DOOSAN Global Water Business Introduction

April 21st 2008Young Jin BaekHead of Desalination R&D Center

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Contents

Introduction of DOOSAN1

DOOSAN Desalination Business2

DOOSAN Desalination R&D CenterDOOSAN Desalination R&D Center3

4 Global HR Activity

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• DOOSAN Chang Won Plant- Ground Area : 4,429,000 m2

• - Roofed Area : 425,000 m2

Manufacturing Shops• Boiler & Piping• NSSS• Turbine• Generator• Rotor• Blade• Heavy Fabrication

• Desalination• Foundry• Forging• Workroll• Gas Turbine• Defense Industries• I&C

• Main Office• Dock Facilities• R&D Center• NDE and Laboratory• Balancing Test• Guest House

Facilities

Main Office

Quay (Loading & Unloading)

R&D Center

Balancing TestFactory

•Boiler EquipmentFactory

•Bending/Welding Factory

•Turbine & Gen. Equipment Factory

•Casting Factory•Forging Factory

•I&C Factory

•Nuclear Equipment Factory•Desalination Evaporator

assembly Field

Dormitory

Guest House

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A panoramic view of Doosan Changwon plant

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Power Plant BGThermalCombined CycleRetrofit & Re-poweringEngineering ServiceMaterial Handling Equip.Environment Plant, I&C

Casting & Forgings

Desalination Plant BGMSF (Multi Stage Flash)MED (Multi Effect Distillation) RO (Reverse Osmosis)Water & Waste Water Treatment

Civil & ConstructionPlant ConstructionBuilding Construction

Power plant raw materialCrank ShaftWork roll

Nuclear Power BGDOOSAN Changwon Plant- Ground Area : 4,429,000 m2

- Roofed Area : 425,000 m2

EPC Provider (Turn-key base)

KSNP (1000MW,1400MW)CANDU (700MW)Rehabilitation

DOOSAN supply range covers Desalination, Power & Nuclear technologies

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Client : ADWEA (Abu Dhabi Water & Electricity Authority)

Capacity: 62.5 MIGDScope : EPCPeriod : Jul. ’00 ~ Dec.’02Location : Abu Dhabi, UAEStatus : Completion (’02.8)

Client : UWEC (Union Water & Electricity Company)

Capacity : 660 MW, 100 MIGD(MSF 62.5 MIGD+ SWRO 37.5 MIGD) Scope : EPCPeriod : Jun. ’01 ~ Dec. ’04Location : Fujairah, UAEStatus : Under the Warranty

Client : ADWEA (Abu Dhabi Water & Electricity Authority)

Developer : CMS Capacity : 720 MW, 50 MIGD Scope : EPC Period : Dec. ’98 ~ Aug. ’02Location : Abu Dhabi, UAEStatus : Completion (’02. 8)

Client : Ministry of EnergyCapacity : 100 MIGD Desalination Scope : EPCPeriod : May. ’04 ~ Jan. ’07Location : Sabiya, KuwaitStatus : Under Construction

Client : Sohar Power Company Capacity : 596 MW, 33 MIGDScope : EPCPeriod : Aug. ’04 ~ Apr. ’07Location : Sohar, OmanStatus : Under Construction

Client : Q-PowerCapacity : 60 MIGD Scope : EPCPeriod : Oct. ’04 ~ Jun. ’08Location : Ras Laffan, QatarStatus : Under Construction

Um Al Nar

Sabiya I &II

Taweelah A2 Fujairah

Sohar IWPP Ras Laffan B

DOOSAN is only one company who has power and desalination business experiences in Middle East

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Global Leader in Desalination Plant Business

Shuaibah Ph 3. in Saudi ArabiaWorld Largest Desalination Plant (194 MIGD)

Fujairah Plant in UAEWorld First Hybrid (MSF+RO) Power & Desalination Plant (660 MW + 100 MIGD)

Umm Al Nar Plant in UAEWorld Shortest Delivery Desalination Plant (62.5 MIGD)

Al Taweelah A2 Plant in UAEWorld First IWPP Desalination Plant (50 MIGD)

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• 40% Desalination Plant Market Share in 2001 (The World Leader)

• 23% Ship Crankshaft Market Share in 2003 (The World’s Top 3)

• 30% Heat-Recovery Steam GeneratorMarket Share in 2004(The World Leader)

• 7.2% Work Rolls Market Share(The World’s Top 5)

• 8.8% Tool & Die Steel Market Share in 2005 (The World’s Top 3)

DOOSAN World Best Products

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Seoinchon CCPP #1,2 (8 Units x 250MW)1993 Project of the Year Award by PEI

(Power Engineering International)

Younggwang Nuclear Power Plant#3~4(2 Units x 1000MW)

1996 Project of the Year Award by PEI(Power Engineering International)

Fujairah Power and Water Project (660MW, 100 MIGD [MSF 62.5 + RO 37.5])

2005 Desalination Plant of the Year Award by GWI (Global Water Intelligence)

Best Plants in the World!

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Vision and a technology strategy Long-term strategy

Ground Work

Quantum Jump

GlobalLeadership

R&D System Improvement and capability reinforcement

Proprietary technologies development

2004 ~ 2005

2006 ~ 2008

2009 ~

Technology Strategy system enhancement

Technology Strategy

Global Leader in Power & Water

Maximize Operation Efficiency

Increase Sales &

Marketing capacity

Develop Proprietary

Technologies

Optimize Business Portfolio

Performance-Oriented Culture / People Development

Mutual Trust among all levels of Employees

Voluntary participation of a government official

Technology Strategy is a part of proprietary technologies development for

Doosan’s Vision and Long-term strategy achievement.

Core Strategies

Foundation

Develop Profit-Oriented Proprietary Product (POPP)

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Corporate R&D Institute

Tech. Strategy & Planning

Materials

Center for Power Systems

Development

Plant Control System

System Engineering

Boiler System

Turbine System

Fuel Cell IGCC

Strategy & Plan

Human Resource

Perform. Improve

Tech. Support

Renewable Energy

Gas Turbine

Doosan Corporate R&D Institute has 3 Centers : Power Systems, Advanced Power Systems & Materials. It also has 10 Development Teams

Center for Advanced Systems Development

Adv.Process

CTO

Center for Material

Development

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Corporate R&D Institute Location

Daejon R&D Branch • Center for Advanced Systems Development• Plant I&C Systems Development Team

Daejon R&D Branch • Center for Advanced Systems Development• Plant I&C Systems Development Team

Head of Corporate R&D Institute (Changwon)• Technology Strategy & Planning• Center for Power Systems Development• Center for Materials Development

DHI R&D Institute are situated in 2 strategic places in Daejon and Changwon

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Worldwide R&D Office Locations

TokyoBeijingShanghai

Chennai

Dubai

CrawleyRenfrew

Atlanta

GermanyPoland

Tampa

Renfrew

Dubai

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Total Water Solution Provider

Proven Project Experience

Engineering ProcurementConstruction & ErectionProject Management

TotalTotalWaterWater

Solution Solution ProviderProvider

MSFMEDROHYBRID

Research & DevelopmentThermal TechnologiesMembrane Technologies

Comprehensive In-house Capacity

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Our success in Desalination construction are from our...

ExperiencesSolutionEngineering & R&D Reliable Company Status

Those our capabilities enabled us to provide stable water resource to our clients

Doosan can provide stable water solution

Experience Total Solution Provider

Engineering & R&D

Reliable company

status

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Our Projects more than 1.7 million m3 of potable water per day, meeting the needs of communities, agriculture, and industry across the world

Total Projects Experienced−650 MIGD Global MSF Market Share−40%Largest Plant −194 MIGDShortest Delivery Desal. Plant.−18 MonthsFirst Hybrid Plant−62.5 MSF + 37.5 RO

Experience

•* Independent Water and Power Plant

Experience Total Solution Provider

Engineering & R&D

Reliable company

status

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Doosan can provide all kind of desalination solution

Doosan has technology of …−MSF (Multi Stage Flashing)−MED (Multi Effect Distillation)−RO (Reverse Osmosis)−Hybrid (MSF + RO, MED + RO)

Total Solution Provider

Experience Total Solution Provider

Engineering & R&D

Reliable company

status

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Doosan makes its effort to develop its technology to provide service

Doosan had established its 100% owned subsidiary, Doosan Hydro Technology, in Tampa

Doosan has Desalination R&D Center in Dubai and Tampa.

•* Independent Water and Power Plant

Experience Total Solution Provider

Engineering & R&D

Reliable company

status

Engineering and R&D

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Doosan is Korea’s oldest business group. And one of its most progressive

Doosan Heavy Industries and Construction, are bringing new waves of innovation and value to power and water markets around the globe

•* Independent Water and Power Plant

Experience Total Solution Provider

Engineering & R&D

Reliable company

status

DOOSAN can provide stable water solution

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Increased energy efficiency and Decreasing unit costs

Larger unit sizes with Improved RO elements and MEDHybrid processLess material, chemicals and footprint

More BOOT/BOO contracts (Users prefer to buy water not plants)

Renewable Energy (Solar/Wind) + RO Desalination

More Water Reuse and Aquifer Storage for Recovery

Plant Size(U

nit train size)

High

Low

Low High

Number of Plants

MSFMSF

MED

RO

RO

Hybrid

MED

17.5MIGD

8MIGD

5.2 MIGD

Market trends in Desalination & Water reuse

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Conduct, support and coordinate the innovation and competitiveness through R&D excellence. Identify and implement with an overall objective to reduce the cost of desalination process.Contribute to the development of the new processes or improve the existing technologies and make it technically more viable, effective, reliable, and sustainable.Encourage the widespread availability and accessibility of technology based on global networking,Promote international cooperation with other organizations to develop and improve the technology.

Development of the New Thermal ProcessDevelopment of the New Hybrid SystemBasic Research that Support the New Process DevelopmentDevelopment of Modeling & SimulationOptimization for Lower Water Production Cost

MissionObjectives

R&D Center Objectives & Mission

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통합 보안기기 Device 제조업체로서축적된 기술을 기반으로보안관련 분야에서 선도기업 지향

Total solution in Security >>

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Global Top 4 in Innovative

Water Business

SolutionProvider

Market Driving Innovative

TechnologySpeed

Management

DiversifiedMarket

Segmentation

Vision and Strategy

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2G Strategy

Growth of people

Growth of business

Beneficial Circle

2G strategy is core value of the Doosan group.

It means... “Growth of people can create business opportunity and people are improved by growth of business.”

In other words, 2G strategy isbeneficial circulation Structurebetween people and business

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India

KoreaUAE

Iran

Egypt

JordanTunisia

Sweden Canada

[ Doosan desalination R&D center employees nationality ]

Global Recruiting

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UniversityUniversity

ResearchResearchCenterCenter

Desalination Desalination R&D CenterR&D Center

ConsultantConsultant

• UAE University (UAE)• Stuttgart University (German)• Bremen University (German)• King Saud University (KSA)• Gwangju institute of science and technology (Korea)

• National Energy & Water Research Center (NEWRC) in ADEWA• SWCC in Saudi• Kuwait Institute for Scientific Research (KISR)• Korea institute of construction and technology (Korea)

Global R&D Networking

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RESOURCES

PROCESSES

STRATEGIES

ORGANISATION& CULTURE

Direct Survey Evidence

Improved technology management & Product/Service Creation

Processes

Innovation & Technology Strategy

aligned with business goals

Improved resource &competency management

Better organisation of innovative resources &

culture alignment

R&D Management and Innovation

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+ + +

Facilities

• Which buildings and infrastructure do we need?

• What lab instruments and other instruments do we need?

IT and tools

• What IT and software tools do we need?

• What other tools and techniques should we use?

Key Technologies

• Which are our key technologies?

• What shall we to do in-house and what to purchase?

• Who are our strategic partners?

• How do we integrate suppliers in our R&D?

People, skills and their allocation

• What competencies and skills of people do we need in the future?

• How shall we manage recruitment to R&D?

• How do we allocate resources?

R&D Resource Management

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People Development Process

Identify/set development

needs

Identify/set development

needs

Check evaluation/ diagnosis result

- CDP- Competency

Evaluation - MBO

Observation - Daily job duties - Performance

Communication- Conversation - Interview

Prioritization -Finalize

development needs

Detailed planning - Identify

development actions -Present review

dates and review points

Development activity- Assignments/

experience- Coaching/

Mentoring- Training - Self-

development

Follow-Up Session-Quarterly Review-Monitor reports and

follow-up status

Evaluation -People development

(Leaders)-Competency

development (Subordinates)

Development Plan discussion-Prepare for the

discussion -Provide

feedback after People Session -Review and

discuss Development Plan

Create a Development Plan

Create a Development Plan

Hold a Development Plan feedback session

Hold a Development Plan feedback session

Conduct development

activities

Conduct development

activities Review and

evaluateReview and

evaluate

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Career DevelopmentProgram

Mentoring&

Coaching

Training Program

The BIG SchoolCAT

Career PlanStretched Task

SeniorMentoringSenior Coaching

People Development

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• BIG School• Accounting

• CAT• Problem Solving• New Team Leader• New Management• Management

Coaching

• Technology Innovation Management

• Technology Forum

• Business & Products Introduction

• Newcomer training

• Career persons training

• Intensive English• Cyber Language• Overseas Branch • DFP(DBL, E&S,

IMGB, DHT )

• Negotiation• Procurement

Expert• …

• Backpacking• Family Training- English Camp

• Technical training• Consignment

training…

Training Program

BusinessBusiness LeadershipLeadership GlobalGlobal

FoundationFoundation SpecialistSpecialist JobJob ExpertExpert OthersOthers

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•Strengthen Loyalty through connectedness- Welcome dinner with Top Team- Korean family visit and experience traditional culture

•The systematic spread of business system andmanagement skill

•Supporting Integration of business function- Introduction of business function & small group

discussion

•Operating experience-centered Program (Visit Doosan Changwon Plant, Korean Power Plant Tour)- Using advantage of visit Korea & head office

•Satisfaction through execution of customized Program- Introduction of business function & small group discussion- Advanced BPI (Introduction of product & Engineering Process)

- Transferring advanced job skill

Doosan Familiarization Program

Strengthen LoyaltyStrengthen Loyalty

• To understand value & business of the Doosan group and DHI

• To arouse sense of unity and connectedness

• To understand value & business of the Doosan group and DHI

• To arouse sense of unity and connectedness

Understanding of Korean CultureUnderstanding of Korean Culture

• Understanding of Korea & Business Culture

• Understanding of Korea & Business Culture

Early Improvement ofJob Competency

Early Improvement ofJob Competency

• Understanding of business system & function

• Transferring job skill • The spread of management skill

• Understanding of business system & function

• Transferring job skill • The spread of management skill

DFP

UnderstandingThe Doosan & Korea

Improvement of Job competency

Expected effectDoosan Familiarization Program