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1st Quarter 2025 Financial Results CREATIVITY INSPIRED
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CREATIVITY INSPIRED What's Inside 1Q 2025 Financial Results 3p Financial Performance 6p Appendix 7p 1. Quarterly P/L Trends 2. Performance Tracking by Division 3. Order Tracking by Division Fact Sheet 11p 1Q 2025consolidatedearningsandpastconsolidatedearningspresentedinthispresentationarebasedonK-IFRSaccountingstandards. Historicaldataisprovidedforcomparisonpurposes. Informationin thispresentationhas not beenauditednor reviewedyet,and thus,is subjectto changeduringthe auditor review. Forwardlookingstatementshavebeenmadewith considerationofcurrentstatusofthebusinessenvironmentandarealsosubjecttochangeaccordingto changesinthebusinessenvironment,aswellasthecompany’sstrategy.
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1Q 2024 4Q 2024 1Q 2025 QoQ YoY Sales Revenue 984.5 1,571.5 1,076.1 (31.5%) 9.3% Gross Profit 141.9 281.3 194.1 (31.0%) 36.7% Gross Profit Margin 14.4% 17.9% 18.0% 0.1%p 3.6%p Operating profit 56.2 132.2 102.4 (22.5%) 82.2% Operating Profit Margin 5.7% 8.4% 9.5% 1.1%p 3.8%p Net Interest Expense(Revenue) 15.6 (21.8) (5.1) (76.6%) T/P Gain or Loss on Foreign Exchange/Derivatives (1.5) 4.3 2.6 (39.5%) T/P Income before Tax 34.1 66.1 130.4 97.3% 282.4% Net Profit 26.2 96.1 103.6 7.8% 295.4% Net Profit in Controlling Interest 21.7 91.1 102.2 12.2% 371.0% EBITDA 85.1 153.4 122.5 (20.1%) 43.9% EBITDA Margin 8.6% 9.8% 11.4% 1.6%p 2.8%p Profit/Loss Statement (Consolidated) 3 CREATIVITY INSPIRED Financial Data Performance Appendix Fact Sheet (Unit: KRW Bn)
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Mar 2024 Dec 2024 Mar 2025 QoQ YoY Assets 4,916.5 6,219.8 6,693.4 7.6% 36.1% Current Assets 2,493.5 3,087.0 3,543.3 14.8% 42.1% Cash & Cash Equivalents 209.1 262.6 224.7 (14.4%) 7.5% Non-Current Assets 2,423.0 3,132.8 3,150.1 0.6% 30.0% Liabilities 3,690.7 4,164.2 4,578.1 9.9% 24.0% Current Liabilities 2,947.9 3,433.5 3,377.0 (1.6%) 14.6% Non-Current Liabilities 742.8 730.7 1,201.1 64.4% 61.7% Equity 1,225.8 2,055.6 2,115.3 2.9% 72.6% Debt 1,393.2 1,060.2 1,136.8 7.2% (18.4%) Net Debt 1,184.1 797.6 912.1 14.4% (23.0%) Net Debt to Equity Ratio 96.6% 38.8% 43.1% 4.3%p (53.5%p) Liabilities to Equity Ratio 301.1% 202.6% 216.4% 13.8%p (84.7%p) 4 CREATIVITY INSPIRED Financial Data Performance Appendix Fact Sheet Balance Sheet (Consolidated) (Unit: KRW Bn)
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2022 2023 2024 1Q 2025 Cash Flow from Operations (129.7) 373.8 376.6 65.0 Net Income 29.1 131.9 222.9 103.6 Depreciation 82.3 85.0 73.1 20.1 Changes in Provisions (16.4) (36.2) 194.4 (3.5) Changes in Net Working Capital (224.7) 193.1 (113.8) (55.2) Cash Flow from Investing (114.5) (4.2) (140.9) (181.7) PP&E and Intangibles (110.9) (56.6) (123.5) (43.4) Others (3.6) 52.4 (17.4) (138.3) Cash Flow from Financing 347.4 (309.0) (264.7) 76.6 Changes in Borrowings 347.4 (309.0) (241.4) 76.6 Dividend Payment 0.0 0.0 (23.3) 0.0 Changes in Cash and Cash Equivalents 103.2 60.6 (29.0) (40.1) 5 CREATIVITY INSPIRED Financial Data Performance Appendix Fact Sheet Cash Flow (Consolidated) (Unit: KRW Bn)
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Operation Profit (%) Continued revenue growth and order expansion driven by global markets (US, Europe, Middle East) CREATIVITY INSPIREDHeavy Industries Financial Data Performance Appendix Fact Sheet Sales Revenue Continued risk management-focused management with selective bidding on high-quality projectsConstruction (Unit:KRW Bn) Operation Profit (%)Sales Revenue (Unit:KRWBn) 582.2 1,062.6 730.8 1Q24 4Q24 1Q25 402.3 507.9 344.2 1Q24 4Q24 1Q25 • Power System - Achieved historical high 1Q results, driven by rise in contract prices and improved profitability of overseas subsidiaries - Order backlog continues to grow on the back of strong demand for ultra-high voltage power equipment in US, EU and ME - Expanding client base across EU via broadening country coverage - Secured new turnkey contract with India's transmission company (PGCIL) for - STATCOM systems, contributing to order growth - Designated as a qualified beneficiary under the US IRA tax credit program • New orders KRW2,008.5bn in 1Q25 (vs. KRW1,375.9bn in 1Q24) Order backlog KRW10.4tn(vs. KRW5.5tn 1Q24) • Construction - Secured new projects with robust earnings visibility, including private housing - driven by turnkey-based contracts and redevelopment projects with strong marketability (Housing project in Hapjeong-dong (KRW68.7bn), Mixed-use complex in Uijeongbu (KRW39.2bn)) - Continued to increase contract values on a project-by-project basis to ensure - profitability - Maintained stable performance through strengthened order review process and - prudent risk management efforts • New orders KRW181.9bn in 1Q25 (vs. KRW345.7bn in 1Q24) Order backlog KRW8.6tn(vs. ￦7.5tn 1Q24) 6 6.1% 10.8% 12.3% 36.0 115.1 90.1 1Q24 4Q24 1Q25 20.2 17.0 12.1 1Q24 4Q24 1Q25 5.0% 3.3% 3.5%
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7 CREATIVITY INSPIRED Financial Data Performance Fact SheetAppendix Quarterly P/L Trends (Consolidated) 2023 1Q 2Q 3Q 4Q Total Sales Revenue 846.5 1,122.7 1,039.4 1,292.0 4,300.6 Operating Profit 14.1 85.7 94.6 63.4 257.8 OPM 1.7% 7.6% 9.1% 4.9% 6.0% Net Profit (12.1) 58.8 56.4 28.8 131.9 NPM (1.4%) 5.2% 5.4% 2.2% 3.1% 2024 1Q 2Q 3Q 4Q Total Sales Revenue 984.5 1,193.8 1,145.2 1,571.5 4,895.0 Operating Profit 56.2 62.7 111.4 132.2 362.5 OPM 5.7% 5.2% 9.7% 8.4% 7.4% Net Profit 26.2 28.2 72.4 96.1 222.9 NPM 2.7% 2.4% 6.3% 6.1% 4.6% (Unit: KRW Bn) 2025 1Q Sales Revenue 1,076.1 Operating Profit 102.4 OPM 9.5% Net Profit 103.6 NPM 9.6%
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- 2023 • 1Q : Low-margin orders from the past, coupled with seasonal weakness • 2Q : Achieved 8% OP margin with increased sales and higher-margin order recognition • 3Q : Attained 12% OP margin with high-margin projects in US and EU, and profit turnaround by US subsidiary • 4Q : Deferred revenue (of some high-margin projects), coupled with one-off charges, resulted in lower OP margin, despite improved sales revenue from electric power equipment segment - 2024 • 1Q : Top-line showed growth and OP turned around vs 1Q23, thanks to the recognition of deferred sales from 4Q23 • 2Q : Exceeded 8% OP margin with increased sales and higher-margin order recognition, despite deferred sales revenue with logistics disruption • 3Q : Increased profit margin due to increased global sales volume centered around US, EU and ME • 4Q : Achieved record quarterly earnings performance with significant YoY growth in revenue and operating profit - 2025 • 1Q : Achieved historical-high 1Q results despite seasonality, on the back of high-margin sales, improved overseas profitability and strong UHV equipment orders in US 8 Heavy Industries CREATIVITY INSPIRED Financial Data Performance Fact SheetAppendix Performance Tracking : Heavy Industries 476.6 711.7 592.3 798.7 582.2 743.6 711.0 1,062.6 730.8 ▲9.0 56.6 72.5 46.0 36.0 62.7 99.0 115.1 90.1 ▲50.0 ▲30.0 ▲10.0 10.0 30.0 50.0 70.0 90.0 110.0 130.0 0 500 1,000 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Sales OP (Unit: KRW Bn)
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- 2023 • 1Q : Revenue and OP remained solid, backed by upward revisions in contract prices in existing projects, offsetting adverse impact from higher raw material prices • 2Q : With steady revenue growth and continued cost-saving efforts, OP increased • 3Q : Maintained stability through existing order backlog as well as non-leasing, public projects • 4Q : Improved sales with solid order backlog diluted by higher costs (raw material, labor), resulting in lower OP margin - 2024 • 1Q : The adverse impact of rising labor and commodity prices was somewhat mitigated by contract price adjustments, leading to stable top- and bottom-line results • 2Q : Recorded operating losses due to one-off impact from truckers’ union strike (i.e. higher construction costs at completion-phase sites due to schedule delays etc) • 3Q : Upward pressure on labor and raw material costs brought higher cost-to-sales ratio, negatively impacting OP • 4Q : Sales seasonally increased and margins exhibited a gradual improvement despite cost pressure - 2025 • 1Q : Strictly focused on risk management principles while pursuing contract value enhancements in existing projects for improved profitability 9 Construction CREATIVITY INSPIRED Financial Data Performance Fact SheetAppendix Performance Tracking : Construction 369.9 411.0 446.1 493.3 402.3 449.3 433.3 507.9 344.2 15.1 29.1 21.8 17.4 20.2 ▲2.3 12.4 17.0 12.1 -20.0 -10.0 - 10.0 20.0 30.0 40.0 0 300 600 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Sales OP (Unit: KRW Bn)
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10 Consolidated CREATIVITY INSPIRED Financial Data Performance Fact SheetAppendix Order Tracking by Division 983.7 796.2 772.7 1,062.6 1,375.9 1,519.8 1,875.6 1,063.5 2,008.5 159.9 188.6 218.4 1,044.3 306.7 298.6 463.6 1,772.2 181.9 0 500 1,000 1,500 2,000 2,500 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Heavy Industries Construction (Unit: KRW Bn) Separate 707.0 566.9 564.4 878.1 859.8 1,146.9 1,350.1 789.4 1,019.3 159.9 65.0 203.6 895.5 251.8 199.0 0 1,264.5 657.0 0 500 1,000 1,500 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Heavy Industries Construction (Unit: KRW Bn)
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11 CREATIVITY INSPIRED Financial Data Performance Appendix Fact Sheet Industry Backdrop Electrification, De-carbonization, AI Investment in Emerging Businesses - 10%+ p.a. global electricity demand until 2030 - Hydrogen Up to 39,000 tons/yr capa. (Replacement of aged infrastructure and renewable power) - Data Center 2 sites near Seoul - Increasing attention in US, EU and ME Ongoing Investment in Established Operations - Korea as the control tower focused on R&D - Enhancing productivity on a global scale - Power grid modernization solutions - HVDC, FACTS, AM solutions Key Market U.S., Middle East and Asia Brand "GENTOPIA", "Harrington" Customer Utilities, IPP and Plant EPC Supplier POSCO, Sam Dong, ABB, MR Management Team No.1 M/S in Korea (Cumulative basis) Taehee Woo, CEO, Heavy Industries - Strength in replacement & expansion Ex-Vice President of the KCCI Diversified Overseas Market (Korea Chamber of Commerce and Industry) - US, EU, ME and Asia Partnership with global top-tier players - Hydrogen Linde (Germany) - Data Center STT GDC (Singapore) CFO : Chang-Ho Lee Ex-CFO, Hyosung TNC [Hydrogen Liquefaction] [Data Center] H Y O S U N G H E A V Y I N D U S T R I E S Fact Sheet Business Model Growth Strategy Competitve Edge Power T&D Grid Products and Solution - Power transformer - Circuit breaker and GIS - ESS, FACTs and DC applications Rotational Electric Equipment Housing Construction