Slide 1: Earnings Presentation: 2Q 2025 Financial Results
Investor Relations Earnings Presentation: 2Q 2025 Financial Results Jul. 2025
Slide 2: Table of Contents
Table of Contents I. 2025 2Q Financials II. Appendix Disclaimer This material has been prepared solely for the purpose of providing information to investors and is not intended to offer any guarantees or assume any responsibility on behalf of the Company. The Company assumes that investment decision
Slide 3: 2025 2Q. Financial Results Summary
2025 2Q. Financial Results Summary (KRW billion, %) Sales New Orders Backlog Net Debt Increased sales and enhanced Increased by 150% YoY C/C orders from China drives Gross Debt : KRW 71 B operating margin based on (Among marine engine orders, order backlog Cash and short-term financial delivery of h
Slide 4: Income Statement
Income Statement ✓ Sales : KRW 388B ✓ Operating Profit: KRW 34B with 8.7% OP margin (KRW Billion) (KRW billion, %) ’25.2Q ’24.2Q YoY ’25.1Q QoQ Key Features 1 Sales 388 287 +101 318 +70 1 Sales + KRW 101 B YoY 388 326 318 41 COGS(%) (88.2%) (90.5%) (△2.3%p) (89.0%) (△0.8%p) 293 286 296 278 47 45 44
Slide 5: Sales
Sales ✓ 2Q 2025 Sales KRW 388B ✓ Contract margin enhancements from 2H 2022 get down to be delivered. Quarterly Sales & OP Margin Sales Breakdown (KRW Billion) (KRW Billion) • Increased engine sales from well-balanced 388 customer portfolio 326 318 2Q24 2Q25 +/- 293 286 296 278 Marine H/O 115 146 31
Slide 6: New Orders
New Orders ✓ DF engines* account for 85% of new contracts in 2025 1H ✓ Container ships made up 87% of marine engine orders Quarterly New Orders Proportion of DF engine Orders (KRW Billion) (KRW Billion) 구분 FY21 FY22 FY23 FY24 ’25.1H 2023 2024 2025 Diesel engine 394 266 55 279 227 (1,244 B) (1,649 B)
Slide 7: Backlog
Backlog ✓ Backlog covers approximately 3 years of deliveries ✓ DF engines account for 87% of marine engine Backlog Breakdown Marine engine Backlog (KRW Billion, %) SCR 3,828 B 3,828 B 5% Tanker 13% SHI 27% Container Marine 51% H/O 28% 4,014 B engine (2025.06.30) 95% CHINA 45% LNGC 36% By Ship-type 선
Slide 8: Balance Sheet
Balance Sheet ✓ Net Debt : △KRW 266 B , Net Debt ratio 232% (KRW Billion) ’24.12 ’25.2Q +/- Current Assets 785 854 69 Interest-bearing Debt Non-current Assets 628 576 △52 (KRW Billion) Total Assets 1,413 1,430 17 Current Liabilities 587 529 △58 Advance Receipts 225 203 △9 ’24.12 ’25.2Q Non-current L
Slide 9: Table of Contents
Table of Contents I. 2025 2Q Financials II. Appendix Disclaimer This material has been prepared solely for the purpose of providing information to investors and is not intended to offer any guarantees or assume any responsibility on behalf of the Company. The Company assumes that investment decision
Slide 10: Engine 'Order-Sales' Process
Engine ‘Order-Sales’ Process Shipbuilding & Engine manufacturing Process 10 M 12 M ~ 22 M Design Steel Cutting Keel Laying Launching Delivery Vessel New Assembly Pre-outfitting Block Outfitting Sea Trial Naming Orders Painting Ceremony 3M 6M 3M • Engine Sales Engine New Design Canning & Assembling D
Slide 11: Annual Performance Trend
Annual Performance Trend ✓ Over KRW 1T in annual orders since 2021; shifted to normalized margins from 2022. ✓ Achieved KRW 1.6 trillion in new orders just in H1 2025. New Orders Sales & OP margin (KRW Billion) (KRW Billion, %) 2,000 7.9% Sales OP Margin 6.0% 1,769 1,649 1,618 1.8% 2.4% 0.5% 1.0% -3
Slide 12: Key AM Business Contracts in 2025
Key AM Business Contracts in 2025 LTSA Contract Highlights EPLO Applications 1 Main Services Main Services ▪ 5 years ▪ Turbocharger upgrade ▪ 5 years (‘25 ~ ‘29) ▪ Scheduled Spare parts ▪ Component Replacement ▪ Unscheduled parts ▪ LNG Carriers, ▪ Engine Output Optimization ▪ Comprehensive Care Serv
Slide 13: Industry outlook
Industry outlook ✓ 2025 new contracts are expected to decline by 29% YoY (’24 70.2m.CGT → ’25 48.9m.CGT) ✓ Mid- to long-term average (’26 ~ ’33) expected at 47m CGT. Global New Orders Outlook • Key Features (mCGT) ‒ World’s first maritime carbon pricing scheme to take ’26–’35 avg. 47m CGT. effect in
Slide 14: Competitive edge in securing orders
Competitive edge in securing orders ✓ balanced revenue sources : Samsung Heavy Industries, Hanwha Ocean, and Chinese shipyards. Order Breakdown by customer Chinese market (KRW Billion, %) (KRW Billion, %) Total (DO+DF) DF 18.7% 1,769 16.7% 1,649 M/S 14.8% 13.4% 11.2% 484 9.2% 8.8% 7.6% 414 SHI 6.0%
Slide 15: Company Overview
Company Overview Overview Business Areas (KRW Billion, %) Business Areas 2024 Revenue Weight Company Hanwha Engine Co., Ltd. Marine Engine 10,223 85% Date of AM 1,447 12% Dec. 30, 1999 Foundation SCR 329 2.7% Sinchon-dong 69-3, Seongsan-gu, Powerplant 23 0.3% Address Changwon-si, Gyeongnam Total 12,
Slide 16: Plants
Plants Changwon Plant (Headquarter) Germany 저속 3공장 Greece Chang Jiang Shanghai Qatar 저속 1,2공장 Singapore 가공공장 Changwon Geoje Plant Site Branch Confidential | 16
Slide 17: Business Area – Low-Speed Engine
Business Area – Low-Speed Engine Hanwha Engine (Low-Speed Engine) Main Business (85% of total sales in 2024) product Large vessel (e.g. LNGC, Container, Tanker, Bulker) Licensor Everllence(f.k.a. MAN-ES), Win-GD Customer Ship Builder (e.g. SHI, H/O, Yangzijiang, NTS) Containership engines Oil tanker
Slide 18: Business Area – AM
Business Area – AM Hanwha Engine (After Market Business) Major Products CYLINDER COVER SPINDLE GUIDE Service Marine engines parts and technical service PISTON ROD Customer Major fleet owners, domestic agencies Business overview CONNECTING ROD PISTON CROWN • Providing and Servicing maintenance parts