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2017
ANNUAL REPORT
Going Further Together
Hanwha Corporation
Hanwha Corporation, Going Further Together Hanwha Corporation has played a crucial role in supporting the nation’s economic development
for the past sixty years. With our innovative endeavors to improve management efficiency, we
have realigned our business operations to focus on the Explosives and Defense Divisions as well as
our global expertise-based Trade Division. We successfully completed our merger with Hanwha
TechM (currently Hanwha Corporation/Machinery Division) in October 2014. We also
strengthened our position as the nation’s largest total defense contractor after launching Hanwha
affiliates in the defense sector: Hanwha Techwin and Hanwha Thales in June 2015, and
Hanwha Defense in May 2016. This has allowed us to move forward with our vision to be a global
top 10 defense industry player. Based on our broad business experience, we have also created new
core technologies, sustaining market growth and expansion abroad.
004 Business Highlights 2017 ANNUAL REPORT 005
E x p l o s i v e s
EXPLOSIVES
increased overseas ventures. ● Mining services in Latin America (in the planning stage)
MACHINERY
Major Results
The Explosives Division built four global
networks including those in Indonesia
and Singapore. This was achieved by
establishing subsidiaries in Australia and
Chile, which advanced the Division into
D e f e n s e T r a d e
DEFENSE The Defense Division is continuously Deeper Innovation TRADE Trade Division is concentrating Deeper Innovation
expanding its existing portfolio of its effort on businesses such as
● Propulsion System ● Establishing stable profit basis through concentrating
Improving national precision guided munitions and Developing cutting edge propulsion system, such as dual- Global Petroleum/Defense/Renewable its effort on businesses that it possesses competitive
ammunitions, based on its expertise pulse rocket motor and DACS which rapidly improve Energy that it owns expertise above advantage/market leading capability.
security with and technology amassed for over mobility and accuracy rate of precision guided munitions. Leading its competitors. Additionally, Trade ● Minimizing potential loss though establishment of
among four defense units of Hanwha Group in the opportunities within its strategic Philippines
areas of R&D, PR & marketing, purchasing, etc. markets such as China, South East Asia ● Domestic energy plant supply business
● Increasing depth in the business area as an expert of ● LPG station operation business
and Middle East.
precision strike weapon systems through business ● Onshore oilfield operation business in California,
strategic points including the Middle East and expanding ● Resource development business including farming
Major Results the range of export products. Major Results project in Cambodia
2016
M a c h i n e r y
2015
2014
of aviation auxiliaries and application that is required for the photovoltaic business,
components. It is introducing advanced a key operation of the Hanwha Group.
Financial Highlights
processing for the production of aircraft hydraulic and
components and an MOU with GE
defense components. We boast a well-earned reputation
for aviation maintenance. It is also for expertise in a wide range of production processes,
retaining the largest domestic market from multi-axis machining to micro-electrical
Even in the global economic recession and gloomy business climate home
share in the CNC automatic lathe sector discharging machining.
through customized machine tool and abroad, Hanwha Corporation has been continuously endeavoring to renovate
development and sales. The Division Wider Growth itself as a sustainable and ever-growing company.
has also won recognition for its ● Strengthen global competitiveness through the
technology by successfully developing Machinery Division’s thermal, automation,
solar cell production facilities while and precision processing technologies.
striving to become a global solar cell ● Increase competitiveness in plant logistics automation,
Hanwha
the second-largest in the country. It was the nation’s first large-sized
affiliates to lead insurer to be listed on the Korea stock exchange. It is evolving into
a top-flight global insurance company by constantly developing
Corporation the world market, its business capabilities, adding to its price competitiveness, and
strengthening its position in the global marketplace.
Yang Soo Choi Eui Don Hwang The Audit Committee market environments while enhancing our FY2016 FY2015
Representative Director Outside Director The committee evaluates the internal control global competiveness. We remain committed Total assets 1,053,313 988,554
Currently, Representative Director, Formerly, Chief of Staff, Korean Army system, performs audits on accounting and to advancing further into the world, and to Total liabilities 971,788 902,831
Explosives Division, relevant activities, and approves the appointment
providing creative leadership within the group, Capital stock 43,427 43,427
Hanwha Corporation Suk Hun Kang of external auditors.
Outside Director based on the solid corporate management Other paid-in capital -4,388 -4,388
Tae Jong Lee Currently, Attorney at Yulchon LLC The Outside Director foundations and expertise that we have Other capital composites 15,690 21,742
Representative Director
Recommendation Committee accomplished over the past sixty years. Retained earnings 26,797 24,943
Currently, Representative Director, Jong Ho Hong Total shareholders’ equity 81,525 85,724
Consisting only of outside directors, the committee * As of December, 31, 2016
Defense Division, Outside Director
Hanwha Corporation Formerly, Representative Director,
aims to ensure fairness and transparency in the Sales 159,965 156,432
recommendation process for outside director Operating income 3,048 4,806
Hanwha Energy Plaza
Youn Chul Kim candidates. Income before income taxes
4,090 5,742
Representative Director Chang Lok Kim The Related Party Transactions
expenses
Currently, Representative Director, Outside Director Net income 3,151 5,003
Machinery Division, Formerly, Governor of Korea Committee Shareholdings1 18.15% 21.67%
Hanwha Corporation Two thirds of the members of this committee,
Development Bank Controlling interests2 47.00% 47.00%
at a minimum, shall be outside directors. It was
Min Suhk Lee Yong Koo Kim established to respond to changes in the company’s
Representative Director Outside Director internal and external operating environment that
Currently, Representative Director, Formerly, Representative Director, require a high level of management transparency.
Trade Division, Hanwha Corporation Daewoo Telecom It makes decisions on transactions over a certain
volume with affiliated parties. Its chairman is
always an outside director.
✽ As of March 31, 2017
46.55 %
shares held according to standards established by Hanwha
Corporation. It includes common shares that are based on all
shares issued by Hanwha Corporation and its subsidiaries
and affiliated companies as of the end of December 2016.
Hanwha Chemical Hanwha Techwin Hanwha Engineering&Construction Hanwha Hotels & Resorts
Hanwha Chemical was the South Korean chemical industry’s Hanwha Techwin was established in 1977 to engage in the As a general construction company that is primarily involved Hanwha Hotels & Resorts is a comprehensive, premium-level
very first player to produce polyvinyl chloride. It also increased its aircraft engine and film camera businesses. Since its founding, it has in the areas of civil engineering, architecture, and plants, leisure and food services company. In addition to operating South
presence in the global marketplace by being the first domestic player pursued business diversification based on its optical and imaging Hanwha Engineering & Construction continues to grow based Korea’s largest condominium chain with twelve resorts, 126-hole
to enter the petrochemical market in the Middle East. Its overall technologies and platform technologies in the area of aircraft on proven track record and technologies. The company has enjoyed golf courses both at home and in Japan, luxury boutique hotels, and
goal is to leverage its experience and expertise in the photovoltaic engines. It currently engages in the aircraft and gas turbine engine, an average annual growth rate of 20% since 2002. water parks and aquariums, it manages a large number of dining,
business to become a world leader in the chemical industry. defense, energy equipment, security, and industrial machinery It aims to become a global construction company by 2020, catering, and banquet facilities.
businesses. As a member of Hanwha Group, boasting more than under the vision of ‘Design the World’.
Date of Establishment August 1965 Date of Establishment March 1979
sixty years of expertise in the field of manufacturing, Hanwha
President & CEO Chang Bum Kim Date of Establishment July 2002 President & CEOs Seok Moon, Tae Ho Kim, Young Cheol Kim
Techwin continues to lay the foundations for its sustained growth
Major Businesses Polyethylene (PE), Polyvinyl chloride (PVC), President & CEO Kwang Ho Choi Major Businesses Resorts, hotels, leisure, food services
Chlor-alkali (CA), photovoltaics and customer value creation, based on its broad market insights, Website www.hwrc.co.kr
Major Businesses Architecture and housing construction,
Website hcc.hanwha.co.kr commitment to high-quality, and a stable financial structure. urban development, industrial plants, civil
engineering, and water treatment
Date of Establishment August 1977
Website www.hwenc.co.kr
President & CEOs Hyun Woo Shin
Major Businesses Video security and surveillance cameras,
industrial and energy equipment,
aircraft engines, self-propelled artillery.
Website www.hanwhatechwin.com
36.13 %
Hanwha Corporation Shareholdings
(as of December 31, 2016)
32.35 %
Hanwha Corporation Shareholdings
(as of December 31, 2016)
100 %
Hanwha Corporation Shareholdings
(as of December 31, 2016)
50.62%
Hanwha Corporation Shareholdings
(as of December 31, 2016)
015
14 . 5 %
Chemicals Since the completion of a state-of-the-art
nitric acid manufacturing facility in 1991,
Hanwha Corporation has been supplying
high-quality grades of nitric acid to many
customers in Korea, and increasing its volume
of exports to Japan, Taiwan, and other
Southeast Asian countries. By supplying
high-quality liquid ammonium nitrate as
a raw material for industrial explosives,
Hanwha Corporation’s Onsan plant has
Explosives Business
been contributing to the building and
expansion of Korea’s national infrastructure.
Our liquid ammonium nitrate is also used for
medical and semiconductor processes and
New challenges of the Explosives Business going global the production of medical gases. The main
use of the ammonia that is imported and sold
Hanwha Corporation is acknowledged for its world-class technological by Hanwha Corporation is for bio food
technologies and high-purity industrial gases.
acumen and safety in the explosives business. We mainly provide industrial It is also supplied to the De-NOx facilities in
major thermal power plants in Korea.
explosives as well as explosives applications, chemicals, and fireworks that
are leading both domestic and overseas markets. Based on independently
developed technologies and solid trust, we are now entering the global market.
Based on 60 years of experience and technology, Hanwha Corporation’s
explosives business is now going global.
016 Explosives Business 2017 ANNUAL REPORT 017
1
Long-Range Surface-to-Air Missile 230mm-class MRL, Chunmoo& TAipers(Air-to-Ground Missile)
Defense Business
South Korea’s flagship defense contractor, contributing to national defense and peace
Key parts of We are carrying out the development of
advanced products including the key parts
Hanwha Corporation aspires to rank first in the domestic sales of precision guided munition of guided munitions such as INS, propulsion
system, laser range finder, etc.
guided munitions and ammunition business by 2020. It is also driven to
become one of the world’s top 30 defense contractors by 2025 under the
corporate vision to be ‘Trusted global partner providing innovative defense
solutions’. To this end, we are enhancing our competitiveness in key businesses
through sustained investment in R&D, and advancing our competitiveness in
weapon systems through institutional innovations and risk factor management.
We are also dedicated to achieving our mid- to long-term goals. This is mainly
done by making diversified attempts to expand our overseas businesses and
becoming an organization that develops new growth engines. Navigation System Based On
Micro Electro Mechanical System
Navigation system Based On Ring
Laser Gyroscope
Laser Range Finder
020 Defense Business 2017 ANNUAL REPORT 021
Propelling Charges
Er-155mm
Ammunition
81mm Mortar
Ammunition
With Improved
Fragmentation
Performance
Fuzes
155mm Precision-
Guided Ammunition
Pyrotechnics
022 Defense Business 2017 ANNUAL REPORT 023
Hanwha Techwin
Hanwha Techwin is a precision technology company that
has maintained stable growth for about forty years. Currently,
it engages in the aircraft and gas turbine engine, defense,
energy equipment, security, and industrial machinery
businesses. Following its acquisition by Hanwha Group
in 2015, Hanwha Techwin is expanding synergies in the
Space aviation
sectors of defense and precision machinery.
Ammunitions Aircraft engines and
Advanced ammunition
Hanwha, components, aircraft
hydraulic systems and
a global leader actuators
in the defense
industry Hanwha Systems
Hanwha Systems is committed to developing cutting-
edge weapon systems that will play a key role in network-
Precision guided oriented modern warfare. Building on its unrivalled precision
munitions Mobility
Precision guided munitions, Armored vehicles,
electronics and software-based technologies and expertise
launching systems, self-propelled artillery in areas such as radars, electron optics, battle systems, and
navigation system
Command, Control, command, control and communications, it is leading the
Communication,
Computer and Intelligence advancement of South Korea's defense industry.
(C4I)/Intelligence,
surveillance and
reconnaissance (ISR)
Radars, C4I,
Tactical Information
Communication Network
(TICN)
Hanwha Defense
Hanwha Defense is a global leader in integrated defense
systems and offers total solutions for national defense.
emerged as the nation’s largest player in the defense industry, based on its innovation It is expanding its business spheres by shifting from initial
mobility equipment to anti-aircraft, guided, and launching
and integrated capabilities in ammunitions and combined weapon systems. This
systems, precision navigation, and laser areas. This involves
successful advancement was achieved by launching Hanwha Techwin, a precision
the development and mass production of major combat and
machinery supplier that produces the K-9 self-propelled artillery as well as aircraft combat support equipment, in addition to precision navigation
engines and parts and Hanwha Thales, a defense electronics company, in June equipment that is loaded onto approximately 40 launching
2015. The following year, Hanwha Defense, a leader in integrated defense systems systems and 30 weapon systems for the armed forces.
including mobility equipment, joined Hanwha Group.
025
Trade Business
30 net work s
Oil and
Chemical
Business
The Oil and Chemical Department is the
only oil and petrochemical trader in South
Korea to have achieved vertical integration
from crude oil and condensates to refined oil
products, basic petrochemicals, and synthetic
resins. Its extensive business portfolio
includes the import, domestic sales, export,
and cross trade of oil products (naphtha, fuel
Serving as the bridgehead toward global market oil); petrochemicals (ethylene, propylene,
BTX, and methanol); synthetic resins (PO,
Trade Division is concentrating its effort on businesses such as Petroleum/ PVC, PS); and inorganic chemicals (solar salt,
refined salt, caustic sodas, sodium cyanide,
Defense/Renewable Energy that it owns competitive expertise and can fertilizers). The Department is advancing
bring out synergy with Hanwha Group subsidiaries. At the same time, it’s into new markets in South America, Africa,
Europe, and the CIS region, while expanding
concentrating on reinforcing its competencies in domestic businesses that its presence in the Chinese and Southeast
Asian markets. To better respond to changes
it holds market leading capability such as Industrial Machineries/Steel/ in the market and improve the stability of its
Agricultural. Furthermore, Trade Division is expanding its business model businesses, the Department has endeavored
to develop new strategic items, strengthen
toward project businesses including healthcare (hospital system export), partnership with customers, and expand
its value chains. The Oil and Chemical
infrastructure construction. With carrying out diverse businesses ranging from Department is consolidating its position as
conventional trading to resource development and project businesses, Trade the top trader in the oil and petrochemical
sector by providing total solution services to
Division serves as a bridgehead of Hanwha Group’s expansion toward global its customers around the globe.
market.
026 Trade Business 2017 ANNUAL REPORT 027
10 %
Aerospace Hanwha Corporation has evolved into
a major player in South Korea’s aerospace
and defense sectors, specializing in the
manufacture of hydraulic components
and flight control actuation and fuel systems.
Boasting state-of-the-art technologies
that have enabled us to obtain a domestic
Defense Quality Management System
certificate and a wide range of international-
standard quality certifications, we are
committed to ongoing technological
advancement, development, and innovation.
Machinery Business
Providing total engineering solutions for the development of human societies
Environmental
emission
Hanwha Corporation was the very first company in South
Korea to carry out an environmental preservation campaign that
A Bright
neighbors
Hanwha Corporation is committed to creating a world that
is more beautiful for all future generations. From our inception
Community
we have committed ourselves to social contribution activities. We
have reshifted from simply assisting the underprivileged to truly
fulfilling our role as a responsible corporate citizen by finding new
ways to put the true meaning of sharing into practice. Our social
contribution activities are funded by a matching grant program
through which we provide donations in proportion to the amount
voluntarily raised by our employees every month with a matching
ratio of 150%. We also operate a paid volunteer system that actively
supports voluntary service activities by our employees. This allows
them to engage in these activities even during their working hours.
Our goal is to develop a culture in which our employees voluntarily
participate in CSR activities and where the company actively
encourages them to do so.
036 Corporate Responsibilities 2017 ANNUAL REPORT 037
Human
competitiveness and creative thinking. These include providing
opportunities to study abroad, and regional expert courses that
dispatch outstanding employees to every region of the world.
We are also operating a variety of educational programs such as
Hanwha
Corporation’s
Challenge
for the Future
FINANCIAL REPORT
1993 03 Company name changed to Hanwha Corporation.
1995 01 Merged with Golden Bell Trading Co. (Trade Business)
2002 07 Spun off the Construction Division (Hanwha Engineering & Construction) and
Machinery Division (Hanwha Corporation Machinery Division)
2005 05 Signed a business agreement for land development at the Incheon Factory site
(1st and 2nd housing sales in 2006 and 2007)
2006 10 Completed the transfer of the Incheon Factory to Boeun
2007 01 Completed the construction of the Comprehensive Research Institute
2008
2008
04
12
Merged the Gumi and Changwon Factories
Received the Gold Tower Industrial Medal and the USD 2 Billion Export Tower Award 042 047 048 054
2009 09 Completed Asan Factory
2009 11 Opened Hanwha Historical Museum MD&A Independent Consolidated Separate Financial
2010 10 Merged with Microaerobot Auditor’s Report Financial statements Statements
2013 07 Launched Hanwha Mining Services
2014 10 Merged with Hanwha TechM (Currently Hanwha Corporation Machinery Division)
2014 11 Signed agreement to acquire Samsung Techwin and Samsung Thales
2015 06 Launched Hanwha Techwin and Hanwha Thales
2016 05 Launched Hanwha Defense (Former Doosan DST)
FINANCIAL REPORT MD&A CONSOLIDATED FINANCIAL STATEMENTS SEPARATE FINANCIAL STATEMENTS
the previous year's figure. The comprehensive income amounted to KRW 349.3 billion due to a favorable net income, Explosives/Manufacturing 5,832.0 12.4% 3,558.5 8.6% 2,273.5 63.9%
despite having posted other comprehensive losses driven by a loss in the market-to-market valuation of available-for-sale Trading & Wholesale Retails 5,917.8 12.6% 5,933.7 14.3% (15.9) -0.3%
financial assets.
Petrochemical Production 5,044.7 10.7% 5,745.0 13.9% (700.3) -12.2%
2016 2015 YoY Change % Change Leisure/Service 1,466.9 3.1% 1,269.0 3.1% 197.9 15.6%
a. Revenue 47,120.2 41,376.3 5,743.9 13.9% Photovoltaic Business 4,472.5 9.5% 3,422.9 8.3% 1,049.6 30.7%
b. Cost of sales 43,049.7 38,427.6 4,622.1 12.0% Finance 25,254.1 53.6% 22,716.8 54.9% 2,537.3 11.2%
c. Gross profit (a-b) 4,070.5 2,948.7 1,121.8 38.0% Others 1,216.2 2.6% 1,196.5 2.9% 19.7 1.6%
c. Gross profit (a-b) 2,384.5 2,190.2 194.3 8.9% Adjustment of consolidated (5,714.2) -12.1% (5,790.7) -14.0% 76.5 1.3%
e. Operating profit (c-d) 1,686.0 758.5 927.5 122.3% Operating profit 1,685.9 100.0% 758.5 100.0% 927.4 122.3%
f. Other operating income/expenses (49.6) (511.5) 461.9 90.3% Explosives/Manufacturing 352.9 20.9% 159.5 21.0% 193.4 121.3%
g. Finance income/costs (415.9) (387.7) (28.2) -7.3% Trading & Wholesale Retails 38.5 2.3% 33.8 4.5% 4.7 13.9%
h. Share of profit of associates 451.5 316.1 135.4 42.8% Petrochemical Production 513.9 30.5% 200.6 26.4% 313.3 156.2%
i. Profit before income tax (e+f+g+h) 1,672.0 175.4 1,496.6 853.2% Construction Turned to
121.4 7.2% (414.7) -54.7% 536.1
profitability
j. Income tax expenses 383.3 54.8 328.5 599.5%
Leisure/Service 30.7 1.8% 19.0 2.5% 11.7 61.6%
k. Profit (Loss) for the year (i-j) 1,288.7 120.6 1,168.1 968.6%
Photovoltaic Business 278.0 16.5% 105.2 13.9% 172.8 164.3%
l. Other comprehensive income (Loss) (939.4) 113.0 (1,052.4) Turned to deficit
Finance 377.9 22.4% 715.3 94.3% (337.4) -47.2%
m. Total comprehensive income (Loss) (k+l) 349.3 233.6 115.7 49.5%
Others 47.1 2.8% 56.7 7.5% (9.6) -16.9%
n. Earning per share (in KRW) 684.8 (409.7) 1,094.5 -
Adjustment of consolidated (74.5) -4.4% (116.9) -15.4% 42.4 36.3%
2016 2015 YoY Change % Change 2016 2015 YoY Change % Change
Current assets 12,431.9 11,222.9 1,209.0 10.8% I. Cash flow from operating activities 6,097.3 9,620.7 (3,523.4) -36.6%
Cash and cash equivalents 2,860.4 1,182.4 1,678.0 141.9% Cash generated from operations 3,265.4 6,583.4 (3,318.0) -50.4%
Trade and other receivables 4,957.3 5,127.4 (170.1) -3.3% Interest & Dividends received from
3,533.1 3,351.5 181.6 5.4%
financial business
Other current assets 1,859.3 1,802.9 56.4 3.1%
Interest paid in financial business (78.3) (37.8) (40.5) 107.1%
Inventories 2,754.9 3,110.2 (355.3) -11.4%
Income tax paid (622.9) (276.4) (346.5) 125.4%
Non-current assets 16,309.8 15,476.6 833.2 5.4%
II. Cash flow from investing activities (5,857.3) (8,958.2) 3,100.9 -34.6%
Available-for-sale financial assets 584.0 923.2 (339.2) -36.7%
Acquisition of tangible & intangible assets (1,282.1) (1,550.4) 268.3 -17.3%
Investments in associates 1,884.6 1,601.9 282.7 17.6%
Disposal of tangible & intangible assets 178.9 146.6 32.3 22.0%
Tangible assets 10,327.7 10,406.4 (78.7) -0.8%
Acquisition of associates' stocks (215.6) (318.6) 103.0 -32.3%
Intangible assets 1,521.6 880.3 641.3 72.9%
Disposal of associates' stocks 57.1 44.6 12.5 28.0%
Other non-current assets 1,991.9 1,664.8 327.1 19.6%
Increase(Decrease) in held-to-maturity
Assets for financial business 126,129.3 118,922.2 7,207.1 6.1% - - -
financial assets
Total assets 154,871.0 145,621.7 9,249.3 6.4%
Increase(Decrease) in value of available-
(3,484.8) (7,236.7) 3,751.9 -51.8%
Current liabilities 13,661.2 12,794.9 866.3 6.8% forsale financial assets
Non-current liabilities 10,392.1 10,278.0 114.1 1.1% Increase(Decrease) in other financial assets (325.9) (165.0) (160.9) 97.5%
Liabilities for financial business 116,589.8 108,903.1 7,686.7 7.1% Interest and dividends received 197.9 131.4 66.5 50.6%
Total Liabilities 140,643.1 131,976.0 8,667.1 6.6% Others (982.8) (10.1) (972.7) 9630.7%
Capital stock 489.6 377.2 112.4 29.8% III. Cash flow from financing activities 1,294.7 9.9 1,284.8 12977.8%
Capital surplus 670.9 522.2 148.7 28.5% Increase in Borrowings and others 7,555.5 6,951.5 604.0 8.7%
Capital adjustments 38.2 38.9 (7) -1.8% Repayment of Borrowings and others (6,141.2) (5,786.3) (354.9) 6.1%
Accumulated other comprehensive income 214.2 626.9 (412.7) -65.8% Interest and dividends paid (505.6) (492.7) (12.9) 2.6%
Retained earnings 2,995.3 2,589.3 406.0 15.7% Others 10.7 (662.6) 673.3 -101.6%
Non-controlling interest 9,819.7 9,491.2 328.5 3.5% IV. Increase in cash and cash equivalents 1,534.7 672.4 862.3 128.2%
Total equity 14,227.9 13,645.7 582.2 4.3% V. Beginning cash and cash equivalents 2,244.2 1,570.3 673.9 42.9%
Total liabilities and equity 154,871.0 145,621.7 9,249.3 6.4% VI. Change in cash due to foreign currency
(9.9) 1.5 (11.4) -760.0%
translation
Liability-to-equity ratio 988.50% 967.16% 21.34%
VII. End cash and cash equivalents of the year 3,769.0 2,244.2 1,524.8 67.9%
(KRW in billions)
Hanwha General Chemical Co., Ltd. 36.05 766.9 184.2 Management’s Responsibility for the Separate Financial Statements
Hanwha Thales Co., Ltd. 1,000.0 - 4.1 accordance with Korean International Financial Reporting Standards (“K-IFRS”) and for such internal control as management determines is
necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.
Others 482.0 28.2
This report is effective as of March 17, 2016, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report,
could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that
the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
Assets Liabilities
Cash and cash equivalents 2,367 978 Trade and other payables 3,101 2,453
Trade and other receivables 4,102 4,243 Other financial liabilities 663 602
Other financial assets 585 690 Other current liabilities 2,161 2,306
Other current assets 820 661 Provisions for other liabilities and charges 75 70
Assets held for sale(included assets of disposal group) 116 127 Non-current liabilities 8,599 8,505
Non-current assets 13,496 12,806 Trade and other payables 134 334
AFS financial assets 483 764 Borrowings and debentures 4,718 4,600
Other financial assets 362 202 Other non-current liabilities 1,173 1,182
Investments in associates 1,559 1,326 Net defined benefit liabilities 1,111 903
Investment property 926 790 Provisions for other liabilities and charges 272 190
Property, plant and equipment 8,546 8,611 Deferred income tax liabilities 973 1,035
Intangible assets 1,259 728 Liabilities for financial business 96,475 90,114
Deferred income tax assets 262 248 Insurance contract liabilities 70,285 64,506
Assets for financial business 104,368 98,405 Policyholder's equity adjustments 676 955
Cash and cash equivalents 752 879 Current income tax liabilities 12 3
Investments in associates 118 181 Net defined benefit liabilities 153 140
Loans and non-trade receivables 21,256 18,819 Provisions for other liabilities and charges 46 21
Property, plant and equipment 1,456 1,473 Other financial liabilities 5,398 5,703
Equity attributable to owners of the parent $ 3,648 $ 3,438 Revenue from non-financial business 18,285 15,586
Capital stock 405 312 Revenue from financial business 20,706 18,652
Capital surplus 555 432 Cost of sales $ 35,623 $ 31,798
Capital adjustments 32 32 Cost of sales from non-financial business 15,283 13,788
Accumulated other comprehensive income 177 519 Cost of sales from financial business 20,340 18,010
Retained earnings 2,479 2,143 Gross profit 3,368 2,440
Non-controlling interest 8,125 7,854
Selling and administrative expenses 1,973 1,812
Total equity 11,773 11,292
Operating profit 1,395 628
Total liabilities and equity $ 128,151 $ 120,498
Other gains 931 888
Finance income 38 50
Equity holders of the parent company’s profit for the year $ 406 $ (236)
Other comprehensive income (loss) for the year, net of tax $ (777) $ 93
(Continued)
Equity holders of the Parent Company $ 49 $ (239) Hanwha Corporation and Subsidiaries
(USD in millions)
Non-controlling interest 240 432
Capital Capital Capital Accumulated Other Retained Non- Total
Total comprehensive income for the year $ 289 $ 193 Stock Surplus Adjustments Comprehensive Earnings Controlling
Income & Expense Interest
Earnings per share attributable to the equity holders
of the Parent Company during the year Balance at January 1, 2015 $ 312 $ 335 $ 32 $ 491 $ 2,437 $ 6,419 $ 10,026
Basic earnings per common share $ 5.67 $ (3.39) Total comprehensive income for the year
Balance at December 31, 2015 $ 312 $ 432 $ 32 $ 520 $ 2,143 $ 7,854 $ 11,293
Comprehensive income :
Balance at December 31, 2016 $ 405 $ 555 $ 31 $ 177 $ 2,479 $ 8,126 $ 11,773
Hanwha Corporation
(US Dollars) (US Dollars)
Assets Equity
Cash and cash equivalents 255,164,814 54,399,890 Capital surplus 497,067,513 279,468,507
Trade and other receivables 823,860,657 902,200,961 Capital adjustments (17,170,947) (17,170,947)
Other financial assets 23,722,139 23,172,445 Accumulated other comprehensive income and expense (552,744) (661,585)
Liabilities
(Continued)
Cost of sales 3,760,939,186 3,812,510,394 Balance at January 1, 2015 $ 312,114,311 $ 279,468,507 $ (17,170,947) $ (553,776) $ 1,644,492,836 $ 2,218,350,931
Selling and administrative expenses 275,188,894 269,445,068 Profit for the year - - - - 29,945,221 29,945,221
Remeasurements of the net defined benefit liabilities (6,114,092) (9,873,120) Change in value of
- - - 108,841 - 108,841
AFS financial assets
2. Items that will be reclassified to profit of loss :
Others - - - - (22,542) (22,542)
Change in value of AFS financial assets 108,841 (107,809)
Balance at December 31, 2016 $ 405,089,073 $ 497,067,513 $ (17,170,947) $ (552,744) $ 1,688,771,211 $ 2,573,204,106
Other comprehensive income (loss) for the year,
(6,005,251) (9,980,929)
net of tax
Years Ended December 31, 2016 and 2015 Cash flows from financing activities
(Continued)
For more information, Please contact IR Team Tel +82.2.729.1623 Fax +82.505.730.3333 E-mail ryanjsuh1@hanwha.com
Hanwha bldg., 86, Cheonggyecheon-ro(Janggyo-dong), Jung-gu, Seoul, Korea
www.hanwhacorp.co.kr