samsung c&t 2q11 earnings

8/6/2019 Samsung C&T 2Q11 Earnings

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SAMSUNG C&T CORPORATIONSAMSUNG C&T CORPORATION


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The figures provided in this presentation are based on unreviewed

2 2011 financial statements. Certain numbers ma be resented

Disclaimer

differently once reviewed, and the company takes no responsibility

and accepts no liability for such changes.


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Index

1. Construction New Orders

2. 2Q Results(QoQ)

3

.

4. Others

5. Consolidated Statements of Income (Summary)

6. Consolidated Statements of Financial Position (Summary)


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1. Construction New Orders

New Orders: 3,633.6 bn Order Backlog: 27,140.3 bn

Major New Orders

13.7tn 26.7tn 27.1tnMajor Orders in Backlog

Overseas

Abu Dhabi DTS 297.6 bn

Singapore DTL Ph.3 187.4 bn

Singapore Merbau 174.2bn

Saudi QurrayahIPP 1,218.0 bn(E)

Plant

Dangjin Thermal PP #9,10 154.0bn

Housing

Goduk Shiyoung

1.5%

Overseas

UAE Nuclear PP 2,631.1bn

Singapore LNG Terminal 750.0bn

Abu Dhabi DTS-T01 285.7bn

Housing

Pyungtek US Army Base 962.4bn

Garak Shiyoung 620.0bn

Goduk Shiyoung 420.0bn

4

3.6 tn

(4,851.6 bn Including Saudi Qurrayah IPP)

Saudi

Qurrayah

IPP 1.2 tn

4.9tn

2011Plan 2011.1H Progress

Building 2,715.0 1,083.4 39.9%

Civil 900.0 98.7 11.0%

Plant 535.0 240.9 45.0%

Housing 3,000.0 1,292.4 43.1%

Overseas 6,550.0 918.2 14.0%

Total 13,700.0 3,633.6 26.5%

End of 2010 2011.1H2011target 2011.1H

End of 2010 2011.1H Progress

Building 3,730.2 3,518.1 212.1

Civil 3,103.0 2,704.2 398.8

Plant 718.1 687.5 30.6

Housing 12,348.8 13,175.1 826.3

Overseas 6,849.6 7,055.4 205.8

Total 26,749.7 27,140.3 390.6

Redevelop 420.0bn

(bn KRW)(bn KRW) Order BacklogNew Orders


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2011.1Q 2011.2Q

Sales Gross Profit

8.7% 8.6%

5,186.4

4,696.1406.5 446.2

10.4% 9.8%

(bn KRW)

*Sales minus Cost of sales

2. 2Q Results_ Summary (Consolidated)

2011.1Q 2011.2Q

5555

Operating Profit Profit for the Period

139.5

71.4

48.8%

2.5% 2.3%

118.0 117.0

0.8%

2011.1Q 2011.2Q

166.4

113.0

32.1%

2011.1Q 2011.2Q

Adjusted OP

2011.1Q 2011.2Q

Dividend income 42.0 bn, Equity Method 38.4bn decrease from 1Q

Dividend Income(Other profit)

42.0bn decrease from 1Q

Sales - Cost of Sales

- Selling and admin. expenses

Sales - Cost of Sales SG&A

+/- Other operating profit/expenses


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2011. 1Q 2011.2Q Changes (%)

Building 602.6 692.9 +90.3 (15.0%)

Civil 226.4 271.1 +44.7 (19.7%)

(bn KRW)Sales

BuildingCivilPlant

OverseasHousing

etc

38.6%17.2%

40.2%

1,499.7

1,795.0

6666

2. 2Q Results_ Construction Sales (Consolidated)

. . . .

Housing 220.0 271.0 +51.0 (23.2%)

Overseas 324.6 387.8 +63.2 (19.5%)

Etc 11.1 15.7 +4.6 (41.4%)

Total 1,499.7 1,795.0 +295.3 (19.7%)2011.1Q 2011.2Q

19.7%15.1%

8.7%

15.1%

0.9%

21.6%

15.1%

7.7%

0.7%

14.7%

Sales increase in all sectors such as domestic Building and Overseas etc.

1Q to be the lowest sales figure for the Housing sector

2 1 . 6 %


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(bn KRW)

12.4%

14.0%

Gross Profit

251.4

Operating Profit

109.992.8

K-GAAP

Adjusted Operating Profit

4.2%

5.7%

7777

2. 2Q Results_ Construction Profit (Consolidated)

* Sales - Costs of sales

* Sales - Cost of Sales SG&A

+/- Other operating profit /expenses

*Sales - Cost of Sales SG&A

2011.1Q 2011.2Q

34.8%

.

15.6%

2011.1Q 2011.2Q

63.1%63.1%

2011.1Q 2011.2Q

63.2

103.1

Increase in gross profit and improvement in gross profit margin due to increase in volume in

the Building sector

Decrease in Operating Profit due to decrease in Other operating profit(dividend income)

compared to the 1st quarter


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2. 2Q Results_ T&I Sales (Consolidated)

Sales

2011.1Q 2011.2Q Changes (%)

Industrial

Materials2,659.1 2,503.3 155.8 ( 5.9%)

HQ 1,912.7 1,890.1 22.6 ( 1.2%)

Natural

Resources464.5 811.3 346.8 (74.7%)

(bn KRW)

3,391.4

3,196.4

8888

Natural Resources

Energy Environment

Industrial Materials

2 0 1 1 . 1 Q

2 0 1 1 . 2 Q

. . . .

Energy

Environment72.8 76.8 4.0 (5.5%)

HQ 21.6 32.0 10.4 (48.1%)

Total 3,196.4 3,391.4 195.0 (6.1%)

HQ 2,035.9 2,057.7 21.8 (1.1%)

6 . 1 %

8 3 . 2 %

1 4 . 5 %

2 . 3 %

7 3 . 8 %

2 3 . 9 %

2 . 3 %

Sales decreased in Industrial Materials due to decrease in prices of chemicals and iron & steel,

However, increased in Natural Resources due to increase in trading volume of copper concentrate,

resulting into an small increase in overall Sales


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6.9%

5.7%

220.0 194.8 1.8%

0.6%1.7%

0.4%

9999

2. 2Q Results_ T&I Sales (Consolidated)

(bn KRW)

Gross Profit Operating ProfitAdjusted Operating Profit





2011.1Q 2011.2Q

11.5%

64.2%

2011.1Q 2011.2Q

56.5

20.2

2011.1Q 2011.2Q

54.8

13.9

74.6%74.6%

Gross profit decrease due to appraisal losses in solar business in Europe and decrease in

stainless steel prices

Increase in expenses due to increase in shipping expenses and developing new markets


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Building 2010. 1H 2011.1H Changes (%)

Building 781.7 1,295.5 513.8 (65.7%)

Civil 426.7 497.5 70.8 (16.6%)

Sales

39.3%22.3%

12.2%

3,294.73,504.8

11111111

BuildingCivilPlant

Overseas

Housing

etc

3. 1H Results_ Construction Sales (Consolidated)

(bn KRW)

. . . .

Housing 1,203.7 491.0 712.7 ( 59.2%)

Overseas 832.7 712.4 120.3 ( 14.4%)

Etc 18.1 26.8 8.7 (48.1%)

Total 3,504.8 3,294.7 210.1 ( 6.0%)2010.1H 2011.1H

6.0% 15.1%

8.2%

14.9%

1.4%

21.6%

6.9%

34.3%

0.5%

23.8%

Housing sales decrease due to low pre-sales because of depression in housing market in 2010

Domestic building sales increase due to uptrend in micro chip construction


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(bn KRW)

12.1%

13.3%

422.9437.9

8.7%6.2%

305.5

202.7

5.0% 5.1%

12121212

Gross Profit Operating ProfitAdjusted Operating Profit* Sales - Costs of sales




3. 1H Results_ Construction Sales (Consolidated)

2010. 1H 2011.1H

3.5%

33.6%

2010. 1H 2011.1H

4.7%4.7%

2010.1H 2011.1H

174.5166.3

Gross profit and margin increase due to improvement in the building sector, excluding the other operating

profit of investment asset mergers in 2010, operating profit and margin has also increased

Marginal decrease in Adjusted operating profit due to increase in expenses such as increase in personnel

expenditure (increase in Adjusted Operating profits margins)Decrease in Operating profit due to last years one-off gain in investment asset mergers


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2010.1H 2011.1H Changes (%)

Industrial

Materials4,005.5 5,162.4 1,156.9 (28.9%)

HQ 2,753.9 3,802.8 1,048.9 (38.1%)

Natural

Resources719.4 1,275.8 556.4 (77.3%)

5,162.4

4,850.8

13131313

3. 1H Results_ T&I Sales (Consolidated)

(bn KRW)

Natural Resources

Energy Environment

Industrial Materials

SalesSales

2010.1H 2011.1H

. . . 69.8%

Energy

Environment125.9 149.6 23.7 (18.8%)

HQ 48.9 53.6 4.7 (9.6%)

Total 4,850.8 6,587.8 1,737.0 (35.8%)

HQ 2,942.5 4,093.6 1,151.1 (39.1%)

35.8%

82.6%

14.8%

2.6%

78.4%

19.4%

2.3%

Increase in Sales due to increase in price and volume in chemicals and iron and steel trading

Sales increase in both Headquarters and overseas offices


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7.5%

6.3%

364.2

414.8 3.2%

1.2%

1.2% 1.0%

14141414

Gross Profit Operating ProfitAdjusted Operating Profit





(bn KRW)

3. 1H Results_ T&I Profit (Consolidated)

2010.1H 2011.1H

13.9%

51.1%

2010.1H 2011.1H

156.7

76.7

2010.1H 2011.1H

59.9

68.714.9%14.9%

Increase in Gross profit due to increase in price and volume in trading items,

Also excluding last years one-off gains in investment asset mergers, Adjusted Operating Profit has increased


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38.9%

2,601.0

3,193.8

1,742.8

2,372.653.0

73.6

27.7

31.2

34.2

15151515

4. Others

Equity Method Profit Total/Net Debt

Samsung General Chemicals

Samsung Petrochemicals

Others

(bn KRW)

Equity method profit, Dividend Income Debt & PF Amount

Net

Total

End of 2010 2011.1H2010.1H 2011.1H

.

6.8 8.2

End of 2010 2011.1H2010.1H 2011.1H

19.4%

65.052.4

Chunho Dong : 307.5 bn

Incheon Okryun : 397.5 bn

Buchun Joongdong :148.0bn

Suwon Gwanggyo : 54.2bn

Gimpo H angang : 49.7bn

Suwon Sindong : 336.0bn439.9

853.0

164.9

1,114.0

1,292.91,278.9

Housing PF AmountDividend Income

Pre-Construction

Construction

Construction

Pre-construction


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2011. 1Q 2011. 2Q 2011. 1H 2010. 1H

Total Construction T&I Total Construction T&I Total Construction T&I Total Construction T&I

Sales 4 , 6 9 6 . 1 1 , 4 9 9 . 7 3 , 1 9 6 . 4 5 , 1 8 6 . 4 1 , 7 9 5 . 1 3 , 3 9 1 . 4 9 , 8 8 2 . 5 3 , 2 9 4 . 7 6 , 5 8 7 . 8 8 , 3 5 5 . 6 3 , 5 0 4 . 8 4 , 8 5 0 . 8

Gross profit

(Margin %)

4 0 6 . 5

( 8 . 7 % )

1 8 6 . 5

( 1 2 . 4 % )

2 2 0 . 0

( 6 . 9 % )

4 4 6 . 2

( 8 . 6 % )

2 5 1 . 4

( 1 4 . 0 % )

1 9 4 . 8

( 5 . 7 % )

8 5 2 . 7

( 8 . 6 % )

4 3 7 . 9

( 1 3 . 3 % )

4 1 4 . 8

( 6 . 3 % )

7 8 7 . 1

( 9 . 4 % )

4 2 2 . 9

( 1 2 . 1 % )

3 6 4 . 2

( 7 . 5 % )

Selling andadministrative

expenses

2 8 8 . 5 1 2 3 . 3 1 6 5 . 2 3 2 9 . 2 1 4 8 . 4 1 8 0 . 9 6 1 7 . 7 2 7 1 . 7 3 4 6 . 1 5 5 2 . 7 2 4 8 . 4 3 0 4 . 3

Adjusted

Operating Profit

1 1 8 . 0

( 2 . 5 % )

6 3 . 2

( 4 . 2 % )

5 4 . 8

( 1 . 7 % )

1 1 7 . 0

( 2 . 3 % )

1 0 3 . 1

( 5 . 7 % )

1 3 . 9

( 0 . 4 % )

2 3 5 . 0

( 2 . 4 % )

1 6 6 . 3

( 5 . 1 % )

6 8 . 7

( 1 . 0 % )

2 3 4 . 4

( 2 . 8 % )

1 7 4 . 6

( 5 . 0 % )

5 9 . 9

( 1 . 2 % )

Other operating

4 8 . 4 4 6 . 7 1 . 7

4 . 0

1 0 . 2 6 . 3 4 4 . 4 3 6 . 5 7 . 9 2 2 7 . 8 1 3 0 . 9 9 6 . 8

(bn KRW)

16161616

5. Consolidated Statements of Income (Summary)

expenses

4 8 . 4 4 6 . 7 1 . 7

4 . 0

1 0 . 2 6 . 3 4 4 . 4 3 6 . 5 7 . 9 2 2 7 . 8 1 3 0 . 9 9 6 . 8

Operating profit

(Margin %)

1 6 6 . 4

( 3 . 5 % )

1 0 9 . 9

( 7 . 3 % )

5 6 . 5

( 1 . 8 % )

1 1 3 . 0

( 2 . 2 % )

9 2 . 8

( 5 . 2 % )

2 0 . 2

( 0 . 6 % )

2 7 9 . 4

( 2 . 8 % )

2 0 2 . 7

( 6 . 2 % )

7 6 . 7

( 1 . 2 % )

4 6 2 . 2

( 5 . 5 % )

3 0 5 . 5

( 8 . 7 % )

1 5 6 . 7

( 3 . 2 % )

Finance income

and expenses

2 4 . 0

2 5 . 0

4 9 . 1

3 4 . 3

Equity method

profit 5 6 . 0 1 7 . 6 7 3 . 6 5 3 . 0

Profit beforeincome tax 1 9 8 . 3 1 0 5 . 6 3 0 3 . 9 4 8 0 . 9

Profit for the

period

(Margin %)

1 3 9 . 5

( 3 . 0 % )

7 1 . 4

( 1 . 4 % )

2 1 0 . 9

( 2 . 1 % )

3 6 2 . 4

( 4 . 3 % )

Attributableto owners ofthe parent

1 3 7 . 8 6 8 . 3 2 0 6 . 1 3 6 1 . 9

Attributable

to notcontrollingassets

1 . 7 3 . 1 4 . 8 0 . 5

* Adjusted Operating Profits = Sales - COGS SG&A Expenses (

Adjusted OP separately calculated for investor reference only, not included in official statements)


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Thank youThis material is prepared by Samsung C&T Corporation for its shareholders and candidate investors as Information

for reference only and is not intended to give any guideline or information to make any decision. Certain section(s)

of this document contain forward-looking statements that are based on expectations, estimations and assumptions

of Samsung C&T Corporation and outside organizations, and therefore, please be advised that any projections or

estimates may be different from actual results and that Samsung C&T Corporation does not make any representation

or warranty either expressly or implicitly as to the correctness, completeness and a ccuracy hereof.

Samsung C&T Corporation shall not be liable for any direct, indirect, consequential, incidental or special damages

due to your Reliance on the information

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samsung c&t 2q11 earnings

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