines & Materials

525

12.3%

Defense Products

383

9.0%

70

1.6%

Others

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

18.7%

CAGR

32.3%

CAGR

5,186 3,710

501

4,280

3,099

1,885

Global

2,388

’06 Domestic

3,044

303

1,315

3,540

216

1,322

’05

5,028

386

1,214

*Sales

1.6x

2,965

’07

’08(E)

*EBIT

’05

* Based on consolidated Financial Statements * DII excluded

’06

’07

’08(E)

Market Cap.

’05

’06

’07


Doosan Infracore

OUR BUSINESSES Doosan Infracore started out as Chosun Machine Works in 1937 and has spearheaded the development of the domestic machinery industry ever since. Today, the company is the largest machinery maker in the country. Production in Korea takes place at three large-scale plants in Changwon and a fourth in Incheon, with the output being sold worldwide. The organization consists of five Business Groups _ Construction Equipment, Forklifts, Machine Tools, Engines & Materials, and Defense Products. Doosan Infracore also produces excavators, forklifts and machine tools overseas (in Europe and China) and operates sales subsidiaries in the US, UK, Germany, China, India, Japan and Brazil. The extensive dealer network spans more than 3,700 locations (including DII) around the globe. In November 2007 the company concluded the purchase of three Ingersoll-Rand units that boast world-class competitiveness in the compact construction equipment market. The acquisition provides a platform for Doosan Infracore to emerge quickly as a major global player.

CONSTRUCTION EQUIPMENT BG (Unit: KRW in billions)

Sales Breakdown

The Construction Equipment BG is one of Doosan’s major growth drivers and leads the ISB sector, which is at the heart to the Group’s global expansion effort. The BG began OEM excavator production in 1977 and by 1985 had the required technology and quality for producing its own models. The product lineup has been diversified and expanded steadily to maintain the top share of the domestic construction equipment market. ƅMajor Products: Excavators, Wheel Loaders, Skid Steer Loaders In 2007 the BG sold 15,035 units overseas and 2,525 units in Korea

Global : 1,504 Domestic : 252

Sales EBIT

’05 1,109 84

’06 1,420 108

’07

’07 1,756 156

35


Doosan Infracore

OUR BUSINESSES MACHINE TOOLS BG (Unit: KRW in billions)

Sales Breakdown

The Machine Tools BG has cutting-edge technology and produces world-class machine tools. The BG has remained committed to R&D since entering the business in 1976, developing its first turning center model by 1980 and subsequently coming out with numerous high-precision machine tools. Doosan Infracore today is the world’s third ranked machine tool maker and has received various certifications for quality control and environmental management, including ISO 9001, ISO 14001, CE, UL, EMI and EMC. ƅMajor products: turning centers, machining centers, ultra-precision aspheric turning centers, CNC boring machines, electric discharge machines, 5-axis machining centers, flexible manufacturing systems, machining systems, assembly systems

Global

: 771

’07

Domestic : 252

Sales EBIT

’05 662 65

’06 808 103

’07 1,023 141

FORKLIFTS BG (Unit: KRW in billions)

Sales Breakdown Global

Doosan Infracore entered the forklift business under technical license in 1967 and developed its first in-house models in 1993. The Forklift BG has also developed its own engines, transmissions and other core components. Today, a lineup of 90 different models is being products at plants in Korea, China and Europe, and combined annual output is 33,000 units. ƅMajor products: diesel-powered forklifts, gasoline-/LPG-powered forklifts, electric-powered forklifts

: 337

’07

Domestic : 186

Sales EBIT

’05 425 10

’06 476 17

’07 523 2


Doosan Infracore

OUR BUSINESSES ENGINES & MATERIALS BG (Unit: KRW in billions)

Sales Breakdown

Doosan Infracore starting building engines in 1958 and today has large-scale facilities for engine assembly, materials production, parts production and machining. The product portfolio includes a variety of engines for trucks, buses and other equipment. The Engine & Materials BG built engine mass production lines in 1975 and developed its first engine model in 1985. Recently, Euro 4-complaint models have been completed and are widely acclaimed for their quality and technological sophistication. ƅMajor products: diesel and gas engines for commercial vehicles, construction equipment, forklifts, generators, ships and special applications; castings for engines and vehicles, materials for hydraulic parts

Global

: 165

’07

Domestic : 360

Sales EBIT

’05 442 7

’06 485 18

’07 525 24

DEFENSE PRODUCTS BG (Unit: KRW in billions)

Sales Breakdown

Doosan Infracore became a defense contractor in 1973 and has developed and is producing armored personnel carriers, short-range surface-to-air guided weapons systems and other precision military hardware. The Korean Infantry Fighting Vehicles produced by the Defense Products BG were supplied to the Malaysian military for peacekeeping duties in Bosnia in 1993. The BG is also developing altitude and orbit control systems (AOCS) for multipurpose satellites. ƅMajor products: short-range missile systems, self-propelled anti-aircraft weapons systems, Korean Infantry Fighting Vehicles, naval gun systems and torpedo launching systems

Global

:

6 ’07

Domestic : 377

Sales EBIT

’05 387 17

’06 467 13

’07 383 8

37


Doosan Infracore

OUR BUSINESSES Production Capacity in 2008

Annual Domestic Production

Construction Equipment

10,000 excavators 1,500 wheel loaders 1,500 skid steer loaders

Annual Overseas Production

Construction Equipment

DICC (China):17,300 excavators DIEU (Belgium):2,500 excavators

Machine Tools

DIY (China):2000 turning centers &machining centers

Forklifts

DICC (China)7,000 forklifts

*Gunsan Plant : 4,000 excavators & wheel loaders

Machine Tools

13,080 turning centers & machining centers Automation systems:W80B

Forklifts

29,160 units

Engines & Materials

56,000 diesel engines


Doosan Infracore

DII Doosan Infracore International, Inc. (DII) ҟ Located in North Dakota, USA with 50-year history

Bobcat

ҟ Global Network

Toolcat: all lead the world market

16 plants and 9 R&D centers in America, Europe, and China 5,800 employees working at 73 subsidiaries in 27 countries

ҟ Mini-excavators: world’s 3rd highest market share

ҟ Sales Breakdown

2007

North America

62%

Europe

27%

Elsewhere

11%

ҟ World leader in compact construction equipment ҟ Skid steer loaders, compact truck loaders, mini-loaders,

DII Attachments

Position

M/S

SSL/CTL (1st in world) 1st in North America 1st in Europe Mini-excavators (3rd in world)

39% 38% 43% 8%

ҟ Produces 80 different attachments for Bobcat and other equipment makers (top share of global market)

Position

ҟ Bobcat, DI Portable Power and DII Attachments:

Attachments (1st in world)

combined sales revenue of US$2.95 billion in 2007

M/S 8%

Compact Equipment 74%

DI Portable Power 2007

Utility Equipment Attachments:

19% 7%

ҟ Produces utility equipment such as air compressors, lighting systems and generators for construction sites, operates factories in North America, China, and the Czech Republic

Position

M/S

Portable air compressors (1st in world)

28%

39


Doosan Infracore

RESEARCH & DEVELOPMENT The “5-Star ” strategies are followed to develop the future-oriented technology that will propel Doosan Infracore into the ranks of the world ’s Top 5 ISB players. 5-STARS STRATEGIES Hybrid power trains

“Intelligent” technologies

Predictive design technologies

Next-generation hydraulic system technologies

Wear-resistant materials

ҟReliability Evaluation Center : The Center is tasked with ensuring the reliability of excavators, forklifts, machine tools and diesel engines during every stage of development. It is the largest institution of its kind in Korea, with 13 state-of-the-art laboratories for ensuring world-class product quality.

ҟR&D projects : basic technologies for raising the competitiveness of current products and breakthrough technologies for innovative product concepts; products that are environment-friendly and offer the added value and superior functions for global competitiveness

ҟR&D investment : an annual outlay of W92.2 billion, almost double the 2005 expenditure; a steady increase in R&D engineers, from 912 in 2006 to 1,033 currently; soon to open Korea’s largest machine tool research facility

Construction Equipment Recent R&D Successes by Sector Construction Equipment

Machine Tools

Forklifts

Engines &Materials

Defense Products

Greater operability, operator comfort, environmental friendliness (compliance with stricter regulations), ease of maintenance

Enhanced brand image and higher added value from innovative exterior designs and ongoing quality improvement

ҟMultifunction turning centers

Improved energy efficiency and quality competitiveness; development of environmentfriendlier engines and electronically controlled 4-valve engines

Higher quality and stronger price competitiveness, core technologies for raising all-around competitiveness

ҟNext-generation excavator (DX55) ҟCompact, zero-tail-swing excavators

Better performance and energy efficiency, environmental friendliness (compliance with stricter regulations), operator comfort; simplified production processes from the adoption of modular design concepts;regional-specific models such as for Chinese users

(DX27Z, DX30Z, DX35Z)

ҟTier 3-compliant skid steer loaders

(MX 1600, MX 2100) ҟLarge vertical turning centers (VT 900, VT 1100M) ҟNext-generation machining centers (DNM400, DNM500, DNM650)

ҟNext-generation electric forklifts (B16R, B18S, BC18S, B45X)

ҟNext-generation engine-powered forklifts (D/G(C), 18/25/35S, D/G50S, D110)

ҟEuro 4-compliant natural gas engines for vehicles ҟTier 3-compliant industrial-use and generator engines ҟTier 2-compliant marine engines ҟEngines for next-generation infantry fighting vehicles

ҟWheeled armored vehicles ҟNext-generation infantry fighting vehicle (the K21)

ҟMedium-range guided missile system and next-generation recovery vehicle system??


Doosan Infracore

NETWORK

Doosan Infracore U.K., Ltd.

Doosan Infracore (China) Investment Co., Ltd.

Doosan Infracore Europe S. A. Doosan Infracore Germany GmbH.

Doosan Infracore Machine Tools Yantai Co., Ltd. Yantai Yuhua Machinery Co., Ltd. Doosan Infracore China Co., Ltd.

Doosan Infracore Europe S.A. German Office (Construction Equipment & Forklifts)

No. of Regional Dealers

Sales

(DII Excluded)

(Unit: KRW in billions)

Doosan Infracore Liaoning Machinery Co., Ltd. Doosan Infracore Japan Corp.

419

Europe 957

China 977

(22.4%)

Domestic 1,377 (32.2%)

(22.8%)

145 256

Middle East & Africa 555 (13.0%)

North America 205

U.S.A 414 (9.6%)

Doosan Infracore America Corp. (Machine Tools) Doosan Infracore Suzhou Co., Ltd.

Doosan Infracore America Corp. (Forklifts)

Dajian (Tianjin) Mechanical Construction Co., Ltd.

Doosan Infracore America Corp. Doosan Latin America Oficina

Doosan Infracore Xinjiang Machinery Co., Ltd. Doosan Infracore Europe S. A. Italia (Forklifts)

Doosan Infracore India

Doosan Infracore Europe S. A. France

Doosan Infracore Co., Ltd. (Rep. Office)

41


Doosan Construction & Engineering Pioneering Leader in Construction

Contents 43 44

2007 Snapshot Our Businesses


Doosan Construction & Engineering

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

Sales

EBIT

Market Cap.

Total No.of Employees

1,798

142

1,326

1,100

G.total

SALES

(Unit: KRW in billions)

Housing Civil Engineering

1,798 1,168 369

100.0% 64.9% 20.5%

205

11.4%

2007 2007 Architecture Plants

42

2.3%

Others

14

0.8%

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

8.6%

CAGR 1,910 1,712

15.6%

CAGR

3,020

1.5x

181

2,192 1,798

1,326

142 117 124

889

3,295 4.7 10.5

10.5 6.8

3,164 12.7 41.9

980 81.4

84.2 44.1

(Unit: %)

Sales

’05

’06

’07 ’08(E)

EBIT

’05

’06

’07 ’08(E)

Market Cap.

’05

’06

’07

New 1.3 Orders ’05 Civil Engineering

0.6

1.3

’06

Architecture

Housing

’07 Plants

43


Doosan Construction & Engineering

OUR BUSINESSES Doosan Construction & Engineering was established in 1960 and has amassed the extensive experience and technology to be globally competitive in housing construction, civil works and building construction. The performance record includes “intelligent� buildings and various other structures; major infrastructure projects (both government and privately funded) such as expressways, subway lines, and high-speed railways; turnkey projects; housing and development projects; environmental plants and industrial plants.

Architecture and Housing

Civil Engineering

Plants

Major Business

Major Business

Major Business

Buildings and Housing Residential buildings Office buildings Public buildings Hotels Apartments

Highways Bridges Roads Subways Railroads Tunnels Ports & land reclamation

Industrial plants Environmental facilities Power transmission lines Renewable energy


Doosan Engine Integrated Diesel Engine Manufacturer

Contents 46 47

2007 Snapshot Our Businesses


Doosan Engine

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

Sales

EBIT

Orders

Total No.of Employees

1,222

165

4,138

1,100

G.total

SALES

(Unit: KRW in billions)

1,222 100.0% 1,178 96.4%

Low Speed Diesel Engines Diesel Power Plants PartsSales & Technical Service

2007

44

3.6%

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

34.8%

CAGR

221.7%

CAGR

1,853

243

4,138 165

1,222 1,017 757

2,518

25

26

724

’05 Global

991

’06 Domestic

1,743

69

33

Sales

35.2%

CAGR

1,197

’07

1,018

7 ’08(E)

EBIT

’05

’06

’07

’08(E)

Orders

’05

’06

’07

’08(E)


Doosan Engine

OUR BUSINESSES Doosan Engine started out in 1984 with an annual capacity of 200,000 bhp in large diesel engines for ships and power plants. Annual output now stands at 14 million bhp, and the company’s share of the world market has reached 25 percent. Doosan Engine achieved 50 million bhp in aggregate production after just twenty four years, an industry record, and has built the world’s largest electronically-controlled marine engine. The company’s business today is mainly building and maintaining low and medium speed marine engines ranging from 700bhp to 115,000bhp, as well as diesel generator engines up to 200MW.

Low Speed Diesel Engines

Low speed diesel engines are a mainstay product category, built in technical cooperation with MAN Diesel of Denmark and Wartsila of Switzerland. These engines are used as the main propulsion system for large containerships, bulk carriers, very large crude carriers, ultralarge crude carriers and other product carriers.

Medium Speed Diesel Engines

This operation was launched under a technical license from MAN Diesel SA of France in 1983. The lineup, which ranges from 450 to 24,000 kW, includes the main or auxiliary engines on passenger ships and special-purpose vessels as well as engines for commercial or emergency power generation.

Diesel Power Plants

Doosan Engine entered the diesel power plant business in 1990 with a turnkey project to supply a 40MW low-speed diesel power plant to south Jeju Island. Since then, built an 80MW low speed diesel power plants on Guam and completed power plant projects in Papua New Guinea, India, Greece and Eritrea.

Parts Sales & Technical Service

The global sales network is used to supply customers with parts whenever and wherever they are needed.

47


Doosan Mecatec Core Solution Provider for Energy Plants

Contents 49 50

2007 Snapshot Our Businesses


Doosan Mecatec

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

Sales

EBIT

Orders

Total No.of Employees

713

131

815

700

G.total

SALES

(Unit: KRW in billions)

713 478

100.0% 67.0%

PLANT

91

12.8%

Steel Bridges

82

11.5%

FA

38

5.3%

ITS*

24

3.4%

CPE

2007

* The CMP and Display units have been merged with the recent reorganization of the company. ** Figure includes performance by the machine tool business.

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

15.0%

CAGR 708

714

39.0%

CAGR

788

131 100

518 228

290

Sales

’05** Global

768

791

815

’05**

’06**

’07

884

91

211

244

4.8%

CAGR

34 464

’06**

503

’07

’08(E)

EBIT

’05**

’06**

’07

’08(E)

Orders

’08(E)

Domestic

49


Doosan Mecatec

OUR BUSINESSES Doosan Mecatec has contributed to Korea’s chemical, heavy and machinery industries by supplying essential equipment used in oil refineries, gas process plants and petrochemical plants as well as by designing and constructing various plants and steel bridges. The company has also diversified into equipment for the semiconductor and display industries, which show great promise in the 21st century.

Chemical Process Equipment (CPE) The company’s mainstay business is fabricating critical equipment for oil refineries, gas processing facilities and petrochemical plants around the world, and it holds the top share of the global market for this segment. The quality of this equipment is certified by ASME stamps (A, PP, U, U2, and S) and ISO 9001, and the CPE Division participates in projects with all the global major oil companies, including Exxon Mobile, Shell and BP. ƅ Major products: towers & columns, reactors, heat exchangers, pressure vessels

Plant Doosan Mecatec performs turnkey projects for various plants and storage facilities for clients inside and outside Korea. The Plant Division is building on its diverse experience to expand the scope of overseas plant projects undertaken. ƅ Major products: various plants, storage tanks

Steel Bridges Advanced technology has been applied to fabricate and assemble suspension bridges, cable-stayed girder bridges and truss bridges in Korea. ƅ Major products: steel bridges


Doosan Mecatec

OUR BUSINESSES

Factory Automation Systems Doosan Mecatec acquired Korea’s first industrial robot in 1982 and has since then produced various robots and factory automation systems to provide manufacturers with total solutions for automating their operations. ƅ Major products: industrial robots and factory automation systems

Chemical Mechanical Planarization(CMP) Systems The company has localized the production of CMP systems required in the semiconductor fabrication process. This equipment is currently supplied to Samsung Electronics and Hynix Semiconductor and will be sold globally in the future. ƅ Major products: wafer planarization equipment

Display Production Equipment Doosan Mechatec produces vapor deposition and sealing equipment for OLED manufacturing and is now developing original technology and diversifying the portfolio to become a major player in the flat panel display equipment business. ƅ Major products: vapor deposition and sealing equipment

51


Doosan Capital Trusted Financial Services Partner

Contents 53 54

2007 Snapshot Our Businesses


Doosan Capital

2007 SNAPSHOT OVERVIEW

(Unit: KRW in billions, persons)

Operating Profit

EBIT

Financial Assets

Total Assets

No.of Employees

173

28

2,248

2,292

190

G.total

SALES

(Unit: KRW in billions)

2,248 822 424

100.0% 36.6% 18.9%

General Loans

390

17.3%

Factoring

344

15.3%

Project Financing

250

11.1%

18

0.8%

Equipment Leasing Installment Finance

2007

Others

FINANCIAL HIGHLIGHTS (Unit: KRW in billions)

24.9%

CAGR

11.9%

CAGR

223

41

2,248

173 144

29

29

28

’05

’06

’07

115

Operating Profit

’05

’06

’07

’08(E)

19.5%

CAGR

EBIT

2,386

1,672 1,399

’08(E)

Financial Assets

’05

’06

’07

’08(E)

53


Doosan Capital

OUR BUSINESSES

Doosan Capital was established in 1995 with major players in the machinery industry as the shareholders. The company is the domestic leader in machinery installment finance, which has remained a profitable and financially sound business. Customer trust built up over the past twelve years has paved the way for diversification from machinery installment finance and leasing to include factoring, venture capital, project financing, and corporate restructuring. Doosan Capital plays an important role in financing the Doosan Group’s Infrastructure Support Business and has adopted global standards for its financial services to advance into overseas markets.

Installment Finance Doosan Capital covers the purchase cost for items on behalf of the buyer, who repays the principle and interest in an agreed number of installments. ƅ Coverage: Equipment, Automobiles, Durable Goods, Real Estate

Equipment Leasing Doosan Capital directly purchases machinery equipment or other facilities chosen by the client and leases the products back to the client for a prearranged leasing fee. ƅ Coverage: Industrial Facilities and Machinery, Printing Equipment, Communication and Office Equipment, Medical Equipment, Education and Research Facilities, Retail Facilities


Doosan Capital

OUR BUSINESSES Automobile Leasing Doosan Finance purchases automobiles selected by customers, who pay a leasing fee each month according to contract. Once the contract expires, the customer may release the vehicle or return it to the company. ƅCoverage: Imported and Domestic Automobiles

Project Financing Financing is provided on the assumption that future cash flows can service the loan. The project assets, contractual rights and cash flows all serve as collateral. ƅCoverage: Real Estate Development (Residential Condominiums, Office Condominiums and Commercial Properties)

Factoring In addition to purchasing trade receivables (bill claims and accounts receivable), Doosan Capital manages trade receivables, does the accounting on trade receivable and provides management consulting to help companies maintain sufficient capital and run their businesses. ƅCoverage: Bill Claims Received from Commercial Transactions, Accounts Receivable and Discounted Notes

55


Doosan Capital

OUR BUSINESSES General Loans

Various secured and unsecured loans are provided to help companies maintain an adequate amount of operating capital. ƅ Clients: Corporations

Venture Capital Financial services are offered to start-up companies that have promising technology but lack capital. The provision of needed capital continues from the technology development through commercialization. ƅ Investment Methods: Stock Purchase, Convertible Bond Purchase

Corporate Restructuring Sometimes companies with a solid growth platform will become insolvent because of a weak financial structure or poor management. Doosan Capital seeks out such companies and helps them to restructure financially and operationally so that operation can return to the black. ƅ Investing and Lending Methods: Stock Purchase, Bond Purchase, Capital Loans for Debt Restructuring


Consumer & Service Brand Heritage that Fuels our Growth

Contents 58

Our Businesses


Consumer & Service

OUR BUSINESSES Doosan Bears The Doosan Bears professional baseball club won the Korean championship in 1982, the first season for the professional baseball league. The team garnered two more championship titles in 1995 and 2001, has played in the Korean Series three times and has been in the post-season five times in the past eight years. The Bears continue to entertain fans with their exciting brand of baseball.

SRS Korea Established in 2004, SRS Korea manages 150 KFC restaurants, 83 Burger King restaurants and 8 Lente outlets, a coffee and bakery brand in Korea. SRS also engages in the concession business, operating food and beverage outlets at Incheon International Airport, Yonsei University Hospital and the Doosan Tower.

Samhwa Crown & Closure As Korea’s first cap manufacturer, Samwha Crown & Closure brings over 40 year of expertise to the cap manufacturing field. The company designs and fabricates various metal and plastic bottle caps, and currently own more than 50% of the domestic cap market.

Oricom Oricom was established in 1967 as Korea’s first comprehensive advertising agency and has maintained a strong position over the last 40 years internationally and domestically for creativity and strategic expertise. The firm offers integrated marketing communication services, including media planning, promotional marketing, public relations, Internet marketing, and brand consulting. Oricom has worked with many multinational companies when they launch their campaigns in Korea and plans to offer marketing communications services to clients worldwide in the days ahead.


Consumer & Service

OUR BUSINESSES Neoplux Neoplux specializes in venture capital, corporate restructuring, and operations consulting, offering direct investment and related services. In 2002, the investment firm organized the first secondary fund in the industry, the PreKOSDAQ Secondary Investment Partnership, which primarily invests in stocks held by venture capitalists. Neoplux’s corporate restructuring unit focuses on buyout investment in companies that have high turnaround potential. The consulting unit produces performance improvement and cost reduction through customized operations consulting services.

Doosan Cuvex The 18-year-old Chuncheon Resort, one of the most prominent resorts in Korea, was recently reinvented as Ladena Resort. The dynamic transformation began at the beginning of 2007 with a renovated clubhouse and condominiums. Lakes, gardens and nature combine to create a panoramic view that gives guests a perfect setting to relax and enjoy their leisure time.

Doosan Mottrol Doosan Mottrol was founded in 1974 as TongMyung Mottrol and acquired by Doosan in March 2008. Korea’s leading manufacturer of hydraulic systems also boasts expertise in electric and electronic technology, Doosan Mottrol manufactures and sells hydraulic motors, hydraulic pumps, electric-powered forklifts and hydraulic systems for the defense industry. Ongoing R&D is focused on the localization of hydraulic parts and systems, earning the company the Korean government’s “world-class product” designation for excavator traveling devices in 2006.

Doosan Tower In the nine years following a dynamic launch, DOOTA, operated by Doosan, has become a world- renowned shopping center. With more than 800 stores and a wide selection of merchandise, this multi-story fashion mall attracts over 20 million domestic and overseas customers annually. DOOTA’s top priority is customer satisfaction through the introduction of a number of innovative management strategies, including a DOOTA certified store promotion program and the first fixed-price system implemented in a Korean shopping mall.

59


Appendix


Contents 62 64

Global Network Contact Information


Appendix

GLOBAL NETWORK Doosan Infracore U.K., Ltd. Doosan Infracore Europe S. A. France Doosan Infracore Europe S. A. Doosan Corporation Electro-Materials Frankfurt Office Doosan Infracore Germany GmbH. Doosan Infracore Europe S.A. German Office

Doosan Infracore Xinjiang Machinery Co., Ltd. Doosan Capital Beijing Office Oricom Beijing Office Doosan Infracore (China) Investment Co., Ltd. Dajian (Tianjin) Mechanical Construction Co., Ltd.

Bobcat Company

Doosan Corporation Electro-Materials Sandiego Office

Doosan Infracore America Corp. Doosan Infracore America Corp. (Forklifts)

Doosan Infracore Machine Tools Yantai Co., Ltd. Yantai Yuhua Machinery Co., Ltd. Doosan Infracore China Co., Ltd.

Doosan Infracore America Corp. (Machine Tools)

Calcutta Office

Frankfurt Office

Doosan Infracore Liaoning Machinery Co., Ltd.

Doosan Babcock Energy India New Delhi Office Doosan E & S Mumbai Office

Beijing Office Tokyo Office

Doosan Infracore Japan Corp. Doosan Corporation Liquor Tokyo Office

Doosan Infracore Co., Ltd.(Rep.office) Taipei Office Hyderabod Office

Vietnam (Doosan Vina) Han-Viet Heavy Industry & Construction (HANVICO) Hanoi Office Bangkok Office Doosan Engine Singapore Office

Doosan Infracore India Desalination R&D Center Abu Dhabi Office Dhabi Office Kuwait Office Riyadh Office

New Jersey Office Doosan Infracore International DII(Attachments) Doosan Infracore Portable Power

Doosan Infracore Suzhou Co., Ltd. Doosan Engine Shanghai Office Doosan Corporation Electro-Materials Hongkong Office

Ceylon Heavy Industries & Construction (CHICO)

Hanjung Power Limited Doosan HF Controls Doosan Hydro Technology

Shanghai Office

Doosan IMGB Tripoli Office

Doosan Latin America Oficina

Doosan Infracore Europe S. A. Italia Doosan Babcock Energy

Doosan Heavy Industries & Construction Subsidiaries

Doosan Heavy Industries & Construction Branch Offices

Doosan Infracore Production Subsidiaries

Doosan Infracore Holding Companies

Doosan Infracore Subsidiaries and Branches

Other Subsidiaries and Branches


Appendix

GLOBAL NETWORK

DOOSAN CAPITAL CO., LTD. BEIJING T 86 10 8454 7015~18/7052 F 86 10 8454 7162

TOKYO

FRANKFURT

SHANGHAI

Doosan HF Controls Corp.

CHENNAI

TOKYO

T 81 3 5484 1234 F 81 3 5484 1845

T 49 69 69 5004 0 F 49 69 69 5004 10

T 86 21 6237 2485~6 F 86 21 5877 5938

T 1 469 568 6526/6557 F 1 469 568 6589

T 91 44 4222 3900 F 91 44 4222 3905

T 81 3 5730 9011 F 81 3 5730 9016

HANOI

TAIPEI

TRAPPES

T 886 2 2739 2255(ARS) F 886 2 2739 2266

Doosan Hydro Technology, Inc.

CINISELLO BALSAMO

T 84 4 823 2501, 5 F 84 4 843 2302

T 39 02 6120565 F 39 02 6126322

T 33 1 3016 2141 F 33 1 3016 2144

COLOMBIA

WARRENSVILLE HEIGHTS

DOOSAN ENGINE CO.,LTD.

T 1 813 549 0182 F 1 813 623 6666

DOOSAN CORPORATION

HAMBURG

HYDERABAD

TOKYO

ELECTRO-MATERIALS

T 49 40 2533 5656 F 49 40 2533 5661

T 91 40 6613 2444/5 F 91 40 6613 2447

T 81 3 3452 5451~3 F 81 3 3452 5624

FRANKFURT

SHANGHAI

KOLKATA

TRIPOLI

T 86 21 6875 0876 F 86 21 6875 0864

T 91 33 4003 3018 F 91 33 2289 0576

T 218 21 360 8451 F 218 21 361 0563

Doosan Projects India Pvt. Ltd.

T 971 4 295 2781 F 971 4 295 2783

SINGAPORE

KUWAIT

WINDSOR

T 965 551 8436 F 965 551 8453

T 1 860 731 6482 F 1 860 731 6478

T 91 22 4097 0500 F 91 22 4097 0599

FRAMERIES

T 65 6222 5515 F 65 6222 5525

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD.

MUMBAI

ABU DHABI

NEW DELHI

Ceylon Heavy Industries & Construction Co., Ltd. [Chico]

T 91 11 5132 8031 F 91 11 5132 8039

T 94 114 440031~2 F 94 114 440030

NEW JERSEY

Doosan Babcock Energy Ltd.

T 49 6966 122923/123817 F 49 6966 123816

HONG KONG T 852 2317 0163 F 852 2317 0231

SAN DIEGO T 1 858 554 0533 F 1 858 554 0566

SHANGHAI T 86 21 6275 4429 F 86 21 6275 9974

SHENZHEN T 86 755 8359 2000 F 86 755 8359 9155

SINGAPORE T 65 6862 6327 F 65 6862 6329

TOKYO

T 971 2 627 6273 F 971 2 627 6274

BANGKOK T 66 2 654 0690, 2 F 66 2 654 0693

BEIJING T 86 10 8454 7131, 7133 F 86 10 8484 7139

T 81 3 3452 6261 F 81 3 5484 1845

DUBAI

LIQUOR LOS ANGELES

Doosan Desalination R&D Center

T 1 213 738 7900 F 1 213 738 7916

T 971 4 347 7051 F 971 4 347 7142

T 971 4 294 4699 F 971 4 294 9930

T 91 22 2202 6504 F 91 22 2202 6557

T 1 201 944 4554 F 1 201 944 5022

MAJOR SUBSIDIARIES

Doosan IMGB T 40 21 301 2602 F 40 21 301 2701

Hanjung Power Ltd. T 675 320 0529 F 675 321 2984

Han-Viet Heavy Industry &Construction Corp. [Hanvico] T 84 31 371 2720 F 84 31 712 714~5

DOOSAN INFRACORE CO., LTD

PITTSBURGH

T 44 1293 612 888 F 44 1293 584 816

T 1 724 722 5215 F 1 724 722 5668

Doosan Engineering & Services India Pvt. Ltd.

T 86 10 8454 7000 F 86 10 8454 7105

RIYADH

T 91 124 439 8200 F 91 124 414 7006

CARDIFF

Doosan Heavy Industries Vietnam Co., Ltd. [Doosan Vina]

CHARLOTTE

T 966 1 419 1920, 1696 F 966 1 419 1995

SCHENECTADY T 1 518 385 5218 F 1 518 385 4984

T 84 55 713 001~7 F 84 55 713 008

BEIJING

T 44 1443 84 2273 F 44 1443 84 1933 T 1 704 597 3600

T 57 1 216 1655 F 57 1 648 7710

DUBAI

T 32 65 61 3230 F 32 65 61 3238

LANGENFELD-FUHRKAMP T 49 2173 8509 20 F 49 2173 8509 60

NORTHAMPTON T 44 1604 825 600 F 44 1604 825 650

SHENYANG T 86 24 8841 1407 F 86 24 8841 1404

STATESVILLE

T 1 216 595 1212 F 1 216 595 1214

WEST CALDWELL T 1 973 618 2500 F 1 973 618 2501

WEST FARGO T 1 701 241 8700 F 1 701 241 8704

WURUMUQI T 86 991 469 7217 F 86 991 469 8641

YANTAI T 86 535 638 2000 F 86 535 638 2004

Doosan Infracore Machine Tools T 86 535 693 5050 F 86 535 693 5609

T 1 770 831 2200 F 1 770 831 0480

Yantai Yuhua Machinery Co., Ltd.

SUZHOU

T 86 535 639 9020 F 86 535 638 2020

T 86 512 8716 8300 F 86 512 8716 8308

TIANJIN T 86 22 2521 0540 F 86 22 2521 0714

ORICOM INC. BEIJING T 86 10 8454 7185~7188 F 86 10 8454 7190

63


Appendix

CONTACT INFORMATION DOOSAN GROUP Public Relations Team e-mail: cindykim@doosan.com Tel : +82-2-3398-3567 Fax : +82-2-3398-5188

DOOSAN INFRACORE Public Relations Team e-mail:sangchul.kim@doosan.com Tel : +82-2-3398-8460 Fax : +82-2-3398-8099

FORKLIFTS BG Overseas Sales Support Team e-mail: Jungim.son@doosan.com Tel : +82-2-3398-8635 Fax : +82-2-3398-8619

ENGINES & MATERIALS BG Overseas Marketing Team e-mail: changkyu.choi@doosan.com Tel : +82-2-3398-8517 Fax : +82-2-3398-8509

CONSTRUCTION EQUIPMENT BG Overseas Business Planning Team e-mail: heuiju.yun@doosan.com Tel : +82-2-3398-2558 Fax : +82-2-3398-8469

MACHINE TOOLS BG Overseas Marketing Team e-mail: edward.kim@doosan.com Tel : +82-2-3398-8663 Fax : +82-2-3398-8699

DEFENSE PRODUCTS BG Overseas Marketing Team e-mail: hyungchul.kim@doosan.com Tel : +82-2-3398-8191 Fax : +82-2-3398-8199

POWER PLANTS Business Strategy Team e-mail: eunjung.yoo@doosan.com Tel : +82-2-513-6196 Fax : +82-2-513-6160

DESALINATION PLANTS Business Strategy Team e-mail: sugeun.kim@doosan.com Tel : +82-2-513-7079 Fax : +82-2-513-6690

CONSTRUCTION Strategy Team e-mail: seongyeol.lee@doosan.com Tel : +82-2-513-6769 Fax : +82-2-513-6671000

NUCLEAR POWER PLANTS Planning Team e-mail: jinbong.yoo@doosan.com Tel : +82-2-513-6157 Fax : +82-2-513-6678

CASTING & FORGINGS Strategy & Business Development Team e-mail: howon.jung@doosan.com Tel : +82-55-278-4833 Fax : +82-55-278-8567

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION Public Relations Team e-mail: kangchul.seo@doosan.com Tel : +82-2-513-6225 Fax : +82-2-513-6696

DOOSAN CONSTRUCTION & ENGINEERING Strategy Team e-mail: jaeky@doosan.com Tel : +82-2-510-3756 Fax : +82-2-510-3716

DOOSAN ENGINE Finance Analysis Team e-mail: jongki.yoon@doosan.com Tel : +82-55-260-6095 Fax : +82-55-260-6899

DOOSAN MECATEC Strategy Team e-mail: jiayou@doosan.com Tel : +82-2-3398-2746 Fax : +82-2-3398-2795

DOOSAN CAPITAL Strategy Team e-mail: junseok1.kim@doosan.com Tel : +82-2-3398-1880 Fax : +82-2-3398-1804 Please contact Doosan Group Public Relations Team, if you require further information regarding other businesses.



Doosan Tower, 18-12, Euljiro 6-ga, Jung-gu, Seoul, Korea 02-3398-0114 www.doosan.com


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