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A. Stotz Investment Research

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Doosan: Home-Grown Gear Sparks Ample Profits

Doosan Corp Demerger: Current Status Checking

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Cheap on a gross profit basis, low correlation with Western stock markets, and slow asset growth relative to its sector</li><li>More confidence about a sustainable turnaround as each quarter in 2016 has shown profit and debt has been reduced through the IPO of Doosan Bobcat (241560 KS) that began trading on 18 November 2016</li><li>Fuel cells business expected to show decent performance in 4Q16 due to delivery of newly won orders, while in the long term the business is set to expand to South Africa and Britain, which will possibly kick off in 2017</li><li>Trades at an attractive 17CE* 11.5% ROE/PB versus the Asian sector at 8.4% and offers a good 4% dividend yield</li><li>Risks: Delays in fuel cells deliveries, and earthquakes</li></ul><p><em>* Consensus Estimates</em></p>

Cheap on a gross profit basis, low correlation with Western stock markets, and slow asset growth relative to its sectorMore confidence about a sustainable turnaround as each quarter in 2016 has shown profit and debt has been reduced through the IPO of Doosan Bobcat (241560 KS) that began trading on 18 November 2016Fuel cells business expected to show decent performance in 4Q16 due to delivery of newly won orders, while in the long term the business is set to expand to South Africa and Britain, which will possibly kick off in 2017Trades at an attractive 17CE* 11.5% ROE/PB versus the Asian sector at 8.4% and offers a good 4% dividend yieldRisks: Delays in fuel cells deliveries, and earthquakes* Consensus Estimates

Doosan Corp

Doosan: Fuel Cells to Propel Profits