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3Q26 Earnings Release 1 3Q26 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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3Q26 Earnings Release 3 3Q26 Business Highlights •Announced the location of munitions facility in Pine Bluff, AK('26. SEP) •Signed Chunmoocontract with Croatia ('26. SEP) •Signed K9 MH Prototype contract with the U.S.('26. AUG) •SignedK9 contract with Spain ('26. AUG) •Demonstrated Mojave-STOL in simulated combat flight ('26.SEP) •Signed termsheetagreement with EDGE Group to establish integrated Air Defense Systems in UAE ('26. SEP) Land Systems Aerospace Hanwha Systems Hanwha Ocean •Selected as preferred bidder for Thai Royal Navy frigate program ('26. SEP)
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FINANCIALS Contents 3Q26 Performance Overview 3Q26 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 3Q26 Earnings Release Financial Indices Total Defense Solution Provider Aerospace Global Leader Hanwha Ocean Defense AI 3.0 Investment and Shareholder Return 06 08 09 11 12 13 14 16 17 22 24 25 27
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3Q26 Performance Overview 3Q26 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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3Q26 Earnings Release 6 840 452 3Q25 3Q26 6Financials > 3Q26 Performance Overview Sales decreased by 6% Yo Y Decreased sales due to decrease in domestic and export volume ▼ Increased sales due to increase in defense sales ▲ Operating Profit decreased by 46% Yo Y 6,486 6,094 3Q25 3Q26 1,246 660 832 3,414 -57 Land Systems Aerospace Systems Ocean Others -6% Bn KRW -152 486 99 -2 22 Others Ocean Systems Aerospace Land Systems Bn KRW OP(M) 3Q26 Sales 3Q26 3Q26 Performance Overview (Ⅰ) (7.4%) Decreased OP due to decrease in sales ▼ -46% (14.2%) (11.9%) (1.7%) Increased sales due to defense export and ICT sales to affiliates ▲ Increased OP due to increase in sales ▲ Decreased OP as RSP loss expanded ▼ •Others: Satrec I, Philly Shipyard, HOS, PPA amortization, consolidated adjustments •Others: Satrec I, Philly Shipyard, HOS, 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 (-0.4%) Increased sales due to higher vessel ASP ▲ Increased OP by higher ASP recognition and FPSO C/O effect▲
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3Q26 Earnings Release 7 7Financials > 3Q26 Performance Overview 3Q26 Performance Overview (Ⅱ) Sales 6,094 Bn KRW OP 452 OPM 7.4% 1,246 OP 22 OPM 1.7% 660 OP -2 OPM -0.4% 832 OP 99 OPM 11.9% Bn KRW Bn KRW 3Q26 3Q25 % YoY 2Q26 % QoQ Sales 6,094 6,486 -6% 9,293 -34% Operating Profit 452 840 -46% 1,365 -67% Pretax Profit -190 795 Turn to a loss 1,247 Turn to a loss Net Profit -37 699 Turn to a loss 1,081 Turn to a loss Operating Profit Margin 7.4% 12.9% -5.5%p 14.7% -7.3%p Pretax Profit Margin -3.1% 12.3% -15.4%p 13.4% -16.5%p Net Profit Margin -0.6% 10.8% -11.4%p 11.6% -12.2%p Land Systems Aerospace Hanwha Systems Hanwha Ocean Sales Sales Sales Sales OP 486 OPM 14.2% 3,414
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3Q26 Earnings Release 8 8Financials > 3Q26 Balance Sheet 3Q26 Balance Sheet Bil KRW Bn KRW 2026.09 2025.12 Vs. 2025 Vs. 2025 (%) Total Assets 58,612 53,954 4,658 9% └ Cash & Cash Equivalents/ ST Investments 6,700 7,902 -1,202 -15% Total Liabilities 39,404 37,165 2,238 6% └ Total Debts 16,553 12,395 4,158 34% └ Net Debts 9,853 4,493 5,360 119% Total Shareholders’ Equity 19,208 16,788 2,420 14% Current Ratio 103% 102% - 1%p Total Debt/Equity 86% 74% - 12%p Net Debt/Equity 51% 27% - 24%p
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3Q26 Earnings Release 9 9Financials > Performance by Segment Performance by Segment Land Systems Bn KRW Export Domestic •Temporary decline in revenue due to domestic & export delivery schedule •OP decreased YoY as both domestic and export deliveries decreased 573 604 209 533 22 27.1% 19.5% 17.1% 25.3% 1.7% 3Q25 4Q25 1Q26 2Q26 3Q26 OP OPM Sales Operating Profit Bn KRW 3Q Analysis 2026 Outlook •Both domestic & export volume are expected to increase -41% -96% 1,197 1,629 651 1,232 594 913 1,464 570 875 652 2,110 3,093 1,221 2,107 1,246 3Q25 4Q25 1Q26 2Q26 3Q26 YoY YoY
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3Q26 Earnings Release 10 68% 71% 74% 32% 29% 26% 2024 2025 3Q26 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 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 Aug.26 K9 MH Prototype, USA - Aug.26 K9 SPH, Spain - Sep.26 CHUNMOO MRLS, Croatia 0.6 Order Activity 2026 Outlook •August 2026, US Army K9 MH Prototype contract signed •August 2026, Spain K9 contract signed (Not included in the order backlog) •September 2026, Croatia Chunmoo contract signed •Expand domestic and export opportunities and pursue to diversify regional exposure 35.0
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3Q26 Earnings Release 1111Financials > Performance by Segment 3Q Analysis •Sales increased as defense volume increased •OP decreased as GTF RSP operating loss expanded 2026 Outlook 3 18 23 37 -2 0.5% 2.4% 3.4% 4.9% -0.4% -60 -40 -20 0 20 40 3Q25 4Q25 1Q26 2Q26 3Q26 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 3Q25 4Q25 1Q26 2Q26 3Q26 OP (excluding RSP business) 2 40 39 47 20 384 373 375 419 348 220 364 287 341 312 604 737 661 760 660 3Q25 4Q25 1Q26 2Q26 3Q26 QoQ-13% +9% Turn to a loss QoQ (-23)(-10)(-16)(-22)(1) (*) RSP OP YoYTurn to a loss
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3Q26 Earnings Release 12 481 1,057 471 701 617 156 208 172 187 213 639 1,266 645 887 832 3Q25 4Q25 1Q26 2Q26 3Q26 13Financials > Performance by Segment Defense ICT -6% 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 •Expect defense and ICT sales and OP to increase YoY Hanwha Systems 3Q Analysis 2026 Outlook QoQ +30% YoY +60% 62 92 81 123 99 9.7% 7.2% 12.5% 13.8% 11.9% 3Q25 4Q25 1Q26 2Q26 3Q26 Bn KRW Bn KRW Operating ProfitSales -19%YoY
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3Q26 Earnings Release 13 2,464 2,686 2,794 3,238 2,715 375 369 318 327 363271 414 221 2,058 528 3Q25 4Q25 1Q26 2Q26 3Q26 13Financials > Performance by Segment Commercial Naval -37% QoQ 3,323 OP OPM Performance by Segment •Commercial : Revenue and OP decreased QoQ due to fewer working days and Fx impact •Naval : Revenue maintained stable revenue from submarine and surface vessel progress •EPU : Revenue decreased QoQ due to the base effect from the one-off revenue recognition and OP increased due to FPSO C/O •Expect YOY growth as large projection and vessel construction volume expand 3,414 -34% 3,210 5,443 Hanwha Ocean 3Q Analysis 2026 Outlook 3,023 QoQ +13% YoY YoY 290 248 441 736 486 9.6% 7.4% 13.7% 13.5% 14.2% 3Q25 4Q25 1Q26 2Q26 3Q26 Bn KRW Bn KRW Operating ProfitSales EPU +68%
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3Q26 Earnings Release 1414Financials > Performance by Segment Performance by Segment Total Bn KRW 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 %YoY 2024 2025 Sales 1,449 2,335 2,631 4,825 5,484 6,311 6,486 8,421 5,751 9,293 6,094 -6% 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 1,245 -41% 7,006 8,133 Aerospace 430 543 478 594 531 649 604 737 661 760 660 9% 2,045 2,521 HanwhaSystems 544 687 639 934 574 620 639 1,266 645 887 832 30% 2,804 3,099 Hanwha Ocean - - - - 3,143 3,294 3,023 3,323 3,210 5,443 3,414 13% - 12,784 Others -180 -225 -142 -68 79 -25 110 3 14 95 -57 - -615 167 OperatingProfit 18 337 477 900 530 861 840 858 639 1,365 452 -46% 1,732 3,089 Land Systems -4 260 440 872 302 523 573 604 209 533 22 -96% 1,568 2,001 Aerospace 3 6 -6 -50 4 -12 3 18 23 37 -2 Turn to loss -47 13 HanwhaSystems 46 84 60 29 60 62 62 92 81 123 99 60% 219 276 Hanwha Ocean - - - - 259 372 290 248 441 736 486 68% - 1,168 Others -26 -13 -17 48 -94 -83 -88 -103 -114 -63 -152 - -9 -368 Pretax Profit 32 120 375 2,120 230 466 795 718 555 1,247 -190 Turn to loss 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 -37 Turn to loss 2,540 2,202 •Others : Satrec I, Hanwha Philly Shipyard, Hanwha Offshore Singapore, PPA amortization, consolidated adjustments andmore •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 Defense AI 3.0 Investment and Shareholder Return 16 17 22 24 25 27
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3Q26 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 9,853 3,322 7,902 6,700 2024 2025 3Q26 91 74 86 61 27 51 2024 2025 3Q26 Leverage RatioDebt
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3Q26 Earnings Release 17 Armored Vehicles Artillery Systems UGV(Unmanned Ground Vehicle) Missile and Munition Systems Air Defense Systems K21 IFV Redback IFV KAAV K9 SPH K10 ARV Chunmoo MRLS Arion-SMET EOD Robot TAipers Chunmoo Missiles H-SHORAD Skylight Fixed Laser Weapon L-SAM ABM MCS M-SAM Launcher L-SAM Launcher K9 SPH Development Roadmap UAV (Unmanned Aerial Vehicle) Mojave-STOL Next Generation small UAV engine USV & UUV Combat USV In development Tigon (6X6, 8X8) K9 MH L-PGW In development Next Generation CCA engine Combat UUV GRUNT UCV-L In development 5xCrew count 1x crew 3x unmanned 3x K-Amphibious Assault Vehicle Self-Propelled Howitzer Mobile Howitzer Ammunition Resupply Vehicle Multiple Rocket Launcher System Infantry Fighting Vehicle Modular Charge Systems Surface to Air Missile Air to Surface Missile Surface to Surface Missile Explosive Ordnance Disposal Unmanned Surface Vessel & Unmanned Underwater Vessel APPENDIX > Total Defense Solution Provider Total Defense Solution Provider Weapon Systems Lineup In development In development In development In development In development
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3Q26 Earnings Release 1818APPENDIX > Total Defense Solution Provider Total Defense Solution Provider Global Presence 3 2 4 51 Europe MENA Asia-Pacific United StatesKorea 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 K9 SPH/MH ① Chunmoo MRLS ② Redback IFV ③ M-SAM II ④ MCS and PGM ⑤ Europe: Poland, Norway, Estonia, Croatia MENA: UAE, Saudi Arabia, Iraq Asia-Pacific: AustraliaEurope: Turkey, Poland, Finland, Norway, Estonia, Romania, Spain MENA: Egypt Asia-Pacific: India, Australia, North America: USA
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3Q26 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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3Q26 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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3Q26 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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3Q26 Earnings Release 2222APPENDIX > 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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3Q26 Earnings Release 23 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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3Q26 Earnings Release 24APPENDIX > 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) Energy Plant Unit Chemical Plant Power/Energy Plant Industrial Facility Submarine 1,800 tonnage Offshore Wind Power VLGC (Very Large Gas Carrier) VLAC (Very Large Ammonia Carrier) WTIV (Wind Turbine Installation Vessel) FPSO (Floating Production Storage Offloading) FLNG (Floating LNG) Drillship
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3Q26 Earnings Release 25APPENDIX > Defense AI 3.0 25 Defense AI 3.0 Paradigm Shift The scope of service provided to customers is expanding The warfare paradigm under Defense AI 3.0 is undergoing a fundamental transformation Satellite AI Analysis
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3Q26 Earnings Release 26APPENDIX > Defense AI Data Center 26 Execution Roadmap Changwon AI DC Defense AI Data Center Roadmap Changwon AI DC (launching 2028) to serve as defense-specialized hub for AI training, inference, verification. Defense AI 3.0 infrastructure already under construction.
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3Q26 Earnings Release 27APPENDIX > 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