Slide 1: Earnings Presentation: 2025 Financial Results
Investor Relations Earnings Presentation: 2025 Financial Results Feb. 2026
Slide 2: Table of Contents
Table of Contents I. 2025 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 decisions w
Slide 3: 2025 Financial Results Summary
2025 Financial Results Summary (KRW billion, %) Sales New Orders Backlog Net Debt Increased sales and enhanced Increased by +33% YoY C/C orders from China drives Gross Debt : KRW 53 B operating margin based on (Among marine engine orders, order backlog Cash and short-term financial delivery of high
Slide 4: Income Statement
Income Statement ✓ Sales : KRW 1,371B ✓ Operating Profit: KRW 130 B with 9.5% OP margin (KRW billion, %) (KRW Billion) Key Features FY 25 FY 24 YoY 1 Sales + KRW 169 B YoY 1 388 368 Sales 1,371 1,202 +169 293 296 326 318 41 297 49 278 286 47 45 Non-Marine 38 44 47 42 39 COGS(%) (86.5%) (90.3%) (△3.8
Slide 5: Sales
Sales ✓ 4Q 2025 Sales KRW 368 B ✓ Enhanced Contract margin in 2024 get down to be realized. Quarterly Sales & OP Margin Sales Breakdown (KRW Billion) (KRW Billion) • Revenue growth driven by increased domestic deliveries of LNGC and C/C engines 12.9% FY 24 FY 25 +/- 9.0% Marine H/O 389 502 113 8.7%
Slide 6: New Orders
New Orders ✓ DF engines* account for 86% of new contracts in 2025 ✓ Container ships made up 76% of 2025 new marine engine orders Quarterly New Orders Proportion of DF engine Orders (KRW Billion) (KRW Billion) 구분 FY21 FY22 FY23 FY24 FY25 2023 2024 2025 Diesel engine 394 266 54 279 301 (1,244 B) (1,64
Slide 7: Backlog
Backlog ✓ Backlog continues to equate to approximately 3 years of deliveries ✓ DF engines account for 86% of marine engine Backlog Breakdown Marine engine Backlog (KRW Billion, %) 3,955 B 3,955 B SCR 4.5% Tanker 13% 23% SHI Container 55% H/O 32% 4,143 B Marine (2025.12.31) engine 95.5% CHINA LNGC 44
Slide 8: Balance Sheet
Balance Sheet ✓ Net Debt : △KRW 358 B , Debt ratio 205% (KRW Billion) ’24.12 ’25.12 +/- Current Assets 785 1,032 247 Interest-bearing Debt Non-current Assets 628 664 36 (KRW Billion) Total Assets 1,413 1,696 283 Current Liabilities 587 612 26 Advance Receipts 212 222 10 ’24.12 ’25.12 Non-current Lia
Slide 9: Table of Contents
Table of Contents I. 2025 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 decisions w
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