’08 1Q Results & Mid-Term Plan

May. 2008

0 Disclaimer

While the statements in this presentation represent our current assumptions, plans and expectations, and we believe these judgments are reasonable, they are not guarantees of future performance and involve known and unknown risks, uncertainties such as FX & raw material costs, and other factors that may cause actual results to differ materially from the results, performance, achievements or financial position expressed or implied in this presentation.

This presentation is provided only as a reference material. Doosan Heavy Industries and Construction assumes no responsibility for investment decisions. We trust your decisions will be based on your own independent judgment.

1

1 Contents

Ⅰ. About Company

Ⅱ. Business Strategy & Outlook by Division

Ⅲ. ’08 Outlook & Mid-Term Business Plan

Ⅳ. ’08 1Q Results Review

Appendix 1. Balance Sheet 2. Doosan Group Shareholding Structure

2 I - 1. History 19621962 19801980 AfterAfter 20012001

Establishment:Establishment: Gov’tGov’t Owned Owned Company:Company: AfterAfter Privatization: “Building“Building thethe foundationfoundation ofof “Era“Era ofof technologicaltechnological “Korea’s“Korea’s representativerepresentative heavyheavy powerpower plantplant industry”industry” developmentdevelopment && growth”growth” industriesindustries company”company”

19621962 •• CompanyCompany FoundedFounded 19801980 •• RenamedRenamed asas HanjungHanjung 20012001 •• RenamedRenamed asas DoosanDoosan HeavyHeavy IndustriesIndustries && ConstructionConstruction 1982 • Changwon Plant completed 1982 • Changwon Plant completed 20022002 •• Exported Exported mainmain nuclearnuclear powerpower 19761976 •• Entered Entered intointo technicaltechnical alliancealliance forfor systemsystem toto thethe USUS turbineturbine generatorgenerator withwith GEGE 19851985 •• Constructed Constructed thethe 11stst desalinationdesalination plantplant (Assir)(Assir) 20032003 •• Completed Completed world’sworld’s largestlargest desalinationdesalination plantplant inin ShoaibaShoaiba Saudi Arabia 19771977 •• Entered Entered intointo technicaltechnical tie-uptie-up forfor Saudi Arabia boilerboiler andand primaryprimary coolantcoolant systemsystem 19871987 •• Selected Selected asas mainmain contractorcontractor inin aa •• No. No. 11 worldworld marketmarket shareshare inin HRSGHRSG withwith CE,CE, USAUSA nuclearnuclear powerpower projectproject forfor thethe firstfirst timetime (Yungkwang(Yungkwang #3,4) #3,4) 20052005 •• AcquiringAcquiring DoosanDoosan InfracoreInfracore

20062006 •• Acquiring Acquiring DoosanDoosan IMGB,IMGB, RomaniaRomania 19781978 •• Signed Signed thethe firstfirst turnkeyturnkey projectproject toto 19991999 •• World’s World’s firstfirst shipshipmentment ofof singlesingle build a large thermal power plant in •• AcquiringAcquiring Mitsui-Babcock,Mitsui-Babcock, build a large thermal power plant in modulemodule evaporatorevaporator EnglandEngland KoreaKorea (Samcheonpo(Samcheonpo #1,2) #1,2) •• Deal Deal ofof onlyonly oneone manufacturingmanufacturing •• Constructing Constructing DoosanDoosan VinaVina inin plantplant equipmentequipment companycompany VietnamVietnam

20072007 •• No. No. 11 worldworld marketmarket shareshare inin HRSGHRSG 20002000 •• ListedListed onon thethe StockStock marketmarket

3 I - 2. Shareholders Structure and Sales Breakdown

Nuclear Power Desalination Casting & Forging Construction

Shareholders Apr. 2008 Sales Dec. 2007 Nuclear 11.7% Public Doosan Corp. 28.5% Construction 41.2% Power 16.9% 43.3%

105mn KRW4,090bn

Casting & KDB Forging 11.8% 12.5% Treasury Stocks Desalination 17.8% 16.3%

4 I - 3. Key Indicator (Power)

Orders (Wbn) Product Mix Sales (Wbn) 4,866 Nuclear 2,046 T/G 18% 2,021 20% 1,940 1,830 1,664 1,475 1,328 1,253 1,064 62% Thermal 1,378 1,037 2007 Sales '02'03'04'05'06'07 Mundra EPC PJT Outlook for'02 Target '03 Market '04 '05 Demand '06 '07(GW) Power (India, contracted in May 2007) 800MW 377 Plant 300 × 246 229 203 149 Division 5 Units 2007 2015 2007 2015 2007 2015 S/E Asia India ME/Africa World’s biggest thermal power plant

Boiler Fundamental Technology HRSG Market Share(’07) Nuclear Supply (ongoing included)

Mitsui 8% 4% 21% Babcock 14% 21% World No. 1 [MBEL] 17% 18% 19 (UK) Alstom Nooter Acquisition date : Nov. ‘06 Rank (1st~6th) Eriksen World 6th 5 II --4. 4.Key Key IndicatorIndicator (Industrial)(Industrial)

Orders (Wbn) 1,363 Product Mix Sales (Wbn) 1,273 Other 986 1,019 9% 871 Desalination 825 Material 14% Handling Equipment 461 241 289 77% 111 269 364

2007 Sales '02 '03 '04 '05 '06 '07 Shuaibah IWPP(Saudi) Completed PJT '02 '03 '04 '05 '06 '07 Industrial 397MIGD 194MIGD Division On going PJT 452MIGD World’s largest capacity as a single PJT

All Round Player in Desalination Market MSF world’s market share Shuaibah Expansion RO (Saudi) MSF + MED + 33MIGD RO 40% + World’s 2nd Largest Capacity as a Water Treatment Single RO Desalination Plant 6 II --5. 5. Key Key IndicatorIndicator (C/F(C/F))

Orders (Wbn) Product Mix Sales (Wbn) Casting 482 Crankshaft 506 Product 410 20% 414 35% 319 361 246 314 21% 172 186 229 Forging 16% 164 8% Product Workroll Mold Steel 2007 Sales '02 '03 '04 '05 '06 '07

Product Capacity Expansion World Class Products (5 Products) '02 '03 '04 '05 '06 '07 Casting/ ’03: Crankshaft Kvaerner ’04: Workroll Forging Mold Steel IMGB ’07: Stern Frame Casting (Romania) Division Hydro Turbine Casting Selected by Ministry of Commerce, Acquisition date : June ’06 Industry and Energy

Crankshaft Production Capacity(Annual) Workroll World Market Share(’07) 430 PCS 10.1%

One of the World 3 Largest One of the World 4 Largest 7 II --6. 6. Key Key IndicatorIndicator (Construction)(Construction)

Orders (Wbn) Product Mix Building Sales (Wbn) 1,191 (Residence)

27% 691 804 Building 23% 593 (Non-Residence) 574 524 479 610 593 14% 36% Plant 550 588 Civil 575 '02 '03 '04 '05 '06 '07 Engineering 2007Sales

'02 '03 '04 '05 '06 '07 Overseas Construction Plant Division Business

Apartment Brand Name Completed Power Plants (Units) 46

Based on 500MW 8 Contents

Ⅰ. About Company

Ⅱ. Business Strategy & Outlook by Division

Ⅲ. ’08 Outlook & Mid-Term Business Plan

Ⅳ. ’08 1Q Results Review

Appendix 1. Balance Sheet 2. Doosan Group Shareholding Structure

9 ⅡⅡ-- 1 1.. ReasonsReasons forfor AdoptingAdopting NewNew MidMid-Term-Term BusinessBusiness VISIONVISION

ƒ Orders in 2007 (W10tr*) surpassed our 2009 order target Early (W6.9tr) set in 2004 achievement of mid-term goal

ƒ Achieved most of the objectives in the 10-year corporate Achievement of long-term aspiration set in 2004 aspiration –Successfully converted to EPC business model • Need for stretched mid- –Gained leading position in Middle East and India power term target reflecting early markets achievement of mid-term –Successfully penetrated into the US and EU through plans, expansion of overseas affiliate (Doosan Babcock) accessible markets, and –Secured original boiler technology and steam/gas turbine current market environment models –Secured low cost, overseas production base through the manufacturing plant in Vietnam and IMGB –Growth of lucrative water business

Change in ƒ Expanded business opportunities due to faster-than- market expected market growth and limited suppliers environment ƒ Access to Southeast Asia, EU, U.S., etc. in addition to existing markets of the Middle East, India, and Korea

* Includes overseas affiliates

10 ⅡⅡ-- 2 2.. NewNew MidMid-Term-Term BusinessBusinessVISION VISION

: As is As-is : Expected position in 2015* Global 500 : Expected position in 2020** 20%

KHNP POSCO

KT “Become a GE ENERGY Global Leader in Power & Water” Doosan Doosan Samsung Heavy Heavy Mobis ’15* ’20** In 2015 10% Orders W21tr, Siemens

EBIT/Sales Alstom Sales W17tr, Doosan OP Margin 10% Heavy Hyundai In 2020 Heavy Hyundai Motors MHI Sales W30tr Toshiba

As-is W1tr Club (Top 19 Companies) Low W15tr W30tr W50tr Revenue * Advance into the top 20 (current OP basis) ** Achieve GE Energy’s current sales level of W17tr

11 ⅡⅡ-- 3 3.. OutlookOutlook byby DivisionDivision (Power(Power Plant)Plant)

Wbn, % Orders Business Environment and Strategy

NuclearNuclear ƒ Potential demand in the US and EU is materializing and Korea’s pro-nuclear policy to drive continued growth of nuclear business 8,184 6,697 6,358 6,654 ƒ Long-term growth foreseen in China and Russia 4,866 5,563 - China : 60~70 units (~ ’20), 200 units (~ ’30) - Russia : Replacement demand for natural gas power plants estimated 50 ~ 60 units ƒ Shorten production period for main equipment and raise 2007 2008 E 2009 P 2010 P 2011 P 2012 P production capacity ƒ Strengthen retrofit business ƒ Expecting rapid growth of domestic orders in 2009 and 2012, Sales and OP Margin and pursuing exports of Korean standard type nuclear power plants 10.3% ThermalThermal 8.8% 9.2% 8.0% ƒ Continued growth of the world’s power market due to fast economic growth in developing countries 4.9% 6.0% ƒ Expand highly lucrative plant upgrade and EPC businesses 6,849 5,837 6,160 in Middle East and Southeast Asia 3,501 4,210 ƒ Lead the market with our core technology in boiler and 2,046 strengthen cooperation with companies having core technology in turbines 2007 2008 E 2009 P 2010 P 2011 P 2012 P ƒ Build overseas design and manufacturing facilities to expand capacity and secure cost competitiveness

12 ⅡⅡ-- 4 4.. OutlookOutlook byby DivisionDivision (Industrial)(Industrial)

Wbn, % Orders Business Environment and Strategy

DesalinationDesalination ƒ Increase in desalination demand due to global water scarcity 2,246 1,963 1,777 1,868 1,838 ƒ Growing demand for desalination due to infrastructure and economic development policies in the Middle East 461 ƒ Successfully entered RO market and secured MED/RO technology to prepare for rising demand 2007 2008 E 2009 P 2010 P 2011 P 2012 P ƒ Penetrate into non-Middle East markets through RO and water treatment business ƒ Develop technology to enhance MSF efficiency and reduce Sales and OP Margin construction cost of large-scale MED/RO ƒ Diversify into non-Middle East markets 8.6% 7.2% MaterialMaterial HandlingHandling EquipmentsEquipments 2.5% 6.4% 5.0% 0.5% ƒ Annual growth of 7.1% expected until 2015 for harbor equipment 1,808 1,345 1,483 871 819 1,039 ƒ Raise global market share to 10% from 6% by boosting price competitiveness using Vietnam production plants to capture the world’s No.2 position 2007 2008 E 2009 P 2010 P 2011 P 2012 P

13 ⅡⅡ-- 5 5.. OutlookOutlook byby DivisionDivision (C/F)(C/F)

Wbn, % Orders Business Environment and Strategy

Casting/ForgingCasting/Forging

ƒ Steady growth of demand in C/F material business (e.g., steel, shipbuilding, power) 778 795 662 741 506 586 ƒ Growing demand for crankshafts due to high global market share of Korean shipbuilders and Doosan Engine’s capacity expansion

2007 2008 E 2009 P 2010 P 2011 P 2012 P ƒ Focus on cost reduction and market diversification to cope with fiercer competition – domestic and overseas competitors are expanding capacity and investing in new, large-scale products Sales and OP Margin ƒ Forecasting a shortage in core materials due to growth of the power equipment market ƒ Sustain growth in orders and sales by using IMGB’s production capacity 26.5% 27.2% 24.3% 25.2% 25.6% 26.0%

DoosanDoosan IMGBIMGB 564 591 613 636 482 545 ƒ Plan to double steel production via capacity expansion ƒ Secure similar level of productivity as Changwon plant

2007 2008 E 2009 P 2010 P 2011 P 2012 P ƒ Expecting turnaround to profits led by order and sales growth from 2008

14 ⅡⅡ-- 6 6.. OutlookOutlook byby DivisionDivision (Construction)(Construction)

Wbn, % Orders Business environment andStrategy

DomesticDomestic ƒ 2% annual growth expected until 2012, construction investment in 2008 to be similar as in 2007 1,800 1,550 1,490 1,600 ƒ Concentration in profitable projects related to public PF, 1,191 1,029 development projects and urban redevelopment work ƒ Sustainable orders for plants (e.g., mid-small size cogeneration plants, LNG tanks) 2007 2008 E 2009 P 2010 P 2011 P 2012 P ƒ Grow into leading player in the development business with capability as a developer in the medium term Sales and OP Margin

OverseasOverseas 10.0% 10.7% 8.8% 8.6% 9.2% ƒ Sustained demand growth for roads, rails, urban 5.6% development, etc. backed by oil money in the Middle East

1,500 ƒ Growing infrastructure investment and urban development in 1,158 1,289 968 newly industrializing countries such as Vietnam, the 691 799 Philippines, etc. ƒ Grow into a global player specializing in power and 2007 2008 E 2009 P 2010 P 2011 P 2012 P desalination plant construction

15 Contents

Ⅰ. About Company

Ⅱ. Business Strategy & Outlook by Division

Ⅲ. ’08 Outlook & Mid-Term Business Plan

Ⅳ. ’08 1Q Results Review

Appendix 1. Balance Sheet 2. Doosan Group Shareholding Structure

16 III - 1. ’08 & Mid-Term Business Plan Summary Rapid growth to continue on swelling orders and robust earnings of affiliates

Wbn, %

2007 2008 2009 2010 2011 2012 Results Forecast Plan Plan Plan Plan

Orders 7,023 8,956 10,776 10,427 10,995 13,025

Sales 4,090 5,665 6,780 8,931 9,546 10,793

Operating Profit 283 414 617 858 968 1,193 Margin(%) 6.9% 7.3% 9.1% 9.6% 10.1% 11.1%

Pre-tax Profit 401 - 941 1,333 1,586 1,967

Net Profit 299 - - - - -

Liabilities/Equity 143.1% 146.8% 117.2% 97.4% 70.9% 54.4% Ratio

17 IIIIII --2. 2. ’’0808 Annual Annual ForecastForecast Orders and sales to grow on rising nuclear, power EPC and desalination demand, but higher raw material prices resulted in a downward revision of OP

Wbn, %

+702 ƒ Orders: W702bn increase expected . Increase of nuclear orders from WEC Orders . Growth in power EPC orders backed by 8,956 rising power demand in Southeast Asia 8,254 . Growth in desalination orders from Middle East

ƒ OP: Downward revision by W58bn . Lowered by W58bn from initial plan, considering -58 hike in raw material prices such as pipes, plates, OP steel scrap and re-bar 472 414 (8.5%) . Intend to offset the raw material impact by growing (7.3%) sales and reducing SG&A +119 ƒ Sales: W119bn increase expected . Sales to be boosted by material handling Sales 5,546 5,665 equipment and power and construction divisions

Plan Forecast

18 IIIIII --3. 3. RawRaw MaterialMaterial PricePrice IncreaseIncrease ImpactImpact Additional cost of W57bn due to increased price of major raw materials in 2008, but the impact to diminish to W10bn in 2009 and W6bn in 2010

W1,000 /Ton Wbn 57 2 2,798 C/F Con. Power Nuclear 2,457 (26%) Plates 2,220 (Pow.) 24 1,116 1,060 (66%)

Section 673 10 Steels 8 750 (Pow.) 717 (25%) 19 2 6 Rebar 601 (Con.) 3 479 479 (33%) 12 3 Steel 360 Scrap (C/F) '08.1Q '08.E '09.E '10.E ’08. P ’08.1Q ’08. E

Trend of major raw material price increase Expected Impact

19 IIIIII --4 4.. MidMid-Term-Term NewNew OrdersOrders byby DivisionDivision High growth of power division due to rising nuclear demand and overseas thermal demand Wbn 13,025

10,776 10,995 10,427 Pow. 8,956 8,184 7,023 6,654 6,697 6,358 Ind.

5,563 4,866 C/F 2,246 1,867 1,838 1,963 1,777 461 662 741 778 795 506 586 Con. 1,800 1,190 1,029 1,550 1,490 1,600

2007 2008 E 2009 P 2010 P 2011 P 2012 P

20 IIIIII --5 5.. MidMid-Term-Term NewNew OrdersOrders byby RegionRegion Overseas orders to comprise 70% of total led by Middle East, India and Asia Wbn, %

13,025 [Overseas] 9,108

10,776 10,995 10,427 7,405 2,671 M/E 6,671 6,438 8,956 India 5,862 70% Over. 2,982 1,291 54% 4,972 7,023 2,557 China 64% 67% 3,080 269 2,355

Asia 72% 2,019 2,609 580 1,400 202 71% 110 149 1,040 133 US 1,632 132 975 Dom. 2,124 1,581 1,007 1,229 103 46% EU 36% 33% 30% 265 735 28% 456 616 1,780 29% 498 171 636 270 292 180 323 Etc. 140 654 358 370 183 300 2007 2008E 2009P 2010P 2011P 2012P 2007 2008E 2009P 2010P 2011P 2012P

21 IIIIII --6 6.. MidMid-Term-Term OrderOrder BacklogBacklog Order backlog forecast to increase at 16.5% CAGR

Wbn

22,188 19,956 18,507 17,011 Pow.

13,648 14,060 12,725 Ind. 10,357 12,232 11,711

9,418 C/F 7,356 3,421 2,982 2,502 1,601 2,008 771 929 643 456 606 Con. 316 357 3,478 3,778 2,042 2,272 2,836 3,167

2007 2008 E 2009 P 2010 P 2011 P 2012 P

22 IIIIII --7 7.. MidMid-Term-Term SalesSales Robust sales growth of 21% CAGR through 2012 on rising orders

Wbn

10,793 9,546 8,931 Pow.

6,849 6,780 6,160 Ind. 5,837 5,665 4,210 4,090 3,502 C/F 2,046 1,808 1,345 1,483 1,039 871 819 614 636 Con. 564 591 482 545 1,500 691 799 967 1,158 1,289 2007 2008 E 2009 P 2010 P 2011 P 2012 P

23 IIIIII --8 8.. Mid Mid-Term-Term OperatingOperating ProfitProfit OP margin to continue expanding as OP grows faster than sales

Wbn, % 1,193 968 (11.1%) 858 (10.1%) OPOP (%)(%) 617 (9.6%)

(9.1%) 414 10,793 9,546 283 8,931 (7.3%) (6.9%) 6,780 5,665 4,090 SalesSales

2007 2008 E 2009 P 2010 P 2011 P 2012 P

24 IIIIII --9 9.. MidMid-Term-Term CAPEXCAPEX PlanPlan Upward revision in investment plan to develop technology and expand capacity for future business

Wbn

284 281 269 260 270

112 R & D 122 162 166 152 153

74 172 147 117 119 Facility 92 108

2007 2008 P 2009 P 2010 P 2011 P 2012 P

25 Contents

Ⅰ. About Company

Ⅱ. Business Strategy & Outlook by Division

Ⅲ. ’08 Outlook & Mid-Term Business Plan

Ⅳ. ’08 1Q Results Review

Appendix 1. Balance Sheet 2. Doosan Group Shareholding Structure

26 IV - 1. ’08 1Q Business Results Review Sales and OP increased YoY, but won depreciation led to a pre-tax loss.

Wbn, %

2007 2008 2008 %Plan 1Q Results 1Q Results YoY 1Q Plan

Orders 2,415 1,488 -38.4% 2,148 -30.7%

Sales 801 964 +20.3% 1,041 -7.3%

OP 36 41 +5 64 -23 Margin 4.5% 4.3% -0.2%p 6.2% -1.9%p

Pre-tax Profit 59 -58 -117 74 -132 Net Profit 30 -39 -69 53 -92

Real FCF -85 -259 -174 -280 21

Net Debt 1,400 1,659 259 1,680 -21

Liability/Equity 143.1% 179.5% +36.4%p 161.7% +17.8%p Net D/E Ratio 61.0% 79.3% +18.3%p 74.5% +4.8%p

※ Net Debt, and Debt and D/E ration in 1Q 2007 are on end-2007 basis.

27 IVIV --2 2.. NewNew OrdersOrders byby DivisionDivision Despite a 38% YoY decline in new orders caused by delayed order recognition, the annual order forecast is revised upward to W8.9tr reflecting the increase in new orders for nuclear, power EPC and desalination. Wbn, % 8,956

2,415 5,564 Pow.

-927 (-38.4%) 1,488 Ind. 1,625

742 2,269 1,777 32 C/F 133 394 1,488 1,330 625 149 1,818 586 203 742 876 Con. '07.1Q '08.1Q 394 191 121 1,029 149 140 87 120 246 203 '07.3Q '07.4Q '08.1Q '08(E)

28 IVIV --3 3.. OrdersOrders byby RegionRegion New orders to increase from the Middle East and US due to growth in nuclear and desalination orders Wbn, %

8,956 6,438

72% 3,576 71% Over. 4,972 2,557 3,025 M/E 51% 54% 2,609 580 28% Dom. India 49% 46% 29% 1,837 1,630 110

2005 2006 2007 2008(E) China 1,007 634 1,631 1,233 2,517[Dom.] 265 Asia 2,051 1,739 179 498 US 81% 36 1,395 56 735 48% 66% Others 136 264 270 56% EU 195 171 440 140 52% 19% 81 44% 34% KEPCO 654 Etc. 78 20 183 58 57

2005 2006 2007 2008(E) 2005 2006 2007 2008(E)

29 IVIV --4. 4.Orders Orders BacklogBacklog Order backlog reached W11tr at the end of 1Q, and is expected to reach W13.6tr by the year’s end Wbn, %

13,648

10,996 10,996 Pow. +1,972 10,375 10,357 9,024 (+21.8%)

9,418 Ind. 7,579 5,760 7,579 7,321 7,356

C/F 898 975 319 324 1,601 2,047 2,118 975 764 643 357 244 316 324 Con. '07.1Q '08.1Q 2,046 2,042 2,118 2,272

'07.3Q '07.4Q '08.1Q '08(E)

30 IVIV --5 5.. SalesSales 1Q sales grew 20.3% YoY and annual sales forecast is revised upward to W5.7tr

Wbn, %

5,665

3,502 Pow. 964

801 +163 (+20.3%)

Ind. 591 375 1,451 819

188 110 C/F 964 900 823 545 111 132 127 131 449 591 255 Con. '07.1Q '08.1Q 181 126 110 799 117 132 153 247 131

'07.3Q '07.4Q '08.1Q '08(E)

31 IVIV --6. 6.Operating Operating ProfitProfit Operating profit (plan) is revised down due to higher raw material costs, but intend to prop up annual operating profit by boosting price and sales

Wbn, %

-23 (7.3%)414 (-1.9%p)

Pow.

211 +5 (-0.2%p) (6.0%) Ind.

119 21 (2.5%) 64 137 C/F (6.2%) 60 60 (25.2%) 41 41 (4.3%) 36 15 6 (4.5%) 5 Con. 33 41 45 26 (5.6%) 14 20 15 -8 -7 '08.1Q(P) '08.1Q '07.1Q

'07.3Q '07.4Q '08.1Q '08(E)

32 IV - 7. Pre-tax Profit and Net Profit A deficit in pre-tax profit and net profit was recorded due to the increase in F/X translation loss and equity method loss from affiliates

Wbn, %

41 -36

-42

-20 -58 +19 -39 -1

OP Equity F/X* Net Etc.Pre-tax Tax Net Profit Method Interest** Profit Gain/Loss

* F/X -4, F/X Translation Loss -52, Currency Forward Gain 14 ** Interest Income 4, Interest Expense 24

33 IVIV --8 8.. EquityEquity MethodMethod Gain/LossGain/Loss Sharp decrease due to Engine’s valuation loss on currency forward option, but other affiliates posted favorable results Wbn, %

127

17 -8 (-0.4%)

60 Meca. 48 47 188 180 -36 9 13 22 -34 9 14 Eng. 5 60 24 79 8 13 14 31 10 8 13 13 34 6 6 Con. -1 -8 48 -17 63 -2 Infra. 27 -77 25 29 -38 9 -6 Etc. '07(A) '08(E)

'07.1Q '07.2Q '07.3Q '07.4Q '08.1Q

34 IVIV --9. 9. DoosanDoosan EngineEngine’s’s Option Option ImpactImpact A loss of W208bn occurred due to valuation loss on currency forward option, but future sales increase will offset the loss

Contract Valuation Expiration @ 938 @ 991 @ 991

F/XF/X ’08 ’09 ’10 ’11 ’12 AppreciationAppreciation Increase of OP : (+) 53 (Offset option valuation loss)

Option : Valuation Loss (-)53

F/XF/X @ 938 @ 890 @ 890 DepreciationDepreciation

Option : Valuation Gain (+)48

Decrease of OP : (-) 48 (Offset option valuation gain)

35 Appendix 1. Balance Sheet

Wbn

Assets / Liabilities (As of end of March ’08) Net Debt

Current Liabilities 1,639 1,659 Current Assets 2,558 1,400 2,291 (S/T Borrowings : 807 1,202 (Cash: 247) Current Portion Of L/T : 208)

L/T Liabilities Fixed Assets 1,163 3,525 (Bond: 587 245 L/T Borrowings : 304) (Investment : 2,395 Property, Plant & Equity -151 Equipment : 967) 2,095 (Capital : 524)

'03'04'05'06'07'08.1Q W5,816bn

36 Appendix 2. Doosan Group shareholding Structure

As of March 2008

Major Shareholder

37.5%

Doosan Corp. (000150.KS)

57.9% 44.2% 41.2%

Oricom 9.7% Samhwa Crown DHIC (010470.KS) (004450.KS) (034020.KS)

1.7% 5.4% 39.9% 38.9% 51.0% 100%

Construction 7.5% Infracore Engine Mecatec (011160.KS) (042670.KS) (Unlisted) (Unlisted) 6.0% 6.0%

37 Thank You

38 Changwon Plant