HD Hyundai Construction Equipment / HD Hyundai Infracore
Merger & Growth Strategy
July 2025
01
Transaction Overview
HD Hyundai Construction Equipment will merge with HD Hyundai Infracore, and issues new shares of HD Hyundai Construction Equipment to shareholders of HD Hyundai Infracore.
Content | Note | |
Surviving Entity | HD Hyundai Construction Equipment | |
Dissolved Entity | HD Hyundai Infracore | |
Merger Ratio | To allocate 0.1621707 shares of HD Hyundai Construction Equipment common stock for every one common stock of HD Hyundai Infracore | Merger ratio is determined in accordance with Korean law and based on the closing share price as of June 30.
|
New Shares Issued | 30,626,144 shares | No new shares will be issued with respect to the treasury shares purchased during the exercise of dissent and appraisal rights. |
Dissent and Appraisal Rights | HD Hyundai Construction Equipment : KRW 75,545 HD Hyundai Infracore : KRW11,885 | Calculation method (Capital Market Act Article 176-7) - Weighted average of the share price of last 2 month/1 month/1 week |
Merger
Milestones
25.07.01 25.07.16 25.09.16 25.11.07 26.01.01 26.01.26(E)
Board of
Directors Resolution
Record Date
for Shareholders' Meeting
Shareholders'
Meeting
Payment for
Dissenting Shareholder's Shares
Merger Date
Expected
listing date of newly issued shares
02 Shareholder structure before and after merger
HD Hyundai Infracore (Dissolved Entity) 34.9%
HD Hyundai Construction Equipment (Surviving Entity)
37.6%
HD Construction Equipment 35.8%
※ Reflective of cancellation of existing treasury shares
※ HD Construction Equipment (provisional), Based on closing price of June 30th.
※ Ownership of majority shareholder calculated assuming no dissenting shareholders.
Global Construction Equipment Market Demand
Global Construction
Equipment Market
Sales Target
of Merged Entity
'11A '12A '13A '14A '15A '16A '17A '18A '19A '20A '21A '22A '23A 24A '25F '26F '27F '28F '29F '30F
※ GlobalMarketDemand: Basedonsalesvolumeofexcavators,WheelLoaders,CompactTrack Loaders,SkidSteerLoadersandCompactWheelLoaders
Competitive Cost Structure,
Full Product Lineup and Well-balanced Business Portfolio
Cost
Leadership
Full Product
Lineup
Stronger Regional
Portfolio
Diversified
Revenue Source
KRW 1.4tr
KRW 2.5tr
01Construction Equipment
02 Engine
03 After Market
CAGR
+12.0%
1.4tr
CAGR
+11.9%
CAGR
+13.8%
* Based on total sales, including internal revenue
01
02
03
Stronger Fundamental Competitiveness
Expand Strategic Biz with Strong Growth Potential
Seek Opportunities in New Growth Businesses
Product portfolio expansion ·
optimization
Stronger overseas
Global Production market penetration System with dual brands
Expand compact
business
Expansion of
AM business*
※ AM Biz : Aftermarket Parts Supply Business
Nurture
Engine Business
Jointly secure future
competitiveness (Electrification/Smart CE)
01
03
Product Portfolio
Expansion · Optimization
Global Production
02
System
Stronger Overseas Market Penetration with Dual Brands
Streamlining
overlapping lineups
Mutually reinforcing
missing lineups
01 Expand Compact Business
Focus on Developing
02
Highly Profitable AM Business
CAGR
+13%
22,000 units
9,000 units
2024
2027
2030
CAGR
+14%
KRW 1.4tr
KRW 0.6tr
2024
2027
2030
* MEX : Mini Excavator, CTL : Compact Track Loader, SSL : Skid Steer Loader, CWL : Compact Wheel Loader
** PDC : Parts Distribution Center
01
Nurture
Engine Business
Key Growth Drivers
KRW 2.5tr
* EPP: E-Power Pack
CAGR
+11.9%
Eco-friendly
/Electrification Trend
Accelerating defense exports
KRW 1.3tr
Expansionof demand for extra-large power generationengines
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
(Equipment Sales) Market Recovery
+
Expandapplication of HD Hyundai Infracoreengine (More than 70~80%)
※ Based on total sales of engine business
02
Secure future competitiveness
together(Electrification / Smart CE)
Electrification
Smart
Equipment & Solutions
Launched electric
excavator
Development of
Hydrogen excavator
Development and Commercialization of
Smart Equipment & Solution
KRW73.3bn
48.0%
39.5%
KRW31.9bn
40.6%
KRW44.9bn
29.0%
30.1%
KRW78.0bn
22.9%
KRW47.9bn
KRW29.4bn
01
02
Mid- to long-term
Both companies disclosedplans to utilize more than 30% of net income (excl. unrealized gains/losses & one-time non-recurring gains/losses) based on separate financial statements for the next three years (2024~2026) to enhance shareholder value.
(Both recorded a shareholder return rate of approx. 40~50%)
→ Shareholder value should continue to improve in line with
profit growth from the merger in the future.
shareholder value enhancement plan
Gradual improvement in cash dividend ratio
We plan to gradually increase cash dividends to enhance investor
visibility on dividends and strengthen future shareholder return.
2022 2023 2024
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HD Hyundai Infracore Co. Ltd. published this content on July 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 01, 2025 at 07:26 UTC.
