Doosan Corporation holds investor conference for its re-listing
- Doosan Fuel Cell∙Doosan Solus to dominate the market opportunities in the high-growth business… 1 trillion won in sales each by 2023
Doosan Corporation held a large conference for domestic and foreign institutional investors at FKI Tower in Yeouido on September 19, a month before the spin-off and re-listing.
Participating in the investor conference were Doosan Vice Chairman and CEO Dong Hyunsoo and executives of each corporation including more than 250 domestic and foreign institutional investor and analysts, indicating the high interest in the upcoming re-listing.
“Considering the market environment, this is the right time for a spin-off, and we have high hopes that the growth of the existing and new business will be accelerated. We also expect the market to accept it positively and plan to do our best to improve shareholder values,” said Doosan Vice Chairman Dong Hyunsoo.
The Conference was attended by the CEO of Doosan(Vice Chairman and CEO Dong Hyunsoo) after the spin-off and the CEO of each of the two new corporations, Doosan Fuel Cell(CEO Yoo Sookyung) and Doosan Solus(CEO Lee Yoonsuk), to introduce the competitiveness and growth strategy of each company.
Doosan Corporation plans to foster high value-added materials and energy and logistics automation solutions with focus on upgrading the existing machinery businesses and finding new growth engines. It disclosed its target to increase total sales from 3.4 trillion won (consolidated basis) this year to 7 trillion won by 2023.
In materials and energy, it intends to expand the high-specification electronic material business and environmentally friendly hydrogen energy business. As wireless communication technology has entered 5G, the materials and parts markets are forecast to grow by 33% from 600 billion won in 2019 to 1.9 trillion won in 2023. Moreover, as the self-driving and electric vehicle markets and the domestic non-memory semiconductor and hydrogen economy markets grow, it plans to enhance its competitiveness in electronics, electric vehicles, and energy material business including network board, semiconductor materials, electric vehicle and fuel cell materials, and residential and commercial fuel cells..
In the logistics automation solution business, it seeks to grow as a System Integrator(SI) that designs, implements, and operates the integrated hardware and software for the entire logistics processes. The global markets for Doosan’s strategic businesses such as logistics system integration, Automated Guided Vehicle(AGV), electric forklift trucks, collaborative robots, and industrial drones are expected to grow to 141 trillion won* by 2023.
*Forecast market growth by 2023: 3.1 trillion won for logistics system integration (average annual growth rate of 8%), 6.6 trillion won for electric forklift trucks (3%), 5.1 trillion won for collaborative robots (45%), and 5.5 trillion won for industrial drones (41%)
The domestic fuel cell for the power generation market, the main business of Doosan Fuel Cell as one of the new corporations, is forecast to grow by over 20% on an annual average by 2040, according to the government’s roadmap for the promotion of the hydrogen economy.
Doosan Fuel Cell recorded booking of over 1 trillion won, including the order from the world-largest byproduct hydrogen powerplant (Hanwha Daesan) for the first time last year, 3 years since it entered the market and targets 1 trillion won in sales by 2023.
The main businesses of Doosan Solus are electronic materials such as battery foil and OLED as well as the biomaterials used in cosmetics and drugs.
The strategy of the company is to begin mass production in Europe’s only battery foil manufacturing plant in Hungary in the second half of 2020 and take early leadership in the European market. Circuit Foil Luxembourg(CFL), a subsidiary of Doosan Solus, developed the worlds’ first battery foil and began mass-production in 1996. According to SNE Research, an electric vehicle and battery market survey firm, the demand for battery foil is forecast to grow by over 40% on an annual average from 75,000 tons (worth 1 trillion won) in 2018 to 975,000 tons (worth 14.3 trillion won) in 2025.
The biomaterials market is expected to continue to grow as the health and beauty industries are continually expanding. The target sales of Doosan Solus are about 260 billion won this year and 1 trillion won in 2023.
According to the spin-off schedule, the trading of Doosan Corporation stocks will be terminated on September 27, and the new Doosan and new corporations will be re-listed in the stock market on October 18.
