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Doosan Heavy Industries & Construction 2010 Annual Report
LeADIng TomoRRow
Act Proactively ... Provide Completely ... Share Passionately ...03 FinancialHighlights
04 YearinReview
06 CEOMessage
08 ManagementTeam
Act Proactively
12 Power/Water/GreenEnergy
18 DoosanWorldwideToday
Provide Completely
20 GlobalEPCContractor
22 ReviewofOperations
Share Passionately
42 Share
44 Protect
46 Collaborate
48 FinancialStatements
60 AbouttheDoosanGroup
61 GroupAffiliates
62 GlobalNetwork
Financial
Highlights
Our2010operatingperformancesawusmovesolidlybackintotheblackaswecontinuedtogainmomentumin
globalpowerandwatermarkets.Whilerevenuesweredown1.6%largelyduetoprojectdelays,orderssoaredover
130%aswewonaremarkablenumberofmajorpowerandwaterprojectsspanningtheglobefromtheMiddleEastto
SoutheastAsia.Althoughour2011ordertargetismoreconservativethanourrecord2010performance,webelieve
ourstrongmulti-yearbacklogandsharpenedorganizationalfocusonEPCandpowerequipmentcombinedwithop-
erationalexcellencewilldrivethenextwaveofprofitablegrowthin2011andbeyond.
2010 2009 2008
ToTAL AsseTs 9,226 9,176 9,919
ToTAL sHAReHoLDeRs’ equITy 3,537 3,319 3,382
Revenues by busIness gRoup
epC 2,732 2,704 2,450
poweR 1,191 1,537 1,722
nuCLeAR poweR pLAnT 1,226 780 573
wATeR 418 630 356
CAsTIng & FoRgIng 611 628 609
ToTAL Revenues 6,178 6,279 5,709
opeRATIng InCome 447 404 474
neT InCome 111 (328) (66)
eARnIngs peR sHARe In KRw 1,238 (3,748) (765)
DIvIDenDs peR sHARe In KRw 1,238 - 500
opeRATIng InCome in KRw billions
2008 2009 2010
404
474 447
TomoRRow ToDAy
oRDeRs in KRw billions
2008 2009 2010
5,621
8,421
12,954
At Doosan Heavy Industries & Construction,
our vision is to be a global leader in power and water.
Backed by nearly five decades of experience as a partner
for growth and progress around the world, we are
committed to helping our customers meet the challenges
and opportunities of the future as we act proactively,
provide completely, and share passionately to lead
tomorrow today.Revenues in KRw billions
2008 2009 2010
6,1786,279
5,709
02 0302
February 2011
YanbuPhaseIIMEDDesalinationProjectOrder
WewinthisUSD124millionEPCprojectfromSalineWaterConver-
sionCorporationfora15MIGDMEDdesalinationunitinSaudiAra-
bia.Thecollaborationwillresultintheworld’slargestsingle-unit
multi-effectdistillationfacilitytodate,positioningusforgrowthin
thatemergingtechnologyfield.
Year
in
Review
February 2010
DoosanPowerSystemsLaunch
January 2010
Raipur-ChhattisgarhThermalPowerProjectOrder
April 2010
RasAzZawrHybridDesalinationProjectOrder
228 mIgD
1,370 mwe
WewinthisUSD1.76billionEPCprojectfromSalineWaterConver-
sionCorporationtobuildtheworld’s largestdesalinationplant
todateinSaudiArabia.The228MIGDhybridproject—160MIGD
multi-stageflashand67.5MIGDreverseosmosis—willmeetthe
potablewaterneedsof3.5millioninthecapitalofRiyadh.
September 2010
Rabigh2ThermalPowerProjectOrder
2,800 mwe
WewinthisUSD3.5billionEPCprojectfromSaudiElectricityCom-
pany.Theprojectwillincludefour700MWeoil-firedplantsandis
scheduledforcompletionin2014.
WewinourlargestpowerprojecttodateinIndiafromGMREnergy.
TheUSD1.1billionEPCprojectwillincludetwo685MWecoal-fired
unitsandisscheduledforcompletioninthesecondhalfof2013.
WeestablishthisUK-basedholdingcompanytooverseetheopera-
tionsofDoosanBabcockoftheUKandŠkodaPoweroftheCzech
Republic.WealsoestablishDoosanPowerSystemsEuropeand
DoosanPowerSystemsAmericatogrowourbusinessinthosekey
markets.
July 2010
FirstAPR1400®ReactorShipment
1,400 mweWeshipourfirstthird-generationreactorforShin-KoriUnit3 in
Korea.Offering40%moregeneratingcapacityanda50%longer
servicelifethanthepreviousOPR1000units,theAPR1400®design
willpowerfuturenuclearplantsintheUAEaswellasKorea.
December 2010
YeongheungThermalPowerProjectOrder
1,740 mwe
WesignacontractwithKoreaSouth-EastPowertosupplytwo
870MWeultra-supercriticalboilersforYeongheungUnits5~6.We
completedYeongheungUnits3~4in2009.
December 2010
MongDuongIIThermalPowerProjectOrder
WewinthisUSD1.2billionEPCprojectfromAES-VCMMongDuong
PowerCompanyinVietnam.Theprojectwillincludetwo620MWe
coal-firedplantsandisscheduledforcompletionin2015.
MongDuongIIThermalPowerPlant
May 2010
JebelAliMThermalProjectSafetyMilestone
WesetanewsafetystandardfortheKoreanconstructionindustry
bycontinuingaperfectsafetyrecordonthisproject launchedin
theUAEin2007,surpassing20millionman-hourswithoutamajor
safetyincident.
20 million man-hours
March 2011
WinDS3000™WindTurbineCertification
WesecuretypecertificationfromDEWI-OCCofGermanyforour
first3MWoffshorewindturbine,pavingthewayforustoenterthe
globalwindpowermarket.
September 2010
Man-MachineInterfaceSystemCompletion
Wecompletedevelopmentofanext-generationMMISfornuclear
powerplants.Flexibleenoughtohandlecontrolofavarietyofoth-
erindustrialfacilities,thetechnologymeetsthehigheststandards
forreliabilitywhileimprovingsafetyandconvenienceoverexisting
solutions.
mmIs
DoosanBabcock
ŠkodaPower
DoosanPowerSystems
January 2011
ChennaiWorksAcquisition
WeacquiretheboilermanufacturingoperationsofAE&EofAustria
inChennai,IndiaforEUR20.5million.Theacquisitiongivesusthe
facilitiesandpersonnelthatareessentialtoexpandingourpres-
enceinthishugegrowthmarketforthermalpowergeneration.
Doosan Chennai Works
Yanbu SaudiArabia
04 0504
Weachievedremarkable resultsacrossourentire
businessportfolioin2010,winninganumberofma-
jorpowerandwaterprojects inkeymarketsacross
theMiddleEast, India,andSoutheastAsia.Among
theyear’shighlightswerethesigningofthemajor
equipmentcontractfortheBrakanuclearpowerproj-
ectintheUAE,thebookingoftheRasAzZawrhybrid
desalinationprojectandRabigh2 thermalpower
projectinSaudiArabiaaswellastheRaipurthermal
powerprojectinIndia,andourselectionbythegov-
ernmentofVietnamasapartnerinlocalizingproduc-
tionofcoal-firedpowerplants.
Inthefirsthalfof2011,wemergedourPowerPlant
andConstructionbusinessgroupsandreorganized
themintotwonewspecializedgroupstostrengthen
ourpowerEPCandequipmentbusinesses,generate
greatersynergies,anddriveprofitablegrowth.Our
newEPCbusinessgroupstrategicallybringstogether
thecoreengineeringandconstructionexpertisewe
haveaccumulatedoverthedecadestoenhanceour
capabilitytohandlemajorEPCprojectsonourown.
Likewise,ournewPowerbusinessgroupbringsto-
getherthecoretechnologiesanddistinguishedtrack
recordsofourboilerandturbineOEMaffiliatesDoo-
sanBabcockandŠkodaPowertopositionourpower
equipmentandservicebusinessesfordramatically
greatergrowthinthecomingyears.
Theaboveeffortshavealreadybeguntoyieldresults,
enablingustowinequipmentordersfortheYanbu
PhaseIIthermalpowerplantprojectinSaudiArabia
andthePocheoncombined-cyclepowerplantproject
inKorea.Wehavealsoacceleratedouradvanceinto
India—acountrythatisnowemergingastheworld’s
fastest-growingmarketforthermalpowerplants—by
acquiringlocalboilermakerAE&EChennaiWorksin
January2011.Wealsosetthestageforouradvance
intotheglobalwindpowermarketinFebruary2011
bywinninginternationaltypeapprovalforourWinDS
3000™3MWoffshorewindturbinefromDEWI-OCCof
Germany.
Thesearejustafewofthewaysthatwecontinueto
ceaselessly innovateaswesolidifyourpositionas
agloballeaderinpowerandwater.Thankyouonce
again foryour interest inandsupport forDoosan
HeavyIndustries&Construction.Wehopeyou’lljoin
usaswecontinue togainglobalmomentumand
bringmorepowerandwatertotheworld.
CEO
Message
we buILDyouR TomoRRowToDAy
on beHALF oF THe enTIRe DoosAn HeAvy InDusTRIes & ConsTRuCTIon FAmILy, I Am pLeAseD
To RepoRT THAT we ReCoRDeD ouR besT oRDeR peRFoRmAnCe To DATe In 2010. ouR FoCus In
2011 Is on geneRATIng pRoFITAbLe gRowTH As we ResTRuCTuRe ouR oRgAnIzATIon To ex-
pAnD ouR poweR equIpmenT busIness, upgRADe ouR gLobAL busIness sysTems, AnD seT ouR
sIgHTs on even gReATeR goALs As A gLobAL LeADeR In poweR AnD wATeR.
President&CEOGeewon Park
06 0706
LeADeRsHIp
Keysun HanPresident&COO“Wearepursuingprofitablegrowththroughoperationalexcellenceinitiatives.Wearealsoworkinghardtobuildanopencorporatecultureandfostercommunicationthroughouttheorganization.Andsincethecompetitivenessofourpartnersisultimatelyourown,wearestrivingforwin-wingrowthwiththem.”
Habang KimExecutiveVicePresidentNuclearPowerPlantBusinessGroup
“Ourgoalfor2011istobethegloballeaderinmajornuclearequipmentaswesecureourplaceasakeyplayerinthenuclearrenaissance.Wewillbeturningourattentiontoachievingtotaloperationalexcellenceaswefocusondeliveringsuperiorqualityequipmentontimeandcompletingthecapacityexpansionprojectlaunchedin2008bytheendof2012.”
Myungwoo KimExecutiveVicePresidentManagementDivision
“WearecontinuallyupgradingourEHSsystemtoensureourworksitesaresafeandaccident-free.Westrivetoupholdourtraditionoflaborpeacethroughcommunicationandcooperationbasedonthetrustwehavebuiltovertheyears.Wearealsoactivelyfulfillingourcorporatesocialresponsibilitybyactivelycontributingtolocalcommunities.”
Huntak KimExecutiveVicePresidentEPCBusinessGroup
“Tappingintoourexperienceofthepastyearsintheengineeringandconstructionbusinesses,wewillbuildamoreindependentorganizationalstructureandsecurecompetitivenessinordertopromoteprofitablegrowthinourEPCbusiness.”
Seokwon YunExecutiveVicePresidentWaterBusinessGroup
“Whiletheglobaleconomyremainedsluggishin2010,weprovedonceagainwhywearetheworldleaderinthermalseawaterdesalination.WedefeatedthecompetitiontowintheRasAzZawrproject,ahybridMSFandROplantthatwillbetheworld’slargesttodateat228MIGD.Ourwinofthe15MIGDYanbuMEDprojectinearly2011showsthatweareatotalsolutionproviderinthetop-threedesalinationtechnologies.”
Dongsoo Suh ExecutiveVicePresidentPowerBusinessGroup
“AsanOEMboastinganexcellenttrackrecordandcoretechnologyintheareasofboilerandturbinemanufacturing,wewillbeleadingthegrowthofthecompanybyexpandingourequipmentbusiness.Wewillachievethisbydiversifyingouroverseasmarketsanddevelopingcutting-edgeproducts.”
Seokhee KohSeniorVicePresidentCasting&ForgingBusinessGroup
“Intoday’sintenselycompetitivemarket,securinganabsoluteedgeinquality,cost,anddeliveryisbecomingevenmoreessential.Asourcompetitorsracetoexpandtheirmanufacturingandtechnicalcapabilities,wearefocusingondevelopingnewproductswithouruniquetechnicalcapabilitiestogeneratecontinuedgrowthandstableprofits.”
Hyeonghee ChoiSeniorVicePresidentCFO
“Weareupgradingourfinancialmanagementsystemtomeetthestandardsandrequirementsoftheglobalbusinessenvironment.In2011,wewillbesecuringfinancialstabilityirrespectiveofthevolatileinternationaleconomicenvironmentasweactivelysupportbusinessgrowth.”
Seungjoo ChoeSeniorVicePresidentCTO
“OurCorporateR&DInstituteishardatworktocreatevaluebydrivinggrowththroughthedevelopmentofnewtechnology.Wearecurrentlyfocusingonstrengtheningcommontechnologiesandsecuringcompetitivenesstomeetthepowerandwaterdemandsofthefuture.”
AT DoosAn, ouR woRLD-CLAss peopLe, InDusTRy-LeADIng TeCHnoLogy, AnD
unIque mAnuFACTuRIng CApAbILITIes enAbLe us To DeLIveR InnovATIve, besT-In-
CLAss soLuTIons In eACH oF ouR busInesses. THe syneRgy we ARe CReATIng ToDAy
ensuRes THAT ouR RepuTATIon As one oF THe woRLD’s LeADIng poweR AnD wATeR
soLuTIon pRovIDeRs wILL ConTInue To gRow TomoRRow.
Management team
08 0908
Asweentertheseconddecadeofthe21stcentury,globaldemand
forpowerandwaterisgrowingatanunprecedentedpace.Emerg-
ingmarketsareleadingthewayasrapidurbanizationandindustri-
alizationspurinvestmentinthesefundamentalfields.AtDoosan,
wehaveprovenourselvestobeaworthypartnerforgrowthand
progressbyconsistentlydeliveringbest-in-classsolutionsbasedon
extensiveexperienceandadvancedtechnologytohelpmeettoday’s
powerandwaterneeds.Andtomorrow’s.
we ACT pRoACTIveLy
LeADIng TomoRRow ToDAy
10 1110
Power
AtDoosan,weareaglobalplayerinallmajorfieldsofpower
generation—fromconventionalcoal-firedthermalplantsto
third-generationnuclearplants.Overthepastfourdecades,
we’vegrownfromKorea’sprimarysupplierof thermaland
nuclearplantequipmentintoafull-serviceEPCcontractorand
OEMequipmentsuppliertotheglobalpowermarket.Today,
wearealsoanindustryleaderincleancoaltechnologiessuch
asoxy-fuelcombustionandpost-combustioncarboncapture
throughUK-basedDoosanBabcockandourstrategicalliance
withCanada-basedCCSleaderHTCPurenergy,workinghard
toensurethattomorrow’sthermalpowerplantsareasclean
andgreenaspossible.
THe woRLD HAs A Huge AnD gRowIng AppeTITe FoR eneRgy. THe CHALLenge Is To geneRATe IT ReLIAbLy AnD susTAInAbLy. AnD we HAve THe ADvAnCeD poweR TeCHnoLogy To Do jusT THAT.
12 1312
Water
AtDoosan,weare theglobal leader in thermalseawater
desalination.Over thepast threedecades,wehavemas-
teredthescienceofturningoceanwaterintodrinkingwater.
Wepioneered innovativeconceptssuchassingle-module
evaporators—whichdramaticallyreduceprojectleadtime—
aswellashybridplants—whichcombineareverseosmosis
membranefiltrationplantwiththemainthermaldistillation
plantformoreeconomicalwaterproductioninoff-peakand
off-seasonperiods.It’screativethinkinglikethisthatenables
ustoconsistentlywintheindustry’s largestprojectsacross
theMiddleEast.
oveR Two-THIRDs oF ouR pLAneT Is CoveReD by wATeR. THe CHALLenge Is To DeLIveR IT To wHeRe IT Is neeDeD. AnD we HAve THe ADvAnCeD s R
TIon TeCHnoLogy To Do jusT THAT.
14 1514
Green Energy
AtDoosan,weareanemergingplayerinthewindpowerfield.
Overthepastfouryears,wehavedevelopedtheadvanced
WinDS3000™3MWoffshorewindturbinesystem.Builtfrom
thegroundupforsuperiorreliabilityanddurabilityinharsh
offshoreenvironments,thesystemfeaturesasealedcooling
systemaswellasabuilt-incranethatdramaticallyreduces
thecostofmaintenance.TheWinDS3000™isjustthefirstin
a familyofonshoreandoffshorewindturbinesweplanto
launchoverthenext fewyearsasweexpandourportfolio
intothisandotherrenewableenergyfields.
16 1716
THeRe’s An AbunDAnCe oF CLeAn, RenewAbLe eneRgy ALL ARounD us. THe CHALLenge Is To FInD A wAy To eFFICIenTLy CApTuRe IT. AnD we HAve THe ADvAnCeD engIneeRIng TeCHnoLogy To Do jusT THAT.
Doosan Power Systems
E s t ab l i s h ed i n
2010,DoosanPow-erSystems is theleadcompanyinag lobal group offourbusinesses—
DoosanBabcock,ŠkodaPower,Doo-sanPower SystemsAmericas, andDoosanPowerSystemsEurope.ThisUK-basedfirmprovidescompleteplantsolutionsandenergyservicestopowerutilitiesinEuropeandtheAmericas.
Škoda Power
ADoosancompany
since2009,ŠkodaPowerdesignsandm a n u f a c t u r e smodern turb ineandgeneratorso-
lutionsforbothfossilfuelandnuclearpowerplants.ThisCzech-based firmoffers commissioning, retrofit, andmaintenance services for originalŠkodaequipmentaswellasequipmentfromotherselectedmanufacturers.
Doosan IMGB
ADoosancompany
since2006,Doo-san IMGBproduc-esa full rangeofcastingsandforg-ings for thehydro
power, thermalpower,shipbuilding,moldandtoolmaking,andother in-dustries.This Romania-based firmgivesusthefoundrycapacitytogrowaswellasastrategicpresenceintheEuropeanmarket.
Doosan Power Systems India
E s t a b l i s h e d i n
2011,DoosanPow-er Systems Indiaspearheads ouroperations in thisemergingmarket.
CurrentlysupervisingtheconstructionofMundra,Raipur,andotherprojects,thefirmhastheengineering,manufac-turing,andmarketingcapabilities todeliverpowerplantsspecificallyde-signedforthelocalmarket.
Doosan Chennai Works
ADoosancompany
since2011,DoosanChennaiWorksisacoal-basedboilermanufacturer lo-catedneartheport
ofChennai,oneofthelargestcitiesinsouthernIndia.Majorproductsmanu-facturedat ChennaiWorks includepressurepartsforboilersof300MWorbelow,suchaswaterwalls,coils,andheaders.
Doosan Vina
Officiallyopenedin
May2009,DoosanVinamanufacturesmajor power andwater plant com-ponents including
boilers,heat-recoverysteamgenera-tors,seawaterdesalinationevapora-tors,materialhandlingequipment,andchemical process equipment at a110-hectare site inVietnam’sDungQuatEconomicZone.
Doosan Hydro Technology
ADoosancompany
since2005,Doo-sanHydroTechnol-ogy was named“ D e s a l i n a t i o nCompany of the
Year”byGlobal Water Intelligenceatthe2008GlobalWaterAwards.ThisUS-basedfirmisatotalwatersolutionproviderwithunrivaledexpertiseinre-verseosmosisandmembranetechnol-ogiesforuseindesalination.
Doosan Engineering & Services
DoosanEngineer-
i n g & S e r v i c e s(DoosanE&S) isaspecialized engi-neering companythat was estab-
lishedinSeptember2008inNewJer-seytobolsteroverallengineeringca-pabilities.ThecompanywasfoundedthroughastrategicalliancewithBurnsandRoe,arenownedplantengineeringfirm.
1 2 3 4 5 6 7 8
Doosan Worldwide TodayToday
At Doosan, our global network of sales, engineering, and production plants is building tomorrow, today. Our presence in key markets world-wide enables us to deliver world-class turnkey power and water solu-tions to customers virtually anywhere on the planet.
DoosanPowerSystemsAtlantaOffice
SantiagoOffice
WindsorOffice
DoosanPowerSystemsSãoPauloOffice
PittsburghOffice
SchenectadyOffice
NewJerseyOffice
DoosanHFControls
TampaOffice
7
8
Doosan Hydro Technology
Doosan Engineering & Services
1
Doosan Power
Systems
DoosanBabcock
DoosanPowerSystemsEurope
AbuDhabiOffice
DohaOffice
MumbaiOffice BangkokOffice
TaipeiOffice
JakartaOffice
DoosanVinaHaiphong
BeijingOffice
HanjungPower
ShanghaiOffice
HanoiOffice
DubaiOffice
KuwaitOffice
DoosanWaterDubaiR&DCenter
MiddleEastOperationsCenter
NewDelhiOffice
HyderabadOffice
DoosanHeavyIndustriesJapan
SeoulOffice
FrankfurtOffice
CairoOffice
RiyadhOffice
2 Skoda Power
3 Doosan IMGB
Doosan Power Systems India
Doosan Chennai Works
6
4
5 Doosan Vina
Headquarters DoosanPowerSystemsAmericas
18 1918
we pRovIDe CompLeTeLy
LeADIng TomoRRow ToDAy
Modern power and water projects are
incredibly large and complex. It takes a
huge amount of experience and expertise
spanning a broad range of technical
disciplines to engineer, manufacture, and
build plants capable of efficiently and
reliably meeting not only today’s needs,
but tomorrow’s. At Doosan, we have
strategically cultivated our capabilities
over the past five decades as we have
transformed ourselves from a competent
equipment fabricator into a full-service
EPC contractor capable of taking on the
world’s largest and most technically
challenging power and water projects.
At DoosAn, we Are one of the worlD’s fAstest-growing engi-
neer-procure-construct contrActors. formAlly lAuncheD
in 2004, our epc business bookeD its first mAjor orDers in
2006 AnD hAs been the cAtAlyst behinD our rApiD growth AnD
expAnsion over the pAst five yeArs. toDAy, we Are focuseD on
becoming A premier globAl epc pArtner, Delivering innovAtive
worlD-clAss solutions AnD services thAt will Drive tomor-
row’s growth.
2010 review
TheglobalEPCpowermarketcontinuedtogeneraterobustgrowthin2010
thankstostrongdemandfromemergingmarketsacrosstheMiddleEast,
India,andSoutheastAsia.Ourlong-termexperienceinthesekeymarkets
enabledustorecordourbestorderperformancetodateofKRW5,786bil-
lion,astrong176%increasefortheyear.Revenueswerealsosolid,rising
slightlytoKRW2,732billion.
KeyprojectwinsfortheyearincludedtheRabighTPP(700MWex4)—the
world’slargestthermalpowerplantprojecttodateintermsofvalue—in
SaudiArabiaaswellastheRaipurTPP(685MWex2)inIndia.Wealsowon
theMongDuongIITPP(600MWex2)inVietnamandwereselectedbythe
governmentofVietnamasthesoletechnicalpartnerforanationalproject
tolocalizeproductionofcoal-firedthermalpowerplants.
2011 outlook
Whiletheglobaleconomicoutlookremainshighlyuncertainduringthe
comingyear,theglobalpowermarketisprojectedtogrowanaverageof
53GWeannuallyduringthe2011to2015period,dramaticallyhigherthan
the29GWeaverageofthepastfiveyears.Weexpecttogeneratesteady
orderandrevenuegrowthincoremarketsacrosstheMiddleEast, India,
andSoutheastAsiaaswecontinuetowinandexecutesomeofthepower
industry’slargestandmostsignificantprojects.
Webelievethedramaticordergrowthwesawin2010isadirectresultof
theexperienceandexpertisewehaveaccumulatedovertheyearsaswe
havebuiltasolidEPCorganizationandoptimizedourprocesses. InMay
2011,wetookamajorsteptowardelevatingourEPCprojectexecutionca-
pabilitiestothenextlevelandlaidthefoundationforacceleratedgrowth
inthiscorebusinessbystrategicallyreorganizingourEPCoperations.Our
newEPCbusinessgroupconsolidatesourcorearchitect-engineeringand
constructioncapabilitiesintoasinglespecializedorganization,pavingthe
wayforgreatersynergyandopportunitiesgoingforward.
EPCBusinessGroup
EPC BuSInESS GrouP
Performance Highlights
OrderssoaredpastKRW5.7trillionin2010aswebookedmajorprojects inSaudiAra-bia,India,andVietnam.Whilerevenuesheldsteadyat justoverKRW2.7trillion,ourre-cordorderperformanceboostedourbacklogtoanewhighofoverKRW8.2trillion.
2010
2009
20082,450
2,732
2,704
rEVEnuES inKRWbillions
2010
2009
20083,045
5,786
2,100
orDErS inKRWbillions
2010
2009
20085,566
8,258
5,090
BACKLoG inKRWbillions
rEVIEW oF oPErATIonSEPC Power NuclearPowerPlant Water Casting&Forging 22 2322
Jebel Ali M CCPP ProjectConsistingofthree670MWecombined-
cyclepowerunits,theJebelAliMproj-
ectisthelargestthermalpowerplant
orderedtodateintheUAE.Scheduled
forcommissioninginlate2011,thisEPC
projectisalsoanexcellentexampleof
ourcommitmenttosafetywithover20
millionman-hoursloggedwithoutan
accident-relatedworkstoppageasof
May2010.
Plant ownerDubaiElectricityandWaterAuthority
Plant Capacity2,000MWe
(670MWex3)
Construction PeriodM1:2007~2011
M2:2007~2011
Portfolio EPCBusinessGrouprEVIEW oF oPErATIonS 24 2524
AT DooSAn, WE ArE A WorLD-CLASS SuPPLIEr oF THErMAL PoWEr GEn-
ErATIon EquIPMEnT WITH MorE THAn 100,000 MWE oF GEnErATInG
CAPACITY DELIVErED To uTILITIES ArounD THE WorLD oVEr THE PAST
THrEE DECADES. ToDAY, WE ArE ExPAnDInG BEYonD FoSSIL-FuEL GEn-
ErATIon AS WE AIM To LEAD THE WAY In THE LoW-CArBon GrEEn EnErGY
TECHnoLoGIES THAT WILL PoWEr THE FuTurE.
2010 review
Wehadanoutstandingyearin2010asorderssoaredover130%toKRW2,568
billion.KeywinsfortheyearincludedtheRabighIITPP(700MWex4)inSaudi
Arabia,BrakaNPP1~2(1,400MWex2)intheUAE,AinSokhnaTPP(650MWex
2)inEgypt,andYeongheungTPP5~6(870MWex2)inKorea.Whilerevenues
fellover22%toKRW1,191billionduetoprojectdelays,wedeliveredequip-
mentfortheMundraTTP(800MWex4) in India,Shin-KoriNPP3~4(1,400
MWex2)inKorea,andGheco-OneTPP(700MWex1)inThailand.
Inrecentyears,wehavesignificantlyenhancedourcompetitivenessbyex-
pandingourengineering,technical,andmanufacturingcapabilitiesthrough
overseasexpansionandstrategicacquisitions.DoosanVinainVietnamhasbe-
comeakeyoverseasmanufacturingbasesincerampingupoperationsin2009.
OuracquisitionofCzech-basedturbinemakerŠkodaPowerin2010meansthat
wenowowncoretechnologiesineachofthethreecorethermalgeneration
equipmentfields—boilers,turbines,andgenerators—openingthewayfornew
businessopportunitiesworldwide.
2011 outlook
WhiletheFukushimanuclearcrisisinJapanisforecasttocooldemandinthe
nuclearpowergenerationmarket,globaldemand forcombined-cycleand
thermalpowerplantsisexpectedtorisein2011.InKorea,wheregovernment
energymixpolicyisfocusingonnuclearaswellasalternativeandrenewable
energy,weplantoexpandourproductportfolioasweaccelerateouradvance
intothewindandintegrated-gasificationcombined-cyclepowerfields.Wealso
expectourgrowinglocalmanufacturingpresenceinIndiaandSoutheastAsia
toenhanceourcompetitivenessinthoseandotherregionalmarkets.
Lookingahead,wearewellpositionedforprofitablegrowtharoundtheglobe.
WiththeintegrationofturbineOEMŠkodaPowerintoourfamilyin2010,we
nowofferafullBTG—boiler,turbine,andgenerator—lineupofthermalpower
generationequipment.Wealsoexpandedourglobalmanufacturingnetwork
inJanuary2011withtheacquisitionofDoosanChennaiWorksinIndia,aboiler
manufacturingshopformerlyownedbyAE&EofAustria.Inadditiontoincreas-
ingourcompetitiveness,theacquisitionensureswemeetthekeylocalmanu-
facturingpresencerequirementforparticipationinIndia’shugepublicsector
supercriticalboilermarket.
PowerBusinessGroup
PoWErBuSInESS GrouP
2010
2009
20081,722
1,191
1,537
rEVEnuES inKRWbillions
2010
2009
20083,434
3,758
2,736
BACKLoG inKRWbillions
rEVIEW oF oPErATIonSEPC Power NuclearPowerPlant Water Casting&Forging
2010
2009
20081,878
2,568
1,113
orDErS inKRWbillions
Performance Highlights
OrderssoaredpastKRW2.5trillionin2010aswebookedmajorprojectsinSaudiArabia,theUAE,India,andKorea.WhilerevenuestemporarilydroppedtoKRW1.2trillion,ourrecordorderperformanceboostedourback-logtoanewhighofoverKRW3.7trillion.
26 2726
boilers
Weareaworld-classsupplieroftheindustry’scleanest,mostefficientsolu-
tionsforconventionalthermalpowergeneration.
In2010,webookedtheRabighTPP(700MWex4)project—SaudiArabia’s
largestthermalplanttodate—andtheAinSokhnaTPP(650MWex2)proj-
ect—Egypt’sfirstsupercriticalthermalplant.WealsowontheRaipurTPP
(685MWex2)inIndia,MongDuongIITPP(600MWex2)inVietnam,and
YeongheungTPPUnits5~6(870MWex2)—Korea’slargestthermalplantto
date.MajorcompletionsduringtheyearincludedtheGlowCFBboilerplant
(115MWe)inThailandandaperformanceupgradeprojectatBoryeongTPP
Units1~2inKorea.
hrsgs
Ourhigh-efficiencyD-Topmodularheat-recoverysteamgeneratorsare
usedincombined-cycleandcogenerationplantsaroundtheglobe.Since
enteringthisbusinessin1990,wehavedeliveredmorethan412unitsfor
133projectsin36countries.
AccordingtoMcCoy Power Reports,wehavebeentheworld’sNo.1HRSG
supplierforthelastsixconsecutiveyears,deliveringatotalof149units
duringthe2005~2010period—including22units in2010alone—foran
average15.7%marketshare.Ourorderbookfortheyear includedunits
fortheRasAzZawrCCPP(198MWex10)inSaudiArabia,DgenCCPP(250
MWex3)andUnosugenCCPP(250MWex1)inIndia,OseongCCPP(175
MWex3)inKorea,BarkaCCPP(250MWex2)andSohar(250MWex2)in
Oman,andToulCCPP(250MWex1)inFrance.
turbines & generAtors
Weareagloballycompetitivesupplierofhigh-performanceturbinegensets
withmorethantwodecadesofexperienceindeliveringsolutionsthatset
thestandardforreliability,efficiency,andmaintainability.Asoftheendof
wehavereceivedgensetorderstotalingover56,000MWe.
In2010,webookedgensetordersfortheRaipurTTP(685MWex2)inIn-
dia,RabighTPP(700MWex4) inSaudiArabia,MongDuongIITPP(600
MWex2)inVietnam,andBrakaNPP(1,400MWex4)intheUAE,thelatter
markingourfirstinternationalgensetorderinthenuclearplantsegment.
Theyearalsosawourfirstlargegasturbinesproducedunderlicensefrom
MitsubishiHeavyIndustriesofJapanentercommercialoperationatYeong-
wolCCPP(185MWeF-typex3)inKorea.
mAteriAl hAnDling equipment
WeareKorea’sleadingmakerofhigh-performancematerialhandlingequip-
mentfortheglobalcontainerandbulkhandlingindustries,deliveringturn-
keysolutionstomajorportsandplantsworldwidesince1979.
In2010,webookedinternationalordersfor17cranes, including6RTGCs
and11STSGCs.Majorordersfortheyearincluded2ship-to-shoregantry
cranes(STSGC)forMilitaryOceanTerminalSunnyPointfromtheUnited
StatesNavy,3STSGCsforJawaharlalNehruPort in India,and6STSGCs
and6RTGCsfromKuwaitPortAuthority.Wealsobookedanorderfortwo
3,000-toncontinuousshipunloadersfromKoreansteelmakerPosco.Major
deliveriesfortheyear included4STSGCstoBalboaPort inPanamaand
continuedRTGCdeliveriesasapartofa79-unitorderfromPortofSinga-
poreAuthorityinSingapore.
winD turbines
In2006,wetappedintoourmorethanthreedecadesofexperienceandex-
pertiseinthepowergenerationequipmentbusinesstolaunchdevelopment
ofa3MWonshore/offshorewindturbine.ThehighwindclassWinDS3000™
turbineearnedinternationaltypecertificationinMarch2011,pavingtheway
forourentryintotheglobalwindpowermarket.TheWinDS3000™ isthe
highestcapacityoffshorewindturbinedevelopedinKoreatodateaswellas
theonlyoffshoredesigntoreceiveinternationalcertification.
TheWinDS3000™isdesignedforoptimalreliabilityanddurabilityinchal-
lengingoffshoreenvironmentsaswellastop-classoperationalefficiency
andmaintainability.Weerectedourfirstpost-prototypeunitinMarch2010
forthefirstphaseoftheYeongheungproject(3MW)andbookedourfirst
multi-unitorderinNovember2010fortheShinanproject(3MWx3),both
inKorea.In2011,weexpecttowinthesecondphaseoftheYeongheung
project,amongothers.Wearecurrentlydevelopingseveralotherturbine
modelsandplantolaunchalowwindclassversionoftheWinDS3000™be-
foretheendof2011asweacceleratedevelopmentofafullturbineproduct
lineupwiththeaimofbecomingamajorglobalsupplierinthewindindus-
tryby2015.
Turbine & Generator Solutions– Steamturbines(200MWe~1,450MWe)
– Gasturbines(144MWe~270MWe)
– Hydroturbines(30MWe~350MWe)
– Generators(150MVA~1,700MVA)
– Moistureseparatorreheaters
Project Portfolio– MarafiqTPP5~6,SaudiArabia:275MWex2
– CirebonTPP,Indonesia:700MWex1
– Gheco-One,Thailand:700MWex1
– Eraring,Australia:750MWex4(Retrofit)
– YeongweolCCPP,Korea:180MWex3
– YeongheungTPP,Korea:800MWex2
– HadongTPP,Korea:500MWex8
– DangjinTPP,Korea:500MWex8
– TaeanTPP,Korea:500MWex8
– DonghaeTPP,Korea:200MWex2
– Shin-KoriNPPUnits1~2,Korea:1,000MWex2
– Shin-KoriNPPUnits3~4,Korea:1,400MWex2
– Shin-UlchinNPPUnits1~2,Korea:1,000MWex2
– Shin-WolsongNPPUnits1~2,Korea:1,000MWex2
– YonggwangNPP,Korea:1,000MWex4
– UlchinNPP,Korea:1,000MWex4
– WolsongNPPUnits2~4,Korea:700MWex3
– YangyangPSPP,Korea:250MWex4
– YecheonPSPP,Korea:400MWex2
– SancheongPSPP,Korea:350MWex2
Material Handling Solutions– Containerhandlingcranes
– Bulkmaterialhandlingsystems
– Electricoverheadtravelingcranes
– Generalcargohandlingequipment
– Equipmentpartsandservice
Project Portfolio– KuwaitPort,Kuwait:STSGCx6,RTGCx6
– MilitaryOceanTerminalSunnyPoint,USA:STSGCx2
– PortofSamarinda,Indonesia:STSGCx2,RTGCx5
– BalboaPort,Panama:STSGCx4
– PortofBusan,Korea:STSGCx5,RTGCx49
– Posco,Korea:3,000-ton/hrCSUx4
– Posco,Korea:400-tonteemingladlecranex2
– VariousNPP,Korea:Polarcranesx8
– VariousTPP,Korea:Coalhandlingsystems
– Jaxport,USA:1,510-ton/hrCSUandconveyorsystem
– Jaxport,USA:STSGCx4
– PortofJakarta,Indonesia:STSGCx4
– PortofTanjungPelepas,Malaysia:RTGCx36
– JurongPort,Singapore:STSGCx5
– PSAInternational,Singapore:STSGCx9,RTGCx203
– JawaharlalNehruPort,India:STSGCx7,RTGCx30
– PortofColombo,SriLanka:RTGCx28
Boiler & HrSG Solutions– Circulatingfluidized-bedboilers
– Subcriticaldrumboilers
– Supercriticalonce-throughboilers
– Drum-typeHRSGs
– Once-throughHRSGs
– Balance-of-plantequipment
Project Portfolio – YeongheungTPPUnits1~2*,Korea:800MWex2
– YeongheungTPPUnits3~4*,Korea:870MWex2
– YeongheungTPPUnits5~6,Korea:870MWex2
– BoryeongTPP*,Korea:500MWex8
– HadongTPP*,Korea:500MWex8
– DangjinTPP*,Korea:500MWex8
– TaeanTPP*,Korea:500MWex8
– DonghaeTPP*,Korea:200MWex2
– SipatSTPPStage-I*,India:660MWex3
– Raipur-ChhattisgarhTPP,India:685MWex2
– MundraTPP*,India:800MWex4
– Gheco-One,Thailand:700MWex1
– Rabigh2TPP,SaudiArabia:700MWex4
– AinSokhnaTPP,Egypt:650MWex2
– MarafiqTPP5~6,SaudiArabia:275MWex2
– EssarCCPP*,India:120MWeHRSGx3
– KondapalliCCPP*,India:110MWeHRSGx2
– RehabCCPP*,Jordan:120MWeHRSGx2
– MapnaCCPP,Iran:160MWeHRSGx44
– IronwoodCCPP*,USA:250MWeHRSGx2
– CuaibaCCPP*,Brazil:175MWeHSRGx2
– PeterheadCCPP,UK:255MWeHRSGx3
– CastejonCCPP*,Spain:250MWeHRSGx1
– GibraltarCCPP*,Spain:250MWeHRSGx2
– PhuMy3CCPP*,Vietnam:235MWeHRSGx2
– PanglimaCCPP*,Malaysia:250MWeHRSGx2* Projectssuppliedutilizingtechnology
underlicensefromAlstomPower,Inc.
AnnualManufacturingCapacity
Boilers
8,500 mwe
GasTurbines
2,600 mwe
AnnualManufacturingCapacity
steam Turbines
5,500 mwe
Generators
8,500 mwe
rEVIEW oF oPErATIonS PowerBusinessGroup 28 2928
At DoosAn, we hAve A proven three-DecADe trAck recorD As the
prime equipment contrActor for koreA’s nucleAr power pro-
grAm, one of the sAfest AnD most efficient in the worlD. toDAy,
we Are well positioneD to plAy A key role in the inDustry’s globAl
renAissAnce As the trAnsition to A low-cArbon economy gAins
momentum ArounD the worlD.
2010 review
Globaldemandfornuclearpowerplantsandequipmentcontinuedtogrowin
2010asutilitiesmovedsteadilyforwardwithplanstoexpandtheirlow-carbon
baseloadgenerationcapacity.Ordersonceagainenjoyedrobustdouble-digit
growth,risingalmost33%toKRW2,274billionaswesignedacontractwith
KoreaElectricPowerCorporationtosupplythemajorequipmentforthefirst
twounitsoftheBrakaproject(1,400MWex4)intheUAE.Revenuegrowthwas
evenstronger,risingover57%toKRW1,226billionaswedeliveredthereactor
forShin-Kori3(1,400MWe)andsteamgeneratorsforShin-Wolsong2(1,000
MWe)aswellasreplacementequipmentforanumberofUSplants,including
thereactorheadandcontrolelementdrivemechanismforPaloVerde1(1,300
MWe),foursteamgeneratorsforSequoyah2(1,200MWe),andreactorheads
forArkansasNuclearOperation2(900MWe)andWaterford3(1,150MWe).
InadditiontothefirstinternationalsaleoftheAPR1400®nuclearplantforthe
Brakaproject,theyearalsobroughttwosignificantmilestonesaswedelivered
ourfinalOPR1000systemandfirstAPR1400®system.WhiletheOPR1000will
continuetobethemainstayofKorea’snuclearfleetforsometimetocomewith
atotalof12unitsdeliveredsince1995,theAPR1400®isthefuture,offering40%
moregeneratingcapacity,a60-yearservicelife,andenhancedsafetyfeatures
thatwillmakeitastrongcompetitorintheglobalmarketplace.
2011 outlook
Whilethe incidentat theFukushimanuclearplant in Japanhasonceagain
raisedconcernsaboutthesafetyofnuclearpower,itdoesn’tappearthatthe
industrywillexperiencethedramaticdownturnitsawaftertheChernobyldi-
sasterinRussia.In2011,wearetargetingordersofKRW1,700billion,including
themajorequipmentorderforBraka3~4.WeexpectrevenuestosurpassKRW
1,200billionaswedelivermajorequipmentforSanmen1(1,150MWe)andHai-
yang1(1,150MWe)inChinaaswellasShin-Kori4(1,400MWe)inKorea.
Webelievethatnuclearpowerhasamajorroletoplay intomorrow’s low-
carboneconomy.Asof2008,wehaveachievedfullself-relianceinallmajor
nuclearplantcomponents,pavingthewayforustomarketcompleteturnkey
nuclearplantsolutionsworldwide. InadditiontoChinaandtheUS,wesee
increasingopportunitiesintheMiddleEastfollowingourinvolvementinthe
UAE’sBrakaproject.Wecontinuetosystematicallyexpandandstreamlineour
integratedproductionsystemtoenhancecostleadershipandincreasemajor
equipmentproductioncapacityfromthecurrent3.5unitsto5unitsannually
by2012asweprepareforfuturegrowthopportunitiesaroundtheglobe.
NuclearPowerPlantBusinessGroup
nuclear Power Plant Solutions– PWRnuclearsteamsupplysystems
– CANDUnuclearsteamsupplysystems
– Fuelstorageequipment
– Man-machineinterfacesystems
– Balance-of-plant
– Replacement, repair,and refurbishment
services
Project PortfolioPWRSystems
– Ulchin,Korea:1,000MWex4
– Shin-Ulchin,Korea:1,400MWex2
– Yonggwang,Korea:1,000MWex6
– Shin-Kori,Korea:1,000MWex2
– Shin-Kori,Korea:1,400MWex2
– Shin-Wolsong,Korea:1,000MWex2
– Sanmen,China:1,150MWex1
– Haiyang,China:1,150MWex1
– Vogtle,USA:1,150MWex2
– VCSummer,USA:1,150MWex2
– LevyCounty,USA:1,150MWex2
– Braka,UAE:1,400MWex4
CANDUSystems
– Wolsong,Korea:700MWex3
– QinshanPhaseIII,China:700MWex2
MajorEquipment
– Sequoyah1~2,USA:1,200MWeRSGx8
– WattsBar1,USA:1,200MWeRSGx4
– ANO2,USA:900MWeRPZR,RRVHx1
– Waterford3,USA:1,150MWeRRVHx1
– IndianPoint2~3,USA:1,000MWeRRVH,
CRDMx2
– PaloVerde1~3,USA: 1,300MWeRRVH,
CEDMx3
– QinshanPhaseII3:650MWeRVx1
nuCLEAr PoWEr PLAnTBuSInESS GrouP
2010
2009
2008 573
1,226
780
rEVEnuES inKRWbillions
2010
2009
20082,549
4,608
3,462
BACKLoG inKRWbillions
rEVIEW oF oPErATIonSEPC Power NuclearPowerPlant Water Casting&Forging
2010
2009
20081,230
2,274
1,716
orDErS inKRWbillions
Performance Highlights
OrdersrosebrisklytonearlyKRW2.3trillionin2010aswebookedthemajorequipmentorderforthefirsttwounitsoftheBrakaprojectintheUAE.RevenuesgrewstronglytoKRW1.2trillion,andourrecordorderperformanceboostedourbacklogtoanewhighofKRW4.6trillion.
30 3130
Shin-Kori nPP 3~4 ProjectAnewgenerationofnuclearplants isnowbeingbuilt inKorea.Shin-Kori3~4willbeequippedwithAPR1400® reactors,a third-generationdesignthatboasts40%higheroutputthanthecurrentmainstayOPR1000reactoraswellasa60-yearservicelifeformajorequipment.Developedovera 10-yearperiodbetween1992and2002, theAPR1400®designalsodramaticallyenhancesoperationalefficiencyandsafety,particular-lyintheareaofearthquakeengineering.Wewillsupplytheentirenuclearsteamsupplysystem(NSSS)forthisproject.
Plant ownerKoreaHydro&NuclearPowerCompany
Plant Capacity2,800MWe
1,400MWex2
Fabrication PeriodUnit32007~2013
Unit42007~2014
Portfolio NuclearPowerPlantBusinessGrouprEVIEW oF oPErATIonS 32 3332
At DoosAn, we Are the worlD leADer in seAwAter DesAlinAtion so-
lutions. our proven portfolio of msf, meD, AnD ro technologies
enAbles us to Deliver DepenDAble, cost-effective turnkey solu-
tions with the shortest leAD times in the inDustry. we continue
to progressively expAnD into the broADer wAter AnD wAstewAter
treAtment mArkets As we pursue our vision of becoming A globAl
leADer in wAter.
2010 review
Theglobalseawaterdesalinationmarketrecoverybegantogainmomentum
in2010withthetenderoftheRasAzZawrproject(228MIGD)inSaudiArabia,
theindustry’slargestprojecttodate.OurwinofthisUSD1.46billionEPCproj-
ecthelpedordersreboundsharplytoarecordKRW1,680billion.Revenuesde-
clined33%toKRW418billionduetothe2009orderdrought.Wefinishedthe
yearwithastrongbacklogofprojectstotaling426MIGDunderwayacrossthe
MiddleEastandNorthAfrica(MENA)region.
TheRasAzZawrprojectisahybridmulti-stageflashdistillation(160MIGD)and
reverseosmosis(68MIGD)plantcomposedofeight20MIGDsingle-module
MSFevaporatorsandsixteen4.3MIGDROmodulesthatwillmeetthewater
needsof3.5millionintheSaudicapitalofRiyadh.Duringtheyear,wecom-
pletedtheShuwaikhRO(30MIGD)projectinKuwaitaswellasdeliveringall6
evaporatorsforShuweihatS2(100MIGD)intheUAE.Wewerealsohonoredat
the2010GlobalWaterAwardspresentedbyGlobalWaterIntelligencewhenthe
ShuaibahROproject(33MIGD)inSaudiArabiawasselectedastherunnerup
fortheprestigious“DesalinationPlantoftheYear”award.Deliveredinjust19
months,thisexpansionoftheShuaibahPhase3project(194MIGDMSF)has
helpedalleviateaseriousongoingwatershortageintheJeddahregion.
2011 outlook
GrowingpopulationsandurbanizationacrosstheMENAregionwill require
majorinvestmentsindesalinationcapacityintheyearsahead.Whilecompeti-
tionwillbestiff,webelievethatourglobalmarketleadershipinthethermal
desalinationsegmentsince2004andabilitytodeliver innovativesolutions
usingthelatesttechnologieswillenableustowinatleastonemajorprojectin
2011.WegotofftoagoodstarttowardourordertargetofKRW900billionby
winningtheUSD124millionYanbuproject(15MIGDMED)inSaudiArabiain
February2011.Thisprojectisparticularlysignificantbecauseitwillbeourfirst
majormulti-effectdistillationprojecttodatewithasingle15MIGDevaporator
designedusingourindustry-leadingsingle-moduletechnology.
InadditiontoongoinginitiativesfocusedonenhancingourEPCandtechnical
capabilitiesinthedesalinationfield,wecontinuetostrategicallypursuegrowth
opportunitiesinthewatertreatmentandfacilityoperationsandmaintenance
fields.Wearecontinuouslysearchingfornewareasofbusinessandstrength-
eningourengineeringskills incurrentdesalinationareasasweexpandour
sightsbeyondtheMiddleEasttotargetnewopportunitiesinemergingmarkets
suchasChinaandIndia.
WaterBusinessGroup
Desalination Solutions– Multi-stageflashdistillation(MSF)
– Multi-effectdistillation(MED)
– Reverseosmosisfiltration(RO)
– Hybridsystems
Water & Wastewater Solutions– Brackishwaterreverseosmosis(BWRO)
– Dualmediafiltration(DMF)
– Membranebioreactor(MBR)
– Biologicalnutrientremoval(BNR)systems
Project Portfolio– AssirI,SaudiArabia:21MIGD
– ShoaibaPhase2,SaudiArabia:
100MIGDEPC
– TaweelahA2IWPP,UAE:50MIGDEPC
– Az-ZourPhaseIII,Kuwait:28.8MIGDEPC
– UmmAlNarB,UAE:62.5MIGDEPC
– Fujairah,UAE:
100MIGDHybridMSF/RO+660MWeEPC
– SoharIWPP,Oman:
33MIGD+596MWeEPC
– SabiyaPhasesI~III,Kuwait:100MIGDEPC
– ShuaibaSouthRehabilitation,Kuwait
– ShuaibaPumpingStationC,Kuwait
– RasLaffanBIWPP,Qatar:60MIGDEPC
– BenghaziNorth,Libya:0.55MIGDx2MED
– Zawia,Libya:0.55MIGDx2MED
– SabiyaPhaseIII,Kuwait:50MIGDEPC
– ShuaibahPhase3IWPP,SaudiArabia:
194MIGDEPCMSF
– ShuaibahExpansionRO,SaudiArabia:
33MIGDEPCRO
Projects underway– ShuweihatS2IWPP,UAE:
100MIGDEPCMSF
– JeddahROPhaseIII,SaudiArabia:
52.8MIGDEPCRO
– ShuwaikhRO,Kuwait:30MIGDEPCRO
– RasAzZawr,SaudiArabia:
228MIGDEPCHybrid(MSF160+RO68)
– Yanbu,SaudiArabia:15MIGDEPCMED
WATEr BuSInESS GrouP
rEVIEW oF oPErATIonSEPC Power NuclearPowerPlant Water Casting&Forging
2010
2009
2008 356
418
630
rEVEnuES inKRWbillions
2010
2009
20081,556
2,080
832
BACKLoG inKRWbillions
2010
2009
20081,632
1,680
-
orDErS inKRWbillions
Performance Highlights
OrdersrecoveredtoreachnearlyKRW1.7trillionin2010aswewonthe228MIGDRasAzZawrprojectinSaudiArabia.WhilerevenuesdroppedtoKRW418billion,ourstrongorderperformanceboostedourback-logtonearlyKRW2.1trillion.
34 3534
Plant ownerShuaibahWaterandElectricityCompany
Production Capacity227MIGDwater
(194MIGDMSF+33MIGDRO)
Construction PeriodMSFPlant:2006~2009
ROPlant:2007~2010
Shuaibah Phase 3 IWPPThisaward-winningprojectisSaudiAra-
bia’sfirst independentwaterandpower
project todateandtheworld’s largest
desalinationplantnowinoperation.Like
manyofour recent thermal seawater
desalinationplants,ShuaibahPhase3
isaugmentedbya33MIGDreverseos-
mosisplantthatprovidesgreateropera-
tionalflexibilityandefficiency.
Industry recognition2005 EMEAPowerDealoftheYear,Project
Finance International
2005 ProjectFinanceDealoftheYear,
Euromoney
2006 DesalinationDealoftheYear,Global
WaterAwards,Global Water Intelligence
2009 ThermalDesalinationPlantoftheYear,
GlobalWaterAwards,Global Water
Intelligence
2009 InnovationAward,SaudiWater&Power
Forum
Portfolio WaterBusinessGrouprEVIEW oF oPErATIonS 36 3736
At DoosAn, we Are A verticAlly-integrAteD supplier of compo-
nents for the nucleAr AnD thermAl power plAnt inDustries
As well As mAteriAls for the steel, Auto, AnD other mAnufAc-
turing inDustries. we Deliver superior quAlity cAstings AnD
forgings bAckeD by worlD-clAss technicAl expertise AnD pro-
Duction fAcilities in koreA AnD romAniA.
2010 review
Despitegrowingdemandfromtheautoandpowerplantindustries,acon-
tinuingslumpintheshipbuildingindustry ledto lowerordersforcrank-
shaftsandothershipcomponents,resultinginslightlylowerordersand
revenuesin2010.Overall,ordersweredown6.6%toKRW646billion,while
revenuesslid2.7%toKRW611billion.
Duringtheyear,weexpandedbothourcastingandforgingshopsto in-
creaseourreactorshellforgingcapacityinresponsetogrowingdemandfor
ultra-largecastingsandforgingsfromthenuclearandthermalpowerplant
industries.Wearenowintheprocessofinvestinginanewelectroslagre-
meltingfurnacetoproduceultra-supercritical(USC)rotorsandmirror-like
moldsteelaswellasplatebackup-rollforgingfacilities.Wehaveconverted
ourfurnacesandheat-treatmentfacilitiestoLNGtoreduceourcarbonfoot-
print.Wealsocontinuetoinvestinthedevelopmentofintegratedforged
componentsfornuclearreactors, low-temperatureimpact-resistantsteel
castings,andothernewproductsthatwillcreatenewmarketopportunities
andboostprofitability.
2011 outlook
Whileweexpectrevenuesfromcastingsandbackuprollstodeclineslightly
in2011duetothe2009~2010downturnintheshipbuildingandsteel in-
dustries,webelievenewproduct launcheswillenableusto improveon
our2010performancewithrevenuessurpassingKRW630billion.Weare
strategicallyexpandingcapacitytosupportgrowingdemandfornuclear
reactorshellforgingsandUSCrotorsaswellasdiversifyingintonewvalue-
addedfieldsandglobalmarketsaswesetthestageforcontinuedorder
andrevenuegrowthinthecomingyears.Wealsoplantoexpandinvest-
mentinbothtechnologyandproductdevelopmenttoaddressgapsinour
productportfolio.Onthebusinessside,weareupgradingourkeyaccount
managementeffortsasweaggressivelypursuenewbusinessopportunities
inEurope,Russia,andAfricathroughDoosanIMGBinRomania.By2015,
weaimtoexpandmeltingcapacityto350,000tonsandforgingcapacityto
230,000tons.
Casting&ForgingBusinessGroup
Industries Served– Shipbuilding
– PowerGeneration
– IronandSteelMaking
– MoldandToolMaking
– Mining
– Cement
– Petrochemical
Industry-Leading Products– Hydroturbinecastings:#1
– Sternandruddercastings:#2
– Marineenginecrankshafts:#3
– Plasticmoldandtoolsteel:#4
– Workrolls:#4
CASTInG & ForGInGBuSInESS GrouP
rEVIEW oF oPErATIonSEPC Power NuclearPowerPlant Water Casting&Forging
2010
2009
2008609
611
628
rEVEnuES inKRWbillions
2010
2009
2008289
540
506
BACKLoG inKRWbillions
2010
2009
2008636
646
692
orDErS inKRWbillions
Performance Highlights
OrdersandrevenuesdeclinedslightlytoKRW646billionandKRW611billionrespec-tivelyin2010astheglobalshipbuildingin-dustryremainedstagnant.Demandforultra-largecastingsandforgingsfromthepowerindustrieshelpedboostourbacklogtoKRW540billion.
38 3938
we sHARe pAssIonATeLy
LeADIng TomoRRow ToDAy Beyondourmission todeliver thepowerandwateressential to
growthandprogressaroundtheglobe,wepassionatelybelievewe
havearesponsibilitytomakeadifferenceinourlocalcommunities.
Weshareourtime,moneyandresourcestomakeourneighborhoods
betterplacestolive.Weactivelyprotecttheenvironment,health,and
safetyeverywhereweoperate.Andwecollaboratewithaffiliates,
partners,andbothgovernmentandnon-governmentorganizationsas
westrivetocreategreatervalueforallourstakeholders.
AtDoosan,engagingcommunitiesforgoodisanintegralpartofourDNA.Fromcommunityservicetoculturalsponsorships,weareunitedinourcommitmenttomakingourworldabetter,brighterplacetolive.
SHArE
Share Passionately Today
Community ServiceWebuiltonourlongtraditionofvolunteerservicein
early2011byformallyestablishingadedicatedorga-
nizationtohelpusmakeanevengreaterimpactfor
good.InMay2011,wesignedanagreementwiththe
cityofChangwoncoveringfourareas,includingsup-
portforcommunitycentersservingunderprivileged
childrenand teens, scholarships for low-income
middleandhigh-schoolstudentswhodemonstrate
academicexcellence,supportofvocationaltraining
andjobplacementforunemployedyouth,andsup-
portofselectcityprojectstoenhancepublicquality
oflife.Wealsocontinuedtoexpandourcommunity
serviceprograms inVietnam in2010, teamingup
withKorea’sChung-AngUniversityMedicalCenterto
providemedicalcheck-upsandtreatmentformore
than1,500localresidentsofQuangNgaiaswellas
cataractsurgeryforover30adults.
Cultural SponsorshipsAnotherwaywegivebacktoourlocalcommunitiesis
throughthesponsorshipofpopularpastimessuchas
concertsandsportsevents.InMay2010,wehosted
thethirdDoosanMatchPlayChampionship,theKo-
reaLPGA’ssolegolfmatch-playevent.TheKRW100
millionchampionshipwaswonbyJung-minLee,the
firstvictory inherprofessionalcareer.Wealsoex-
pandedourgolfsponsorshiptointernationalevents
in2010bybecomingapatronofthefamedBritish
Open,theoldestandmostprestigiousoftheworld’s
fourmajorgolftournaments.Wewerealsothetitle
sponsorofthefirstAsianDreamCupheldinHoChi
MinhCityinJune2011.OrganizedbyKoreanfootball
starJi-sungPark’sJSFoundation,thecupincludeda
footballclinicforyouthandacharitymatchbetween
Park’steamofinternationalfootballersandNaviBank
Saigon,withtheproceedsgoingtopromotethede-
velopmentoflocalfootball.
01.Freecleftlipandpalate
surgeryinVietnam
02.DoosanMatchPlayChampi-
onshipsponsorship
03.Footballclinicforyouthin
Vietnam
01 02 03
42 4342
AtDoosan,ourEHSphilosophyissimple.Weaimtobeanindustryleaderinenvironmental,health,andsafetypracticesandpoliciesaswedevelopthetechnologiesandproductsthatwillmaketomorrowamoresustainableplacetolive.
ProTECT EHS CommitmentSinceacquiringISO14001certificationin1997andOH-
SAS18001certificationin2004,wehavemadecom-
prehensiveEHSexcellencetoppriorityatproduction
facilitiesandprojectsitesaroundtheglobe.Overthe
pastthreeyears,wehaveinvestedKRW23billionto
switchtoLNG-fueledfurnaces,removeasbestosfrom
productionandofficespaces,andimplementanen-
vironmentalcrisismanagementsystematourChang-
wonplant.Wehavealsosetupapartnermentoring
program,providingenvironmental facilitytechnical
informationaswellasoperationalassistanceaswe
closelycooperatetocreateasustainablevaluechain.
Thisvigilant focusonEHS iskey toouroutstand-
ingenvironmentalandsafetyrecordthatroutinely
achieveszeroaccident-relatedworkinterruptionsover
thecourseofmulti-yearprojects,suchastheJebelAli
MTPPprojectintheUAE,whichsurpassed20million
man-hourswithoutanincidentinMay2010.
Environmental LeadershipOvertheyears,wehavesignednumerousvoluntary
agreementswithnationalandlocalgovernmentsto
reduceenergyusageandgreenhousegasemissions.
Combinedwithongoingenergyefficiencyinitiatives,
theseeffortshavesteadilyreducedCO2emissions,
cuttingthemby4,400tonsin2010alone.OurGHG
mitigationroadmapforthenextdecadewillfocuson
reductionsthroughenergyefficiencyimprovements
over thenext fiveyearsbeforeshifting tocarbon
capture in2015andthenon-siterenewablepower
generationfrom2017withwind,solar,andfuelcell
systems.
Ourenvironmentalcommitmentalsoextendstothe
productsandsolutionsweproduce. In2010,we
investedoverKRW146billionin74projects,includ-
ingMCFCfuelcellsystems,low-NOxburners,carbon
captureandstoragesystems,wind turbines,and
APR1400®nuclearequipmentaswecontinuedtofocus
onthecleaner,greenertechnologiesthatwillpower
growthintomorrow’slow-carboneconomy.
01.Riversidecleanupinitiative
02.Treeplantinginitiative
03.Windpowerdevelopment
initiative
01 0302
Share Passionately Today 44 4544
Global networkWith12overseassubsidiariesand37branchofficesworldwide,
wehaveanincreasinglyglobalface.Overthepastfiveyears,we
havewelcomedUSwatersolutionproviderDoosanHydroTech-
nology,RomaniancastingandforgingspecialistDoosanIMGB,
UKboilerOEMDoosanBabcock,andCzechturbineOEMŠkoda
Powerintoourfamilythroughstrategicacquisitions.Wehave
alsosetupDoosanEngineering&ServicesintheUStoexpand
ourarchitect-engineeringcapabilities,DoosanVinainVietnam
toexpandourmanufacturingcapabilities,andDoosanPower
SystemsintheUKtoprovidecompleteplantsolutionsanden-
ergyservicestopowerutilitiesinEuropeandtheAmericas.This
network isbringingtogethersomeoftheworld’sbestminds
andtechnologiestodeliverinnovativesolutionstotomorrow’s
powerandwaterchallenges.
Successful PartnershipsPartnershipsplayacrucialroleinourglobalsuccess.InKorea
alone,wedependonwellover1,000supplierstohelpusdeliver
world-classpowerandwatersolutionstocustomersaroundthe
world.In2009,wepartneredwiththeHumanResourcesDevel-
opmentServiceofKoreatoestablishanewvocationaltraining
programthattrainedover4,000on-andoff-sitepartnerworkers
in2010,offeringsome23coursesinninecoreareassuchasen-
gineering,qualitycontrol,andwelding.In2011,weestablished
a72-memberteamof insideandoutsideexpertstaskedwith
fundamentallyupgradingsuppliercompetitiveness.Theteamis
nowcollaboratingwithover140keysupplierstodevelopmaster
plansthatwillenhancetheircompetitivenessinsixbroadareas,
includingquality improvement,qualityassurance,production
technology,engineeringoptimization,productivity improve-
ment,andenvironment,health,andsafety.
Global recognitionBeyondourpositionasawell-knownandrespectednamein
theglobalpowerandwaterindustries,ourconsistentgrowthin
recentyearshasalsoearnedusaplaceonsomeoftheworld’s
mostprestigiouscorporaterankings. In2009,BusinessWeek
rankedusfourthoutof40companiesonitsannualWorld’sBest
Companieslist.TheBostonConsultingGroupnamedusfourth
inmachineryandconstructiononits2010ValueCreatorsrank-
ingsbasedonananalysisoftotalshareholderreturnduringthe
2005to2009period.Wewerealsohonoredtomakeoursec-
ondappearanceonthe2011 FortuneGlobal500astheDoosan
GrouprankedNo.489basedontotal2010groupsalesofUSD
19.94billion.
AtDoosan,webelieveittakesaglobalperspectivetobeatrulyworld-classcompany.Throughstrategicacquisitions,expansion,andpartnerships,wearecommittedtogeneratingsynergythatcreatesgreatervalueforallourstakeholders.
CoLLABorATE
Share Passionately Today
01.Familiarizationprogram
02.Skilledglobalworkforce
01 02
46 4746
50 IndependentAuditors’Report
52 Non-ConsolidatedStatementsofFinancialPosition
54 Non-ConsolidatedStatementsofOperations
55 Non-ConsolidatedStatementsofAppropriationofRetainedEarnings
56 Non-ConsolidatedStatementsofChangesinEquity
58 Non-ConsolidatedStatementsofCashFlows
FInAnCIAL sTATemenTs
Independent Auditors’ reportBasedonareportoriginallyissuedinKorean
The Board of Directors and Stockholders
Doosan Heavy Industries & Construction Co., Ltd.:
Wehaveauditedtheaccompanyingnon-consolidatedstatementoffinancoalpositionofDoo-
sanHeavyIndustries&ConstructionCo.,Ltd.(the“Company”)asofDecember31,2010and
therelatednon-consolidatedstatementsofoperations,appropriationofretainedearnings,
changeinequityandcashflowsfortheyearthenended.Thesenon-consolidatedfinancial
statementsaretheresponsibilityoftheCompany’smanagement.Ourresponsibilityistoex-
pressanopiniononthesenon-consolidatedfinancialstatementsbasedonouraudit.Theac-
companyingnon-consolidatedfinancialstatementsoftheCompanyasofDecember31,2009
wereauditedbyotherauditors,whosereportthereondatedMarch17,2010,expressedan
unqualifiedopiniononthosestatements.
WeconductedourauditsinaccordancewithauditingstandardsgenerallyacceptedintheRe-
publicofKorea.Thosestandardsrequirethatweplanandperformtheaudittoobtainreson-
ableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.An
auditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosures
intheestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatement
presentation.Webelievethatourauditsprovideareasonablebasisforouropinion.
Inouropinion,thenon-consolidatedfinancialstatementsreferredtoabovepresentfairly,in
allmaterialrespects,thefinancialpositionofDoosanHeavyIndustries&ConstructionCo.,
Ltd.asofDecember31,2010andresultsofitsoperations,theappropriationofitsretained
earnings,thechangesinitsequityanditscashflowsfortheyearendedinconformitywithac-
countingprinciplesgenerallyacceptedintheRepublicofKorea.
Withoutqualifyingouropinion,wedrawattentiontothefollowing:
Asdiscussedinnote2(a)tothenon-consolidatedfinancialstatements,accountingprinciples
andauditingstandardsandtheirapplicationinpracticevaryamongcountries.Theaccompa-
nyingnon-consolidatedfinancialstatementsarenotintendedtopresentthefinancialposi-
tion,resultsofoperations,changesinequityandcashflowsinaccordancewithaccounting
principlesandpracticesgenerallyacceptedincountriesotherthantheRepublicofKorea.In
addition,theproceduresandpracticesutilizedintheRepublicofKoreatoauditsuchnon-
consolidatedfinancialstatementsmaydifferfromthosegenerallyacceptedandappliedin
othercountries.Accordingly,thisreportandtheaccompanyingnon-consolidatedfinancial
statementsareforusebythoseknowledgeableaboutKoreanaccountingprinciplesandau-
ditingstandardsandtheirapplicationinpractice.
KPMGSamjongAccountingCorp.,acorporationestablishedunderKoreanlaw,isamember
firmofKPMGInternational,aSwisscooperative.
Seoul,Korea
March4,2011
ThisreportiseffectiveasofMarch4,2011,theauditreportdate.Certainsubsequentevents
orcircumstances,whichmayoccurbetweentheauditreportdateandthetimeofreadingthis
report,couldhaveamaterialimpactontheaccompanyingnon-consolidatedfinancialstate-
mentsandnotesthereto.Accordingly,thereadersoftheauditreportshouldunderstandthat
thereisapossibilitythattheaboveauditreportmayhavetoberevisedtoreflecttheimpact
ofsuchsubsequenteventsorcircumstances,ifany.
Financial
Statements
50 5150
Non-ConsolidatedStatementsofFinancialPositionDecember31,2010,2009and2008
Non-ConsolidatedStatementsofFinancialPosition(Continued)December31,2010,2009and2008
(InmillionsofKoreanwon)
Liabilities 2010 2009 2008
Current liabilities
Accountsandnotespayable-trade 535,805 623,641 609,928
Short-termborrowings 832,153 1,195,107 1,338,834
Accountsandnotespayable-other 234,422 238,469 214,490
Advancereceipts 1,455,043 869,650 993,167
Withholdings 16,388 25,087 27,315
Accruedexpenses 126,347 87,305 119,635
Incometaxpayable 77,936 2,754 150,751
Currentportionoflong-termdebt,net 509,980 517,771 401,854
Currentderivativeinstrumentliabilities 172,782 396,516 761,260
Currentfirmcommitmentliabilities 49,561 16,622 -
Provisionforguarantees 37,200 - -
Total current liabilities 4,047,617 3,972,922 4,617,234
non-current liabilities
Long-termdebt,net 678,356 1,019,209 604,620
Long-termnon-tradepayables 39,727 39,454 47,201
Provisionforretirementandseverancebenefits,net 156,193 136,751 122,733
Non-currentprovisions 96,595 81,238 65,997
Depositsreceived 132,592 112,158 101,294
Non-currentderivativeinstrumentliabilities 197,105 294,930 761,583
Non-currentfirmcommitmentliabilities 62,173 10,396 -
Non-currentdeferredtaxliabilities 272,964 183,918 212,021
Othernon-currentliabilities 5,285 5,322 4,766
Total non-current liabilities 1,640,988 1,883,377 1,920,258
Total liabilities 5,688,606 5,856,299 6,537,492
Stockholders’ Equity
Commonstockof 5,000parvalueAuthorized-400,000,000sharesIssued-105,816,467sharesin2010,
105,739,767sharesin2009and104,953,300sharesin2008
529,082 528,699 524,767
Capitalsurplus 1,123,341 929,438 652,110
Capitaladjustments (156,720) (164,811) (241,460)
Accumulatedothercomprehensiveincome 1,218,162 1,269,389 1,293,132
Retainedearnings 823,086 756,757 1,152,991
Total stockholders’ equity 3,536,951 3,319,472 3,381,540
Total liabilities and stockholders’ equity 9,225,557 9,175,771 9,919,032
Assets 2010 2009 2008
Current assets
Cashandcashequivalents 347,125 517,263 508,661
Short-terminvestments 55,835 55,502 99,014
Accountsandnotesreceivable-trade 1,869,145 2,000,825 2,118,164
Accountsandnotesreceivable-other 136,765 78,127 71,239
Advancepayments 245,435 351,228 344,801
Prepaidexpenses 31,557 22,995 18,120
Currentderivativeinstrumentassets 85,464 128,802 219,160
Currentfirmcommitmentassets 108,262 206,917 -
Currentdeferredtaxassets 84,467 41,506 108,827
Inventories 252,102 266,802 240,180
Othercurrentassets 33,510 19,592 16,920
Total current assets 3,249,668 3,689,557 3,745,086
non-current assets
Long-termfinancialinstruments 40,941 20,532 18,105
Non-currentinvestmentsinsecurities 156,748 152,110 132,376
Equitymethodaccountedinvestments 3,180,950 2,729,441 2,638,528
Long-termloans 8,809 7,356 6,715
Property,plantandequipment,net 1,969,609 1,881,992 1,806,497
Intangibleassets,net 271,007 234,327 212,213
Non-currentderivativeinstrumentassets 138,349 93,245 189,199
Non-currentfirmcommitmentassets 66,696 182,284 -
Guaranteedeposits 77,601 83,866 56,013
Othernon-currentassets 65,178 101,061 99,533
Total non-current assets 5,975,889 5,486,214 6,173,946
Total assets 9,225,557 9,175,771 9,919,032
(InmillionsofKoreanwon)
Financial
Statements
52 5352
Non-ConsolidatedStatementsofOperationsYearsendedDecember31,2010,2009and2008
2010 2009 2008
revenue 6,178,335 6,279,481 5,709,660
Cost of sales 5,188,288 5,500,269 4,861,023
Gross profit 990,047 779,211 848,637
Selling, general and administrative expenses 543,205 375,395 374,200
operating income 446,842 403,816 474,437
non-operating income
Interestincome 15,231 20,566 16,462
Interestexpense (142,908) (167,204) (111,653)
Foreigncurrencytranslationgain,net 3,776 3,330 (130,117)
Foreigncurrencytransactiongain(loss),net 2,282 (57,344) 12,758
Lossonsaleofnon-currentinvestments,net - (7,905) 544
Equityinnetincome(loss)ofequitymethod
accountedinvestees,net11,570 (350,252) (361,261)
Impairmentlossesonintangibleassets (76) (1,253) (1,272)
Impairmentlossesonothernon-currentassets (32,400) - -
Lossontransactionofderivatives,net (17,939) (28,178) (1,949)
Gainonvaluationofderivatives,net 82,754 129,397 (151,940)
Lossonvaluationoffirmcommitmentassets,net (117,819) (150,125) 176,952
Servicefees (75,439) (30,441) (20,634)
Donations (18,323) (13,144) (35,605)
Others,net 519 19,047 10,598
other expense (288,772) (633,505) (597,117)
Income (loss) before income taxes 158,070 (229,689) (122,680)
Income taxes expense 46,863 98,626 (56,829)
net income (loss) 111,207 (328,315) (65,851)
Earnings (loss) per share
Basic earnings (loss) per share (won) 1,238 (3,748) (765)
Diluted earnings per share (won) 1,238 - (765)
(InmillionsofKoreanwon) (InmillionsofKoreanwon)
Non-ConsolidatedStatementsofAppropriationofRetainedEarningsYearsendedDecember31,2010,2009and2008
DateofAppropriationfor2010:March25,2011,
DateofAppropriationfor2009:March26,2010and
DateofAppropriationfor2008:March27,2009
2010 2009 2008
unappropriated retained earnings
Balanceatbeginningofyear 438 60 (20,691)
Recognitionofunrecordedlossof
equity-methodinvestee- (24,928) (6,936)
Netincome(loss) 111,207 (328,315) (65,851)
Balance at end of year before appropriation 111,645 (353,182) (73,281)
Transfer from voluntary reserves
Reserveforresearchanddevelopment 22,000 35,333 23,333
Reserveforsinkingfund - 367,666 -
unappropriated retained earnings available forappropriation
133,645 49,817 47,352
Appropriation of retained earnings
Legalreserve 6,800 4,500 4,300
Reserveforresearchanddevelopment 57,000 - -
Dividends-15%onparvalueat 750persharein2010,
10%onparvalueat 500persharein2009and
10%onparvalueat 500persharein200867,376 44,879 42,991
unappropriated retained earnings to be carriedover to subsequent year
2,469 438 60
Financial
Statements
54 5554
Non-ConsolidatedStatementsofChangesinEquityYearsendedDecember31,2010,2009and2008
Commonstock
Capitalsurplus
Capitaladjustments
Accumulatedother com-prehensive
income
retainedearnings
Totalstockholders’
equity
Balance at January 1, 2008 523,715 641,854 (231,881) 114,160 1,248,629 2,296,477
Dividends - - - - (40,437) (40,437)
Balanceforappropriation 523,715 641,854 (231,881) 114,160 1,248,629 2,296,477
Netloss - - - - (65,851) (65,851)
Acquisitionoftreasurystock - - (26,788) - - (26,788)
Stockoptions 1,052 2,404 (826) - - 2,630
Changesinequitymethodaccountedinvestments - 7,699 15,769 579,390 (6,936) 595,922
Changeinunrealizedgain(loss)onvaluationofavailable-for-salesecurities
- - - (3,238) - (3,238)
Gainonvaluationofderivatives - - - 16,030 - 16,030
Gainonrevaluationofland - - - 586,789 - 586,789
Balance at December 31, 2008 524,767 652,110 (241,459) 1,293,132 1,152,991 3,381,540
Balance at January 1, 2009 524,767 652,110 (241,459) 1,293,132 1,152,991 3,381,540
Dividends - - - - (42,991) (42,991)
Balanceforappropriation 524,767 652,110 (241,459) 1,293,132 1,110,000 3,338,549
Netloss - - - - (328,315) (328,315)
Acquisitionoftreasurystock - - (590) - - (590)
Disposaloftreasurystock - 126,625 29,564 - - 156,188
Stockoptions 495 3,989 1,367 - - 5,851
Changesinequitymethodaccountedinvestments - 102,513 46,307 33,926 (24,928) 157,817
Changeinunrealizedgainonvaluationofderivativeinstrument
- - - (150,982) - (150,982)
Changeinunrealizedlossonvaluationofderivativeinstrument
- - - 84,873 - 84,873
Changeinunrealizedgain(loss)onvaluationofavailable-for-salesecurities
- - - (1,896) - (1,896)
Small-scalemerger 3,437 44,202 - 10,337 - 57,976
Balance at December 31,2009 528,699 929,438 (164,811) 1,269,389 756,757 3,319,472
(InmillionsofKoreanwon) (InmillionsofKoreanwon)
Non-ConsolidatedStatementsofChangesinEquity(Continued)YearsendedDecember31,2010,2009and2008
Commonstock
Capitalsurplus
Capitaladjustments
Accumulatedother com-prehensive
income
retainedearnings
Totalstockholders’
equity
Balance at January 1, 2010 528,699 929,438 (164,811) 1,269,389 756,757 3,319,472
Dividends - - - - (44,879) (44,879)
Balanceforappropriation 528,699 929,438 (164,811) 1,269,389 711,878 3,274,593
Netincome - - - - 111,207 111,207
Stockoptions 384 4,934 529 - - 5,847
Disposalofequitymethodaccountedinvestments - 82,031 - - - 82,031
Changesinequitymethodaccountedinvestments - 106,938 7,561 43,634 - 70,865
Changeinunrealizedgainonvaluationofderivativeinstrument
- - - (6,262) - (6,262)
Changeinunrealizedlossonvaluation ofderivativeinstrument
- - - (765) - (765)
Changeinunrealizedgain(loss)onvaluationofavailable-for-salesecurities
- - - (565) - (565)
Balance at December 31, 2010 529,082 1,123,341 (156,720) 1,218,162 823,086 3,536,951
56 5756
Non-ConsolidatedStatementsofCashFlowsYearsendedDecember31,2010,2009and2008
2010 2009 2008
Cash flows from operating activities
net income (loss) 111,207 (328,315) (65,851)
Adjustments for:
Depreciation 88,896 77,127 71,873
Amortization 22,405 30,188 21,876
Accrualforretirementandseverancebenefits 56,660 34,618 48,208
Foreigncurrencytranslationgain,net (7,430) (12,016) 129,880
Lossonsaleofnon-currentinvestmentsinsecurities,net - 7,905 (544)
Equityinnetloss(income)ofequitymethodaccountedinvestees,net
(11,570) 350,252 361,261
Impairmentlossesonintangibleassets 76 1,253 1,272
Impairmentlossesonothernon-currentassets 32,400 - -
Gainonvaluationofderivatives,net (82,754) (129,397) 151,940
Lossonvaluationoffirmcommitmentassets,net 117,819 150,125 (176,952)
Baddebtexpense 97,172 26,388 20,182
Otherbaddebtexpense 13,709 - -
Servicefees 37,200 - -
Others,net 58,808 42,356 45,145
Total adjustments 423,390 578,799 674,141
Changes in assets and liabilities:
Accountsandnotesreceivable-trade 29,377 77,015 (1,148,871)
Accountsandnotesreceivable-other (61,134) (7,060) (21,446)
Advancepayments 104,044 (5,981) (97,765)
Inventories 14,722 (27,825) (62,583)
Accountsandnotespayable-trade (84,362) 18,208 148,187
Accountsandnotespayable-other (2,885) 25,478 78,499
Advancereceipts 585,393 (123,517) 508,671
Incometaxpayable 75,183 (147,997) 92,605
Paymentofretirementandseverancebenefits (20,415) (26,592) (23,127)
Severancebenefitinsurancedeposits (17,221) 5,501 3,466
Derivativeinstrumentassets/liabilities (81,097) (95,362) 244,803
Deferredtaxassets/liabilities (41,630) 71,976 (209,962)
Dividendreceived 9,447 18,469 42,000
Others,net (8,399) (46,067) 87,283
Total changes 501,020 (263,753) (358,240)
net cash provided by (used in) operating activities 1,035,618 (13,269) 250,050
(InmillionsofKoreanwon) (InmillionsofKoreanwon)
Non-ConsolidatedStatementsofCashFlows(Continued)YearsendedDecember31,2010,2009and2008
2010 2009 2008
Cash flows from investing activities
Decreaseinshort-terminvestments 4,007 62,299 39,475
Decreaseinnon-currentinvestments 99,808 20,150 7,256
Proceedsfromsaleofproperty,plantandequipment
1,107 191 1,244
Acquisitionofshort-terminvestments - (17,835) (29,172)
Increaseinnon-currentinvestments (331,583) (400,604) 126,751
Acquisitionofproperty,plantandequipment (160,438) (132,422) (177,045)
Acquisitionofintangibleassets (76,914) (63,369) (58,958)
Others,net (1,520) (32,294) (8,803)
net cash used in investing activities (465,533) (563,884) (352,754)
Cash flows from financing activities
Proceedsfromlong-termdebt 298,585 947,586 168,002
Disposaloftreasurystock - 196,614 -
Issuanceofcommonstock 3,682 3,228 2,629
Repaymentofshort-termborrowings (361,592) (132,016) 602,403
Repaymentofcurrentportionoflong-termdebt (636,019) (401,854) (253,010)
Acquisitionoftreasurystock - (590) (26,788)
Dividendspaid (44,879) (42,991) (43,047)
net cash provided by financing activities (740,223) 569,977 450,189
Increase in cash and cash equivalents due to small-scale merger
- 15,778 -
net increase (decrease) in cash and cash equivalents (170,138) 8,602 347,485
Cash and cash equivalents at beginning of year 517,263 508,661 161,176
Cash and cash equivalents at end of year 347,125 517,263 508,661
Financial
Statements
58 5958
Growing People, Growing Businesses.
Growing Businesses, Growing People.
TheDoosanstorystartedbackin1896whenfounderParkSeung-jikopeneda
smallfabricshopindowntownSeoul.Morethanacenturylater,weareaUSD20
billiongroupofcompaniesrankedNo.489onthe2011FortuneGlobal500that
generated55%oftotalsalesoutsideKoreain2010withmorethan38,000em-
ployeesat25domesticand115overseassubsidiariesin34countries.
Duringthe20thcentury,wehadasignificantimpactonthedevelopmentofKo-
rea’sconsumergoods,industrialmanufacturing,trade,andconstructionsectors.
Inthe21st,wearemakinganevenmoresignificantoneontheworld’sindustrial
infrastructure,construction,machinery,andequipmentsectors.Ledbyatrioof
businessesthatareglobally involved inbuildingtomorrow’s infrastructure—
DoosanHeavyIndustries&Construction,DoosanEngineering&Construction,
andDoosanInfracore—wearetodayanemergingglobalpartnerinimprovingthe
qualityoflifefortensofmillionsaroundtheworld.
Visitussoonatdoosan.comtofindoutmoreabouthowKorea’soldestbusiness
groupisbringingnewinnovationandvaluetocustomersaroundtheglobe.
gRoup AFFILIATes
AbouT THe DoosAn gRoup
DooSAn
CorPorATIon
www.doosan.com
DooSAn
CorPorATIon
–FASHION
PoloRalphLaurenand
Espritdistribution
DooSAn
CorPorATIon
–ELECTRO-MATERIALS
www.dse.co.kr
Copper-cladlaminate
manufacturing
DooSAn
CorPorATIon
–GLONET
Globallogistics,food
andchemicalimports,
pharmaceuticals,
nutraceuticals,and
cosmeceuticals
manufacturing
DooSAn
CorPorATIon
–INFORMATION&
COMMUNICATION
Solutionservices,data
centerservices,ASP
services,ERPsolutions
DooSAn
HEAVY InDuSTrIES &
ConSTruCTIon
Co., LTD.
www.doosanheavy.com
Powerplantfacilities,
seawaterdesalination
&watertreatmentplant
facilities,castingsand
forgings,construction
DooSAn
InFrACorE Co., LTD.
www.doosaninfracore.com
Constructionequipment,
industrialvehicles,machine
toolsandautomation
systems,dieselandCNG
engines,defenseproducts
DooSAn
EnGInEErInG &
ConSTruCTIon
Co., LTD.
www.doosanenc.com
Infrastructure,commercial,
residential,andindustrial
construction,chemical
processequipment,factory
automation,industrial
plantfacilities,foodand
beverageplantequipment,
OLEDpanels
DooSAn
EnGInE Co., LTD.
www.doosanengine.com
Marineenginesanddiesel
powerplants
DooSAn
CAPITAL Co., LTD.
www.doosancapital.co.kr
Integratedcreditfinancing
services
DooSAn DonGA
www.doosandonga.com
Textbooksandeducational
materials,printedand
electronicdictionaries,
encyclopediaCDs,online
learning,commercial
printing
SrS KorEA Co., LTD.
www.srs-korea.com
KFCKorea,BurgerKing,
foodcourts
orICoM InC.
www.oricom.com
Integratedmarketing
communications
DooSAn BEArS InC.
www.doosanbears.com
Professionalbaseballteam
DooSAn MoTorS
CorPorATIon
www.hondacarsdoosan.
co.kr
Hondaautomobilesales
andservice
nEoPLux Co., LTD.
www.neoplux.com
Venturecapital,corporate
restructuringand
consulting
DooSAn CuVEx
Co., LTD.
www.ladenaresort.com
LadenaResortoperation
DooSAn ToWEr
CorPorATIon
www.doota.com
Propertymanagementand
fashionmalloperation
DooSAn
FEED & LIVESToCK
CorPorATIon
www.doosanfeed.co.kr
Animalfeedmanufacturer
AT DoosAn, ouR gRowTH sTRATegy Is buILT on THe sImpLe buT
poweRFuL IDeA THAT gLobAL exCeLLenCe begIns wITH THe syneR-
gIsTIC gRowTH oF boTH ouR peopLe AnD busInesses.
60 6160
gLobAL neTwoRK
overseas Subsidiaries
DooSAn PoWEr SYSTEMS
LTD.
11TheBoulevard,Crawley
WestSussex,RH101UX,UK
Tel +44-1293-61-2888
Fax +44-1293-58-4816
DooSAn PoWEr SYSTEMS
LTD.
(BABCoCK)
PorterfieldRoad,Renfrew,
PA48DJ,UK
Tel +44-141-886-4141
Fax +44-141-885-3338
DooSAn PoWErSYSTEMS
AMErICAS LTD.
5ParagonDriveMontvale,
NewJersey07645,USA
Tel +1-201-746-8210
Fax +1-201-746-8610
DooSAn PoWEr SYSTEMS
EuroPE LTD.
BredeneyerStrasse2b,
45133Essen,Germany
Tel +49-201-4517-320
Fax +49-201-4517-328
ŠKoDA PoWEr LTD.
Tylova1/57,30128Plzen,
Czech
Tel +420-378-185-128
Fax +420-378-185-900
DooSAn PoWEr SYSTEMS
InDIA PVT., LTD.
[New Delhi Office]
DLFBuildingNo.8A,3rd
FloorDLFCyberCityPhaseII
Gurgaon122002,Haryana,
India
Tel +91-124-439-8200
Fax +91-124-414-7007
[Chennai Office]
GeeGeeUniversal,5th
FloorNo.2McNicholsRoad
Chetpet,Chennai600031,
India
Tel +91-44-2836-6930
Fax +91-44-2836-6936
DooSAn CHEnnAI WorKS
PVT., LTD.
18/2ASenneerkuppam
BypassRoad,Poonamallee,
Chennai600056,India
Tel +91-44-2649-2050
Fax +91-44-2649-4012
DooSAn HYDro
TECHnoLoGY InC.
912ChadLane,Tampa,FL
33619,USA
Tel +1-813-805-8800
Fax +1-813-623-6092
DooSAn HF ConTroLS
CorP.
1624WestCrosbyRoad,
Suite124Carrollton,TX
75006,USA
Tel +1-469-568-6526
Fax +1-469-568-6589
DooSAn IMGB
104BerceniRoad,
Bucharest4,Romania
Tel +40-21-301-3745
Fax +40-21-301-2502
DooSAn
EnGInEErInG & SErVICES
LLC
5ParagonDriveMontvale,
NJ07645,USA
Tel +1-201-746-8200
Fax +1-201-746-8210
DooSAn HEAVY
InDuSTrIES VIETnAM Co.,
LTD.
(Doosan Vina)
DungQuatEconomicZone,
BinhThuanCommuneBinh
SonDistrict,Quangngai
Province,Vietnam
Tel +84-55-713-001
Fax +84-55-713-008
DooSAn VInA HAIPHonG
Co., LTD.
Km92,NationalHighway
5,SoDauWardHongBang
District,HaiphongCity,
Vietnam
Tel +84-31-371-2710~11
Fax +84-31-371-2714
HAnJunG PoWEr LTD.
P.O.Box2803,Borokom
NCD,PapuaNewGuinea
Tel +675-320-0529
Fax +675-321-2984
overseas Branches
AMERICAS
DooSAn HEAVY
InDuSTrIES AMErICA
CorP.
ParkerPlaza,10thFloor400
KelbyStreet,FortLee,NJ
07024,USA
Tel +1-201-944-455431,24
Fax +1-201-944-5022
PITTSBurGH oFFICE
C/OWestinghouseElectric
CompanySuite115c,600
CranberryWoodsDrive,
CranberryTownship,PA
16066,USA
Tel +1-412-374-6071
Fax +1-724-720-0903
SAnTIAGo oFFICE
NuevaTajamar481,Ofician
1103,LasCondes,Santiago,
Chile
Tel +56-2-657-3333
Fax +56-2-657-3343
SCHEnECTADY oFFICE
GeneralElectricBuilding
33,Room202AOneRiver
Road,Schenectady,NY
12345,USA
Tel +1-518-385-5218
Fax +1-518-385-4984
TAMPA oFFICE
912ChadLane,Tampa,FL
33619,USA
Tel +1-813-805-8800
Fax +1-813-623-6666
WInDSor oFFICE
20InternationalDrive,
Windsor,CT06095,USA
Tel +1-860-731-6479
Fax +1-860-731-6482
São PAuLo oFFICE
(DooSAn PoWEr SYSTEMS)
AlamedaSantos787,7th
floor,SaoPaulo,01419-001,
Brazil
Tel +55-11-2348-0100
ATLAnTA oFFICE
(DooSAn PoWEr SYSTEMS)
1050CrownPointeParkway
Suite1200,AtlantaGA
303385,USA
Tel +1-770-551-5750
Fax +1-770-551-5753
ASIA
DooSAn HEAVY
InDuSTrIES JAPAn CorP.
MitaKokusaiBuilding,
Room24101-4-28,Mita,
Minato-guTokyo108-0073,
Japan
Tel +81-3-3452-5451~3
Fax +81-3-3452-5624
BAnGKoK oFFICE
10thFloor,M-ThaiTower,All
SeasonsPlace,87Wireless
RoadPhatumwan,Bangkok
10330,Thailand
Tel +66-2-654-0690
Fax +66-2-654-0693
BEIJInG oFFICE
GatewayPlaza,TowerB,
19thFloorNo.18Xiaguangli,
NorthRoad,EastThirdRing
ChaoyangDistrict,Beijing
100027,China
Tel +86-10-8454-7131~33,
7122
Fax +86-10-8484-7139
HAnoI oFFICE
#1101,DaehaBusiness
Center,360KimMa,Ba
DinhDistrictHanoi,Vietnam
Tel +84-4-6273-0545
Fax +84-4-6273-0550
JAKArTA oFFICE
PlazaBapindo,Mandiri
Tower20F,JlJendSudirman
No54-55,Jakarta,
Indonesia
Tel +62-21-2995-0105
Fax +62-21-2995-0108
MuMBAI oFFICE
501,CNBSquare,Sangam
Complex,AndheriKurla
Road,Andheri(E),Mumbai
400059,India
Tel +91-22-6177-0500
nEW DELHI oFFICE
515,FithFloor,TimeTower,
MGRoadGurgaon122002,
Haryana,NewDelhi,India
Tel +91-11-4665-3300
Fax +91-11-4665-3333
HYDErABAD oFFICE
119,1F,WhiteHouse,
Block-3,6-3-1192/1/1,
KundanBagh,Begumpet,
Hyderabad500016,India
Tel +91-40-6613-2444
Fax +91-40-6613-4227
SHAnGHAI oFFICE
Rm809,BuildingA,FarEast
InternationalPlazaNo.319,
XianXiaRoad,ChangNing
DistrictShanghai200051,
China
Tel +86-21-5877-8696
Fax +86-21-5877-5938
TAIPEI oFFICE
7Fl4,No.51,KeelungRoad
Section2,Taipei,Taiwan,
R.O.C.
Tel +886-2-2739-2255
Fax +886-2-2739-2266
EUROPE
FrAnKFurT oFFICE
ArabellaCenter,9thFloor,
LyonerStrasse44-48
FrankfurtamMain60528,
Germany
Tel +49-69-69-5004-11
Fax +49-69-69-5004-10
MIDDLEEAST&AFRICA
ABu DHABI oFFICE
AlGhaithTower,5th,Room
508,HamdanStreetP.O.
Box27767,AbuDhabi,UAE
Tel +971-2-627-6273
Fax +971-2-627-6274
MIDDLE EAST oPErATIonS
CEnTEr
MonarchOfficeTower,Level
30,SheikhZayedRoad,
P.O.Box11859,Dubai,UAE
Tel +971-4-327-5545
Fax +971-4-327-5592
DuBAI oFFICE
30thFloor,MonarchOffice
Tower,OneSheikhZayed
Road,P.O.Box11859,
Dubai,UAE
Tel +971-4-327-5545
Fax +971-4-327-5529
DooSAn WATEr DuBAI
r&D CEnTEr
MonarchOfficeTower,Level
29,SheikhZayedRoad,
P.O.Box11859,Dubai,UAE
Tel +971-4-327-5545
Fax +971-4-327-5596
rIYADH oFFICE
OfficeNo.205&206,The
PlazaBuilding(AkariyaNo.
4),OlayaStreet,P.O.Box
9656,Riyadh11423,
KingdomofSaudiArabia
Tel +966-1-419-1696
Fax +966-1-419-1995
DoHA oFFICE
AbdullaAlKuwariBuilding,
AlMuntazaArea,CRing
Road,Doha,Qatar
Tel +974-4443-5201
Fax +974-4443-5218
CAIro oFFICE
2ndfloor,LandMark
Building1,Southern90th
Road
(justafterNATABuilding,
CityCenter,thefirstsection)
Cairo,Egypt
Tel +20-2-2613-1038
62 6362
TomoRRow ToDAy At Doosan, we have long understood that tomorrow’s
dreams are built on today’s results. Today, our vision
of being a global leader in power and water has never been
clearer. or closer. We invite you to join us as we help lead
the next wave of innovation and collaboration to build your
tomorrow, today.
WWW.DooSAnHEAVY.CoM
HEAD oFFICE & CHAnGWon PLAnT
22DoosanVolvo-ro,Seonggan-Gu,
Changwon,Gyeongnam642-792Korea
Tel +82-55-278-6114,7114
Fax +82-55-264-5551,552
SEouL oFFICE
465Gangnam-daero,Seocho-Gu,Seoul
137-920Korea(C.P.OBox1826,SeoulKorea)
Tel +82-2-513-6114
Fax +82-2-513-6200
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