WATER BUSINESS

November 2011

Contents
1 2 3 4 5 6

Samsung Group

Samsung C&T Corporation

Plant & Machinery Business Unit

Water Business
Risk allocation in PPP scheme Contacts

1. Samsung Group
Samsung Group at a Glance
(as of 2008)

Employees

22% of Korean GDP 20% of Korean exports 20% of Korean market capitalization

277,000 Worldwide
Affiliated Companies Total Assets

35 Companies Revenue 173.4 Bil. USD

Global Network

USD 252.5 Billion

445 Offices & Facilities in 66 Countries

* Source: Samsung Group Homepage (end of 2008)

2. Samsung C&T Corporation

Overview
Total Workforce : 7,068 (including 2,451 overseas employees) Global Network : 104 offices and facilities in 44 countries
As of April, 2009

Financials
Consolidated Financials as of end of 2008

2. Samsung C&T Corporation

Main Business Fields
Trading & Investment
Plant & Machinery
Water Project Development Petrochemical Plant Power Plant IT & Telecommunication Offshore & Shipbuilding

Energy
Oil / Gas / Coal New & Renewable Energy Coal / Minerals LNG / Petroleum

New & Renewable Energy

Solar & Wind Power Hydrogen Fuel Cell Biodiesel

Industrial Materials
Iron & Steel Metals Electronics Chemicals

Engineering & Construction

Super High-rise

High Tech Plant

Dam

Water Treatment

Housing

3. Plant & Machinery Business Unit

Water & Environment

Sewage Treatment Water Supply Sea water Desalination CDM Business

Power & Energy

Thermal Power Hydro Power Renewable Energy LNG Terminal

Infrastructure Machinery & Ship

Petro Chemical Plant ICT&SI projects Transportation Infra. Medical Industry
Ship building Offshore Facilities Marine Equipments Project Investment

4. Water Business
Water Business
1) Water Supply Plant
2) Wastewater & Sewage Treatment Plant 3) Wastewater Reuse Plant 4) Desalination Plant Thermal Desalination Plant: MSF (Multi Stage Flashing Distillation), MED (Multi Effect Distillation) Membrane Desalination Plant: RO Desalination Plant

5) IWPP

4. Water Business
Roles and Services
Planning & Feasibility Study Equity Participation Investor Identification EPC Contract Financing Arrangement

Investment

Project Realization
Production
Operation & Maintenance Feedstock Supply

Facilities

Equity Participation / Financing Arrangement Arrangement of O&M Service Provider & EPC Contractor

4. Water Business : EPC Partners

Desalination
EPC Partners Main Area MSF, MED Doosan Heavy Industries & Construction RO Main Experience Saudi Arabia RO experience - Shuwaikh RO 136,000 ton/day - Jeddah RO 240,000 ton/day - Fujiarh Hybrid RO 170,000 ton/day

- Shuaibah RO 882,000 ton/day

Equipment & Materials Supply RO Block, Pre UF/Filter Hyosung Ebara Pump, Energy Recovering device Chemical Sedimentation, Chemical Injection System

Hyundai Steel RO 124,000 tons/day

4. Water Business : EPC Partners

Waste Water Treatment
EPC Partners
Main Area Sewage/Wastewater Treatment Main Experience Water supply capacity : 4,400,000 ton/day - Jordan WTP 31,000 ton/day - Libya WTP 11,000 ton/day

Kolon E&C

O&M (EFMC)

Sewage/Wastewater Treatment
Samsung Engineering Reuse of Sewage/Wastewater Ultrapure water Water Treatment GS E&C Waste Treatment

UAE Abu Dhabi WTP 40,000 ton/day

Samsung Electronics Ultrapure water plant 64,000 ton/day

Shanghai STP 50,000 ton/day Daehan Pulp WTP 20,000 ton/day LG Phillips P4~7 WTP

4. Water Business : O&M Partner

K-Water
Government - run agency, established in 1967 Solely responsible for total water resources development & management in Korea - Operates and maintains 51 Water supply systems (multi-regional:33, local:18) Multi-regional water supply capacity : About 18,000MLD - Intake facility : 24 units / Water treatment plant : 40 units - Pumping station : 76 units / Pipe line : 4,800km Developing the new technology continuously by establishing the R&D center working with 60 Ph.D. and 177 Professional Engineers

GE
Water treatment plant operation and maintenance

Own and operate utility water and desalination systems

Global leader of mobile water purification equipment

4. Contractual Structure
Land Acquisition Arrangement

Land Holders

Water Purchase Agreement

Site Access and Lease Agreement

Debt Providers

Finance Agreement

Project Co.

O&M Contract

O&M Contractor

Equity Providers External Advisors

Equity Subscription Agreement

EPC Contract

EPC Contractor

4. Water Business : Business Case

Victoria Desalination Project in Australia

Location : Wonthagi, Victoria, Australia Client : Victoria State Capacity : 150 GL/yr Desal Plant (RO) Financial Close : Sep 2009 (under Construction) Term : 30 yrs PPP Indicative Capital Cost : AUD 4.9 Bil Participant Role : Equity Sponsor / Debt Arranger Samsung C&T invested AUD160 mil in the Project together with Korean equity sponsors and arranged Korea ECA financing for the Project via Societe General, HSBC, ANZ, and BBVA with KEIC insurance covering AUD 300 Mil. The key role of Samsung C&T is to raise the fund from the Korean Financial Investors by providing the advisory service to them. In the debt side, by involving the Korea ECA from the initial stage to the financial close, Samsung C&T succeeded in replacing the part of Term Liquidity Facility guaranteed by Victoria State with the ECA covered tranche

5. Contact List
KyungHan Bae
General Manager Samsung C&T Corporation Samsung Corp. Bldg Seocho Gu, Seoul, Korea Telephone: +82 2 2145 2840

Henry Park
Deputy General Manager (Water) Samsung C&T Corporation Samsung Corp. Bldg Seocho Gu, Seoul, Korea Telephone: +82 2 2145 2824

Dukjoong Kim
Manager (Water) Samsung C&T Corporation Samsung Corp. Bldg Seocho Gu, Seoul, Korea Telephone: +82 2 2145 2846

Mobile: +82 10 6270 1091 Email: khbaess@samsung.com

Mobile: +82 10 9982 2107 Email: henry@samsung.com

Mobile: +82 10 2717 8201 Email: topdog@samsung.com