[Let's Run Again, Construction Korea] Hyundai Engineering & Construction Achieves Qualitative Growth Focused on Profitability through Balanced Domestic and International Orders

Achieved 93% of Annual Order Target in Q3... Secured Stable Workload for 4 Years
Strong Financial Structure and Industry-Leading Credit as Driving Forces

Hyundai Engineering & Construction has been included in the Dow Jones Sustainability Index (DJSI) World for 12 consecutive years in the 2021 DJSI evaluation and was selected as the global No. 1 in the "Construction & Engineering sector" for the second consecutive year.

[Asia Economy Reporter Kangwook Cho] Hyundai Engineering & Construction is solidifying its position as a traditional powerhouse in securing orders through its extensive construction experience and technical know-how, despite challenging global conditions such as the prolonged COVID-19 pandemic and low oil price trends. In particular, following last year, it is continuing its management policy of "Realizing a Global Construction Leader" equipped with construction capabilities suited for the new era, achieving qualitative growth focused on profitability.

Hyundai Engineering & Construction's order target for this year is KRW 25.4 trillion. According to disclosures, the cumulative orders secured by Hyundai Engineering & Construction up to the third quarter of this year have already reached KRW 23.6731 trillion, achieving 93% of the annual target. The order backlog also maintained KRW 77.2312 trillion, up 18.3% compared to the end of last year, securing about four years' worth of stable work.

Domestically, it won projects such as the redevelopment of Masanhwoeon 2 District in Changwon, Gyeongnam, the new construction for the Osan Galgot-dong regional housing association, and the Jeju Hallim offshore wind power investment and development project. Overseas, it secured orders for the Shaw Tower construction in Singapore, the PKG2 terminal construction at Chinchero New Airport in Peru, and the 380kV transmission line construction between Ha'il and Al Jouf in Saudi Arabia. By maintaining a balanced ratio of domestic and overseas orders, it is sustaining a stable business foundation. Moving forward, Hyundai Engineering & Construction plans to strengthen its overseas market order competitiveness through strategies such as enhancing EPC (Engineering, Procurement, and Construction) competitiveness in design, execution, and cost, focusing on competitive superior work types, and diversifying markets.

Hyundai Engineering & Construction is particularly focusing on qualitative growth centered on profitability while maintaining stability based on a solid financial structure and top credit ratings. Cash and cash equivalents (including short-term financial instruments) amount to KRW 5.2567 trillion, and net cash stands at KRW 3.0653 trillion, demonstrating abundant cash liquidity. The current ratio, an indicator of payment ability, is 200.2%, the debt ratio is 103.2%, and the credit rating is AA-, the highest level in the industry, maintaining a robust financial structure. Such a solid financial structure allows the application of the industry's lowest interest rates when raising funds for project execution. Business partners participating in projects together can also receive the same benefits, thus creating a win-win effect.

Hyundai Engineering & Construction Sustainability Management Report.

The Korea Standards Association selected Hyundai Engineering & Construction as the No. 1 company in the general construction sector at the "2021 Korea Sustainability Awards," which evaluates the level of social responsibility implementation and sustainability of domestic companies based on the international standard for social responsibility, ISO26000, proving its sustainability both domestically and internationally.

Hyundai Engineering & Construction is also highly regarded in the global market. It has earned an integrated A grade for four consecutive years in the Environmental, Social, and Governance (ESG) sector evaluation conducted by the Korea Corporate Governance Service (KCGS) on 765 listed companies in Korea. Additionally, in the "2021 Dow Jones Sustainability Index" (DJSI) evaluation, it was included in the DJSI World for the 12th consecutive year and was selected as the No. 1 company worldwide in the "Construction & Engineering sector" for two consecutive years. The DJSI World Index is awarded only to the top 10% of companies worldwide in ESG management among the top 2,500 companies by market capitalization. Hyundai Engineering & Construction has also been selected as the global best company "Industry Leader" a total of nine times up to this year.

A Hyundai Engineering & Construction official stated, "Despite the difficult global economic conditions, we will continue investments in each field for future growth, such as smart construction innovation and new business promotion, driven by stable order acquisition and solid financial soundness, to realize a change in the construction paradigm."