HD Hyundai Heavy Industries (329180) Investor Presentation summary

Merger structure and timeline

• HD Hyundai Heavy Industries and HD Hyundai Mipo will merge, with HD HHI as the surviving entity and HD HMD dissolved, using a share swap ratio of 0.4059146 HHI shares per HMD share.

• The merger aims to create an integrated entity, with a new Singapore investment subsidiary to focus on overseas business investments.

• Key dates: Board resolution on Aug 27, 2025; shareholders' meeting on Oct 23, 2025; merger effective Dec 1, 2025; capital contribution to overseas subsidiaries on Dec 23, 2025.

Strategic objectives and background

• Consolidation targets maximizing shipbuilding growth by unifying resources and capabilities, especially in defense and special-purpose vessels.

• The merger responds to global naval expansion, stricter environmental regulations, and competition from Chinese shipyards.

• Aims to reclaim market share and improve profitability through integrated operations and overseas yard development.

K-defense and global expansion

• Rising global naval demand and the MASGA agreement with the US open new opportunities for warship construction and technology transfer.

• Plans include joint construction, MRO, and local market entry in the US, leveraging a $150 billion MASGA fund.

• Collaboration with global partners and expansion into North America, Southeast Asia, and Europe are underway.