We welcome and embrace the year 2011 because of our 38,000 talented people and their commitment to do their best to strengthen the competitiveness under the motto of “Global Doosan”.

Last year was a very meaningful year for Doosan. In 2010, as the starting point for the new decade, we achieved more than we had aimed. Despite lingering uncertainties in the global market, Doosan has won KRW 17.3 trillion (US$ 15 billion) in new orders, KRW 24.6 trillion (US$ 21.3 billion) in sales, and KRW 1.8 trillion (US$ 1.6 billion) in EBIT, marking the best-ever performance in the Company’s history. Doosan Heavy Industries and Construction secured new orders that exceeded their targets in Saudi Arabia, the United Arab Emirates, Egypt and India while Doosan Infracore, by making great strides not only in China but also in other emerging markets, contributed to Doosan in expanding sales and EBIT. Other affiliates also successfully carried out their respective share of the goal.

These achievements did not come true by themselves. Last year, Doosan conducted the “selection and concentration” strategy in markets and products to create value and increase profits. We also streamlined our organizational structure and systems to improve operational capability. To make inroads into the Indian power market as well as the European and American regions, we established Doosan Power Systems. The soundness of our business portfolio was also enhanced through the merger of Doosan Engineering and Construction with Doosan Mecatec.

Also, to optimize our finances and to prepare for IFRS (International Financial Reporting Standards), we updated our systems and improved the structure of loans to secure a sound financial infrastructure. As a result of these preemptive measures to meet the changing business environment, we were able to generate KRW 1.1 trillion (US$ 908 million) in cash, while mobilizing more than KRW 1 trillion (US$ 860 million) in investment.

Such a performance is deemed meaningful beyond the numbers. Through these achievements, we reaffirmed our capability and potential. We have gained confidence that by the end of the new decade, we will be able to actualize our vision and join the league of the Global Top 200 companies.

Dear executives and staff members, Doosan will continue to top the record of the best business performance again this year. We set our goal to achieve KRW 16.6 trillion (US$ 15.1 billion) in new orders, KRW 27.7 trillion (US$ 25.2 billion) in sales, and KRW 2.2 trillion (US$ 2 billion) in EBIT. We will witness a slight decrease in new orders due to delays in acquisition of orders for EPC (Engineering, Procurement and Construction) projects, however, we will nonetheless increase both sales and EBIT over 10%.

Although these goals were set based on a careful and thorough analysis, we should be wary of excessive optimism. There are lingering uncertainties around the global economy and many external variables that are elusive of our projections. Financial crises in Europe are still ongoing, while instability in the fiscal, financial and foreign exchange markets, including a possible sudden inflow and outflow of capital, continue to linger in various countries. If the pace of the global economic recovery slows due to these variables, competition between countries and between enterprises will likely further intensify.

However, uncertainties could turn into opportunities for those who are prepared. In times like this, Doosan should strengthen competitiveness to ensure that it is not swayed under any circumstances. In order for Doosan to take another giant leap forward, I urge you to remain vigilant at your respective positions and continue the strides. I would like to hereby address matters that we are focusing on throughout this year.

First, we must consolidate Doosan’s philosophy of human resources oriented management, namely “People Are Our Future,” and ensure that this philosophy permeates into many aspects of our management. People are the biggest driving force for our continued growth. Emphasizing the cultivation of people is a managerial philosophy that Doosan has continued to follow over the past 115 years.

Growth of people is not attained merely through sound bites. Top management should ensure that our new talented staff members can experience firsthand Doosan’s philosophy of “People Are Our Future” both mentally and physically. They must create HR development programs, place top priority on these more than any other managerial activities, and put them into practice. The member who joined Doosan in trust of this philosophy should never later feel it is a mere “verbal pledge”.

Second, we must pursue “value-up,” and continue to increase our value across business areas of Doosan.

Over the past 10 years, Doosan has made an astonishing growth to post “best performance record” every year, except during the period of the global financial crisis. Now, Doosan must focus its efforts on not only growth of volume but also on growth of value. Internally, we must create an environment where the highest values can be generated by optimizing our systems and processes, while internally fathoming customers’ needs in advance, leading to increased value by region, product and service. Rather than only increasing sales volume, we must place priority on increasing operating profits, and move into premium markets of high added value, and thereby further enhancing profitability.

Thirdly, we must practice corporate social responsibility in order for Doosan to become a company truly loved and respected by the people.

As I emphasized last year, we live in an era where corporate social responsibility is not a matter of choice but a requisite. Doosan is constructing “partnership of virtuous cycle” with our subcontractors in a bid to increase our global competitiveness. “Partnership of virtuous cycle” refers to a relationship wherein Doosan helps boost the competitiveness of its subcontractors which assists their growth and in turn contributes to Doosan’s growth. In the coming years, Doosan must continue to increase cooperation with the entire value chain, going beyond primary and secondary subcontractors. Through these efforts, we will move forward towards genuine co-growth, surpassing co-existence.

Social philanthropy activities have become such an important part of implementing corporate social responsibility efforts that they cannot be stressed enough. The Company will increase efforts in this regard, but executives and staff members are also urged to boost social philanthropy activities through participation, and embrace local communities. Only when we make concerted commitment, can Doosan be regarded as an enterprise that is more loved and respected by the people.

Lastly, I would like to emphasize the establishment of an ideal and healthy corporate culture.

Inhwa is an inherent image that Doosan has sustained for over 100 years. Any act in disrespect of Inhwa cannot be tolerated. Furthermore, everyone at Doosan is urged to redouble their efforts to ensure that such a unique corporate culture of harmony spreads and takes its root in benefit of a great working environment.

There have been aspects where Doosan’s unique corporate culture could not be fully integrated in the course of mergers and growth at a fast pace. There is a saying that when one enjoys a boom and makes great strides, one must go back to the basics. All executives and staff members as well as top management are requested to reflect on whether there have been neglected or are inadequate areas, and redouble their efforts to spread and establish this unique corporate culture of Doosan.

Dear Doosan’s executives and staff members! Over the past two months, I have visited many of Doosan’s outstanding worksites, including production plants in Changwon and Incheon in Korea, Yantai in China, and the site of the Nakdong River Restoration Project, and met with many of you. I have vividly sensed a strong passion and pride in everyone, who aspired to contribute to the honor for Doosan. Doosan is a home to opportunities where you can realize your dreams and visions. Marking the 115th anniversary of Doosan, let us join hands and make concerted efforts to open a new chapter of our proud company, Doosan.

I wish for happiness in all the families of Doosan, and hope everyone has a New Year full of health and success.