Slide 1: Earnings Presentation: 1Q 2026 Financial Results
Investor Relations Earnings Presentation: 1Q 2026 Financial Results Apr. 2026
Slide 2: Table of Contents
Table of Contents I. 1Q 2026 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: 1Q 2026 Financial Results Summary
1Q 2026 Financial Results Summary (KRW billion, %) Sales New Orders Backlog Net Debt Driven by delivery of 2024 Increased by +16.3% YoY Increased by C/C orders from Gross Debt : KRW 55 B orders and high HP C/C engines (C/C accounts for 66% in new Chinese shipyard Cash and short-term financial marine
Slide 4: Income Statement
Income Statement ✓ Sales : KRW 345 B (YoY 8.5% ↑) ✓ Operating Profit: KRW 51 B (OPM: 14.9%, YoY 7.9%p ↑) (KRW billion, %) (KRW Billion) Key Features ’26.1Q ’25.1Q YoY ’25.4Q QoQ 1 Sales + KRW 27 B YoY 1 Sales 345 318 +27 368 △23 388 368 326 345 293 296 318 41 297 286 49 46 COGS(%) (81.1%) (89.0%) (△
Slide 5: Sales
Sales ✓ 1Q 2026 Sales KRW 345 B ✓ OPM ratio improvement from high quality 2024 contracts and manufacturing process efficiency Quarterly Sales & OP Margin Sales Breakdown (KRW Billion) (KRW Billion) • Revenue growth driven by delivery of 2024 orders and high HP C/C engines 1Q25 1Q26 +/- 14.9% 12.9% M
Slide 6: New Orders
New Orders ✓ 1Q 2026 new order intake 1,231B KRW : Hanwha Engine’s historic high – of which : C/C accounts for 66% – of which : DF engine accounts for 79% Quarterly New Orders Proportion of DF engine Orders (KRW Billion) (KRW Billion) FY22 FY23 FY24 FY25 ’26.1Q 2023 2024 2025 2026 Diesel engine 266
Slide 7: Backlog
Backlog ✓ Backlog covers more than three years of delivery volume ✓ DF engines account for 85% of marine engine Backlog Breakdown Marine engine Backlog (KRW Billion, %) 5,018 B 5,018 B SCR 4.2% Tanker 14% SHI 25% Container 26% Marine H/O 60% 5,239 B engine (2026.03.31) 95.8% CHINA 49% LNGC etc 26% B
Slide 8: Balance Sheet
Balance Sheet ✓ Net Debt : △KRW 60 B , Debt ratio 213% (KRW Billion) ’25.12 ’26.1Q +/- Current Assets 1,032 857 △175 Interest-bearing Debt Non-current Assets 664 1,054 390 (KRW Billion) Total Assets 1,696 1,911 215 Current Liabilities 611 722 111 Advance Receipts 222 234 12 ’25.12 ’26.1Q Non-current
Slide 9: Table of Contents
Table of Contents I. 1Q 2026 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. ✓ Marine Engine Business Achieves KRW 2 Trillion in Orders. New Orders Sales & OP margin (KRW Billion) (KRW Billion, %) 9.5% Sales OP Margin 6.0% 2,196 2.4% 1.8% 1.0% 1,769 0.5% 1,371 1,649 -
Slide 12: Industry outlook
Industry outlook ✓ 2025 new contracts declined by 25% YoY (’24 75.9m.CGT → ’25 50.8m.CGT) ✓ Mid- to long-term average (’26 ~ ’33) expected at 48m CGT. MEPC 83rd Session (2025.04.07~11) Global New Orders Outlook • Key Features (mCGT) ‒ World’s first maritime carbon pricing scheme to take ’26–’35 avg.
Slide 13: 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 기타 중국 한화 삼성 22.7% 2,196 M/S 16.7% 265 SHI (12%) 13.4% 11.2% 11.2% 11.5% 1,769
Slide 14: Company Overview
Company Overview Overview Business Areas (KRW Billion, %) Business Areas 2025 Revenue Weight Company Hanwha Engine Co., Ltd. Marine Engine 1,196 87.3% Date of AM 157 11.4% Dec. 30, 1999 Foundation SCR 16 1.2% Sinchon-dong 69-3, Seongsan-gu, Powerplant 2 0.1% Address Changwon-si, Gyeongnam Total 1,37
Slide 15: Plants
Plants Changwon Plant (Headquarter) Germany 저속 3공장 Greece Chang Jiang Shanghai Qatar 저속 1,2공장 Singapore 가공공장 Changwon Geoje Plant Site Branch Confidential | 15
Slide 16: Business Area – Marine Engine
Business Area – Marine Engine Hanwha Engine Main Business (87% of total sales in 2025) 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 engines LNG carrier e
Slide 17: 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
Slide 18: Introduction of SEAM
Introduction of SEAM SEAM Norway EPS SI M/S 40% • Electric propulsion • Hydrogen fuel cell NH • Ammonia • Charging and power SEAM has delivered sustainable solution to 111 vessels across difference ship types. a leading international provider of Low and Zero emission to the maritime industry Key Bus