Building Your Tomorrow Today

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Building Your Tomorrow Today BUILDING YOUR TOMORROW TODAY 2015 Doosan Infracore Integrated Report TEAM DOOSAN THE 4th INTEGRATED REPORT CONTENTS REPORTING PURPOSES This is Doosan Infracore’s fourth Integrated Report containing its annual and sustainability management reports. Doosan Infracore publishes an integrated report to share with its stakeholders the processes whereby it generates its financial and non-financial performance results and boosts its corporate values generated through the interaction of its di- verse CSR (Corporate Social Responsibility) activities. Doosan Infracore strives to incorporate CSR throughout all its business activities. It will work hard to continually improve its integrated report. MANAGEMENT ANALYSIS REPORTING ORGANIZATION To produce a comprehensive report on Doosan Infracore’s financial and 02 CEO Message non-financial performance and its social and environmental values, 04 Company Profile various departments related to the company’s strategy, sales, IR and communication have participated in its planning. More than forty work- 06 Doosan Infracore’s Business Model ing-level teams collaborated forces to compile this integrated report, 08 Performance Review 2015 with a focus placed on both the performance results and the business plans of the company. OUR STRATEGY PERIOD AND SCOPE OF THE REPORT This report presents quantitative data about the company’s performance 16 Strategy Overview during the 2015 calendar year. However, the company’s qualitative ac- this wingTurn page for information on DoosanGroup. 18 Doosan Bobcat, Enhanced Its Global Leader Position tivities mentioned in the report, including the composition of the BOD, include developments recorded until the end of April 2016. This report 26 Construction Equipment, Established a Stable Business Structure also includes a table of the Company’s Major CSR Performance Accom- 34 Engines, Continued to Grow in New Markets plishments over the past three years in the Appendices. For the sake of data consistency, this report largely deals with the accomplishments made at the company’s worksites in Korea. The major qualitative activ- OUR RESPONSIBILITY ities dealt with in this report, however, include those undertaken at its overseas worksites. 42 CSR Structure REPORTING PRINCIPLES 48 Transparent and Ethical Management This report faithfully follows the GRI’s G4 Guidelines (Core and AA1000 53 Customer Satisfaction and Quality Management APS (2008)) with reference to the <IR> Framework of the International The Integrated Report 2015 contains the Integrated Reporting Council (IIRC). With reference to financial matters in key strategies and activities of Doosan 58 Employee Value Proposition this report, the performance of Doosan Infracore and its subsidiaries is Infracore, whose employees all join forces 63 Integrated EHS System reported on the basis of the consolidated financial statements in accor- as ‘Team Doosan’ to create new values for dance with the K-IFRS standards. its stakeholders under the corporate slogan 68 Shared Growth with Our Suppliers of ‘Building Your Tomorrow Today!’ 72 Supporting Development of Local Communities EXTERNAL ASSURANCE This report has been assured by Samjong KPMG, an independent as- surance service provider, to ensure the propriety and integrity of the re- Reporting method APPENDIX porting processes as well as the accuracy and credibility of its contents. Its Assurance Report is attached in the Appendices. PRINTED MATERIAL 77 Consolidated Financial Statements This report is published in Korean, English and Chinese 81 CSR Facts & Figures ADDITIONAL INFORMATION AND FEEDBACK to facilitate communication with our global stakeholders. For additional information, please visit the company’s website (www. 84 Independent Auditors’ Report doosaninfracore.com) or contact us at the address given in the bottom 85 Independent Assurance Report right corner of this page. PDF You can download this report at Doosan Infracore’s web- 87 Global Network site (www.doosaninfracore.com) as a PDF file. Disclaimer on Predicted Information This report contains details of some future activities, events and situations based on the company’s plans and estimations of future financial outcomes, which may turn out to be inaccurate in the event of changes in the global business landscape, despite the fact that the plans and estimations draw upon the best information available at the time of completion of this report, with due consideration given to Contact us future business environments as well as the company’s elaborate business strat- CSR Part, Communication, Doosan Infracore 23F Doosan Tower Building, 275 Jangc- egies. Therefore, Doosan Infracore would like to remind its stakeholders that this hungdan-ro, Junggu, Seoul (04563), South Korea report contains some predictions that may be affected significantly due to the risks, uncertainties and other factors involved in the company’s global operations. E-mail: [email protected] DOOSAN GROUP DOOSAN: THE OLDEST BUT FASTEST GROWING COMPANY IN KOREA The Doosan Way - Our Beliefs and Philosophy AFFILIATES Doosan’s ambitious dream began 120 years ago With 120 years of history, Doosan is the oldest enterprise in Korea. It is also the company with ISB(INFRASTRUCTURE SUPPORT BUSINESS) the greatest potential, having undergone continuous changes and achieving significant growth DOOSAN CREDO throughout the years. Doosan has continued to grow ever since its inception. In the twentieth DOOSAN INFRACORE century, it emerged as one of the country’s strongest consumer goods companies specializing in DOOSAN HEAVY INDUSTRIES & CONSTRUCTION beer and beverages. At the dawn of the new millennium, however, Doosan embarked on a mas- The Doosan Credo is a set of principles that represents Doosan’s philosophies and unique way of doing busi- sive transformation to become a global company by developing new growth engines and entirely DOOSAN ENGINEERING & CONSTRUCTION ness. These principles have been the foundation of Doosan’s success for the past century. The Doosan Credo is integral to every aspect of our business and people, clearly guiding our decisions and the way we do busi- overhauling its business portfolio. Through a series of successful mergers and acquisitions, Doo- DOOSAN ENGINE san has completely transformed itself from a consumer goods company into an ISB (Infrastructure ness. Through the realization of these values, Doosan accomplishes its ultimate goal. The Credo consists of Support Business) provider, specializing in a wide range of industrial infrastructure such as con- Doosan’s “Aspiration” and “Core Values”. struction equipment, and energy and production facilities. Doosan Corporation Doosan’s Growth Engine DOOSASN CORPORATION ELECTRO-MATERIALS Behind the success of Doosan is its unwavering “trust in people.” This was something our found- DOOSAN CORPORATION MOTTROL ASPIRATION er firmly believed in, who often had said, “investment in people makes the foundation for busi- DOOSAN CORPORATION GLONET ness.” This belief is well summed up in our 2G Strategy (Growth of People, Growth of Business). The 2G strategy has been the driver of our past successes and will guide us through our journey DOOSAN CORPORATION INDUSTRIAL VEHICLE toward prosperity in the global stage. At the heart of the 2G Strategy is the virtuous circle of DOOSAN CORPORATION FUEL CELL Doosan’s ultimate goal is the creation of a “Proud Global Doosan”. In our Vision, each of our employees “growth of people laying the foundation for the growth of the company, and the latter leading and all of our stakeholders will benefit from, and be proud of their association with, Doosan. Every em- DOOSAN CORPORATION INFORMATION & COMMUNICATIONS back to the former.” With its trust in its employees and its continuous investment in human ployee takes great pride in being a member of Doosan. Each customer recognizes and appreciates Doosan’s DOOSAN CORPORATION DOOTA DUTY FREE capital, Doosan was able to undergo bold restructuring and innovative portfolio transformation high-quality goods and services. Every shareholder values our fair and high levels of profit. successfully. CSB (CONSUMER & SERVICE BUSINESS) The Future of Doosan Doosan hopes to become a “Proud Global Doosan”, with firm belief and trust in people. “Proud ORICOM Global Doosan” means becoming a company of which each stakeholder is proud. Our stakehold- CORE VALUES ers include not only the employees and employers of Doosan, but also our customers, share- HANCOM holders and the communities around us. Our vision is to become a company in which everyone DOOSAN MAGAZINE involved can take pride. DOOSAN FEED & LIVESTOCK Doosan people practice the nine core values of the DOOSAN TOWER Doosan Credo. Doosan people practice the nine core People Inhwa Profit values of the Doosan Credo everywhere we operate, DOOSAN BEARS every day, to build a “Proud Global Doosan”. These DOOSAN CUVEX values guide the way we do business, the way we NEOPLUX treat each other and the way we work with all of our World-class Cultivating Social Responsi- partners. The nine core values of the Doosan Credo Technology and People bility Innovation 2015 FINANCIAL HIGHLIGHTS are as follows: (Unit: KRW 100 million, based on the consolidated financial statements) Auxiliary Organizations DONGDAEMUN FUTURE FOUNDATION Integrity and Safety & Environ- DOOSAN YONKANG FOUNDATION Customers Sales Operating Income Total Assets Total Equity Transparency ment DOOSAN ART CENTER 189,604 2,646 315,563 83,935 DLI (DOOSAN LEADERSHIP INSTITUTE) 2015 Doosan Infracore Integrated Report Management
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