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2Q26 Earnings Release 1 2Q26 Earnings Release Investor Relations The innovating pioneer for a sustainable tomorrow
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This presentation, prepared in accordance with K-IFRS, provides preliminary results prior to the completion of an external audit for the convenience of investors only. It contains forward-looking statements that are inherently subject to risks and uncertainties, unexpected changes in market conditions and subsequent adjustments in the company’s strategies, which may cause actual results to differ materially from the projections made in this presentation. D I S C L A I M E R The responsibility for any investment decision based upon the information contained in this presentation falls on the investo r. We do not undertake any duty to update any forward-looking statement.
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2Q26 Earnings Release 3 2Q26 Business Highlights •Signed additional Chunmoocontract with Estonia('26. MA Y) •Signed K9 SPH contract with Finland ('26. APR) •Launched UAVengine development program with KASA ('26.MA Y) •Installed domestically developed ECS on DDH-I ('26. JUN) •Included in top-tier Dow Jones index ('26. MA Y) Land Systems Aerospace Hanwha Systems Hanwha Ocean •DeliveredVLCCtoAsyadShipping ('26. MA Y) •Participated in the CANSEC 2026 in Canada ('26. MA Y)
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FINANCIALS Contents 2Q26 Performance Overview 2Q26 Balance Sheet Performance by Segment – Land Systems Performance by Segment – Aerospace Performance by Segment – Hanwha Systems Performance by Segment – Hanwha Ocean Performance by Segment – Total APPENDIX 2Q26 Earnings Release Financial Indices Total Defense Solution Provider Aerospace Global Leader Hanwha Ocean Investment and Shareholder Return 06 08 09 11 12 13 14 16 17 23 25 26
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2Q26 Performance Overview 2Q26 Balance Sheet Performance by Segment – Land Systems Performance by Segment – Aerospace Performance by Segment – Hanwha Systems Performance by Segment – Hanwha Ocean Performance by Segment – Total 06 08 09 11 12 13 14 FINANCIALS
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2Q26 Earnings Release 6 861 1,365 2Q25 2Q26 6Financials > 2Q26 Performance Overview Sales increased by 47% Yo Y Increased sales due to increase domestic and export volume ▲ Increased sales due to increase in volume ▲ Operating Profit increased by 59% Yo Y 6,311 9,293 2Q25 2Q26 2,107 760 1,118 5,443 -135 Land Systems Aerospace Systems Ocean Others +47% Bn KRW -44 736 104 37 533 Others Ocean Systems Aerospace Land Systems Bn KRW OP(M) 2Q26 Sales 2Q26 2Q26 Performance Overview (Ⅰ) (14.7%) Increased OP due to increase in sales ▲ +59% (13.5%) (9.3%) (25.3%) Increased sales due to defense export and ICT sales to affiliates ▲ Increased OP due to increase in sales ▲ Increased OP due to increase in sales ▲ •Others: Satrec I, Hanwha Offshore Singapore, PPA amortization, consolidated adjustments •Others: Satrec I, Hanwha Offshore Singapore, PPA amortization, consolidated adjustments Land Systems Aerospace (Aero/Engine/Space) Hanwha Systems (Defense/ICT/Other) Hanwha Ocean Land Systems Aerospace (Aero/Engine/Space) Hanwha Systems (Defense/ICT/Other) Hanwha Ocean (4.9%) Increased sales due to efficiency gains and volume growth ▲ Increased OP derived from cost reduction and mix improvement ▲
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2Q26 Earnings Release 7 7Financials > 2Q26 Performance Overview 2Q26 Performance Overview (Ⅱ) Sales 9,293 Bn KRW OP 1,365 OPM 14.7% 2,107 OP 533 OPM 25.3% 760 OP 37 OPM 4.9% 1,118 OP 104 OPM 9.3% Bn KRW Bn KRW 2Q26 2Q25 % YoY 1Q26 % QoQ Sales 9,293 6,311 47% 5,751 62% Operating Profit 1,365 861 59% 639 114% Pretax Profit 1,247 466 167% 555 125% Net Profit 1,081 286 278% 526 105% Operating Profit Margin 14.7% 13.6% 1.1%p 11.1% 3.6%p Pretax Profit Margin 13.4% 7.4% 6.0%p 9.6% 3.8%p Net Profit Margin 11.6% 4.5% 7.1%p 9.2% 2.4%p Land Systems Aerospace Hanwha Systems Hanwha Ocean Sales Sales Sales Sales OP 736 OPM 13.5% 5,443
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2Q26 Earnings Release 8 8Financials > 2Q26 Balance Sheet 2Q26 Balance Sheet Bil KRW Bn KRW 2026.06 2025.12 Vs. 2025 Vs. 2025 (%) Total Assets 58,741 53,954 4,788 9% └ Cash & Cash Equivalents/ ST Investments 9,232 7,902 1,330 17% Total Liabilities 38,504 37,165 1,339 4% └ Total Debts 15,445 12,395 3,050 25% └ Net Debts 6,213 4,493 1,720 38% Total Shareholders’ Equity 20,237 16,788 3,449 21% Current Ratio 108% 102% - 6%p Total Debt/Equity 76% 74% - 2%p Net Debt/Equity 31% 27% - 4%p
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2Q26 Earnings Release 9 9Financials > Performance by Segment Performance by Segment Land Systems Bn KRW Export Domestic •Sales increased YoY as domestic sales (Chunho, TAipers) and export delivery (Poland, Egypt, Middle East) increased •OP increased YoY as delivery volume increased 523 573 604 209 533 29.5% 27.1% 19.5% 17.1% 25.3% 2Q25 3Q25 4Q25 1Q26 2Q26 OP OPM Sales Operating Profit Bn KRW 2Q Analysis 2026 Outlook •Both domestic & export sales expected to increase +19% +2% 1,083 1,197 1,629 651 1,232 690 913 1,464 570 875 1,773 2,110 3,093 1,221 2,107 2Q25 3Q25 4Q25 1Q26 2Q26 YoY YoY
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2Q26 Earnings Release 10 68% 71% 75% 32% 29% 25% 2024 2025 2Q26 10Financials > Performance by Segment Order backlog List of major orders Source: Dart Repository of Korea's Corporate Filings and others Export Domestic Performance by Segment Land Systems Tril KRWTril KRW 32.4 37.2 Date Contract Amount Feb.22 K9 EGY Solution, Egypt 2.0 Aug.22 K9 SPH, Poland EC1 3.2 Nov.22 CHUNMOO MRLS, Poland EC1 5.0 Dec.23 Redback IFV, Australia 3.2 Dec.23 K9 SPH, Poland EC2 3.4 Apr.24 CHUNMOO MRLS, Poland EC2 2.3 Jul.24 K9 SPH, Romania 1.4 Dec.24 SA M-SAM II Launcher 0.9 Apr.25 K9 SPH 2nd Batch, India 0.4 Apr.25 KRAB SPH Chassis, Poland 0.4 Aug.25 Guided weapons, Middle East 0.4 Oct.25 M-SAM II Launcher, Iraq 0.4 Nov.25 Domestic L-SAM(Launcher, ABM) 0.7 Dec.25 CHUNMOO MRLS, Estonia 0.4 Dec.25 CHUNMOO MRLS, Poland EC3 5.6 Jan.26 CHUNMOO MRLS, Norway 1.3 Apr.26 K9 SPH, Finland 0.9 Order Backlog Status 2026 Outlook •April 2026, additional Finland K9 contract signed •May 2026, additional Estonia Chunmoo contract signed •Expand domestic and export opportunities and pursue to diversify regional exposure 38.3
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2Q26 Earnings Release 1111Financials > Performance by Segment 2Q Analysis •Sales increased as both defense and commercial volume increased •OP increased as defense sales increased and GTF RSP operating loss reduced 2026 Outlook -12 3 18 23 37 -1.8% 0.5% 2.4% 3.4% 4.9% -60 -40 -20 0 20 40 2Q25 3Q25 4Q25 1Q26 2Q26 OP (including RSP business) OPM Export Domestic Bn KRW Bn KRW Performance by Segment Aerospace Operating ProfitSales •Increase in sales and projected growth in GTF engine deliveries •Anticipate RSP operating loss to expand YoY as GTF engine deliveries increase YoY 2Q25 3Q25 4Q25 1Q26 1Q26 OP (excluding RSP business) 36 2 40 39 47 377 384 373 375 419 272 220 364 287 341 649 604 737 661 760 2Q25 3Q25 4Q25 1Q26 2Q26 QoQ+15% +17% +64% QoQ (-10)(-16)(-22)(1)(-48) (*) RSP OP YoYTurned Profit
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2Q26 Earnings Release 12 470 481 1,057 471 701 147 156 208 172 187 151 171 133 164 230 768 808 1,398 807 1,118 2Q25 3Q25 4Q25 1Q26 2Q26 13Financials > Performance by Segment Defense ICT +39% QoQ OP OPM Performance by Segment •Defense : export/domestic mass production increased YoY leading to sales and OP increase •ICT : Sales and OP increased YoY due to sales to affiliates increased •Other : Hanwha Philly Shipyard sales increased and operating loss reduced •Expect defense and ICT sales and OP to increase YoY Hanwha Systems 2Q Analysis 2026 Outlook QoQ +45% YoY +219% 33 21 33 34 104 4.2% 2.6% 2.4% 4.2% 9.3% 2Q25 3Q25 4Q25 1Q26 2Q26 Bn KRW Bn KRW Operating ProfitSales Others +202%YoY
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2Q26 Earnings Release 13 2,807 2,464 2,686 2,793 3,240237 375 369 318 327460 271 414 211 2,068 2Q25 3Q25 4Q25 1Q26 2Q26 13Financials > Performance by Segment Commercial Naval +70% QoQ 3,023 OP OPM Performance by Segment •Commercial : LNG Carrier Revenue Recognition and Large Project Ramp -Up •Naval : Stable Revenue from Consistent Submarine and Surface Vessel Progress •EPU : One-off Revenue Increase from Completion of Delivery-Based Recognition Projects •Expect YOY growth as large projection and vessel construction volume expand 5,443 +67% 3,323 3,210 Hanwha Ocean 2Q Analysis 2026 Outlook 3,294 QoQ +65% YoY YoY 372 290 248 441 736 11.3% 9.6% 7.4% 13.7% 13.5% 2Q25 3Q25 4Q25 1Q26 2Q26 Bn KRW Bn KRW Operating ProfitSales EPU +98%
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2Q26 Earnings Release 1414Financials > Performance by Segment Performance by Segment Total Bn KRW 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 %YoY 2024 2025 Sales 1,449 2,335 2,631 4,825 5,484 6,311 6,486 8,421 5,751 9,293 47% 11,240 26,703 Land Systems 655 1,330 1,656 3,365 1,157 1,773 2,110 3,093 1,221 2,107 19% 7,006 8,133 Aerospace 430 543 478 594 531 649 604 737 661 760 17% 2,045 2,521 HanwhaSystems 544 687 639 934 690 768 808 1,398 807 1,118 45% 2,804 3,664 Hanwha Ocean - - - - 3,143 3,294 3,023 3,323 3,210 5,443 65% - 12,784 Others -180 -225 -142 -68 -37 -173 -58 -129 -148 -135 - -615 -398 OperatingProfit 18 337 477 900 530 861 840 858 639 1,365 59% 1,732 3,089 Land Systems -4 260 440 872 302 523 573 604 209 533 2% 1,568 2,001 Aerospace 3 6 -6 -50 4 -12 3 18 23 37 Turned profit -47 13 HanwhaSystems 46 84 60 29 34 33 21 33 34 104 219% 219 120 Hanwha Ocean - - - - 259 372 290 248 441 736 98% - 1,168 Others -26 -13 -17 48 -68 -53 -46 -45 -68 -44 - -9 -212 Pretax Profit 32 120 375 2,120 230 466 795 718 555 1,247 167% 2,647 2,210 Discontinued Operations 13 7 9 - - - - - - - - 29 - Net Profit 3 160 330 2,047 183 286 699 1,034 526 1,081 278% 2,540 2,202 •Others : Satrec I, Hanwha Offshore Singapore, PPA amortization, consolidated adjustments and more •As spin-off(record date of spin-off on 2024.09.01), Hanwha Vision and Hanwha Precision Machinery’s profit and loss are categorized as discontinued operations.
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APPENDIX Financial Indices Total Defense Solution Provider Aerospace Global Leader Hanwha Ocean Investment and Shareholder Return 16 17 23 25 26
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2Q26 Earnings Release 1616APPENDIX > Financial Indices Financial Indices Bn KRW Cash, Cash Equivalents & ST Investments Net Debt (%) Total Debt to Equity Net Debt to Equity 6,961 4,493 6,213 3,322 7,902 9,232 2024 2025 2Q26 91 74 76 61 27 31 2024 2025 2Q26 Leverage RatioDebt
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2Q26 Earnings Release 17 17APPENDIX > Total Defense Solution Provider Total Defense Solution Provider Land Systems Lineup Armored Vehicles Artillery Systems Unmanned Ground Systems Munitions andNavigation System Air Defense Systems K21 Infantry Fighting Vehicle Redback IFV Tigon (6X6, 8X8) 120mm Self-Propelled Mortar Carrier K200A1 Armored Personnel Carrier NBCRV II Armored Amphibious Assault Bridge KAAV (K-Amphibious Assault Vehicle) K9 Self-Propelled Howitzer K10 Ammunition Resupply Vehicle K77 FDCV Chunmoo MRLS KVLS (K-Vertical Launcher System) Ship-to-Ship Missile Launcher Arion-SMET (Multi-Purpose UGV) Remote Controlled Weapon Station Ballistic guided weapon Guided weapon BIHO Gun and Missile Air Defense System 30mm Anti-Aircraft Gun Wheeled Vehicle E-Propulsion System Battery system for submarine/aircraft Navigation SystemModular Charge System M-SAM (Medium-Range Surface to Air Missile) Launcher Chunma Short-Range SAM System L-SAM (Long-Range Surface to Air Missile) Launcher & ABM K105 Self-Propelled Howitzer
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2Q26 Earnings Release 18 18APPENDIX > Total Defense Solution Provider Total Defense Solution Provider Global Presence The geopolitical tension is escalating around the world, And demand rises for K9 SPH, Chunmoo(MRLS), Redback IFV in Europe, Middle East and Asia-Pacific Turkey K9 SPH [2001] Estonia K9 SPH [2018] Chunmoo [2025, 2026] Poland K9 SPH [2014, 2022, 2023] Chunmoo [2022, 2024, 2025] Norway K9 SPH [2017, 2025] K10 ARV [2017] Chunmoo [2026] Finland K9 SPH [2017, 2026] Philippines KAAV [2016] India K9 SPH [2017, 2025] M-SAM II [2022, 2024, 2025] Middle East K9 SPH [2022] K10 ARV [2022] K11 Fire Direction Control Vehicles [2022] Australia K9 SPH [2021] K10 ARV [2021] Redback IFV [2023] ※ Operating K9 SPH (Europe) Romania, Poland, Estonia, Finland, Norway, Turkey Romania K9 SPH [2024] K10 ARV [2024] Redback IFV K9 SPH Chunmoo MRLS M-SAM MCS and PGM ② ⑤③ ④① 1 2 3 Ukraine Russia Belarus 4
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2Q26 Earnings Release 1919APPENDIX > Total Defense Solution Provider K9 SPH (Self-Propelled Howitzer) The World Leader of SPH High accuracy and long range rapid fire The K9 SPH is featured with excellent performance such as long firing range, fast speed, shoot & scoot, high level of mobility, and survivability. It is exported overseas thanks to development of customized SPH which meet the requirement for many countries by applying NATO standards and ability to adapt to diverse environment from desert to snowy field. Total Defense Solution Provider
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2Q26 Earnings Release 20 20APPENDIX > Total Defense Solution Provider Chunmoo MRLS (Multiple Rocket Launch System) The firepower equipment that can strike enemy's attack origin and high payoff targets in real time. Capable of quick loading/unloading as well as shooting and performing by high mobility. Total Defense Solution Provider
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2Q26 Earnings Release 21 21APPENDIX > Total Defense Solution Provider REDBACK Infantry Fighting Vehicle THE WORLD’S MOST ADVANCED IFV It is a futuristic armored tracked vehicle equipped with 30mm turret, anti-tank missile, various detection, tracking functions and defense system, based on K21 development technology and powerpack solutions of K9. REDBACK, the next generation infantry fighting vehicle with highly evolved digital system. Provide various protection solutions such as active/passive protection, sense-and-avoid to protect the combatants from the enemy. Total Defense Solution Provider
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2Q26 Earnings Release 22 APPENDIX > Total Defense Solution Provider Drone / Anti-Drone Lineup Next Generation small UAV engine Next Generation drone wingmen, CCA(Collaborative Combat Aircraft) engine Sky Light Laser Weapon System UGV (Unmanned Ground Vehicle) UAV (Unmanned Aerial Vehicle) USV (Unmanned Surface Vehicle) / UUV (Unmanned Underwater Vehicle) Anti-Drone (Air Defense) GRUNT – Next Generation UGV EOD(Explosive Ordnance Disposal) Robot K9 SPH Development Roadmap Combat USV Surveillance UUV Combat UUV Mojave-STOL L-PGW (Loitering Precision Guided Weapon) Total Defense Solution Provider BIHO Gun and Missile Air Defense System Chunho 30mm Anti-Aircraft Gun Wheeled Vehicle Chunma Short-Range SAM System In development In development In development In development In development In developmentIn development In development
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2Q26 Earnings Release 2322APPENDIX > Aerospace Global Leader Value Chain Core Competencies Space Launch Launch Vehicle Satellites Space Exploration Utilization of space resources Exploration of the Moon/Mars and Asteroids Satellites/Satellite Services Navigation Communication Observation Satellite Manufacturing Rocket Booster Integration · Engine · Propulsion Build/operate Ground Station Value Chain and Core Competencies: Launch Vehicle, Satellites and In-Space Servicing Satrec Initiative Low Earth Orbit Economy Satrec Initiative Satrec Initiative Satrec Initiative Aerospace Global Leader
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2Q26 Earnings Release 24 23APPENDIX > Aerospace Global Leader Vision : Leading the Space Industry and System integration of the KSLV Contribute to secure Korea's self-developed space technology A new era of public- private space collaboration begins Satellite Launch Vehicle, Satellite Payload The Korea Space Launch Vehicle Advance Project Secure space exploration capabilities Space prop, Space tug Secure satellite service capabilities Satellite-based observation data and Communication solutions ISRU, Space resource mining and exploitation Secure satellite communication based service capabilities IoT, autonomous driving etc Secure space resource mining capabilities 4 6 7 5 3rd Launch ' Schedule of KSLV-Ⅱ(NURI) Launch Vehicle 4th Launch ' 5th Launch 6th, 7th Launch • Source : Korea Aerospace Research Institute Aerospace Global Leader ' ' ‘' ' ' ' 1 2 3 Growing Alongside South Korea's Space Economy Next Generation Space Launch Vehicle
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2Q26 Earnings Release 25APPENDIX > Hanwha Ocean Hanwha Ocean Main Product Lineup Commercial Vessel LNG Carrier VLCC ( Very Large Crude Carrier) Container Ship Naval Ship Submarine 3,000 tonnage Frigate LSV (Logistic Support Vessel) Offshore WTIV (Wind Turbine Installation Vessel) FPSO (Floating Production Storage Offloading) FLNG (Floating LNG) Eco Energy & Industrial EPC Chemical Plant Power/Energy Plant Industrial Facility Submarine 1,800 tonnage Offshore Wind PowerDrillship VLGC ( Very Large Gas Carrier) VLAC ( Very Large Ammonia Carrier)
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2Q26 Earnings Release 26APPENDIX > Investment and Shareholder Return Shareholder Return 2025~2028 • Focus on securing future growth engines by investing over 11 Trillion KRW in investment and research & development by 2028 • Expand shareholder return relative to business growth from a long-term perspective Cash-in Cash-out Net Debt Paid-in Capital Increase Shareholder Return Future Strategic Investment Operating Cash Flow • Implementstableshareholderreturn consideringinvestmentperformanceand free cash flow • Planning to implement dividends 3,500 KRW or more Ensuring Dividend Payment Beyond '24 Levels and Enhancing Predictability PreemptiveInvestmentto Secure Future GrowthEngines Overseasinvestment to increasesales R&D fornewmarketentry Investment in Land Systems defenseinfrastructure Investment in Aerospace industry infrastructure + Active consideration of new investment in Shipbuilding, Offshore and Energy sectors 6.27T KRW 1.56T KRW 2.29T KRW 0.95T KRW 2029~2035 Net Debt Shareholder Return Future Strategic Investment Operating Cash Flow and Others Cash-in Cash-out • Expand shareholder return scale based on operating cash flow generation • Targeting shareholder returns exceeding the average dividend amount for 2024-2028 Expand Shareholder Return of Profits from Business Growth • Continuous investment for long-term growth • Secure new defense technologies and continue overseas investment • Expand investment in differentiated technologies and global expansion • New investments responding to changes in the security environment Strengthen Investment and Research as a Global Top Player ImproveFinancialSoundnessthrough ContinuousRepaymentof Debt Enhance Predictability of Cash Dividend - Confirm dividend amount first, then determine dividend record date - Prior notice of dividend policy and plan Investment and Shareholder Return Maximize shareholder value by enhancing corporate value and dividend growth