Leading the New Era of

Steel

Solutions for Oil & Gas

Hyundai Motor Group

Hyundai Steel

Hyundai Steel: From a Comprehensive Steel Company to a Major Global PlayerWe have now finished the creation of a steel production system with a total annual capacity of twelve million tonnes at our Dangjin Integrated Steelworks. The system consisting of a third blast furnace that adds to the operations of our first and second ones, allows us to optimize the efficiency of all our facilities giving us a total crude steel production capacity of twenty-four million tonnes when added to the output of our electric arc furnaces. This makes us one of the world’s top ten comprehensive steel makers. Our over riding goal is to become a world-class steel company by generating synergies between our integrated steelworks and electric arc furnace business.

Global Top 10

6 Business Groups

Volume

Applications

• Automobile

• Construction

• Parts (Machinery)

• Steel

• Logistics

• Finance

AUTOMOBILE

STEEL

CONSTRUCTION

FINANCE

OTHERS

PARTS

• Sales of USD 250 billion

• 57 Affiliates

• 150,000 Employees

• Automotive

• Building

• Shipbuilding

• Onshore Energy

• Offshore Energy

• Wind Power

• Pipeline

GLOBAL NETWORK

Qingdao Factory

Incheon WorksPohang Works

Suncheon Works

DangjinIntegrated Steelworks

CORPORATE HISTORY

1953. 06 Established as Korea Heavy Industry Corporation

1962. 11 Renamed to Incheon Heavy Industry Company, Ltd.

1964. 09 Established Incheon Iron and Steel Company

1970. 04 Merged with Incheon Heavy Industry Company, Ltd.

1978. 06 Incorporated into Hyundai Group

1987. 05 Undertook initial public offering (IPO)

1994. 12 Completed 90-tonne electric arc furnace mill and second

reinforcing bar mill

1998. 03 Completed 120-tonne electric arc furnace mill and new

mid-sized rolling mill

2000. 03 Merged with Kangwon Industries, Ltd.

2000. 12 Acquired Sammi Steel Company, Ltd.

2001. 04 Incorporated into Hyundai Motor Group

2001. 07 Renamed to INI Steel

2004. 10 Acquired Hanbo Iron & Steel’s Dangjin plant

2006. 03 Renamed to Hyundai Steel Company

2006. 09 Held opening ceremony for Dangjin plant’s new

50,000-tonne port

2006. 10 Held ground-breaking ceremony for Integrated Steelworks

2009. 08 First arrival of raw materials for Integrated Steelworks

2009. 11 Began operation of coke, sintering, and heavy plate mills

at Integrated Steelworks

2010. 01 Operation of Blast Furnace No.1

2010. 04 Completed Integrated Steelworks

2010. 11 Operation of Blast Furnace No.2

2011. 04 Celerbrated the ground-breaking ceremony for Blast Furnace

No.3 at Dangjin Integrated Steelworks

2012. 11 Obtained Green Management System certificate for

Dangjin Integrated Steelworks

2013. 09 Operation of Blast Furnace No.3

2013. 12 Merged with Hyundai Hysco’s Cold-Rolled Coil Division

Chairman Chung Mong-Koo, making keynote presentation to celebrate incorporation of Hyundai Steel into Hyundai Motor Group in 2001.

Signing of contract for Blast Furnace engineering and core facilities in 2007.

Chairman Chung Mong-Koo, firing Blast Furnace No.1 in 2010.

Began operation of Blast Furnace No.3 at Dangjin Integrated Steelworks in 2013.

Heavy Plate for Offshore Plant− Low Temp. Heavy Thickness TMCP− CTOD Guaranteed -40˚C− Corrosion Resistance

Pipelines for Onshore and Offshore− Sour Service (HIC/SSCC Resistance)− Wear Resistance− Low Temp. Toughness

Rolled Shape for Offshore Structure− Low Temperature Service− High Strength/Heavy Thickness− Weldability

A Broader Product Portfolio

No. 1

BalancedGrowth

Blast Furnace

Electricarc

Furnace

Offshore Pipe (Line Pipe, OCTG) Pressure Vessel Shipbuilding

17,300 tonnes (2011-2013) 1,461,000 tonnes (2011-2013) 230,000 tonnes (2011-2013) 2,155,000 tonnes (2011-2013)

CoreTechnology

• Low Temp. Heavy Thickness TMCP• CTOD Guarantee -40˚C• Corrosion Resistance

• Anti-Sour/Wear resistance• Low Temp. toughness• Seamless

• High Strength• Heat Treatment• Low Temp. toughness• Anti-Sour

• Low Temp. • Heavy Thickness• Crack Arrestability

Grade API-2H-50, API-2W-50 API-5L B, API-X42~46, API-X60, API-X65, API-X70, P110, J55

A515, A516, A516-N,A516-S-N

A/B/D/E, AH32, AH36, DH32, DH36, EH32, EH36

KeyClients

Hyundai Heavy Industry, DSME, Samsung Heavy Industry, EPC

TMK IPSCO, Welspun, Tenaris, EEW, MAN

Major EPCs Hyundai Heavy Industry, DSME, Samsung Heavy

Hyundai Steel ensures that health and safety of its employees, contractors and neighbouring communities

Activities1. Safety Rainbow Campaign

2. 3 First for Safety and Perfect S-Day CampaignsPohang Works operates 3 First for Safety and Perfect S (Safety)-Day campaigns to promote safety at work sites. 3 First for Safety means that safety must be practiced by me first, from here first and from now. Perfect S-Day is another safety campaign aimed at encouraging employees to pay continued attention to safety.

3. TOP 10 CampaignDangjin Works launched Top 5 safety campaign-supervising and ex-amining the five prescribed safety items-in 2011 as a start for its safety roadmap. In 2012, Dangjin Works added 5 additional safety items and expanded the campaign by giving it a new name, Top 10 campaign. It also provided number of safety training programs to 8,004 employees, supervisors and workers from outsourced construction firms.

Safety Training Center In addition to its various safety training programs, Hyundai Steel has safety training centers at its Incheon, Pohang and Dangjin Works in order to more effectively educate employees on safety issues. Equipped with diverse safety devices and accident simulation programs, these centers are accessible to both our employees and visitors and provide effective, hands-on education programs.

Health Management Hyundai Steel is committed to creating a safe and healthy workplace for all of its employees. Each plant has an infirmary and a fitness room to promote a healthy lifestyle for our employees. In addition, we subsidize various health expenses as well as provide regular health check-ups and medical subsidies to promote the health of our employees as well as their family members.

TS (ksi)

HEAVY PLATE

Project GARAGOL-DENIZ WESTOFFSHORE PLATFORM

PB-LITORAL-A PLATFORM SOUTH PARS GAS FIELD KEYSTONE XL PIPELINE

Customer

Product EN-S355G7/G8+MEN-S420G2+M

A572-50, API-2H-50, API-2W-50 (CTOD)

A516-65S-NAPI-X52MS

API-X65MS-L2

Locatioin/Year

TURKMENISTAN2013-2015

MEXICO2012-2015

IRAN1998-

USA2013-

ROLLED SHAPE

Project GORGON CHAYVO OPF MOHONORD TLP HEJRE PLATFORM

Customer

Product SM490YB A572 G50 SM490YB S355G11+M, S355J2

Locatioin/Year

AUSTRALIA2010-2012

RUSSIA2010-2011

ANGOLA2010-2011

NORTH SEA2013-

Technical Services

Supply Solution for Oil & Gas Track Record Highlights

Project References

Customers

Sour Service Capability Low Temperature ApplicationHeavy Thickness Reliability

• Ultrasonic Test

• Steel for Onshore/Offshore Plant

9-100 mm6-100 mm 5-75 mm

Heavy Plate Rolled Shape

6-60 mm 2.5-25 mm

Heavy Plate Hot-Rolled Coil

6-100 mm

• CTOD• Offshore Structure and API

• Requirements - Low Temp. (-40˚C)/High Strength/ Heavy Thickness - HAZ Section

• Sour Service - HIC (Hydrogen Induced Cracking) Test (NACE Standard TM0284) - SSCC (Sulfide Stress Corrosion Cracking) Test (NACE Standard TM0177)

Weld Quality Evaluation

Low Temp. Fracture Toughness

Weldability Test CTS Test CTOD ESSO Test (Outsourcing)

Cold Cracking Test Resistance Varying Pre-heat Temp.

Ductile/Brittle FractureCondition of OffshoreApplication

Crack Arrestability forHeavy Thickness

• DWTT • High Strength API Linepipe

• Requirements - Low Temp./High Strength - Resistance of Brittle Fracture (Low Temp.)

Shipbuilding Pressure VesselOffshore Structure API

A API-X100M (Q4 ’14)

B, AH32/36/40/47

AH32 (COT)~35t (Q4 ’14)

D, DH32/36/40/47 S355G1/G4/G11/G12 API-X80M

API-X70API-X70M

API-X70MS

API-X60API-X60MAPI-X60MS

API-X56 A516-55

API-X46

API-X52

API-5LBAPI-5L BMAPI-5L BN

API-5L BMS (Q2 ’14)

API-X65API-X65MAPI-X65MOAPI-X56MS

API-X56M A285-C

API-X52MAPI-X52NAPI-X52MS

API-X42API-X42M

A387-11-C2 (Q2 ’14)

E, EH32/36/40/47 EN-S420G2+M NORSOK Y20/25

EN-S460G2+M EN-S355G 10+MS420 (G3, G4) (Q4 ’14)

S460 (G3, G4) (Q1 ’16)NORSOK Y30/35/40/45 API 2H-50Z

API 2W-50Z/60Z EN-S500G2+M (Q4 ’14)

A/D/E/F420 (Q3 ’14)FH32/36~80t

LT-FH32/36

RT

0˚C

-20˚C

-40˚C

-60˚C

100

90

80

70

60

55

50

45

40

Temperature Strength

A516-60/65A516-60S/65S-N

A387-12-C1 (Q2 ’14)

SB410(KS/JS) A387-11-C1 (Q2 ’14)

API-X46

API-X56 API-J55

API-5L B API-X42

API-X70 API-N80

API-X70MS (Q2 ’14)

API-X60API-X60MS

API-X52API-X52MS

API-X65API-X65MS

K55

X42MS

A516-70S-N A537-C1 A283-C

A516-70 A387-12-C2 (Q2 ’14)

A537-C2 EN-P355NL2

CommercialUnder Development

Heavy Plate for Offshore Plant− Low Temp. Heavy Thickness TMCP− CTOD Guaranteed -40˚C− Corrosion Resistance

Pipelines for Onshore and Offshore− Sour Service (HIC/SSCC Resistance)− Wear Resistance− Low Temp. Toughness

Rolled Shape for Offshore Structure− Low Temperature Service− High Strength/Heavy Thickness− Weldability

YS(ksi)

OFF

SH

OR

EO

NS

HO

RE

ExplorationSEMI DRILLING RIGS

ELECTRICITY

POWER PLANTS

FLOATING PRODUCTION(FPSO, TLP, Semi-FPU)

DRILLSHIPS

PETROCHEMICALPRODUCTS

PETROCHEMICALPLANTS

JACK-UP RIGS

VEHICLES

REFINING PLANTS

FIXED PLATFORM

TERMINALS SHIPPING

Production

Customer

Refining

Transportation

Receiving

Pohang Works

Only the second player in the world to develop high-speed magnetic levitation train rails

Products H Sections, Reinforcing Bar, Railroad Rail, Round Section, Roll, Track Shoe Assembly

Qingdao Factory

Meeting China’s rapidly increasing need for steel products

Products Track Assembly for Excavators, Roller

Incheon Works

Korea’s very first steel plant, boasting environmentally friendly, high-efficiency facilities

Products H Sections, Reinforcing Bar, Stainless Steel, Section Steel, Steel Casting Product and Ingot

Dangjin Integrated Steelworks

Korea’s first privately-invested blast furnace mill and a major growth engine for the steel industry

Products Hot-rolled Coil, Cold-rolled Coil, Heavy Plate, Reinforcing Bar

Suncheon Works

The world’s largest production capacity of 1.2 million tonnes

Products Cold-rolled Coil, Hot-dipped Galvanized Steel Sheet, Electrolytic Galvanized Steel Sheet, Pre-coated Steel Sheet

Supply Sources

Being equipped with both blast and electric arc furnace production facilities has allowed Hyundai Steel to build an industry-leading product portfolio,

generate synergies, and achieve healthy and balanced growth. We are evolving into one of the world’s leading comprehensive steel

companies, creating a brighter future for people everywhere through the unlimited possibilities of steel.

Iron Ore

Hyundai Steel (Cold Rolling Mill)

ShipsAutomobiles

Railways

Offshore Structure

Construction

Hyundai Steel (Hot Rolling Mill)

Rail for Railroads

StructuralSteel

Automotive Steel Sheets

Completed a Resources Recycling Business SystemKorea’s largest scrap steel recycler: Handled 10.16 million tonnes in 2013, representing 30.7% of the nation’s total

Steel Plates for Ships, and Oil and Gas

Blast Furnace

Scrap Steel

Industry-Leading Product Portfolio

Automotive Recycling Center (Scrap Steel Recycling)

Hyundai Motor and Kia Motors (Automobile Assembly)

Track Shoe Assemblies

Steel Casting Products for Ship Parts

Electric arc Furnace

Our Business

H Sections

Health & Safety

Day Flag (color) Slogan Daily Check Points

Mon Red No more Quickly Quickly! All rotating machines

Tue Orange Thoroughly clean up after you finish! Silging work

Wed Yellow Don’t be complacent in your skills! Work stand clean-up

Thu Green Beginner starts with safety training! Trucks/vehicle driving

Fri Blue You are your own guard for safety check! Binding machines/pushers

Sat Indigo Install safety facility before others! Safety scaffolding/handrail poles

Sun Violet Make it a habit to wear protective gear! Protective gear