Headquarters: Ulsan, South Korea

Presenter: Tim Wilson Student ID: 20082901

_________________________________Currently: World’s Largest Ship Builder

with 10% of World Productionhttp://en.wikipedia.org/wiki/Hyundai_Heavy_Industries

현대중공업 ( 주 )

http://koreanship.com/?p=238, http://media.shipspotting.com/SPLENDOR.JPG,

http://www.northernlifttrucks.co.uk/img/hyundai_img3.jpg,http://gswebzone.com/2010/04/currentblips_21.html9

Shipbuilding Offshore & Engineering Industrial Plant & Engineering Construction Equipment Engine & Machinery Electro Electric Systems

HHI’s Newest Internationally Focused Endeavors in Renewable Energy

◦ Wind Electric Power◦ Solar Electric Power

HHIHyundai Heavy Industries

HHI Shipbuildinghttp://www.hyundai.eu/downloads/wallpapers/hyundai-wp16-w.jpg

HHI Offshore & Engineeringhttp://english.hhi.co.kr/media/gallery_view.asp?idx=18&dep=C

HHI Industrial Plant & Engineering

http://english.hhi.co.kr/media/gallery_view.asp?idx=283&dep=D Hyundai Oil Refinery HCU Unit

HHI Construction Equipmenthttp://www.hyundai.eu/downloads/wallpapers/hyundai-wp6-w.jpg

HHI Engine & Machineryhttp://english.hhi.co.kr/media/gallery_view.asp?idx=132&dep=E Hyundai Motors Spot Welding Robots

HHI Electro Electric

http://english.hhi.co.kr/press/news_view.asp?idx=510, http://news.cnet.com/i/bto/20091217/solarcity.jpg, http://english.hhi.co.kr/media/gallery_view.asp?idx=217&dep=F

HHI Enters Renewables: Wind and Solar Electro Power

43%

16%

9%

13%

13%

6%1%

Hyundai Heavy Industries Sales 2009

Shipbuilding

Offshore & En-gineering

Industrial Plant & Engineering

Construction Equipment

Engine & Machinery

Electro Electric

Other Divisions

Focus for Consistent Rev-enue During Economic Down-turn

Electro ElectricInternational Future Growth Potential

HyundaiHI: Octopus Tentacles Chart 재벌

Affiliates:Hyundai Mipo DockyardHyundai Samho Heavy Indust.Hyundai Venture CapitalHyundai FuturesHyundai Corporation

Sales:21,142 Billion KRW (2009)

Assets:24,872 Billion KRW (2009)

Hyundai Heavy Industries: Affiliate Corp. Organizational Chart, showing Ownership and Sales -Annual Report 2009

Chung Ju-yung (1915-2001) founded Hyundai with his brothers

Chung Mong-joon

“He is also the controlling shareholder in Hyundai Heavy Industries Group, the second largest Korean chaebol and one of the largest corporations in the world. He is the sixth son of its founder Chung Ju-yung.” http://en.wikipedia.org/wiki/Chung_Mong-joon

Significant HHI Ownership:Chung Mong-joon 10.8%Foreign Ownership 17.4%Order Status HHI Shipbuild:249 Vessel (Ship) Backlog as

of Dec. 2009 –enough to keep HHI operating into 2012

Forbes #3 Richest S. Korean

Hyundai Heavy Industries Annual Report 2009, http://www.forbes.com/lists/2009/83/korea-rich-09_Chung-Mong-Joon_PPZX.html, Ship Picture not to Scale!!

Hyundai Heavy Industries 2009 Annual Report Financials

Total Assets 24,872 B KRWTotal Liabilities 15,064 B KRWTotal Debt 889 B KRWTotal Shareholders’ Equity 9,808 B KRW

Liabilities-to-Equity Ratio 153.6%Debt-to-Equity Ratio 9.1%All Figures in Billion Republic of Korea Won

HHI’s International Network

HHI has 18 International Overseas Incorporated Firms within its Corporate Umbrella

HHI maintains 16 Overseas Offices

http://www.koreaittimes.com/images/imagecache/large/Hyundai_0.jpg -Not To Scale! -Modified to fit page

Targeted Spending and Cuts –to Compete in an Global Economic Downturn

Capi-tal Ex-

pen-di-

tures in Bil-lions KRW

0

800

1600

2007

2010

2007200820092010

R & D Ex-

pendi-tures in Bil-lions KRW

0

100

200

2007

2010

2007200820092010

2010 Figures are Projected Expenditures Hyundai Heavy Industries 2009 Annual Report

Why did HHI Pursue Global Markets?

http://english.hhi.co.kr/media/advertisement_view.asp?idx=51&dep=B

Hyundai Heavy Industries has very Limited Growth Potential without a Comprehensive International Market Strategy

Economies of Scale are needed to compete in HHI’s MarketsTo Sustain its Competitive Advantage HHI has Pursued New

Technologies and New International Markets

HHI Enters Wind and Solar Renewables

HHI Electro ElectricEnters Renewables

2005. 05 Completed Solar Module Factory

2008. 05 Expanded ~Solar Cell/Module Factory

2009. 08 Completed Wind Turbine Factory http://english.hhi.co.kr/press/news_view.asp?idx=510,

http://news.cnet.com/i/bto/20091217/solarcity.jpg

http://www.hyundai-elec.com/new/eng/about/about2.jsp

Wind and Solar Renewables

HHI is Looking to the Future World and USA Markets in Wind and Solar Renewables

The 2010 Target is $3.6 Billion USA dollars for Electro Solar and Wind Business

Sold First Overseas Order of 6 Wind Turbines to USA Project (2009 Wisconsin)

HHI is currently marketing Solar Electric Panel Systems sized and packaged from small Residential 3kW systems to large Commercial Targeted systems of 250kW

”HHI is Focusing on new and environmentally friendly technologies to keep sustainable growth” –CEO Min & Lee

http://english.hhi.co.kr/press/news_view.asp?idx=510, Hyundai Heavy Industries Annual Report 2009, http://www.hyundai-elec.com/new/eng/about/about2.jsp

Future Business Opportunities

Hyundai Heavy Industries is looking at Governmental plans such as the USA’s plan to satisfy 25% of Electricity demand utilizing renewable sources by 2025. These energy goals will provide extensive energy product and business opportunities for large corporations like HHI.

Competing Globally starts with Quality Control and Accounting

HHI relies on 200 partner business and companies:

“…we relied on 200 partners to meet our… production requirements. As part of our efforts to build win-win relationships with these partners, we provide financial and technical support to ensure their accounting, technical, personnel, and information systems are up-to-date and compatible with our high standards.”

Lau

nch

Pad

for

Kore

an

Sp

ace

Veh

icle

http://www.infolink.com.au/odin/images/242979/KSLV-Satellite-Launch-Vehicle-Pad-Successfully-Completed-by-Hyundai-Heavy-Industries.jpg

#1 Competitor SHI Samsung Heavy Industries

Headquarters: Seocho Samsung Town in Seoul, South KoreaEstablished: 1974Rated Number 2 in World ProductionTwo International Manufacturing Subsidiaries 2009 Sales: 13,095 Billion KRW

http://en.wikipedia.org/wiki/File:Samsung_Logo.svg

Entered Wind Energy 2009

#2 Competitor DSME Daewoo Shipbuilding

Headquarters: Okpo, Republic of Korea Established: 1978Rated Number 3 in World ProductionThree International Manufacturing Subsidiaries 2009 Sales: 12,443 Billion KRWAcquired USA Composite Technology Corp $49.5M

http://www.yourindustrynews.com/directory_images/DSME_Logo.jpg

Entered Wind Energy 2010

#3 Competitor STX Shipbuilding

Headquarters: Jinhae, Republic of Korea Established: 1962Rated Number 4 in World Production16 International Manufacturing Subsidiaries 2009 Sales: 6,180 Billion KRW

http://web.tradekorea.com/upload_file/corp/200812/logo/2008121611593623_8610485.bmp

Any Questions?

http://www.hyundai.eu/downloads/banners/hor-banner-mh.swf, http://www.hyundai.eu/downloads/wallpapers/hyundai-wp17-w.jpg