Doosan Enerbility (034020) Investor Presentation summary

Strategic growth pillars and business focus

• Emphasizes clean energy, smart machines, and advanced materials as future growth pillars, including next-gen nuclear (SMR), gas turbines, renewables, and hydrogen technologies.

• Expands into semiconductor and electronic device materials, and automation solutions such as cobots and logistics.

• Focuses on production innovation, circular economy, and digital optimization using big data and AI.

Nuclear and gas turbine business developments

• Secured preferred bidder status for the Czech nuclear project, with contract negotiations ongoing and further global expansion targeted.

• Anticipates growth in SMR and replacement equipment markets, especially as data centers seek stable, carbon-free power.

• Expects over 10 orders for Korean nuclear reactors in the next five years and is in talks with Big Tech for data center power supply.

• Gas turbine business saw five orders in 2024, with revenue projected to increase tenfold by 2038, driven by domestic and North American demand.

• U.S. subsidiary DTS is leveraged to expand gas turbine services and brand presence in North America.

Financial performance and order outlook

• 3Q24 orders decreased year-over-year due to a high base in 2023, but remain aligned with annual targets; EBIT improved on high-margin project sales and lower SG&A.

• Net profit rose due to valuation gains on NuScale shares; debt ratio improved with resolution of prior excess billing projects.

• Consolidated sales and EBIT declined, impacted by Doosan Bobcat's lower earnings amid U.S. policy uncertainty and inventory adjustments.

• Cumulative 3Q24 orders reached KRW 3.2tn, mainly from domestic gas CCPP and service orders, with high visibility to achieve the KRW 6.3tn annual target.