Slides
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Oct 27th 2026 3Q 2026 Earning Release
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This report has been prepared by HD Hyundai Electric indicated as "Company" below, for the purpose of promoting understandingofthe company's business activities and it is prohibited to export, copy or redistribute the report. "Predictive information" contained in this report is information that has not been subjected to individual verification. Thisrefers to information related to future events, such as expected future management status and financial performance of the company. In terms of expressions, vocabulary such as ' prediction',' forecast ',' plan ',' expectation’, ‘(E) ' are included. The above "forecast information" is influenced by changes in the future business environment and inherently contains uncertainties. As a result of such uncertainties, actual future performance may significantly differ from those stated or implied in the "forecast information". Furthermore, the outlook is based on current market conditions and the direction of the company management. Please be advisedthat changes may occur due to changes in the market environment and strategies and are subject to change without notice. Please note that the Company and its employees do not bear any responsibility for any loss resulting from the use of this material. (Including negligence and other cases) Please do not copy or distribute this material as it contains the confidential information of the Company. Disclaimer
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CONTENTS 3Q 2026 Consolidated Earnings Sales Analysis Operating Profit Analysis Non-Operating Profit and Loss & Net Profit Main Issue North America Middle East Europe Marine Product Key Financial Indicators Capex Plan Capex Completion • Operation
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4 1. 3Q 2026 Consolidated Earnings 3Q26 Summary 3Q25 2Q26 3Q26 QoQ Y o Y Sales 995.4 1,141.8 1,179.9 3.3% 18.5% Operating Profit 247.1 287.0 284.5 -0.9% 15.1% OP Margin(%) 24.8% 25.1% 24.1% -1.0%p -0.7%p Non-Operating Profit & Loss 3.3 -8.2 -43.7 - - Net income Before taxes 250.4 278.8 240.8 -13.6% -3.8% Net Profit 191.1 206.1 184.2 -10.6% -3.6% Controlling Shareholder’s N/I 191.1 206.6 183.3 -11.3% -4.1% Order(USD mil.) 1,212 1,440 980 -31.9% -19.1% Backlog(USD mil) 6,983 8,490 8,843 4.2% 26.6% (Consolidated Basis, UNIT: KRW bn) Note) Figures based on HE’s Consolidated Financial Statement (Consolidated assets : Hyundai Tech Center Hungary, HD Hyundai Electric Switzerland, Yang Zhong(China) Corporation, Shanghai R&D Center, Middle East Corporation, Alabama Corporation, Atlanta Sales Corporation, HD Hyundai Electric Texas LLC.,HD Europe GmbH, HD Hyundai Plaspo, Yeocheon Energy, DaebulGreen1) Record quarterly revenue, while operating margin declined due to a higher share of domestic sales Orders declined due to the high base in 1H26, while distribution business maintained solid growth
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5 YoYQoQ Power Distribution + New Business Rotating GIS revenue increased in the Middle East and Europe, driving QoQ growth Revenue declined YoY due to delayed European deliveries Despite lower marine switchgear deliveries, sales of distribution transformers for domestic semiconductor PRJ & all North America distribution products increased AnjwaBESS project recognition (KRW 125 bn) Atlanta Sales subsidiary revenue declined due to a high base effect Switchgear sales at the Yang Zhong subsidiary continued to increase Subsidiaries Both generator & motor sales increased, supported by strong growth in the domestic market 2. Sales Analysis by Segment (UNIT: KRW bn) Sales by Segment Analysis by Segment 89.2 214.8 145.4 143.4 159.9 167.1 175.0 231.2 325.1 587.8 535.9 542.3 3Q25 2Q26 3Q26 Power Distribution Rotating Subsidiaries + Adjustment +3.3 % 1,141.8 995.4 1,179.9 1.2% -7.7% 40.6% 85.8% 4.5% 16.5% -32.3% 63.0%
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6 (U.S. subsidiaries) : remained stable (Yang Zhong subsidiary) : declined due to lower margins on marine switchgears 주1. K-IFRS 연결재무제표기준 3. Operating Profit Analysis Operating Profit Trend OP Analysis by Segments(QoQ) 247.1 287.0 284.5 24.8% 25.1% 24.1% 3Q25 2Q26 3Q26 OP OPM YoYQoQ Power Distribution Rotating 15.1%-0.9% Subsidiaries (UNIT: KRW bn) Overall margin in North America • Domestic market & distribution transformer improved Margin pressure in LV/MV circuit breakers, with price increase effects expected to be fully reflected from 4Q Operating profit from rotating machinery improved, supported by strong margin expansion in the domestic market despite weaker profitability in overseas markets North America transformer & Middle East GIS profitability continued to improve European profitability declined as lower margin orders secured in 2023 recognized
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7 284.5 5.7 -47.9 -1.5 240.8 -56.6 184.2 3Q26 Operating Profit Financial Gain/Loss Foreign Exchange Gain/Loss Other Non-operating Gain/Loss Income before Income Tax Income Tax (Effect) Net Profit (UNIT: KRW bn) 4. Non-Operating Profit and Loss & Net Profit 3Q26 Non-Operating Profit and Loss & Net Profit
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8 5. Main Issue 1) North America Analysis(QoQ) 728.1 1,006.2 1,614.9 1,482.1 1,779 1,766 2,178 2,619 2023 2024 2025 2026 (cumulative) Sales(KRW bn.) Order(USD mil) 353.7 554.5 492.3 541.9 447.9 763 1,315 853 451 3Q25 4Q25 1Q26 2Q26 3Q26 Sales(KRW bn) Order(USD mil) Order/Sales (Annual)Order/Sales (Quarter) Order intake softened due to a high base in 1H, while 765kvtransformers orders continued Initial PO issuance has begun under the long-term supply agreement with Big Tech A Revenue increased across all NA distribution categories M/LV circuit breaker (VCB) sales to data centers grew (QoQ 4x) Power segment revenue declined according to delivery schedules OUTLOOK YoYQoQORDER Supply contract discussions with multiple Big Tech companies in progress, agreements expected from 4Q. Top 10 U.S. utilities’ projected $289bn grid investment over five years to support sustained AI-driven power infrastructure demand (S&P Global, Sep. 2026) SALES 254 -17.3% 26.6% -47.1% -40.9%
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9 YoYQoQ 5. Main Issue 2) Middle East Analysis(QoQ) 565.1 810.5 854.0 459.1 608 544 465 350 2023 2024 2025 2026 (cumulative) Sales(KRW bn) Order(USD mil) 209.6 196.0 161.6 129.8 167.7 78 54 166 104 80 3Q25 4Q25 1Q26 2Q26 3Q26 Sales(KRW bn) Order(USD mil) Orders remained solid, supported by robust GIS demand including Saudi HVDC projects Distribution orders declined due to the high base from switchgear licensing orders in 2Q GIS revenue returned to normal levels, driving sales growth Management of geopolitical risks through revised trade terms & optimized shipping routes Selective order growth pursued through follow-on Saudi HVDC projects amid continued Middle East Grid investment demand Distribution market outlook is expected to improve as switchgear licensing & distributor orders resume from 4Q SALES ORDEROrder/Sales (Annual)Order/Sales (Quarter) 29.2% -20.0% -23.1% 2.6% OUTLOOK
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10 5. Main Issue 3) Europe Analysis(QoQ) 206.2 293.4 405.9 293.8 359 438 260 2023 2024 2025 2026 (cumulative) Sales(KRW bn) Order(USD mil) 512 127.5 128.3 94.8 110.1 88.9 164 129 129 91 3Q25 4Q25 1Q26 2Q26 3Q26 Sales(KRW bn) Order(USD mil) Order/Sales (Annual)Order/Sales (Quarter) Secured data center transformer orders in France & Finland UK grid connection reforms (Gate2) led to changes in project priorities → adjustments to order schedules Power transformer and marine switchgear sales declined , revenue growth is expected from 2H27 VCB sales to Nordic data centers expanded SALES OUTLOOK YoYQoQORDER UK Gate 2 : reprioritize grid connections based on project readiness and alignment with national power plans → Order visibility for power equipment is expected to improve as project schedules are finalized Strong demand outlook continues, supported by accelerating European expansion by major tech companies & growing hyperscale data center demand 129 -19.3% -30.3% -29.5% -44.5%
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11 4) Marine Product 399.2 458.8 500.4 474.9 373 388 493 426 2023 2024 2025 2026 (cumulative) Sales(KRW bn) Order(USD mil) 125.4 101.7 171.0 159.6 144.3 110 143 154 151 121 3Q25 4Q25 1Q26 2Q26 3Q26 Sales(KRW bn) Order(USD mil) Marine rotating machinery orders declined temporarily due to order seasonality Orders focus on high-value-added Projects Generator orders expected to increase as HD Hyundai Heavy Industries expands engine production capacity Generator order discussions underway for previously secured AI data center engine projects, with orders expected in 4Q26–1Q27 YoYQoQOrder/Sales (Annual)Order/Sales (Quarter) 5. Main Issue Analysis(QoQ) SALES OUTLOOK ORDER -9.6% 15.1% -19.9% 10.0% Revenue declined in line with shipbuilding schedules, while switchgears sales at Yang Zhong continued to grow.
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12 6. Key Financial Statement Liabilities / Equity Ratio 2,288.0 2,736.9 3,111.0 151.8% 134.7% 2024 2025 3Q26 +0.1%p -310.1 -782.7 -706.6 2024 2025 3Q26 +7.9%p Net Debt / Equity Ratio Liabilities Liabilities Ratio NetDebt Net Debt Ratio 2024 2025 3Q26 Current Assets 2,763.7 3,426.3 3,810.2 Cash and Cash Equivalents 569.8 950.8 800.7 Non-current assets 1,031.8 1,343.5 1,610.4 Assets 3,795.5 4,769.8 5,420.5 Current liabilities 2,001.1 2,548.7 2,960.6 Non-current liabilities 286.9 188.2 150.4 Total Debt 293.7 186.1 108.8 Net Debt -310.1 -782.7 -706.6 Liabilities 2,288.0 2,736.9 3,111.0 Other components of equity 691.6 710.2 669.6 Retained Earnings 815.9 1,322.7 1,639.9 Equity 1,507.5 2,032.9 2,309.5 Financial Statement (UNIT: KRW bn) (UNIT: KRW bn) (UNIT: KRW bn) 134.6% -20.6% -38.5% -30.6%
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13 7. CAPEX Plan Engineering • Foundation Work ConstructionPhase I Review• Plan 14 m 9 m5m Production & Facility Investment CAPEX KRW198bn Period (Construction) 26Month Revenue (Annual) + KRW 250bn Chungju Distribution Campus Phase II Investment Growing AI Data Center Demand Driving Continued Mega PRJ Awards & Distribution Equipment Package Orders : Distribution Equipment Production Cluster & High-Efficiency Manufacturing System → Enhanced Responsiveness to High-Value Strategic Markets & Strengthened Global Supply Competitiveness ’26.July Review• PlanSmart Logistics System Process Improvement ’27.May ’26.Feb Initiation 11 m Phase I I ’28.July Completion ’27.Jan ’29.June Completion 12m ’26.Aug System Advancement Phase I Phase I I 2028 Distribution Sales target +KRW1.1tn Expansion of Integrated Distribution Solutions for Sustainable Mega Project Awards - Integrated Development, Manufacturing & Certification Capabilities driving business synergies & strengthening competitiveness (+15% Productivity) - Smart Factory Implementation & Logistics Automation maximizing operational efficiency (+60% Space Utilization, -60% Internal Logistics Lead Time) Strategic Focus on High-Margin, High-Value Markets (Data Centers, Semi-conductors, etc.) - Expansion of Premium Products, Distribution Packages & Engineering Solutions ☆ ☆ CAPA Expansion & Integrated Production Cluster High-Value Business-Focused Strategy ’26.February Initiation ’28.July Completion ’29.June Completion
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14 8. CAPEX Completion• Operation PowerTransformer Ulsan New Plant Completion• Operation Ulsan power transformer new plant completed (Trial operations : Oct. 2026 / Full operation : Nov. 2026) Securing Additional capacity for continued grid & data center demand Enhancing growth potential through a high-value product mix, led by data center projects and 765kV transformers Investment KRW 211.8bn New plant & Production equipment Annual Revenue Increase KRW 200bn+ Based on incremental Capacity New Hires 130 people Local Employment ’25.01 Construction Start ’26.10 Full operation Early Ramp-up Target 100% Utilization Additional 40~50 units • Early achievement of 100% utilization Completed ’26.11 ’27.11