Pre Existing Strategies For Youth Offending

Pre Existing Strategies For Youth Offending For over a decade Labours three successive administrations from 1997 to 2010 has left the youth justice system in a state of near permanent reform. With almost two decades prior to 1997 in opposition Labour had the opportunity to implement ready-made polices on criminal justice which started with the youth justice system by adopting a root and branch reform agenda.  [2]  This paper will critically review the policies pursued by Governments over the past fourteen years to address the social causes of crime amongst young people. The primary question this paper will ask is whether these policies have made a difference to either crime figures or recidivism amongst juveniles. The paper will initially begin by discussing the pre-existing strategies on youth crime employed before the last fourteen years which is crucial to critically reviewing the laws development over the past fourteen years. The second part of this paper will focus on the strategies employed to deal with the social ca uses of youth crime. The final section of the paper will draw the paper together by discussing the impact of the strategies employed by the various Governments to deal and manage youth justice offending by examining their impact upon youth offending. Pre-Existing Strategies for Youth Offending: Much of the twentieth-century juvenile justice system was characterised by a double taxonomy which can be best described as punishment and welfare.  [3]  The last fifty years have seen a bewildering complexity of shifts in the approach of the police, courts and various governmental agencies established to respond to youth offending and the social causes of crime.  [4]  It has been a dissected mix of governmental policies that alternate between punitive punishment and a welfare or care approach. The literature presents the 1960s as a high point in the development of welfarism in the youth justice system with a shift away from penal punishment to family councils and family courts to deal with juvenile offending and the surrounding social causes of youth crime.  [5]   The coming to power of the Conservative government in the 1970s brought a shift back to punitive punishment for youth offenders with an increasing use of juvenile courts with custodial sentences rising from 3000 in 1970 to over 7000 in 1978.  [6]  Alongside this shift towards a strong sharp punishment of youth offending in England and Wales, Scotland sought to introduce an alternative approach with the introduction of the Social Work (Scotland) Act 1968. An underlying feature of this approach to youth offending were welfare tribunals which used lay people such as social workers, teachers and family representatives in coming together to manage youth offending in a collaborative way to tackle both the wider social causes of youth offending and the individual offence under consideration. Pratt argues that there were four major sets of criticisms of the welfare model of youth justice: firstly the treatment-orientated interventions were perceived to be ineffective.  [7]  Secondly, evidence suggested that care could become more coercive than punishment. Thirdly, professional expertise of the members of the tribunals was less important than it was perceived to be, in that members were serving with little experience of juvenile offending. Fourthly, the care model of justice was alleged to be ineffective at dealing with youth delinquency. The election of the Conservative government during the 1980s with a law and order agenda produced a mixed approach to youth offending yet again.  [8]  The 1980s brought an introduction of a multi-agency approach to youth offending and the social causes of crime, with an increased use of formal and informal cautioning of youth offenders which distinguished first offenders from repeat offenders. A distinctive feature of this approac h to youth offending was the introduction of the concept of corporatism into the youth justice system which allowed a system to produce efficient, effective justice that worked.  [9]  The focus was on delivering a youth justice framework that worked efficiently delivering value for money for the government using cheaper alternatives than the court system. The youth justice model of the 1980s enjoined the 1990s with a marriage of punitive sentencing of repeat offenders with an incoherent cautioning system for first time youth offenders which the police patrolled without any consistency.  [10]   New Labour, New Youth Justice Police? It is arguable that, amongst other issues, Labour won its first general election under the banner of its tough talk on criminal justice issues.  [11]  By taking a mixed approach between retributive justice and restorative justice Labour sought to increase the States control, regulation and mangerialism of criminal behaviour and the social causes surrounding crime.  [12]   Labour sought to formulate its youth justice policies around a development of pre-existing philosophies of restorative justice values and practice including responsibility, restoration and reintegration, which would draw upon the experience of the existing framework.  [13]  Labour presented a Third way to deal with law and order which centred upon tackling the youth crime which were premised upon making young people take responsibility for crime through the concepts of responsibility, restoration and reintegration.  [14]  The centre piece of reform manifested itself in the Crime and Disorder Act 1998 and Youth Justice and Criminal Evidence Act 1999 which have sought to bring restorative elements and values on a formal platform within youth justice.  [15]  In essence the statutory framework represented a clear attempt at modernising youth justice based on empirical evidence.  [16]   The reform advanced by Labour to deal with the social causes of youth offending effectively represented a new youth justice system composed of a Youth Justice Board (YJB) at national level and a multi-agency Youth Offending Teams (YOTs) at local level to administer the youth justice framework.  [17]  This multi-level and multi-agency approach to youth justice redefined the architecture of the youth justice apparatus by reconfiguring the lines of power, management and responsibility.  [18]  In addition to redefining the youth justice apparatus within the criminal justice system, Labour adopted a twin track approach with a perpetual stream of legislative reform focused on reformulating the punishment framework within criminal justice. The main stay of the reforms was provided in the Crime and Disorder Act 1998, which established the Youth Justice Board, Youth Offending Teams and for a restructuring of the non-custodial penalties available to the Youth Court, other reforms included: anti-social behaviour orders (ASBO) and action plans, to reparation orders and parenting orders.  [19]  For offenders under 18, the system of police cautioning was replaced with a new system of reprimand and warnings, to allow young offenders to have the opportunity of at least one reprimand and one final warning prior to prosecution.  [20]   Newburn argues that the new reforms implemented sought to allow restorative values where possible within youth justice through the development of restorative cautioning, action plans and reparation orders.  [21]  The action plan represented an attempt to allow youth offenders to begin a short intensive programme of community intervention combining punishment, rehabilitation and reparation to change the offending behaviour and prevent further crime.  [22]  Although Labour sought to redraw the criminal justice agenda many of the reforms introduced echoed and resembled the multi-agency approach of the 1980s.  [23]  The crucial difference between this fresh attempt at reform was that part of the multi-agency approach this time was not to divert but rather to intervene and become involved in the process.  [24]  A central driving force in Labours restorative reforms was the influence of communitarian thinking, particularly with the introduction of reparation orders and rest orative cautioning.  [25]  The Crime and Disorder Act 1998 placed local authorities with the responsibility of formulating and implementing annual youth justice plans which dealt with the social causes of crime amongst other priorities. Gelsthorpe and Morris argue that the reforms introduced will allow restorative processes to occupy a marginal place within criminal justice until contradictory values and practices of blaming and punishing are given significantly less emphasis and restorative values and practices are given significantly more emphasis.  [26]  A potential flaw of the Crime and Disorder Act 1998 presented in the literature is that significant elements inherent in the reforms are premised on the basis of proportionality which is characteristic of punitive punishment. Wasik identifies that the reparation order is subjected to the normal requirements of proportionality which is linked to the retributive justice value of responsibility of the offender for the crime.  [27]  The central concern among advocates of restorative justice is that this model will not operate with the full potential of restorative justice values and principles which could over time gradually become more punitive than restorat ive in nature. Much of the debate throughout the literature focuses on the various elements of the reforms which can be considered to have restorative ideals.  [28]  The most significant reform was the introduction of Referral Orders as part of the Youth Justice and Criminal Evidence Act 1999. Dignan and Marsh argue that Referral Orders are potentially one of the most radical aspects of the entire youth justice reform agenda where the court can divert the young offender away from the courts system to deal with the offending behaviour through restorative approaches.  [29]  Crawford and Newburn argue that the reforms implemented by Labour were heavily influenced by the what works paradigm and the language of risk factors.  [30]   Conclusion: Goldson argues that Labour introduced an unprecedented corpus of youth justice legislation both in terms of reach and volume.  [31]  Fergusson argues that the approach to youth offending became a melting pot of contradictions, ideals and ideologies where a hybrid model emerges which encompasses a dissected mix of restorative and retributive values.  [32]  Fergusson correctly identifies that the way governments present policy rhetorically, how they codify it legally, and how those policies are played out in practice are critically different facets of the policy process in the management of crime.  [33]   Successive governments have responded to the social causes of youth crime in various ways throughout the last five decades, in particular the latest strategy employed a double edged sword which leans heavily on punitive punishment for adult offenders with a more welfarist approach in dealing with youth offenders.  [34]  Restorative justice undoubtedly represents one of the most significant developments in criminal justice and criminological practice and thinking over the past two decades.  [35]  It is arguably the social movement for criminal justice reform of the 1990s and into the new millennium.  [36]   Empirical evidence emanating from America, Australia and New Zealand indicate that where the use of restorative justice is prevalent for young offenders, there has been success at reducing youth offending rates and a reduction in repeat offending resulting in greater effectiveness at dealing with youth crime and the social causes of crime.  [37]   The net effect of these new policies aimed at the reduction of youth crime and tackling the social causes of crime represent a more integrated approach by the state to manage youth offending rates. The policies acknowledge the failures of the previous strategies of strict punitive punishment as a deterrent for further offences. The approach of incorporating restorative values, although arguable only at the fringes of the youth justice system, represents a more inclusive justice system which takes into account mechanisms to address the social causes of youth offending.

Life Struggle on Minimum Wage Essay -- essays research papers

Life Struggle on Minimum Wage   Ã‚  Ã‚  Ã‚  Ã‚  Sometimes life isn’t always as easy as getting a job, making money and paying you bills. In her fascinating book on extended essays Nickel and Dimed, Barbara Ehrenreich poses as an unskilled worker to show the struggles encountered everyday by Americans attempting to live on minimum wage, â€Å"matching income to expenses as the truly poor attempting to do everyday.† (6)   Ã‚  Ã‚  Ã‚  Ã‚  Ehrenreich gave herself three rules she had to live by and they were: 1. She could not use her education or professional skills to land a job, 2. She had to take the highest paying job offered and do her best to hold it and 3. She had to take the cheapest accommodations available with an acceptable level of safety and privacy.   Ã‚  Ã‚  Ã‚  Ã‚  Ehrenreich decides to try living in three cities across the US: Key West, Florida, Portland, Maine and Minneapolis, Minnesota.   Ã‚  Ã‚  Ã‚  Ã‚   In Florida she works as a waitress, taking two jobs, one of them she describes the conditions as:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"The regulation poster in the single unisex restroom admonishes us to   Ã‚  Ã‚  Ã‚  Ã‚  wash our hands thoroughly, and even offers instructions for doing so, but there is   Ã‚  Ã‚  Ã‚  Ã‚  always some vital substance missing – soap, paper towels, toilet paper – and I   Ã‚  Ã‚  Ã‚  Ã‚  never found all three at once. You learn t...

Importance of Setting and Wallpaper in The Yellow Wallpaper

Importance of Setting and Wallpaper in The Yellow Wallpaper   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Room itself represents the author’s unconscious protective cell that has encased her mind, represented by the woman, for a very long time. This cell is slowly deteriorating and losing control of her thoughts. I believe that this room is set up as a self-defense mechanism when the author herself is put into the asylum. She sets this false wall up to protect her from actually becoming insane and the longer she is in there the more the wall paper begins to deteriorate. This finally leads to her defense weakening until she is left with just madness and insanity. All of the characters throughout the story represent real life people with altered roles in her mind. While she is in the mental institute she blends reality with her subconscious, forming this story from events that are happening all around here in the real world.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As the reader is introduced to the woman we find her talking about very strange and unusual happenings occurring around her. She evens states that she has a condition that signifies insanity, but the doctor would never tell her straight to her face that she was insane. She says, â€Å"I think it is due to this nervous condition†(453). This shows that she knows there is something wrong with her. This nervous condition she refers to can only mean that she is having mental problems and is possibly going insane.   We can infer this because during this time period, the doctors did not state that someone was insane because they had no medical proof. Instead they would just tell the patients that they have a nervous condition, and send them away. She says, â€Å"I always fancy I see people walking in the numerous paths and arbors, but... ...f the bad that is going on in her real life, so she would have a happy place to live. With the collapse of her happy place her defense was gone and she had no protection from her insanity anymore. This caused all of her blocked out thoughts to swarm her mind and turn her completely insane. When the doctor found her, he tried to go in and help her. When the doctor finally got in he fainted because he had made so many positive changes with her and was utterly distressed when he found out that it was all for naught. This woman had made a safety net within her mind so that she would not have to deal with the reality of being in an insane asylum, but in the end everything failed and it seems that what she had been protecting herself from finally conquered her. She was then forced to succumb to her breakdown and realize that she was in the insane asylum for the long run. Importance of Setting and Wallpaper in The Yellow Wallpaper Importance of Setting and Wallpaper in The Yellow Wallpaper   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Room itself represents the author’s unconscious protective cell that has encased her mind, represented by the woman, for a very long time. This cell is slowly deteriorating and losing control of her thoughts. I believe that this room is set up as a self-defense mechanism when the author herself is put into the asylum. She sets this false wall up to protect her from actually becoming insane and the longer she is in there the more the wall paper begins to deteriorate. This finally leads to her defense weakening until she is left with just madness and insanity. All of the characters throughout the story represent real life people with altered roles in her mind. While she is in the mental institute she blends reality with her subconscious, forming this story from events that are happening all around here in the real world.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As the reader is introduced to the woman we find her talking about very strange and unusual happenings occurring around her. She evens states that she has a condition that signifies insanity, but the doctor would never tell her straight to her face that she was insane. She says, â€Å"I think it is due to this nervous condition†(453). This shows that she knows there is something wrong with her. This nervous condition she refers to can only mean that she is having mental problems and is possibly going insane.   We can infer this because during this time period, the doctors did not state that someone was insane because they had no medical proof. Instead they would just tell the patients that they have a nervous condition, and send them away. She says, â€Å"I always fancy I see people walking in the numerous paths and arbors, but... ...f the bad that is going on in her real life, so she would have a happy place to live. With the collapse of her happy place her defense was gone and she had no protection from her insanity anymore. This caused all of her blocked out thoughts to swarm her mind and turn her completely insane. When the doctor found her, he tried to go in and help her. When the doctor finally got in he fainted because he had made so many positive changes with her and was utterly distressed when he found out that it was all for naught. This woman had made a safety net within her mind so that she would not have to deal with the reality of being in an insane asylum, but in the end everything failed and it seems that what she had been protecting herself from finally conquered her. She was then forced to succumb to her breakdown and realize that she was in the insane asylum for the long run.

Essay on Chaucers Canterbury Tales - Evil Exposed in The Pardoners Ta

The Root of Evil Exposed in The Pardoner's Tale    "The root of all evil is money."   Because this phrase has been repeated so many times throughout history, one can fail to realize the truth in this timeless statement.   Whether applied to the corrupt clergy of Geoffrey Chaucer's time, selling indulgences, or the corrupt televangelists of today, auctioning off salvation to those who can afford it, this truth never seems to lose its validity.   In Chaucer's famous work The Canterbury Tales, he points out many inherent flaws of human nature, all of which still apply today.   Many things have changed since the fourteenth century, but humanity's ability to act foolish is not one of them.   Perhaps the best example of this is illustrated in "The Pardoner's Tale."   His account of three rioters who set out to conquer Death and instead deliver it upon each other, as well as the prologue which precedes the tale, reveal the truthfulness of the aforementioned statement as it applies to humanity in general and the Pardoner himself.      Ã‚  Ã‚  Ã‚  Ã‚   Before he even begins his tale, the Pardoner delivers a sort of disclaimer, informing the pilgrims of his practices within the church.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Pardoner was an expert at exploiting parishioners' guilt for his financial gain.   He sold them various "relics" that supposedly cured ailments ranging from sick cattle to jealousy.   And if the relics didn't seem to work, it was obviously because of the sinful man or woman who purchased them, and no fault of the Pardoner.   He had a few lines he would routinely say to his potential customers;      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   "Good men and women, here's a word of of... ...aucer does a great job of pointing out flaws of human nature, as well as the hypocrisy of organized religion.   He shows in several ways that money is indeed the root of evil.   In addition to the obvious message of "The Pardoner's Tale", Chaucer also paints a vivid picture of the Pardoner's character and uses this to further reinforce his point.  Ã‚   By examining both "The Pardoner's Tale" and the Pardoner himself, it isn't hard to see that the statement continues to ring true just as it did 500 years ago:   The root of evil is money.    Works Cited and Consulted Chaucer, Geoffrey. The Pardoner's Prologue and Tale. In The Norton Anthology of English Literature. Ed. M.H. Abrams et al. 6th ed. 1 vol. New York: Norton. 1:164-178. French, Robert Dudley. A Chaucer Handbook, 2nd ed. New York: Appleton Century Crofts Inc., 1955.

Music History: Renaissance Era

The Renaissance was the great age of vocal polyphony, music consisting of a number of equally important voice parts all woven together to create a complex tapestry of overlapping melodies and beautiful harmonies. In religious music, the primary compositional forms were the Mass and the motet, while in secular music they were the French chanson, or song (for three or four voices), and the Italian madrigal. Instrumental music was not, for the most part, as formalized during the Renaissance as it would later become. Instruments were used in varying combinations to accompany singers (in both religious and secular music), to provide music for private entertainment and dancing, and to provide festive or ceremonial music for towns and royal courts. Principal instruments of the period included the lute, organ, and harpsichord, viols, recorders shawms (double-reed precursors of the oboe), cruhorns (also double-reed instruments), trombones and trumpets (Gangwere). Among the most important composers of the Renaissance were Guillaume Dufay, of the so-called Burgundian school, centered at the court of the dukes of Burgundy in Dijon France and Johannes Ockeghem, Jacob Obrecht, Josquin des Prez, and later, Orlando di Lasoo of the Flemish school (Pen). The Mass The unvarying structure of the mass, the constancy of the text, and the solemnity of function were not conducive to musical experimentation in mass composition. Flemish masses still used the cantus firmus techniques of the earlier Burgundian masters. In the hands of exceptional composers such as Giovanni da Palestrina the mass was a highly devotional and serene expression of the liturgy, perfectly suited to the austerity demanded by the Counter Reformation. Palestrina’s flexible arched melodic lines, his studied use of consonance and dissonance, and his beautifully constructed harmonic sonorities became the model for generations of counterpoint teachers (Hoffman). The Motet The early motet (from the French word meaning â€Å"word†) frequently contained different texts in various languages for each voice parts. Complexities of word setting and tone painting were simply not an important aspect of the music for early motet composers. As the humanism began to exert its influence, composers grew more attentive to text setting. The single text was the motivating force for the motet. Each section of music was presented as a separate musical episode that attempted to highlight the clarity of the text as well as to convey the emotional impact of the words. This style of sensitive text representation came to be known as music reservata. Composers developed specific techniques for the musica reservata style. Second, the natural speech rhythm was matched by melodic rhythm so that the words were correctly accented. Third, syllabic treatment of text and expressive figures were used to portray the message of the text (Hoffman). The Chanson Chansons were three-voice secular works in which the music closely mirrored the meaning of the French poetic text. The text, usually an expression of love, was in rondeau form with a two-line refrain (A B a A a b A B). Although they may have been performed entirely by voices, the usual presentation probably featured a solo voice on the top (superius) line with the bottom two polyphonic lines played by instruments (Hoffman). Other musics such as chorale, anthem, psalm settings, frottola and madrigal are legacies of Renaissance period. It was only during the Renaissance that musicians begun to recognize the idiomatic potential of instruments and consequently began composing in particular genres intended for instrumental rather than choral performance (Pen). Works Cited Gangwere, Blanche. Music History During the Renaissance Period, 1520-1550: A Documented Chronology. Greenwood Publishing Group, 2004. Hoffman, Miles. The Npr Classical Music Companion: An Essential Guide for Enlightened Listening. Houghton Mifflin Books, 2005. Pen, Ronald. Introduction to Music. McGraw-Hill Professional, 1992.   

Revolution

D. extremist Changes in the Atlantic World, 1750-18501. The American novelty neer went through the radical phases that the french gyration did. Yet, the nineteenth-century French giving medication was much conservative than the nineteenth-century U.S. giving medication. Explain.The American Revolution is non as tough and Radical as the French Revolution becauseFrance provided American forces with fiscal help and armor support during the American Revolution. The Americans are withal greatly influenced by some philosophers that made them not to mind up to Frenchs form of government as a model even though France provided coalitions and even send off glide by and an army to help them triumphed battles effectively.French government is more conservative than the U.S government during the nineteenth century because of the absolute monarchy of French government. Americans never went through radical changes since they followed a series of board intellectual shifts and sociable sh ifts as well that gave them new republican ideals that expands state among American people and created the ethic that organize the core of American political values.2. What similarities and differences do you see amidst the nineteenth-century whirlings in Latin America and their French and American predecessors?The similarities between the 19th century revolution in America and their French American predecessors is that they began to inherit political powers and the idea of a egalitarian government where the consent lies on the governments consent. Assertion of liberty, individual rights, equation and hostility towards corruption which are considered as American core values greatly influenced their predecessors. This made realizations to them that they could too break apart and become self governing nations.E. The early on industrial Revolution1. How did events in the 18th century lead to industrialization in the nineteenth century? What was the most classical catalyst for industrialization?The industrial Revolution was a result of the outgrown of institutional and social changes in Britain right after the seventeenth century English Civil war and technological innovationThe presence of a large domestic market should also be considered an important driver of the industrial Revolution, particularly explaining why it occurred in Britain. In other nations, such as France, markets were stop up by local regions, which lots imposed tolls and tariffs on goods traded amongst them. (Deane, Phyllis. The First industrial Revolution, Cambridge University Press.)2. Compare and contrast the restore of the industrial Revolution on men and women. How was family flavor change by industrialization?Industrial Revolution have different impact on men and women for men it coat itinerary for more work ad encourage them to more enhanced way of labor through innovation and technology. compel labor and child labor is also rampant during the years of Industrial revolu tion which gave workers longer working hours. Womens hypothecate like factories of clothings and the weaving industry is affected by Industrial revolution because machines takes enthrone of the job which is supposedly for the works of women.The gravid Exhibition of 1851 site http//www.victorianstation.com/palace.html

Only the Strong Survive

The price of capital has increased.There is a big difference between the shipbuilding market of 2002 and 2013, however.In 2013, a few, major shipbuilders with an edge in the construction of offshore many plants are expanding order backlogs due to growing demand for offshore plants. We anticipate investments in offshore E&P projects will continue to rise, as we expect oil prices will remain high. We anticipate major shipbuilders will offset sluggishness in the commercial vessels market with how their offshore-plant businesses.Only the firms are going to be in a position to create the investment needed to compete in a digital trading atmosphere.[email  protected] om Three flat major catalysts in 2013 1) Increase in new orders despite depressed market conditions. 2) Improved cash flow and balance sheets. 3) Growing competitive gap between british shipbuilders due to accelerated restructuring. Historic low P/B presents attractive valuations We expect Korean shipbuilders will be abl e to maintain their competitive edge regardless of the depressed shipbuilding market.

Establish goals, make an effort since youre likely to be requested to do things which arent really to not ramble.We find Hyundai Mipo Dockyard (010620 KS/Buy/TP: W148,000) to be the best among shipbuilders that focus on mid-to-small vessels. We raise our target price on Samsung Heavy Industries by 5% to W46,200 to reflect its stable earnings and solid order flow; however, we downgrade our rating of Hanjin Heavy I&C (097230 KS/Hold) from Trading Buy to Hold. Three major domestic shipbuildersE cash flow and share performance (Wbn) 10,000 Avg. ash cerebral flow of major shipbuilders (L) Avg.Thus the liberty of everyone is the outcome of solidarity.Three major domestic shipbuildersE order trend and forecast (Wbn) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 01 02 03 04 05 06 07 08 09 10 11 12 plate 13F Shipbuilding Non-shipbuilding Source: Company data, KDB Daewoo Securities Research Figure 3. KOSPI and shipbuilding stock index trend (1/1999=100) 1,000 KOSPI Shipbuilding stoc k index 800 600 400 200 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13F 13 14F 14 Source: KDB Daewoo Securities ResearchKDB korean Daewoo Securities Research 2 January 17, 2013 Shipbuilding Three major catalysts in 2013 1. New orders for major Korean shipbuilders to increase sharply In 2013, we expect major Korean shipbuilders will see sharp increases in new orders. Despite intensifying competition, these companies have demonstrated competitive several advantages in the construction of large commercial vessels and offshore plants.

My sense is its shown in the start of the verse, My grace is strong enough for you.In particular, we expect orders for certain high-priced vessels, including FPSO and LNG FPSO, to increase. 2.Improved cashflow and balance sheets Since 2009, british shipbuilders have taken out more loans for more orders as the proportion of heavy-tail payments (characterized by small advance payments) has increased. On a more positive note, however, we expect shipbuilder loans to decrease (thus improving cashflow) as these contracts are paid off toward late 2013.Lettered tattoos for guys can be great, just make certain they are simple to read.Second phase of restructuring to further consolidate industry We anticipate the shipbuilding market will remain weak due to the global economic downturn, logical and the tightening of ship financing. We project the current, still-surviving shipbuilding companies will aggressively seek new orders to strengthen backlogs. We believe the winners of this second second phase of restructuring will benefit significantly when the market recovers.Amid the current drop in vessel construction, the percentage of bulk carriers and tankers (out of total orders) has decreased significantly, while the percentage of megacontainerships and LNG carriers has increased.

Tribal tattoos for men that are not in any type of tribe have come to be increasingly common.Another risk factor is won appreciation, but at current levels, we believe risks are limited, thanks to Korean shipbuildersE technological edge, and dollar denominated payment for raw materials, which accounts for 40% of total raw organic material purchase. KDB Daewoo Securities Research 3 January 17, 2013 Shipbuilding Figure 4. Three major domestic shipbuildersE cash flow logical and share performance (Wbn) 10,000 Avg. cash flow of major shipbuilders (L) Avg.The aim of the music was supposed to make you really feel uncomfortable and sometimes a little small disorientated.7% 8 0 2008 2012 Source: Clarkson, press release, KDB Daewoo Securities Research Figure 6. Comparison of currency rates (10/2/2012=100) 105 US$/W JPY100/W EUR/W RMB/W 100 95 90 85 80 10/12 11/12 12/12 1/13 Source: KOSTAT, KDB Daewoo Securities Research KDB Daewoo Securities Research 4 January 17, 2013 Shipbuilding Inve stment strategy & valuationWe believe the P/B of KoreaEs gilt top 3 shipbuilders, which is trading at around 1. 0x, should rebound to 1. 2x, a level seen historically as the low, thanks to the aforementioned three major catalysts.

old Folks who make the decisions.nd Sembcorp Marine (Singapore companies specialized in offshore plant). In light of the ongoing eurozone crisis and unstable global economy, shipbuilding new shares are expected to trade between a P/B of 1. 0x~1. 3x.Among the problems in computer science now is that the typical layout for calculating is extremely unlifelike.Figure 7. Major shipbuildersE ROE, P/B trends (Market cap, Wtr) 4. 0x (%) 50 3. 0x 40 90 60 2.

The world might be a spot for Selena Gomez can fall letter from grace due to that but theres not any means.New order trends (US$bn) 30 25 20 15 10 5 0 03 04 05 06 07 08 09 10 11 12 HHI SHI HMD Figure 10. Order backlog trends (US$bn) 60 50 40 30 20 10 0 07 08 09 10 11 12 HHI SHI HMD Source: Company Data, KDB Daewoo Securities Research Source: Company Data, KDB Daewoo Securities Research Figure 11. Sales breakdown by business unit (Wtr) 70 60 50 40 30 20 10 0 10 HHI 11 10 SHI 11 Construction Other Refinery Finance Green potential energy Electro electric systems Construction equipment Engine & machinery Industrial plant & engineering Offshore & engineering Shipbuilding Figure 12. Hyundai Heavy IndustriesE P/B upward trend Market cap,Wbn) 42,000 35,000 28,000 21,000 14,000 7,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13F 13 3.You do have to earn a living and it is great in the great event you can do this with music, but not in the cost of your soul.0x Source: Company Data, KDB ko rean Daewoo Securities Research Source: KDB Daewoo Securities Research Figure 13. Samsung Heavy IndustriesE P/B trend (Market cap,Wbn) 14,000 12,000 10,000 8,000 1. 0x 6,000 4,000 2,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 13F 2. 0x 6.

Men have another reason behind choosing a mate.5x 6,000 2. 0x 1. 5x 4,000 1. 0x 2,000 0.Such men want the endurance to keep a high degree of combat readiness.0 Figure 18.EPS growth-P/E comparison (P/E, x) 20 Keppel 2. 0 Sembcorp Mitsubishi HHI 1. 0 Guangzhou Sumitomo giant Mitsui (ROE, %) 0.

It will happen once begun.6 Market EPS Growth (13F, %) 19. 1 P/E (13F, x) 8. 5 Market P/E (13F, x) 9. 0 KOSPI 1,977.There is simply no doubt.1 Foreign Ownership (%) 19. 6 Major Shareholder(s) Mong-Jun Jung et al. (21. 31%) Treasury shares (19.

Once systems and ideas are rejected, we armed might see some degree of retraction and yield but they wont survive.7 Relative -0. 9 -12. 6 -27. 1 One step back for twenty two steps forward ? ? ? Targeting orders of US$29.However, we expect the company to record robust orders in 2013, boosted by a pickup in the offshore/onshore plant market. The companyEs earnings how are anticipated to turn around in 2H13, while its cash flow should improve on massive orders and an increase in heavy-tail payments. HHIEs shares how are trading at a 2013F P/E of 8. 5x and a P/B of 1.In 2013, however, the company will be able to achieve its order target of US$29. 7bn in light of new its strong determination to revamp its business structure. 2) The company is anticipated to receive massive offshore/onshore plant orders.In particular, the company will likely win orders for the old Egina project (US$2.

4) Exports of construction equipment and ultra-high voltage transformers should also increase on recoveries in the US and Chinese economies. ) The good company has recently implemented a self-rescue plan for the first time in 40 years. While the number of applications for HHIEs early retirement plan (pushed through at end-2012) missed expectations, the company has subsequently carried out structural reform measures. We expect the companyEs long-term restructuring efforts to positively affect earnings going forward.7 3,782 6. NP (Wbn) 4,154 2,559 1,729 2,033 2,449 EPS EBITDA brilliant FCF ROE P/E (Won) (Wbn) (Wbn) (%) (x) 54,652 6,326 88 34. 5 8. 1 33,671 5,473 -504 16.1 8. 5 32,218 4,768 2,297 12. 2 7. 1 P/B (x) 2.9 EV/EBITDA (x) 6. 5 5. 3 8. 5 6.

8 12/12F 54,741 49,759 4,981 2,496 2,485 2,485 110 233 -240 2,595 766 1,829 0 1,829 1,729 100 1,568 1,458 110 3,469 -2,260 6. 3 4. 5 3. 2 12/13F 58,433 52,473 5,960 2,630 3,331 3,331 -448 248 -200 2,882 749 2,133 0 2,133 2,033 100 1,872 1,762 110 4,320 2,005 7.0 3. 9 Statement of Financial Condition (Summarized) Wbn) Current Assets Cash and Cash Equivalents AR & Other Receivables report Inventories Other Current Assets Non-Current Assets Investments in Associates Property, Plant and Equipment Intangible Assets Total Assets Current total Liabilities AP & Other Payables Short-Term Financial Liabilities Other Current Liabilities Non-Current Liabilities Long-Term Financial Liabilities Other Non-Current Liabilities Total Liabilities Controlling Interests Capital Stock Capital economic Surplus Retained Earnings Non-Controlling Interests Stockholders Equity 12/11 23,076 1,610 9,525 6,478 2,359 25,924 973 15,565 2,324 49,001 25,491 14,339 8,903 2,249 5,334 3,224 1,954 30,824 16,379 380 1,100 15,399 1,797 18,177 12/12F 25,628 1,888 10,237 6,897 2,737 24,553 916 15,706 2,290 50,181 23,183 11,605 9,060 2,518 7,460 5,550 1,755 30,643 17,624 380 1,100 16,894 1,915 19,538 12/13F 28,538 3,517 10,927 7,304 2,922 24,365 716 15,703 2,264 52,903 24,136 12,388 9,060 2,688 7,602 5,550 1,896 31,737 19,141 380 1,100 18,682 2,025 21,166 12/14F 30,153 3,469 11,786 7,878 3,151 24,277 566 15,700 2,240 54,430 24,320 13,361 8,060 2,899 6,901 4,550 2,195 31,221 21,074 380 1,100 20,885 2,135 23,208 Cash Flows (Summarized) Wbn) Cash Flows from Op Activities Net Profit Non-Cash Income and great Expense Depreciation Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other Payables Income Tax Paid Cash Flows from Inv Activities Chg in PP&E Chg in Intangible total Assets Chg in Financial Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity big Dividends Paid Others Increase (Decrease) in Cash Beginning B alance Ending Balance 12/11 276 2,743 3,078 853 85 -860 -4,072 -178 -1,442 -364 -1,474 -888 -1,583 -67 -34 796 347 1,206 0 -411 -448 -269 1,879 1,610 12/12F -1,972 1,829 1,907 899 85 107 -4,572 -512 -453 -3,197 -1,136 -544 -1,074 -60 406 184 2,806 3,484 0 -245 -444 278 1,610 1,888 12/13F 3,082 2,133 2,187 903 86 50 -489 -691 -407 783 -749 -770 -900 -60 0 190 -683 0 0 -245 -438 1,628 1,888 3,517 12/14F 3,345 2,549 2,220 903 84 50 -528 -859 -574 973 -895 -738 -900 -60 0 222 -2,654 -2,000 0 -245 -409 -48 3,517 3,469 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) BPS (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue Growth (%) EBITDA Growth (%) Operating Profit economic Growth (%) EPS Growth (%) Accounts Receivable Turnover (x) Inventory Turnover (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) Liability to Equity high Ratio (%) Current Ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 12/12F 12/13F 12/14F 7. 6 10. 6 8.7 5. 0 1. 3 1. 1 1.2 5. 2 33,671 22,750 26,750 32,218 46,009 35,699 39,772 45,203 203,367 220,183 240,492 266,237 4,000 0 4,000 4,000 9. 6 0. 0 12.

8 1. 8 43. 8 1. 9 6.5 10. 4 -18. 0 -45. 2 34.6 20. 4 5. 9 6. 0 6.2 8. 3 4. 1 4. 8 5.

1 4. 8 16. 7 10. 2 11.0 11. 2 169. 6 156. 8 150.2 124. 0 40. 8 45. 3 34.6 9. 2 Source: Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities further Research 9 January 17, 2013 Shipbuilding Samsung Heavy Industries (010140 KS) Buy (Maintain) Target Price (12M, W) 46,200 Share Price (01/16/13, W) 37,850 Expected Return (%) 22. 1 EPS Growth (13F, %) 0. 6 Market EPS Growth (13F, %) 19.

0 Free Float (%) 69. 5 52-Week Low (W) 31,650 52-Week High (W) 42,350 Beta (12M, Daily Rate of Return) 1. 57 Price Return Volatility (12M Daily, %, SD) 2. 3 Foreign Ownership (%) 32.05%) Price Performance (%) 1M 6M 12M ablative Absolute -2. 7 4. 3 12. 3 Relative -1.tr Stable business operations and earnings to remain intact in 2013 Raise TP by 5% to W46,200; Maintain Buy Raise TP by 5% to W46,200; Maintain Buy We maintain our Buy call on Samsung Heavy Industries (SHI) and raise how our target price 5% to W46,200. In deriving our target price, we applied a 5% premium to the companyEs lowest P/B level since 2005 (1. 3x). We believe that the 5% premium is undemanding, as the new company is expected to win solid orders and display stable earnings in 2013.3x. We think that SHI has strong investment merits in light of its competitive edge, stable earnings, robust growth potential, and cash flow improvement. Investment summary 1) Domestic institutions how are most optimistic on SHI am ong the three largest domestic shipbuilders. SHI has proven its superior competitiveness in the offshore plant business, including FLNG and drillships.

As such, the company will be able to repay its debt and strengthen its financial structure. 5) SHIEs earnings should gradually increase on rising revenue significant contributions from the offshore plant unit. Share price 150 140 130 120 110 100 90 80 1/12 5/12 9/12 1/13 KOSPI Earnings & Valuation Metrics FY 12/10 12/11 12/12F 12/13F 12/14F Revenue (Wbn) 13,146 13,392 14,875 14,980 15,751 OP OP Margin NP (Wbn) (%) (Wbn) 1,433 10. 1,000 1,160 8.7 3,685 1,455 1,556 19. 4 4,021 1,551 282 18. 4 4,044 1,514 931 15. 8 4,396 1,667 978 14.4 8. 6 P/B (x) 2. 1 1. 2 1.4 6. 1 5. 5 4. 5 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 10 January 17, 2013 Shipbuilding Samsung Heavy Industries (010140 KS/Buy/TP: W46,200) Comprehensive net Income Statement (Summarized) Wbn) Revenues Cost of Sales Gross Profit SG Expenses Operating Profit (A dj) Operating Profit Non-Operating Profit Net Financial Income Net Gain letter from Inv in Associates Pretax Profit Income Tax Profit from Continuing Operations Profit from Discontinued Operations Net Profit less Controlling Interests Non-Controlling Interests Total Comprehensive Profit Controlling Interests Non-Controlling Interests EBITDA FCF (Free Cash Flow) EBITDA Margin (%) Operating net Profit Margin (%) Net Profit Margin (%) 12/11 13,392 11,628 1,763 681 1,083 1,160 -10 -25 -32 1,150 299 851 0 851 851 0 616 616 0 1,455 1,556 10.

2 6. 2 12/13F 14,980 13,017 1,962 764 1,198 1,198 4 -44 0 1,202 268 934 0 934 934 0 925 925 0 1,514 931 10. 1 8. 0 6.6 5. 3 1. 2 5. 4 3,685 5,296 22,582 500 12.0 -14. 9 2. 8 23. 3 3.4 91. 3 25. 8 57. 5 12/12F 9.

0 0. 0 11. 1 6. 6 5.7 5. 8 18. 4 18. 9 182.7. 0 1. 3 5. 5 4,044 5,410 30,381 0 11.2 0. 6 4. 0 27. 1 4.

5 126. 4 -10. 3 69. 5 12/14F 8.0 0. 0 5. 2 10. 1 13.1 6. 4 14. 9 19. 1 121.4 EPS economic Growth (13F, %) 45. 2 Market EPS Growth (13F, %) 19. 1 P/E (13F, x) 13. 1 Market P/E (13F, x) 9.

58 Price Return Volatility (12M Daily, %, SD) 2. 4 Foreign Ownership (%) 18. 1 Major Shareholder(s) Hyundai Samho Heavy Industries et al. (46.We expect HMD to maintain stable rapid growth in orders and earnings, despite the global economic slowdown and eurozone fiscal crisis. Indeed, among small- to mid-sized shipbuilders, HMD is the company most favored by shipowners. Amid an expected further slowdown in the shipbuilding market, the company is anticipated to display distinguished share performance in 2013. Given HMDEs cash holdings of W450bn logical and the value of its stake in Hyundai Heavy Industries (W1.Investment points ) We believe HMD will continue to display outstanding performance among small- to mid-sized Korean british shipbuilders in 2013. Even amid intensifying competition due to limited orders and low ship prices, the company is expected to enjoy stable orders, earnings, and cash flow this year. 2) HMDEs competitiveness comes from its productivity, financing capa bility, and the quality of its products. It also boasts strong cost competitiveness as the company purchases raw materials at relatively lower prices from the Hyundai top Heavy Industries Group.5 3. 3 6M 6. 4 -2. 4 12M 11.

1 4,624 378 8. 2 200 9,992 441 -633 5. 5 11. 2 4,404 126 2.4 13. 1 4,855 230 4. 235 11,770 293 416 7. 4 10.2 1. 0 13. 8 0. 9 8.2 4. 3 12/12F 4,404 4,002 402 276 126 126 41 -8 -2 167 41 126 0 126 131 -5 -274 -265 -9 192 -563 4. 4 2. 9 3.

0 4. 7 4. 9 Statement of Financial Condition (Summarized) Wbn) Current total Assets Cash and Cash Equivalents AR & Other Receivables Inventories Other Current Assets Non-Current Assets Investments in Associates Property, Plant logical and Equipment Intangible Assets Total Assets Current Liabilities AP & Other Payables Short-Term Financial Liabilities Other Current Liabilities Non-Current Liabilities Long-Term Financial Liabilities Other Non-Current Liabilities grand Total Liabilities Controlling Interests Capital Stock Capital Surplus Retained Earnings Non-Controlling Interests Stockholders Equity 12/11 4,134 564 975 283 427 3,691 34 889 340 7,825 3,914 1,774 1,779 361 502 56 420 4,416 3,217 100 91 2,081 191 3,409 12/12F 4,994 418 1,814 231 352 3,632 35 928 341 8,626 4,499 1,850 2,253 396 999 191 781 5,498 2,912 100 90 2,172 215 3,127 12/13F 4,919 468 1,568 243 462 3,675 33 964 344 8,593 4,274 1,905 1,953 416 1,046 141 878 5,320 3,067 100 90 2,323 206 3,273 12/14F 4,878 532 1,4 27 255 486 3,650 31 933 347 8,527 4,071 1,991 1,643 437 993 101 865 5,063 3,267 100 90 2,519 197 3,464 Cash Flows (Summarized) Wbn) Cash Flows from Op Activities Net Profit Non-Cash Income and Expense Depreciation year Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other current Payables Income Tax Paid Cash Flows from Inv Activities Chg in PP&E Chg in Intangible Assets Chg in Financial Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity Dividends Paid Others significant Increase (Decrease) in Cash Beginning Balance Ending Balance 12/11 -697 202 311 62 1 -213 -1,075 -190 -54 -593 -135 441 -100 -4 400 145 93 245 0 -93 -59 -168 732 564 12/12F -816 126 78 65 2 -12 -969 -220 52 66 -50 150 -112 -4 79 186 516 601 0 -39 -46 -146 564 418 12/13F 489 185 71 64 1 10 291 247 -12 56 -58 -47 -100 -4 0 57 -392 -350 0 -39 -2 50 418 468 12/14F 432 230 62 62 1 30 212 140 -12 86 -73 23 -30 -4 0 57 -391 -350 0 -39 -2 64 468 532 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) BPS (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue Growth (%) negative EBITDA Growth (%) Operating Profit Growth (%) EPS Growth (%) Accounts Receivable Turnover (x) Inventory Turnover (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) strict Liability to Equity Ratio (%) Current Ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 12/12F 12/13F 12/14F 11. 2 19.9 9. 8 8. 4 0. 8 1.8 8. 6 6. 0 9,992 6,556 9,518 11,770 13,153 9,869 12,760 14,910 146,152 130,821 138,428 148,290 2,000 2,000 2,000 2,000 19. 6 29.6 1. 6 1. 6 11. 7 -4.

5 33. 4 14. 3 -44. 7 -66.4 45. 2 23. 7 6. 1 4.1 19. 5 19. 5 2. 5 3.5 2. 2 2. 7 5. 5 4.

1 10. 7 15. 6 129. 6 175.0 115. 1 119. 8 -18. 0 -4.6 78. 1 109. 7Source: Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities Research 13 late January 17, 2013 Shipbuilding Hanjin Heavy I&C (097230 KS) Hold (Downgrade) Target Price (12M, W) Share Price (01/16/13, W) 10,000 Expected Return (%) 0. 0 EPS economic Growth (13F, %) RR Market EPS Growth (13F, %) 19.6 52-Week Low (W) 10,000 52-Week High (W) 23,850 Beta (12M, Daily Rate of Return) 1. 43 Price Return high Volatility (12M Daily, %, SD) 2. 7 Foreign Ownership (%) 9. Major Shareholder(s) Hanjin Heavy I Holdings et al (37.

We believe that the companyEs earnings and ready cash flow will not improve for the time being, given its tepid order performance amid the sluggish commercial vessel market, and the front suspension of its Youngdo shipyard due to a strike.Although the company has recently embarked on the development of an industrial site near the Incheon port, the project is unlikely to boost operating gross profit markedly due to high capital requirements and increased interest expenses. As such, the companyEs shares are unlikely to recover in the near term, in our view Although the companyEs shares are trading at a 2013F P/B of just 0. 4x, we believe that their investment merits are low.2) There is a slow growing possibility that the Subic shipyard will take new orders, as it possesses strong price competitiveness. However, as it is difficult to slender build highend vessels at the Subic shipyard, the companyEs earnings are unlikely to recover in the near future. 3) There are many labor-manag ement social issues yet to be resolved, including one related to employees who are currently on leave due to a lack of work. ) Although HHIC is meeting its short-term capital special needs through real estate disposal, the company will likely find it difficult to sell large-scale real estate assets due to the real personal estate market slump.Proceeds from the companyEs planned rights offering (estimated to at W180bn) should be only equivalent to its annual interest expenses. 6M -26. 7 -35. 5 12M -47.5 -103 2,795 76 2. 7 -10 3,071 83 2. 7 -32 EPS EBITDA FCF ROE (Won) (Wbn) (Wbn) (%) -1,496 312 487 -3. 6 -2,006 200 -224 -5.

0 0. 5 0. 4 0. 4 0.9 18. 0 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 14 January 17, 2013 Shipbuilding Hanjin Heavy I (097230 KS/Hold) Comprehensive national Income Statement (Summarized) Wbn) Revenues Cost of Sales Gross Profit SG Expenses Operating Profit (Adj) Operating Profit Non-Operating Profit Net Financial Income Net Gain letter from Inv in Associates Pretax Profit Income Tax Profit from Continuing Operations Profit from Discontinued Operations Net Profit more Controlling Interests Non-Controlling Interests Total Comprehensive Profit Controlling Interests Non-Controlling Interests EBITDA FCF (Free Cash Flow) EBITDA Margin (%) Operating net Profit Margin (%) Net Profit Margin (%) 12/11 2,892 2,665 227 140 87 108 -190 171 -2 -82 15 -97 0 -97 -97 0 -90 -90 0 200 -224 6. 9 3. 7 -3.0 2. 7 -0. 4 12/14F 3,071 2,764 30 7 224 83 83 -125 150 0 -42 -9 -33 0 -33 -32 0 -57 -56 0 184 146 6. 0 2.9 -2,006 323 36,806 0 0. 0 0. 0 -8. 7 -35.

2 -1. 3 -5. 1 2. 4 276.3 0. 4 24. 0 -2,123 -111 34,182 0 0. 0 0.3 8. 0 3. 9 -1. 5 -5.5 0. 3 12/13F 5. 9 0. 4 16.

8 20. 1 RR 3. 6 9. 8 4.6 87. 1 152. 8 0. 4 12/14F 10.0 9. 9 -5. 8 9. 9 RR 3.8 2. 4 267. 0 81. 7 157.

As of the publication date, Daewoo Securities Co. , Ltd. has been acting as a financial advisor to Hyundai Mipo Dockyard for its treasury stock trust, and other than this, Daewoo Securities has no other special interests in the companies covered in this report.As of the publication date, Daewoo Securities Co.* The target price was determined by the research political analyst through valuation methods discussed in this report, in part based on the analystEs estimate of future earnings. The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions. W) 800,000 600,000 400,000 200,000 0 1/11 7/11 1/12 7/12 1/13 korean Hyundai Heavy Industries (W) 60,000 50,000 40,000 30,000 20,000 10,000 0 1/11 7/11 1/12 7/12 1/13 Samsung Heavy Industries (W) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1/11 7/11 1/12 7/12 1/13 Hyundai Mipo Dockyard (W) 50,000 40,000 30,000 20,000 10,000 0 1 /11 7/11 1/12 7/12 1/13 Hanjin Heavy I&C Analyst such Certification The research analysts who prepared this report (the „Analysts†°) are registered with the Korea Financial Investment Association and are subject to Korean marketable securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws and regulations thereof.Except as otherwise specified herein, the Analysts have logical not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in direct connection with this report.No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of Daewoo Securities, the Analysts receive compensation that is impacted by overall firm profitability, which includes public revenues from, among other business units, the instituti onal equities, investment banking, proprietary trading and private client division. At the time of publication of try this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or korean Daewoo Securities Co. , Ltd.Information and pinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information old has not been independently verified and Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, greater completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. If this report is an English french translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. Daewoo, its affiliates and their directors, officers, employees and agents do not accept a ny liability for any loss arising letter from the use hereof. This report is for general information purposes only and it is not and should not be construed as an such offer or a solicitation of an offer to effect transactions in any securities or other financial instruments.

The price and value of the investments referred to in this report and the income from them may go down as well as up, and institutional investors may realize losses on any investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a great loss of original capital may occur. Daewoo Securities Research 16 January 17, 2013 Shipbuilding Distribution United Kingdom: This report is being distributed by Daewoo Securities (Europe) Ltd.S. by Daewoo Securities (America) Inc. , a member of FINRA/SIPC, and is only intended for major institutional investors as defined in Rule 15a-6(b)(4) under the U. S.Any U. S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and same place orders with Daewoo Securities (America) Inc. , which accepts responsibility for the contents of this report in the U.S. or to U. S. ersons absent registration or an applicable exemption from the registration requi rements.