Slide 1: Earnings Presentation: 1Q 2025 Financial Results
Investor Relations Earnings Presentation: 1Q 2025 Financial Results Apr. 2025
Slide 2: Table of Contents
Table of Contents I. 2025 1Q 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 1Q Financial Results Summary
2025 1Q. Financial Results Summary (KRW billion, %) Sales New Orders Backlog Net Debt Increased sales and enhanced Increased by KRW 834.2B Order backlog grew with Gross Debt : KRW 80.3B operating margin based on (C/C accounts for 95%) increased C/C orders from China Cash and equivalents : KRW delive
Slide 4: Income Statement
Income Statement ✓ Sales : KRW 318.2B ✓ Operating Profit: KRW 22.3B with 7% OP margin (KRW Billion) (KRW billion, %) ’25.1Q ’24.1Q YoY ’24.4Q QoQ Key Features Sales 1 318 293 +25 326 -8 1 Sales + KRW 25 B YoY 326 318 (89.0%) (90.1%) (-1.1%p) (89.73%) (-0.7%p) 293 286 296 COGS(%) 278 47 45 38 44 47 4
Slide 5: Sales
Sales ✓ 1Q 2025 Sales KRW 318B ✓ Orders contracted in 2022 drove Q1 2025 sales and profit growth (+0.4%p YoY in OP margin) Quarterly Sales & OP Margin Sales Breakdown (KRW Billion) (KRW Billion) • Increased engine sales from well-balanced customer portfolio 326 318 296 1Q24 1Q25 +/- 293 286 278 Mari
Slide 6: New Orders
New Orders ✓ During 2025 1Q, new orders secured as much as c.60% of 2024 full-year contracts, driven by C/C from China ✓ DF engines account for 88% of new contracts in 2025 1Q Quarterly New Orders Proportion of DF engine Orders (KRW Billion) (KRW Billion) FY21 FY22 FY23 FY24 ’25.1Q 2022 2023 2024 20
Slide 7: Backlog
Backlog ✓ Backlog: KRW 4,114B, , Marine Engine takes 97% of Hanwha Engine orderbook Backlog Breakdown Marine engine Backlog (KRW Billion, %) SCR 3,989 3,989 3% Tanker 12% SHI 29% Marine Container 47% H/O 21% 4,114 B engine (2025.03.31) 97% CHINA 49% LNGC 40% By Ship-type 선종별 By거래처별 Customer Confiden
Slide 8: Balance Sheet
Balance Sheet ✓ Net Debt : △KRW 108 B , Net Debt ratio 260% (KRW Billion) ’24.12 ’25.1Q +/- Current Assets 785 852 67 Interest-bearing Debt Non-current Assets 628 630 2 (KRW Billion) Total Assets 1,413 1,482 69 Current Liabilities 587 607 20 Advance Receipts 225 229 17 ’24.12 ’25.1Q Non-current Liab
Slide 9: Table of Contents
Table of Contents I. 2025 1Q 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. ✓ Orders grew in 2024 on LNG and container demand; 2025 expected to maintain a similar level. New Orders Sales & OP margin (KRW Billion) (KRW Billion, %) Sales OP Margin 6.0% 1,769 2.4% 1,649
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 MAN ES, Win-GD Customer Ship Builder (e.g. SHI, H/O, Yangzijiang, NTS) Containership engines Oil tanker engines LNG carrie
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