2014 Daewoo International
Presentation Material
Ver. 2014-12
1
Contents
I
Company Profile
▶ Corporate Outlook
▶ Organization & Personnel
▶ Global Network
▶ Core Competency
▶ Vision 2020
II
Business Area
III
Synergy with POSCO Family
2
Corporate Outlook
Daewoo International (DWI)
 Establishment : 1967
 Sales Volume (2013) : USD 16.2 Billion
 Vision : Challenging towards Global Top Company
Sales Volume
 Major Business Sector
(As of Apr. 2014)
(CAGR = Compound Annual Growth Rate)
* Since 2011, K-IFRS standard used
· International Trade
$ 16.2 Billion
20
(Sales Volume)
· Project Organizing
16
· Resource Development
12
· Overseas Investment
USD 151M
8
 Employee : 8,139
(Operating Profit)
4
 Global Network : Total 117 (58 countries)
2009
2010
2011
2012
2013
3
Organization & Personnel
(As of Apr. 2014)
Overseas
HQ (Korea)
Trade &
Investment
Administration
 2 Groups

 9 Departments
 20 Divisions
 3 Teams
 74 Teams
5 Groups
Domestic
Business
 Department Store
Trade
 60 Branches
 1 Oil & Gas Resource  14 Subsidiaries
(East Sea 6-1)
Resources
Development
Investment
 26 Subsidiaries
 8 Oil & Gas Resource
- Major 8
 7 Mineral Resource
- Minor 18
 2 Agro Resource
Employees
Employees
Employees
Overseas Employees
 224
 712
 Dept. store: 210
 Koreans : 234
 Global Staffs : 853
 Global Network : 117
 Total Employees : 8,139
* Total Employees : Includes 5,906 in overseas manufacturing factories (except for minor manufacturing factories)
4
Core Competency
DWI, The Best Trade / PJT Organizing / Resource Development Company
Trade &
PJT Expertise
• 47-year Trading & Investment Know-how
• Trade & Project Experts
- Global Competency and Vast Experience
Global Biz
Network
• Korea’s No. 1 Overseas Biz Network
- 117
124 Overseas Units in 58
** Countries
Countries
- 11,000
6,000 Partners
Partnersinin180
140Countries
Countries
• Stable & Synergy-creating Biz Portfolio
Business
Portfolio
- Trade : Steel, Metal, Chemical, Machinery etc.
- Project Organizing: IPP, Plant, Transportation
- Oil/Gas/Mineral Resource/Agro Resources Development: 17 sites
- Investment: 26 in 18 countries
5
Vision 2020
DWI, Achieve Sales Volume of USD 52 Billion through Vision 2020
“Challenging towards Global Top Company”
Sales USD 52 Billion / Pre-tax Income 1.8 Billon
Nurture
All Employees as
the Global Best
Talent
50% or Higher
Long-term Stable
Profit Weight
Lead and Build up
Family
Cooperation
~2020
Global Major Trader
• Top 10 Sales Volume
Project Developer
• Country Marketing
• Large-size, Complex Project Development
Resources Development
Portfolio Operation
• Operating 4 Projects
• Equity Investment on over 10 Projects
6
Contents
I
Company Profile
II
Business Area
▶ Business Group
▶ Business Sector
- International Trade
- Resource Development
- Project Organizing
- Manufacturing Investment
III
Synergy with POSCO Family
Business Group
(As of Apr. 2014)
BUSINESS GROUP
Business Group 1
Business Group 2
Business Group 3
Business Group 4
Resources Development
Group
DIVISION
MAIN BUSINESS/ITEM
Hot Rolled Steel Division
Hot Rolled Steel(POSCO Origin), API
Plate & Wire Rod Division
Plate, Wire Rod, Slab
Energy Steel Division
API Plate & HRC, Offshore / Wind Tower Plate, API Pipe
Cold Rolled Steel Division
Cold Rolled Steel(POSCO Origin)
Automotive Steel Division
Hot-dip Galvanized Steel
Special Steel Division
Stainless Steel
Machinery & Plant Division
Industrial Machinery, Plant, Defense Industry Products
Power Energy Infra Division
Power Generation Plant Projects
Automotive Component Division I
Automotive Components(OE)
Automotive Component Division II
Automotive Components(RE)
Electronic Industry Division
Electronic/IT Products
Steel Raw Materials Division
Steel Raw Materials, Steel Semi Products , Deformed Bar
Non-Ferrous Metal Division
Copper, Nickel, Aluminum, Zinc, Lead, Tin,
Finished Products of Copper & Brass
Commodity Division
Development for Agricultural Resources & Textile Materials
Mineral Resources Division
Development for Mineral Resources
Chemical Division 1
Petroleum Products, Petrochemical Raw Materials,
Detergent Raw Materials
Chemical Division 2
PE, PP, PS, ABS, PVC, PU Raw Materials, PET Resin,
Textile Materials, Polyester Raw Materials, Plasticizer
Chemical Division 3
Synthetic Rubber, Fertilizer, Inorganic,
Fine Chemical Products
Petroleum Exploration Division
Exploration & Production for Oil and Gas
Petroleum Production Division
Administration & Business Management of E&P Project
8
Business Sector
DWI, Diversifying its Business Model in a way that Creates a Synergy
Main Business Sectors of DWI
International
Trade
Project
Organizing
Resource
Development
Overseas
Investment
To Create Synergy
Resources Development
Development
Exploration
Production
Marketing
International Trade
Package Supply
Stable Supply
Marketing
Raw
Material
Distribution &
Processing
Production
Project Organization & Development
○ Organization : Industrial/Power Plant, Infrastructure (Ex. Railway, Port)
○ Development : Package Deal (Resource + Plant), IPP
9
Business Sector – International Trade
DWI, Trading a Variety of Items / Specialized in Triangular Business
2013 Sales Ratio for Trade
Item
Steel
HR, CR, STS
Triangular Business (2013)
Unit
(%)
44
Petroleum Products, Chemical Raw Materials
PE/PP, PVC, PET Resin, Fertilizer etc
23
Non Ferrous
Metal
Non-Ferrous Metal,
Steel Raw Materials
18
Machinery/
Automotive
Machinery, Plant
Automotive Components, Parts
10
Cotton, Cotton Yarn & Fabric
Textile Materials, Woven Apparels
1
Chemical
Textile
Electronic / IT Products, System Integration
Defense Industry Products
1
Agriculture/
Fisheries
Grain, Foodstuff, Coal,
Mineral & Construction Materials
3
Export
51%
Triangular
43%
import
6%
Ex. Steel Raw Materials Triangular Business
Resource Development Co.
In Overseas
Sao Paulo
Branch
BUYING
Sydney
Branch
DAEWOO
INDIA
Electronics
Total
43% of Trade is
accomplished
by Triangular Business
Steel Mills in China
SELLING
DAEWOO
CHINA
Moscow
Branch
Johannesburg
Branch
100
10
Business Sector – Resource Development
17 Resources Development Projects including 5 Projects as Main Operators
(As of Mar. 2014)
RUSSIA
Tomsk (Woods)
MYANMAR
Shangalon (Copper)
OMAN
KOLNG
(Gas)
CAMEROON
Mayodale (Tin)
CANADA
Calgary (Tight Oil-Gas)
Hong Kong
SEAGP
CANADA
Kiggavik (Uranium)
KOREA
East Sea 6-1 (Operator)
VIETNAM
11-2 (Gas)
MYANMAR
AD-7 (Gas)
(Operator)
INDONESIA
Palm Oil (Operator)
MYANMAR
A-1 / A-3 (Gas)
(Operator)
MADAGASCAR
Ambatovy (Nickel)
8 Oil/Gas Resources Projects
AUSTRALIA
Marree (Uranium)
PERU
Block 8 (Oil)
BOLIVIA
Corocoro (Copper)
AUSTRALIA
Narrabri (Coal)
7 Mineral Resources Projects
2 Agro-Resources Projects
11
Business Sector – Exploration & Production for Oil and Gas
Project
Equity
Reserve
11.7%
28 MM bbl
- 1996: Participation (Operator : Pluspetrol)
- Production: 10,748 bbl/day (Crude Oil)
- Earnings: US$ 6 mm in 2013
4.9%
0.4 TCF
15 MM bbl
- 1992: Participation (Operator : KNOC)
- Dec. 2006: Commercial Gas Production
- Production : 132 mmscf/day (Gas)
3,500 bbl/day (Condensate)
- Earnings: US$ 6.3 mm in 2013
Myanmar offshore
Block A-1
(Gas Field)
51% (*Operator)
2.2 ~ 3.7
TCF
- Jan. 2004: Discovery of Shwe Gas Field
- Mar. 2005: Discovery of Shwe-Phyu Gas Field
- Dec. 2013: Reserves Certification in Shwe &
Shwe-Phyu Gas Fields (RPS Energy)
Myanmar offshore
Block A-3
(Gas Field)
51% (*Operator)
0.9 ~ 1.8
TCF
- Jan. 2006: Discovery of Mya Gas Field
- Dec. 2013: Reserves Certification in Mya
Gas Field (RPS Energy)
Canada
Tight Oil-Gas
10% (Cardium)
7% (Notikewin)
48 MM boe
Myanmar offshore
Block AD-7
60% (*Operator)
Korea offshore
Block 6-1S
Myanmar onshore
Block RSF-7, MOGE8
DEVELOPMENT / PRODUCTION
EXPLORATION
Remarks
- GSPA in Dec. 2008
- Declaration of Commerciality
in Nov. 2009
- EPCIC Contract in Feb. 2010
- FDP Approval in Mar. 2010
- Gas Sales in Jul. 2013
- Aug. 2013 : Purchase & Sale Contract Signed
- Dec. 2013 : 11 Wells Drilled
- Earnings : US$ 0.6 mm in 2013
n/a
- Feb. 2007: PSC Signed
- Mar. 2007~Jun. 2013: Study Period
- Jul. 2013~Jun. 2015: Exploration Period
- Farm-out 40% Participating Interest
to Woodside in 2013
70% (*Operator)
n/a
- Sep. 2011: Concession Contract Signed
- Oct. 2011~Sep. 2015: 1st Exploration Period
100% (*Operator)
n/a
- Apr. 2013 : MOA Signed
- Apr. 2013 ~ Mar. 2015 : Study Period for
Unconventional Hydrocarbon Resources
- Transportation of gas produced
from Myanmar Block A-1/A-3 to
Eastern part of China
- Earnings: US$ 20 mm in 2013
MIDSTREAM
Vietnam offshore
Block 11-2
(Gas Field)
SEAGP
(South East Asia
Gas Pipeline
Company)
25.041%
n/a
- Jun. 2010: Establishment of a SPC,
SEAGP in Hong Kong (Major Shareholder: CNPC)
- Apr. 2010: Establishment of Myanmar Branch
Office (Mandalay)
- May 2011: EPC Construction Started (On-going)
- June 2013: Completion of Pipeline Construction
- June 2013: Commencement of Gas Transportation
DOWN
STREAM
OIL & GAS RESOURCES
Peru Block 8
(Oil Field)
History & Status
Oman LNG
(KOLNG)
20%
(1% of OLNG)
n/a
- 1997: Participation (Operator : Shell)
- 2000: LNG Production (Dividend since 2002)
- Annual capacity : 6.6mmMT
• TCF : Trillion Cubic Feet / KNOC: Korea National Oil Corporation / GSPA : Gas Sales & Purchase Agreement
• FDP : Field Development Plan / PSC : Production Sharing Contract / SPC: Special Purpose Company
(As of Mar. 2014)
12
Business Sector – Mineral and Agro Resource Development
(As of Mar. 2014)
PRODUCTION
EXPLORATION
DEVELOPMENT
AGRO
RESOURCES
MINERAL RESOURCES
Project
Equity
Reserve
Remarks
4.0%
169Mt
- 2006: Participation
- Parties: Sherritt 40%, Sumitomo 27.5%,
KAC 27.5% (KORES 17.5%, others)
- Production in 2012 (Production period : 29 years)
- Annual Capacity : Nickel 60,000 t/y, Cobalt 5,600 t/y
Australia
Narrabri
(Coal)
5.0%
200Mt
- Aug 2009: Participation
- Parties : Whitehaven 70%, KORES 2.5%, others
- Annual Capacity : 6 Mt/y (Production in 2010)
Canada
Kiggavik (Uranium)
1.7%
40,616t
Australia
Marree (Uranium)
10%
n/a
- 2008: Participation
- Exploration in progress
Bolivia
Corocoro (Copper)
5%
n/a
- 2008: Participation
- Exploration in progress
Cameroon
Mayo Dale (Tin)
100%
n/a
- 2011: Approval of mining right for Mayo Darle’s Tin
- Exploration in Progress
Myanmar
Shangalon (Copper)
60%
n/a
- 2013: Participation
- Exploration in progress
Indonesia (Oil Palm)
85%
36,000 ha
Russia (Forest)
50%
209,000 ha
Madagascar
Ambatovy
(Nickel)
•KC: Korean Consortium / KORES : Korea Resources Corporation
- 1983: Participation
- 2008~2014: Environmental assessment study, F/S
- Aug. 2011: Contract signed
- Sep. 2012: Initiated Oil Palm planting
- Apr . 2013: Oil Palm tree planted (2,400ha, 310,000ea)
- Aug. 2011: Contract Signed
- Nov. 2012: Started wood harvesting and marketing
- Jun. 2013: Expected to implement construction of veneer mill
13
Business Sector – Myanmar Gas Project
DWI, Operating Myanmar Gas Project toward Gas Production in May 2013
Myanmar Gas Development Project
(As of Mar. 2014)
• Block
Block A-1
Block A-3
(since Aug. 2000)
(since Feb. 2004)
• Location
Northwest Offshore of Myanmar
• Contract
Production Sharing Contract
• Investment
Total
• Equity
DWI (Operator)
ONGC Videsh
MOGE
GAIL (India) Limited
KOGAS
: 1,971 M (USD)
51%
17%
15%
8.5%
8.5%
− Dec. 2008: GSPA (CNUOC)
− Nov. 2009: Declaration of
• Process for
Commerciality
Gas Production
− Feb. 2010: EPCIC Contract
− Jun. 2013: Gas Production
•GSPA : Gas Sales & Purchase Agreement / EPCIC : Engineering, Procurement, Construction, Installation & Commissioning
14
Business Sector – Canada Baptiste Project
DWI, Expanding Canada Tight Oil - Gas Project in 2014
(As of Mar. 2014)
• Location
NW 200Km from Calgary, Canada
• Contract
Asset Purchase and Sale Agreement
• Reserves
Total (MMBOE) : 48.2
(Cardium : 26.7 + Notikewin : 21.5)
• Development
Total (Wells) : 74
(Cardium : 51 + Notikewin : 23)
• Investment
Total
• Equity
Cardium
Bellatrix (Operator)
41%
KIS Devonian
31%
DWI
10%
Others
18%
• Process for
Production
Dec. 2013 : 11 Wells Drilled
~ 2014 : Drilling 39 Wells Planned
: 271 M (CAD)
Notikewin
27%
21%
7%
45%
15
Business Sector – Project Organizing
DWI, Covering Every Step of Project Organizing (Financing / Plant / Operation)
(As of Mar. 2014)
Green Energy
(Sun & Wind Energy)
Power Plant EDCF (Economic Develop
Social
Oil & Gas, Refinery,
-ment & Cooperation)
Infrastructure Petrochemical Plants (IPP, BOT)
Papua New Guinea Power Plant Project
• Establishment
1996. 8. 16.
• Location
Port Moresby,
Papua New Guinea
• Project Scheme
BOT (Build Own Transfer)
IPP (Independent Power Producer)
• Investment
USD 16 Mil.
• Equity
DWI 49%
Doosan Heavy Industry 51%
• Sales (2012)
USD 25 Mil.
• Capacity
24 Mega Watt/Year
 Structure
Project Organizing
Capital Investment
Construction/Maintenance
Capital Investment
Electric
Finance
Papua
Power Plant
Power
Supply
Local
Government
Insurance
EDCF
Supply 40% of Papua Metropolitan area
electricity demand
16
Business Sector – Resource Development
DWI, Positioning to Become the World’s Biggest Lateritic Nickel Mine
(As of Mar. 2014)
Madagascar Ambatovy Nickel Project
Ambatovy
Plant Site
• Project
Madagascar Ambatovy
Nickel Project
• Investment
Total (USD) : 7.9 Bil.
• Equity
DWI 4%
Sherritt 40%, Sumitomo
27.5%, SNC-Lavalin 5%
KORES 22.5%, STX 1%
• Reserve
• Production
169 Mt @ 1.04% Nickel,
0.10% Cobalt
Nickel 60,000 ton/year
Cobalt 5,600 ton/year
 Structure
Investment Structure
Sponsors
Capital Investment
Guarantee
Lenders
Group
Loan
 30,000 ton Nickel for Korean Consortium
 24,000 ton for Daewoo
(80% of Korean Consortium)
O&M
Company
Operation/
Maintenance
Ambatovy
Project
EPC
Contractors
Off-Taker
17
Business Sector – Major Manufacturing Investment
DWI, Operating 9 Major Manufacturing Subsidiaries to Create a Synergy with Trading
(As of Mar. 2014)
Major Overseas Manufacturing Investment
UZBEK
Textile
UZBEK
CHINA
Textile
Paper
USA
Daewoo AAPC
(Paper Company)
INDONESIA
Palm Oil
BRAZIL
Daewoo BSPC
(Coil Center)
PNG
Myanmar
Construction & Machinery
Power Producer
Subsidiary
8
Investment
USD 120 Mil.
18
Contents
I
Company Profile
II
Business Area
III
Synergy with POSCO GROUP
1) POSCO Business Portfolio
2) POSCO Family’s Investment & Activities in Brasil
20
21
22
23
24
25
26
2) POSCO’S INVESTMENT & ACTIVITIES
[ INVESTMENT ]





CSP
BSPC
KOBRASCO
NAMISA
CBMM
[ BUSINES ACTIVITIES ]




POSCO
DAEWOO INT’L
POSCO ICT
POSCO E&C
27
1. CSP(Companhia Siderurgica do Pecem)
○ General Overview
- Estimated Establishment : 2016. Feb.
- Location : Pecem in State of Ceara
- Capex
: U$5 Billion
- Capacity : 3 Mil tons/yr (1st phase)
- Product : steel slab (Integrated steel mill)
- Shareholder composition :
Vale 50% / Dongkuk 30% / POSCO 20%
○ Master Schedule
NOW
Starting construction
9.1.
2011
2012
7.17.
piling
Dedication
Commissioning 3.1.
2014
2015
2016
2.1.
Water Supply
2. BSPC Steel Service Center
○ General Overview
- Establishment : Sep. 2012
- Location : Suzano City in São Paulo
- Capacity : 150,000 tons/yr
- Facility : Blanking 1 / Slitter 1 / Shear 1 /
Mini shear 1
- Shareholder composition :
Daewoo 51% Posco 25% / Bluestar 24%
3. KOBRASCO Pellet Plant
○ General Overview
- Establishment : Mar. 1996
(Starting operation Oct, 1998)
- Investment Purpose :
Stable provision of raw material(Pellet)
- Location : Vitória
in State of Espírito Santo
- Capacity : Pellet 5 million tons/yr
- Shareholder composition : POSCO 50% / Vale 50%
○ Production & Sales
(million tons / R$ million)
2013 1st HALF
2011
2012
Production
4.6
4.4
1.6
Sales Amount
168.5
210.0
27.5
4. Investment in Mines
○ NAMISA Iron ore mine
- Establishment : Mar. 2006
- Location : State of Minas Gerais
- Reserves : 521 million tons (Fe 41~53%)
- Production in 2012 : 4 million tons
- Sales in 2012 : 21.4 million tons
- Shareholder composition :
CSN 60% / Korea-Japan consortium 40%
(POSCO 6.48%)
○ CBMM Niobium mine
- Establishment : 1955
- Location : Araxa City in State of Minas Gerais
- Product : Fe-Nb / Ni-Nb / Nb Oxide / Nb Metal
World biggest Nb mine operation & processing
- Reserves : 829 million tons
- Sales in 2012 : Fe-Nb 65,479 ton(R$3,845 million)
- Shareholder composition :
Korea-Japan consortium 15% /
Moreira Salles Family 85%
5. Business Activities
○ Daewoo do Brasil
- Establishment : 1980
- Location : Av. Paulista in São Paulo
- Business Type : Trading
- Main Handling Item :
Steel / Steel raw material / Non ferros metal /
Automotive parts / Electronics / Chemical
- Annual Sales : U$ 450 million
○ POSCO ICT do Brasil
- Establishment : 2012
- Location : Centro in São Paulo
- Business Type : Engineering & IT service
Total solution for manufacturing
Railways(PSD, CBTC, Power)
- Main Business in Brazil :
São Paulo Metro Line 2, 3, 4 PSD
CSP Project
○ POSCO Engenharia e Construção do Brasil
- Establishment : Fev, 2011
- Location : Pecem, Ceara
- Business Type : Construction/Civil Engineering
- Main Business : CSP construction
Thank You!
33
33