Doosan Bobcat Inc.

and its subsidiaries

Interim consolidated financial statements

for the nine-month period ended September 30, 2024
with the independent auditor’s review report

Doosan Bobcat Inc.

 Table of contents

Report on review of interim consolidated financial statements

Page(s)

Interim consolidated financial statements

Interim consolidated statements of financial position ..................................................... 1

Interim consolidated statements of profit or loss ............................................................ 2

Interim consolidated statements of comprehensive income or loss ............................... 3

Interim consolidated statements of changes in equity .................................................... 4

Interim consolidated statements of cash flows ............................................................... 5

Notes to the interim consolidated financial statements................................................... 6

 Ernst & Young Han Young
2-3F,7-8F,Taeyoung Building, 111, Yeouigongwon-ro,
Yeongdeungpo-gu, Seoul 07241 Korea

Tel: +82 2 3787 6600

Fax: +82 2 783 5890
ey.com/kr

Report on review of interim consolidated financial statements

(English translation of a report originally issued in Korean)

The Shareholders and Board of Directors

Doosan Bobcat Inc.

We have reviewed the accompanying interim consolidated financial statements of Doosan Bobcat Inc.
and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated
statement of financial position as of September 30, 2024, and the related interim consolidated
statements of profit or loss, interim consolidated statements of comprehensive income for each of the
three-month and nine-month periods ended September 30, 2024, interim consolidated statement of
changes in equity and interim consolidated statement of cash flows for the nine-month period then
ended, and a summary of material accounting policy information and other explanatory information.

Management's responsibility for the interim consolidated financial statements

Management is responsible for the preparation and presentation of these interim consolidated financial
statements in accordance with International Financial Reporting Standards as adopted by the Republic
of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal control as management
determines is necessary to enable the preparation of interim consolidated financial statements that
are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on these interim consolidated financial statements based
on our review.

We conducted our review in accordance with the Review Standards for Quarterly and Semiannual
Financial Statements established by the Securities and Futures Commission of the Republic of Korea.
A review of interim financial information consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing
(“KSA”) and, consequently, does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying
interim consolidated financial statements are not prepared, in all material respects, in accordance with
KIFRS 1034 Interim Financial Reporting.
Other matter

The interim consolidated statements of profit or loss, interim consolidated statements of

comprehensive income or loss for each of the three-month and nine-month periods ended September
30, 2023, the interim consolidated statement of changes in equity and interim consolidated statement
of cash flows for the nine-month period then ended, prepared in accordance with KIFRS 1034 and
presented for comparative purposes, have been reviewed by Samil PricewaterhouseCoopers whose
review report dated November 9, 2023 expressed an unqualified review conclusion thereon.

Moreover, the consolidated statement of financial position as of December 31, 2023, and the related
consolidated statement of profit or loss, consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year
then ended (not presented herein) have been audited by Samil PricewaterhouseCoopers, in
accordance with KSA, whose report dated March 14, 2024 expressed an unqualified opinion thereon.
The accompanying consolidated statement of financial position as of December 31, 2023, presented
for comparative purposes, is not different, in all material respects, from the above audited consolidated
statement of financial position.

November 8, 2024

This review report is effective as of November 8, 2024, the independent auditor’s review report date.
Accordingly, certain material subsequent events or circumstances may have occurred during the period
from the date of the independent auditor’s review report to the time this review report is used. Such
events and circumstances could significantly affect the accompanying interim consolidated financial
statements and may result in modification to this review report.
Doosan Bobcat Inc. and
its subsidiaries
Interim consolidated financial statements

for each of the nine-month periods ended September 30, 2024 and
2023

“The accompanying interim consolidated financial statements, including all footnotes and
disclosures, have been prepared by, and are the responsibility of, the Group.”

Scott Park, Duckje Cho

Chief Executive Officers
Doosan Bobcat Inc.
Doosan Bobcat Inc. and its subsidiaries
Interim consolidated statements of financial position
as of September 30, 2024 and December 31, 2023

(in USD) September 30, 2024 December 31, 2023

Notes (Unaudited)

Assets
Current assets
Cash and cash equivalents 4,5 $ 1,229,269,242 $ 1,085,800,576
Short-term financial instruments 4,5 5,285,787 5,041,104
Short-term financial investments 4,5 267,590 -
Trade and other receivables, net 4,5,6,25,35 368,568,733 437,369,916
Inventories, net 7 1,628,435,746 1,406,960,510
Derivative assets 4,5,8 874,830 125,177
Other current assets 77,990,518 78,197,757
Total current assets $ 3,310,692,446 $ 3,013,495,040

Non-current assets
Long-term financial instruments 4,5 $ 811,720 $ 1,342,247
Long-term financial investments 4,5 10,492,057 8,581,140
Other receivables, net 4,5,6,25,35 17,153,104 17,475,768
Investment in associates 12 4,804,563 4,714,113
Property, plant and equipment, net 9,13 1,049,473,364 976,400,358
Intangible assets, net 10 3,888,170,582 3,865,879,152
Investment properties 11 84,811,779 87,080,595
Deferred tax assets 40,533,482 40,106,777
Net defined benefit assets 17 9,912,473 7,250,082
Other non-current assets 4,5 40,765,679 21,535,243
Total non-current assets $ 5,146,928,803 $ 5,030,365,475

Total assets $ 8,457,621,249 $ 8,043,860,515

Liabilities
Current liabilities
Trade and other payables 4,5,14,26,35 $ 1,305,512,571 $ 1,387,587,708
Short-term borrowings 4,5,15 90,576,393 48,453,514
Current portion of long-term borrowings 4,5,15 230,978,424 21,995,092
Income tax payable 20,153,297 48,740,089
Derivative liabilities 5,8 1,782,790 1,861,013
Lease liabilities 4,5,13,35 35,171,236 32,299,902
Provisions 18 85,954,113 94,697,919
Sales and leaseback liabilities 4,5,16 13,146,945 13,393,336
Other current liabilities 4,5,26 193,685,815 220,699,231
Total current liabilities $ 1,976,961,584 $ 1,869,727,804

Non-current liabilities
Other non-current payables 4,5,14,35 $ 10,721,436 $ 9,043,689
Bonds 4,5,15 49,597,260 -
Long-term borrowings 4,5,15 895,482,763 850,192,156
Net defined benefit liabilities 17 122,658,309 112,043,559
Deferred tax liabilities 271,215,776 287,827,053
Long-term derivative liabilities 5,8 5,109,931 434,800
Non-current lease liabilities 4,5,13,35 89,196,680 96,735,719
Non-current provisions 18 82,635,870 83,508,213
Non-current sales and leaseback liabilities 4,5,16 35,733,412 38,025,726
Other non-current liabilities 26 88,298,399 78,039,997
Total non-current liabilities $ 1,650,649,836 $ 1,555,850,912

Total liabilities $ 3,627,611,420 $ 3,425,578,716

Equity
Equity attributable to owners of the Parent Company
Capital stocks 1,19 $ 43,095,528 $ 43,095,528
Capital surplus 19 1,479,496,483 1,479,496,483
Other equity component 20,21 (181,440,988) (180,206,037)
Accumulated other comprehensive loss 22 (240,949,842) (247,208,643)
Retained earnings 23 3,729,808,648 3,523,104,468
Total equity $ 4,830,009,829 $ 4,618,281,799

Total liabilities and equity $ 8,457,621,249 $ 8,043,860,515

The accompanying notes are an integral part of the interim consolidated financial statements.
1
3
Doosan Bobcat Inc. and its subsidiaries
Interim consolidated statements of profit or loss
for each of the three-month and nine-month periods ended September 30, 2024 and 2023

(in USD) Periods ended September 30

2024 2023
Notes
(Unaudited) (Unaudited)
Three months Nine months Three months Nine months

Sales 24,25,26,35 $ 1,305,541,887 $ 4,737,347,726 $ 1,803,448,687 $ 5,724,182,566

Cost of sales 27 (1,013,265,617) (3,603,965,240) (1,376,239,353) (4,328,122,510)

Gross profit 292,276,270 1,133,382,486 427,209,334 1,396,060,056

Selling and administrative expenses 27,28 (200,395,529) (622,449,678) (200,996,418) (524,098,717)

Operating profit 91,880,741 510,932,808 226,212,916 871,961,339

Non-operating income (expenses)

Finance income 5,29 15,300,204 91,590,008 25,601,733 76,645,697
Finance expenses 5,29 (29,992,739) (115,215,020) (42,880,064) (137,135,683)
Other non-operating income 30 595,767 1,458,270 397,143 1,308,488
Other non-operating expenses 30 (7,915,960) (18,605,157) (4,952,387) (19,264,149)
Loss on equity method 12 130,386 153,792 161,615 141,552
(21,882,342) (40,618,107) (21,671,960) (78,304,095)

Profit before income tax expense 69,998,399 470,314,701 204,540,956 793,657,244

Income tax expense 31 (23,170,452) (145,821,304) (60,786,275) (251,835,954)

Profit for the period $ 46,827,947 $ 324,493,397 $ 143,754,681 $ 541,821,290

Profit that is attributable to:

Owners of the Parent Company $ 46,827,947 $ 324,493,397 $ 143,754,681 $ 541,821,290

Earnings per share 32

attributable to the owners of the Parent Company
Basic earnings per share $ 0.47 $ 3.24 $ 1.44 $ 5.41
Diluted earnings per share $ 0.47 $ 3.24 $ 1.43 $ 5.41

The accompanying notes are an integral part of the interim consolidated financial statements.

4
2
Doosan Bobcat Inc. and its subsidiaries
Interim consolidated statements of comprehensive income or loss
for each of the three-month and nine-month periods ended September 30, 2024 and 2023

(in USD) Period ended September 30

2024 2023
(Unaudited) (Unaudited)
Three months Nine months Three months Nine months

Profit for the period $ 46,827,947 $ 324,493,397 $ 143,754,681 $ 541,821,290

Other comprehensive income

Items that will not be reclassified to profit or loss
Remeasurements of net defined benefit liabilities - 9,650 - (1,292,434)
Gain on revaluation of property, plant and equipment - 748 - -
Items that may be subsequently reclassified to profit or loss
Gain (loss) on translation of foreign operations 90,588,410 7,149,427 (57,720,838) (23,083,964)
Gain (loss) on valuation of derivatives 250,863 (891,374) (81,444) (173,306)
90,839,273 6,268,451 (57,802,282) (24,549,704)

Total comprehensive income for the period $ 137,667,220 $ 330,761,848 $ 85,952,399 $ 517,271,586

Total comprehensive income for the period that is attributable to:

Owners of the Parent Company $ 137,667,220 $ 330,761,848 $ 85,952,399 $ 517,271,586

The accompanying notes are an integral part of the interim consolidated financial statements.

5
3
Doosan Bobcat Inc. and its subsidiaries
Interim consolidated statements of changes in equity
for each of the nine-month periods ended September 30, 2024 and 2023

(in USD) Attributable to owners of the Parent Company

Accumulated other
Capital Capital Other components comprehensive Retained
stock surplus of equity income (loss) earnings Total equity

Balance as of January 1, 2023 $ 43,095,528 $ 2,254,870,601 $ (179,177,950) $ (318,615,934) $ 2,164,467,278 $ 3,964,639,523

Total comprehensive income:

Profit for the period - - - - 541,821,290 541,821,290
Losses on remeasurements of net defined benefit liabilities - - - - (1,292,434) (1,292,434)
Losses on translation of foreign operations - - - (23,083,964) - (23,083,964)
Losses on valuation of derivatives - - - (173,306) - (173,306)
- - - (23,257,270) 540,528,856 517,271,586
Capital transactions with owners
Acquisition of treasury shares - - (1,928,113) - - (1,928,113)
Share-based compensation expenses - - 671,498 - - 671,498
Annual dividend - - - - (57,648,441) (57,648,441)
Interim dividend - - - - (62,595,423) (62,595,423)
Transferred to retained earnings - (775,374,118) - - 775,374,118 -
Replacement of retained earnings due to disposal of equity instruments - - - (325,470) 325,470 -
- (775,374,118) (1,256,615) (325,470) 655,455,724 (121,500,479)
Balance as of September 30, 2023 (unaudited) $ 43,095,528 $ 1,479,496,483 $ (180,434,565) $ (342,198,674) $ 3,360,451,858 $ 4,360,410,630

Balance as of January 1, 2024 $ 43,095,528 $ 1,479,496,483 $ (180,206,037) $ (247,208,643) $ 3,523,104,468 $ 4,618,281,799

Total comprehensive income:

Profit for the period - - - - 324,493,397 324,493,397
Gains on remeasurements of net defined benefit liabilities - - - - 9,650 9,650
Gains on translation of foreign operations - - - 7,149,427 - 7,149,427
Losses on valuation of derivatives - - - (891,374) - (891,374)
Gains on revaluation of property,plant and equipment - - - 748 - 748
- - - 6,258,801 324,503,047 330,761,848
Capital transactions with owners
Acquisition of treasury shares - - (2,424,913) - - (2,424,913)
Share-based compensation expenses - - 1,189,962 - - 1,189,962
Annual dividend - - - - (59,967,174) (59,967,174)
Interim dividend - - - - (57,831,693) (57,831,693)
- - (1,234,951) - (117,798,867) (119,033,818)
Balance as of September 30, 2024 (unaudited) $ 43,095,528 $ 1,479,496,483 $ (181,440,988) $ (240,949,842) $ 3,729,808,648 $ 4,830,009,829

The above consolidated interim statements of changes in equity should be read in conjunction with the accompanying notes.
4
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Doosan Bobcat Inc. and its subsidiaries
Interim consolidated statements of cash flows
for each of the nine-month periods ended September 30, 2024 and 2023

(in USD) Nine-month periods ended September 30

2024 2023
Note
(unaudited) (unaudited)

Cash flows from operating activities

Cash generated from operations: 36 $ 385,737,694 $ 1,112,593,186
Profit for the period 324,493,397 541,821,290
Adjustments 339,431,659 431,914,709
Changes in operating assets and liabilities (278,187,362) 138,857,187
Interest received 37,966,952 17,797,871
Interest paid (63,096,035) (63,275,238)
Income tax paid (191,125,422) (175,244,123)

Net cash flows provided operating activities 169,483,189 891,871,696

Cash flows from investing activities

Cash inflows from investing activities:
Decrease in loan - 223,022
Disposal of property, plant and equipment 1,698,414 1,879,166
Disposal of business - 11,266,187
Decrease in long-term financial instruments 516,346 -
Disposal of long-term financial investments - 747,070
2,214,760 14,115,445

Cash outflows for investing activities:

Purchase of property, plant and equipment 149,616,103 77,254,076
Purchase of intangible asset 47,001,710 51,843,098
Purchase of investment properties 542,400 848,837
Purchase of long-term financial investments 2,025,354 6,015,381
Cash outflows for other investing activities 18,183,834 -
Net cash flows used in investing activities (217,369,401) (135,961,392)

Cash flows from financing activities (215,154,641) (121,845,947)

Cash inflows from financing activities:
Increase in borrowing 311,691,926 89,612,065
Issuance of corporate bonds 49,550,003 -
Increase of sales and leaseback liabilities 7,573,875 6,320,753
368,815,804 95,932,818
Cash outflows for financing activities:
Repayment of borrowing 18,947,385 188,526,356
Payment of dividend 117,798,870 120,243,863
Payment of lease liabilities 26,410,593 23,918,057
Repayment of sales and leaseback liabilities 12,487,347 15,503,812
Acquisition of treasury shares 2,424,913 1,928,113
(178,069,108) (350,120,201)

Net cash flows provided by (used in) financing activities 190,746,696 (254,187,383)

Effects of exchange rate changes on cash and cash equivalents (1,606,578) (10,259,777)
Net increase in cash and cash equivalents 143,468,666 505,578,589
Cash and cash equivalents at the beginning of period 1,085,800,576 551,570,225
Cash and cash equivalents at the end of period $ 1,229,269,242 $ 1,057,148,814

The accompanying notes are an integral part of the interim consolidated financial statements.
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Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

1. General Information

Doosan Bobcat Inc. (“DBI” or the “Company”) was incorporated on April 25, 2014 by being split off
from Doosan Infracore Co., Ltd. Main business purposes of the Company are to control and manage
its subsidiaries (with the Company, collectively, referred to as the “Group”) that manufacture and
distribute compact construction equipment and forklifts.

On November 18, 2016, the Company listed its shares on the securities market established by the
Korea Stock Exchange. After several capital increases and capital reductions, the capital stock as of
September 30, 2024 records $ 43,096 thousand.

Doosan Infracore Co., Ltd., the largest shareholder of the Company, was merged with Doosan
Enerbility Co., Ltd. by dividing its investment business from the entity on July 1, 2021. As a result, the
Company’s largest shareholder has been changed to Doosan Enerbility Co., Ltd.

The Company’s shareholders as of September 30, 2024 are as follows:

Shareholder Number of shares owned Percentages of ownership (%)

Doosan Enerbility Co., Ltd. 46,176,250 46.06%
Treasury shares 156,957 0.16%
Others 53,915,959 53.78%
100,249,166 100.00%

1.1 Consolidated Subsidiaries

Details of the Group’s consolidated subsidiaries as of September 30, 2024 and December 31, 2023
are as follows:

Ownership interest held

by the Group (%)
September December Fiscal
Subsidiary Main business Location 30, 2024 31, 2023 year end

Manufacturing
Doosan Bobcat North America Inc. 2 USA 100 100 December
and sales
Doosan Bobcat North America Inc.’s subsidiaries :
Doosan Bobcat Canada Ltd. 2 Sales Canada 100 100 December
Doosan Bobcat Mexico Monterrey, S. de R.L. de
Other service Mexico 100 100 December
C.V.1

Manufacturing
Doosan Bobcat EMEA s.r.o Czech 100 100 December
and sales
Doosan Bobcat EMEA s.r.o’s subsidiaries :
Doosan Bobcat Bensheim GmbH 2 Sales Germany 100 100 December
Doosan Bobcat Holdings France S.A.S. 2 Holdings France 100 100 December
JSC Doosan International Russia Sales Russia 100 100 December
2
Doosan Bobcat UK Ltd. Sales England 100 100 December
2 South
Doosan Bobcat South Africa (PTY) Ltd. Sales 100 100 December
Africa
2
Doosan Bobcat France S.A.S Manufacturing France 100 100 December
Geith International Ltd. Sales Ireland 100 100 December
Doosan Bobcat Belgium B.V.2 Sales Belgium 100 100 December
Doosan Bobcat UK Northampton Ltd.2 Sales England 100 100 December
Manufacturing
Doosan Bobcat Germany GmbH2 Germany 100 100 December
and sales
Rental and
Rushlift Ltd. England 100 100 December
sales

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Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

1.1 Consolidated Subsidiaries (cont’d)

Ownership interest
held by the Group (%)
Septemb
er 30, December Fiscal
Subsidiary Main business Location 2024 31, 2023 year end

Doosan Bobcat Singapore Pte. Ltd. Holdings Singapore 100 100 December
Doosan Bobcat Singapore Pte. Ltd.’s subsidiaries :
Manufacturing
Doosan Bobcat China Co., Ltd. China 100 100 December
and sales

Doosan Bobcat Korea Co., Ltd. Manufacturing

Korea 100 100 December
(formerly, Doosan Industrial Vehicle Co., Ltd.)3 and sales
Doosan Bobcat Korea Co., Ltd.’s subsidiaries :
Manufacturing
Doosan Bobcat China Yantai Co., Ltd.2 China 100 100 December
and sales
Manufacturing
Doosan Bobcat India Private Ltd.4 India 100 100 March
and sales
Doosan Bobcat Japan2, 4 Sales Japan 100 100 December
4
Doosan Bobcat Mexico S.A. de C.V. Other service Mexico 100 100 December

Doosan Bobcat Korea Co., Ltd. 3 Sales Korea - 100 December

1
Newly established during the year ended December 31, 2023.
2
Changed its name during the year ended December 31, 2023.
3
During the nine-month period ended September 30, 2024, Doosan Industrial Vehicle Co., Ltd.
merged with Doosan Bobcat Korea Co., Ltd. and changed its name to Doosan Bobcat Korea Co.,
Ltd.
4
During the nine-month period ended September 30, 2024, the shares of the entity were transferred
from Doosan Bobcat Singapore Pte. Ltd. to Doosan Bobcat Korea Co., Ltd.

1.2 Summarized Financial Information

The summarized financial information of the consolidated subsidiaries as of September 30, 2024 and
for the nine-month period ended September 30, 2024 is as follows (in thousands of USD):

September 30, 2024 Nine-month period ended September 30, 2024

Total
Profit for the comprehensive
Assets Liabilities Sales period income

Doosan Bobcat North America, Inc.

$ 5,354,154 $ 2,764,709 $ 3,652,528 $ 275,063 $ 275,063
and its subsidiaries
Doosan Bobcat Canada Ltd. 156,788 54,994 239,217 14,988 14,988
Doosan Bobcat EMEA s.r.o.
2,407,343 626,983 1,083,039 30,178 30,178
and its subsidiaries
Bobcat France S.A.S. 83,359 47,183 157,828 2,306 2,306
Doosan Bobcat Belgium BV 70,551 46,319 101,606 2,043 2,043
Rushlift Ltd. 123,005 113,684 44,800 (680) (680)
Doosan Bobcat Singapore Pte., Ltd.
110,302 54,598 130,549 (37,733) (37,733)
and its subsidiaries
Doosan Bobcat China Co., Ltd 98,691 57,954 71,739 817 817
Doosan Bobcat Korea Co., Ltd.
880,211 506,703 842,464 78,240 77,348
and its subsidiaries
Doosan Bobcat India Private Ltd. 128,308 84,299 75,130 890 890

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Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

1.3 Changes in Scope of Consolidation

Changes in the scope of consolidation for each of the nine-month periods ended September 30, 2024
and 2023 are as follows:

Nine-month period ended September 30, 2024

Name of Subsidiary Details Reason
Doosan Bobcat Korea Co., Ltd. Excluded from the consolidation Merged

Nine-month period ended September 30, 2023

Name of Subsidiary Details Reason
Genesis Forklift Trucks Limited Excluded from the consolidation Liquidation
Rushlift Holdings Ltd. Excluded from the consolidation Liquidation
Doosan Materials Handling UK Ltd. Excluded from the consolidation Liquidation
Doosan Bobcat Mexico Monterrey,
Included in the consolidation Establishment
S. de R.L. de C.V.

2. Material Accounting Policies

The material accounting policies applied in the preparation of these interim consolidated financial
statements are set out below. These policies have been consistently applied to all the periods
presented, unless otherwise stated.

2.1 Basis of Preparation

The Group maintains its accounting records in USD (presented herein as “USD” or “$”)and prepares
its statutory financial statements in the Korean language (Hangul) in accordance with International
Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”). The accompanying
interim consolidated financial statements have been condensed, restructured, and translated into
English from the Korean language financial statements. In the event of any differences in interpreting
the financial statements or the independent auditor’s review report thereon, the Korean version, which
is used for regulatory reporting purposes, shall prevail.

The Group’s interim consolidated financial statements for the nine-month period ended September 30,
2024 have been prepared in accordance with KIFRS 1034 Interim Financial Reporting. These interim
consolidated financial statements have been prepared in accordance with KIFRS which is effective or
early adopted as of September 30, 2024.

(a) New and amended standards and interpretations adopted by the Group.

The Group has applied the following standards and interpretations for the first time for its annual
reporting period commencing January 1, 2024.

Amendments to KIFRS 1007 and KIFRS 1107- Supplier Finance Arrangements

The amendments to KIFRS 1007 Statement of Cash Flows and KIFRS 1107 Financial Instruments:
Disclosures clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to
assist users of financial statements in understanding the effects of supplier finance arrangements on
an entity’s liabilities, cash flows and exposure to liquidity risk. The transitional rules clarify that an entity
is not required to provide the disclosures in any interim periods in the year of initial application of the
amendments. Thus, the amendments had no impact on the Group’s interim consolidated financial
statements.

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Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

2.1 Basis of Preparation (cont’d)

- Amendments to KIFRS 1116 – Lease Liability in a Sale and Leaseback

The amendments to KIFRS 1116 specify the requirements that a seller-lessee uses in measuring the
lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not
recognize any amount of the gain or loss that relates to the right of use it retains. The amendments
had no impact on the Group’s interim consolidated financial statements.

- Amendments to KIFRS 1001– Classification of liabilities as current or non-current

The amendments to paragraphs 69 to 76 of KIFRS 1001 specify the requirements for classifying
liabilities as current or non-current. The amendments clarify:
• what is meant by a right to defer settlement;
• that a right to defer must exist at the end of the reporting period;
• that classification is unaffected by the likelihood that an entity will exercise its deferral right; and
• that only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms of a liability not impact its classification.

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity’s right to defer settlement is contingent on
compliance with future covenants within twelve months. The amendments had no impact on the
Group’s interim consolidated financial statements.

(b) New and amended standards and interpretations not yet adopted by the Group

There are no new and amended standards and interpretations issued but not yet adopted by the Group.

2.2 Material Accounting Policies

Material accounting policies and method of computation adopted in the preparation of the interim
consolidated financial statements are consistent with those followed in the preparation of the
consolidated financial statements for the year ended December 31, 2023, except for the adoption of
new and amended standards and interpretations described in Note 2.1(a) and other Notes below.

2.2.1 Income Tax Expense

Income tax expense for the interim period is recognized based on the best estimate of the weighted
average annual income tax rate expected for the full financial year. The estimated average annual tax
rate is applied to the pre-tax income for the interim period.

In 2023, the IASB amended IAS 12 (equivalent to KIFRS 1012) Income Taxes. The amendment
introduces a temporary exception to the recognition and disclosure of deferred tax assets and liabilities
related to Pillar Two income taxes. The amendments also introduce disclosure requirements for
affected entities to help users of financial statements better understand an entity’s exposure to Pillar
Two income taxes, particularly before the effective date of the related legislation.

The Group adopted the temporary exception to the recognition and disclosure of deferred tax assets
and liabilities related to Pillar Two income taxes and assessed its business structure considering the
jurisdictional implementation of the Pillar Two Moder Rules. Since it is expected that all constituent
entities of the Group shall be either levied income taxes at the effective tax rate well above 15% or
qualified for transitional safe harbour, the Group determined that Pillar Two top-up taxes will not be
levied on the Group. Therefore, the Group’s consolidated financial statements do not contain the
information required by paragraphs 88A to 88D of KIFRS 1012. Meanwhile, the judgment on whether
to apply Pillar Two top-up taxes involves estimates and assumptions about the future, and these
accounting estimates may differ from actual results.

9
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

3. Material Accounting Estimates and Assumptions

The Group makes estimates and assumptions concerning the future. Estimates and assumptions are
continually evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the current circumstances. Actual results
may differ from these estimates.

Material accounting estimates and assumptions applied in the preparation of these interim
consolidated financial statements are the same as those applied to the consolidated financial
statements for the year ended December 31, 2023, except for the estimates used to determine income
tax expense.

4. Financial Risk Management

4.1 Financial Risk Factors

The Group’s financial risk management focuses on improving financial structure and efficiency of
liquidity management for stable and consistent financial performance of the Group by minimizing
market risk, credit risk and liquidity risk.

The Group’s financial risk management activities are mainly carried out by its treasury function, with
the cooperation of the Group’s other functions, to identify, assess, and hedge financial risks based on
financial risk management policies and to monitor potential impacts of financial risks regularly.

4.1.1 Market Risk

(a) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from foreign
currency transactions. Foreign exchange risk arises from recognized assets and liabilities and net
investments in foreign entities.

Foreign currency risk is managed based on the Group’s policy on foreign currencies and the Group’s
key strategy for managing this risk is to reduce a volatility of financial performances due to fluctuations
in foreign exchange rates.

The Group’s financial assets and liabilities exposed to foreign exchange risk as of September 30, 2024
and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024

USD EUR GBP Others1 Total
Financial assets $ 673,083 $ 46,866 $ 23,720 $ 8,907 $ 752,576
Financial liabilities (518,557) (97,864) (715) (26,359) (643,495)
Net $ 154,526 $ (50,998) $ 23,005 $ (17,452) $ 109,081

December 31, 2023

USD EUR GBP Others1 Total
Financial assets $ 643,187 $ 72,860 $ 36,095 $ 7,465 $ 759,607
Financial liabilities (649,505) (98,724) (572) (29,139) (777,940)
Net $ (6,318) $ (25,864) $ 35,523 $ (21,674) $ (18,333)

1
Others are assets and liabilities denominated in foreign currencies other than USD, EUR and GBP.

10
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

4.1.1 Market Risk (cont’d)

The table below summarizes the impact of weakened/strengthened functional currency on the Group’s
profit before income tax expense for the period (in thousands of USD). The analysis is based on the
assumption that the functional currency has weakened/strengthened by 10% against the respective
foreign currencies above with all other variables held constant.

Nine-month period ended Year ended

September 30, 2024 December 31, 2023
10% increase 10% decrease 10% increase 10% decrease
in foreign in foreign in foreign in foreign
exchange exchange exchange exchange
currency rate currency rate currency rate currency rate

Profit before income tax expense $ 10,908 $ (10,908) $ (1,833) $ 1,833

(b) Interest rate risk

Interest rate risk is defined as the risk that the interest income or expenses arising from deposits and
borrowings will fluctuate because of changes in future market interest rate. The interest rate risk mainly
arises on floating rate deposits and borrowings.

The Group manages interest rate risk through various activities. These include minimizing external
borrowings by utilizing internal fund availability, reducing borrowings with higher interest rates,
improving maturity structure of borrowings, maintaining appropriate balance between floating rate and
fixed rate, and a regular monitoring of market trend and developing action plans.

Financial assets and liabilities with floating interest rates exposed to interest rate risk as of September
30, 2024 and December 31, 2023 are as follows (in thousands of USD). However, borrowings invested
in derivative products for the purpose of hedging risk of interest fluctuations are excluded (see Note
8).

September 30, 2024 December 31, 2023

Financial assets $ 98,193 $ -
Financial liabilities 1,183,405 888,804
Net Financial assets(liabilities) $ (1,085,212) $ (888,804)

The table below summarizes the impact of increases/decreases of interest rate on the Group’s profit
before income tax expense for the period. The analysis is based on the assumption that the interest
rate has increased/decreased by 1% (100 basis points) with all other variables held constant (in
thousands of USD):

Impact on the profit before income tax estimated for

Nine-month period ended Year ended
September 30, 2024 December 31, 2023
100 bp 100 bp 100 bp 100 bp
increase decrease increase decrease

Profit before income tax expense $ (10,852) $ 10,852 $ (8,888) $ 8,888

11
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

4.1.2 Credit Risk

Credit risk arises during the normal course of transactions and investing activities where customers or
other parties are unable to meet contractual obligations. The Group sets out and monitors credit limits
for its customers and counterparts on a periodic basis considering financial conditions, historical
experiences and other factors.

Credit risk arises from cash and cash equivalents, derivatives and deposits in banks and financial
institutions, as well as the Group’s receivables.

Main objectives of credit risk management are to efficiently manage credit risk based on the Group’s
credit policies, to promptly support decision-making processes and to minimize financial losses by
safeguarding receivables. An allowance for doubtful accounts is specifically recognized for the
receivables with impairment indicators individually identified. The Group uses the simplified approach
to recognize the allowance for lifetime expected credit loss for a group of receivables with similar
credit-risk nature that are not individually significant.

Maximum exposures of financial assets of the Group exposed to credit risk as of September 30, 2024
and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024 December 31, 2023

Cash and cash equivalents $ 1,229,269 $ 1,085,801

Short-term financial instruments1 5,286 5,041
Short-term financial investments 268 -
Trade and other receivables 368,569 437,370
Long-term financial instruments2 812 1,342
Long-term financial investments 10,492 8,581
Long-term other receivables 17,153 17,476
Derivative assets 875 125
Other non-current assets 7,777 8,981
$ 1,640,501 $ 1,564,717

1
Short-term financial instruments include deposits restricted in use in relation to Win-win growth fund.
2
Long-term financial instruments include deposits restricted in use in relation to government bids, and
deposits pledged as collaterals in relation to sublease deposits.

In addition to the above, the maximum amounts of payment guarantees (refer to Note 33) of the Group
upon a guaranteed party’s claim based on the guarantee arrangement are exposed to credit risk.

12
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

4.1.2 Credit Risk (cont’d)

The aging analysis of the Group’s trade and other receivables as of September 30, 2024 and
December 31, 2023 is as follows (in thousands of USD):

September 30, 2024

Receivables
Individually assessed for impairment on a collective basis
impaired 0–3 3–6 6–12 Over
receivables Within due months months months 12 months Total

Trade receivables $ 4,009 $ 247,450 $ 53,440 $ 23,206 $ 6,234 $ 4,464 $ 338,803

Other receivables 6,209 14,654 5,009 2,482 - - 28,354
Accrued income 174 10,220 - - - - 10,394
Short-term loans 73 - - - - - 73
Long-term other
- 17,153 - - - - 17,153
receivables
$ 10,465 $ 289,477 $ 58,449 $ 25,688 $ 6,234 $ 4,464 $ 394,777

December 31, 2023

Receivables
Individually assessed for impairment on a collective basis
impaired 0–3 3–6 6–12 Over
receivables Within due months months months 12 months Total

Trade receivables $ 4,992 $ 342,070 $ 60,613 $ 5,398 $ 5,002 $ 3,503 $ 421,578

Other receivables 5,561 13,286 7,386 - - - 26,233
Accrued income 28 78 - - - - 106
Short-term loans 23 63 - - - - 86
Long-term other
- 17,476 - - - - 17,476
receivables
$ 10,604 $ 372,973 $ 67,999 $ 5,398 $ 5,002 $ 3,503 $ 465,479

Receivables with specific impairment indicators such as insolvency and bankruptcy are individually
assessed using appropriate allowance rates. A group of financial assets with similar credit risk natures
that are not individually significant is assessed on expected credit losses based on aging analysis and
the credit risk characteristics.

The aging analysis of the Group’s allowance for doubtful accounts for trade and other receivables as
of September 30, 2024 and December 31, 2023 is as follows (in thousands of USD):

September 30, 2024

Allowance
for doubtful
accounts
for Allowance for doubtful accounts assessed
individually for impairment on a collective basis
impaired 0–3 3–6 6–12 Over
receivables Within due months months months 12 months Total

Trade receivables $ 3,183 $ 1,018 $ 534 $ 627 $ 727 $ 2,743 $ 8,832

Other receivables - - 36 187 - - 223
$ 3,183 $ 1,018 $ 570 $ 814 $ 727 $ 2,743 $ 9,055

13
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

4.1.2 Credit Risk (cont’d)

December 31, 2023
Allowance
for doubtful
accounts
for Allowance for doubtful accounts assessed
individually for impairment on a collective basis
impaired 0–3 3–6 6–12 Over
receivables Within due months months months 12 months Total

Trade receivables $ 4,732 $ 866 $ 544 $ 724 $ 973 $ 2,752 $ 10,591

Other receivables - - 42 - - - 42
$ 4,732 $ 866 $ 586 $ 724 $ 973 $ 2,752 $ 10,633

4.1.3 Liquidity Risk

Liquidity risk refers to the risk that the Group may encounter difficulties in meeting its obligations to
repay financial liabilities or obtain additional funding for its normal business operation due to liquidity
shortage.

The Group secures and maintains the appropriate level of liquidity volume and accordingly manages
the liquidity risk in advance by forecasting the projected cash flows from operating, investing and
financing activities periodically.

Details of annual repayment schedule of financial liabilities (except derivatives) as of September 30,
2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024

Contractual nominal cash flows
Less than More than
Book value Total 1 year 1-2 years 2-5 years 5 years

Trade payables $ 764,711 $ 764,711 $ 764,711 $ - $ - $ -

Other payables (current
551,523 551,523 540,802 5,759 2,364 2,598
and non-current)
Other current liabilities 2,842 2,842 2,842 - - -
Borrowings 1,217,038 1,471,306 382,800 133,870 954,636 -
Lease liabilities 124,368 140,044 40,206 30,230 53,485 16,123
Bonds 49,597 56,300 2,291 2,297 51,712 -
Sales and leaseback
48,880 56,581 16,064 13,648 22,017 4,852
Liabilities
$ 2,758,959 $ 3,043,307 $ 1,749,716 $ 185,804 $ 1,084,214 $ 23,573

December 31, 2023

Contractual nominal cash flows
Less than More than
Book value Total 1 year 1-2 years 2-5 years 5 years

Trade payables $ 895,350 $ 895,350 $ 895,350 $ - $ - $ -

Other payables (current
501,281 501,281 493,801 2,928 1,577 2,975
and non-current)
Other current liabilities 3,353 3,353 3,353 - - -
Borrowings 920,641 1,255,535 138,222 133,703 274,173 709,437
Lease liabilities 129,036 145,448 36,906 29,405 57,537 21,600
Sales and leaseback
51,419 59,544 16,477 14,009 25,733 3,325
Liabilities
$ 2,501,080 $ 2,860,511 $ 1,584,109 $ 180,045 $ 359,020 $ 737,337

14
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

4.1.3 Liquidity Risk (cont’d)

The amounts of financial liabilities by remaining maturity included in above represent undiscounted
contractual nominal cash flows (including interest expenses), assuming the earliest period in which
the Group can be required to pay, and therefore differ from the financial liabilities recognized in the
consolidated statements of financial position. In addition, apart from the financial liabilities above, the
maximum exposure related with financial guarantees provided by the Group as of September 30, 2024
is discussed in Note 33.

4.2 Capital Risk Management

The Group’s objectives in managing capital are to safeguard the Group’s ability to continue as a going
concern, so the Group can continue to provide returns for shareholders and benefits for other
stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the debt-to-equity
ratio which is calculated by dividing total liabilities by total equity in the financial statements.

Debt-to-equity ratios as of September 30, 2024 and December 31, 2023 are as follows (in thousands
of USD):

September 30, 2024 December 31, 2023

Debt $ 3,627,611 $ 3,425,579

Equity 4,830,010 4,618,282
Debt-to-equity ratio 75.11% 74.17%

15
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5. Financial Instruments by Category

5.1 Carrying Amounts of Financial Instruments by Category

The classification of financial assets and liabilities by category as of September 30, 2024 and
December 31, 2023 is as follows (in thousands of USD):

September 30, 2024

Financial Financial Financial
Other
assets at assets at fair assets at fair
financial Total
amortized value through value through
Assets1
cost profit or loss OCI
Assets:
Cash and cash
$ 1,229,269 $ - $ - $ - $ 1,229,269
equivalents
Short-term financial
5,286 - - - 5,286
instruments
Short-term financial
- - 268 - 268
investments
Trade and other
358,103 - 10,466 - 368,569
receivables
Derivative assets (current
- - - 875 875
and non-current)
Long-term other
17,153 - - - 17,153
receivables
Long-term financial
812 - - - 812
instruments
Long-term financial
- 10,492 - - 10,492
investments
Other non-current assets 7,777 - - - 7,777
$ 1,618,400 $ 10,492 $ 10,734 $ 875 $ 1,640,501

September 30, 2024

Financial
Financial liabilities at fair Other
liabilities at value through financial
amortized cost profit or loss liabilities1 Total
Liabilities:
Trade and other payables $ 1,305,513 $ - $ - $ 1,305,513
Bonds 49,597 - - 49,597
Borrowings 1,217,038 - - 1,217,038
Derivative liabilities
- 1,323 5,570 6,893
(current and non-current)
Sales and leaseback liabilities
48,880 - - 48,880
(current and non-current)
Other current liabilities 2,842 - - 2,842
Other non-current payables 10,721 - - 10,721
Financial guarantee liability - - 23,226 23,226
Lease liabilities
- - 124,368 124,368
(current and non-current)
$ 2,634,591 $ 1,323 $ 153,164 $ 2,789,078

1
Includes lease liabilities and derivatives designated as hedging instruments.

16
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5.1 Carrying Amounts of Financial Instruments by Category (cont’d)

December 31, 2023

Financial Financial Financial
assets at assets at fair assets at fair Other
amortized value through value through financial
cost profit or loss OCI Assets1 Total
Assets:
Cash and cash
$ 1,085,801 $ - $ - $ - $ 1,085,801
equivalents
Short-term financial
5,041 - - - 5,041
instruments
Trade and other
416,731 - 20,639 - 437,370
receivables
Derivative assets
(current and non- - - - 125 125
current)
Long-term other
17,476 - - - 17,476
receivables
Long-term financial
1,342 - - - 1,342
instruments
Long-term financial
- 8,326 255 - 8,581
investments
Other non-current
8,981 - - - 8,981
assets
$ 1,535,372 $ 8,326 $ 20,894 $ 125 $ 1,564,717

December 31, 2023

Financial
Financial liabilities at fair Other
liabilities at value through financial
amortized cost profit or loss liabilities1 Total
Liabilities:
Trade and other payables $ 1,387,588 $ - $ - $ 1,387,588
Borrowings 920,641 - - 920,641
Derivative liabilities
- 435 1,861 2,296
(current and non-current)
Sales and leaseback liabilities
51,419 - - 51,419
(current and non-current)
Other current liabilities 3,353 - - 3,353
Other non-current payables 9,044 - - 9,044
Financial guarantee liability - - 21,061 21,061
Lease liabilities (current and non-
- - 129,036 129,036
current)
$ 2,372,045 $ 435 $ 151,958 $ 2,524,438

1
Includes lease liabilities and derivatives designated as hedging instruments.

During the nine-month period ended September 30, 2024, there have been no significant changes in
the business and economic environment affecting the fair value of the Group’s financial assets and
liabilities.

17
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5.2 Fair Value Hierarchy

The fair value hierarchy classifications of the financial instruments that are measured at fair value as
of September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024

1
Level 1 Level 2 1 Level 3 1 Total
Financial assets:
Financial assets at fair value
$ - $ - $ 10,492 $ 10,492
through profit or loss
Financial assets at fair value
- 10,466 268 10,734
through OCI
Other financial assets
- 875 - 875
(Hedging derivatives)
$ - $ 11,341 $ 10,760 $ 22,101
Financial liabilities:
Financial liabilities at fair value
$ - $ 1,323 $ - $ 1,323
through profit or loss
Other financial liabilities
- 5,570 - 5,570
(Hedging derivatives)
$ - $ 6,893 $ - $ 6,893

December 31, 2023

1
Level 1 Level 2 1 Level 3 1 Total
Financial assets:
Financial assets at fair value
$ - $ - $ 8,326 $ 8,326
through profit or loss
Financial assets at fair value
- 20,639 255 20,894
through OCI
Other financial assets - 125 - 125
(Hedging derivatives)
$ - $ 20,764 $ 8,581 $ 29,345
Financial liabilities:
Financial liabilities at fair value
$ - $ 435 $ - $ 435
through profit or loss
Other financial liabilities
- 1,861 - 1,861
(Hedging derivatives)
$ - $ 2,296 $ - $ 2,296

1
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – All inputs other than quoted prices included in level 1 that are observable (either directly
that is, prices, or indirectly that is, derived from prices) for the asset or liability.
Level 3 – Unobservable inputs for the asset or liability.

Assets and liabilities whose carrying value is a reasonable approximation of fair value are excluded
from the fair value disclosure above.

18
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5.3 Changes in Fair Value of Level 3 Financial Instruments

Changes in level 3 financial instruments measured at fair value for the nine-month period ended
September 30, 2024 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Fair value
Beginning evaluation Acquisition Others1 Ending

Financial assets at fair

value through profit or $ 8,326 $ 1 $ 2,114 $ 51 $ 10,492
loss
Financial assets at fair
255 - - 13 268
value through OCI
$ 8,581 $ 1 $ 2,114 $ 64 $ 10,760

1
Others include effect of foreign exchange translation, etc.

19
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5.4 Net Gains or Losses by Category of Financial Instruments

Net gains or losses of each category of financial instruments for each of the nine-month periods ended
September 30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Profit for the period
Interest Bad debt Other
income expense Gain (loss) Gain (loss) on Gain (loss) comprehensive
(expense) (reversal) on disposal derivatives on valuation Others loss

Financial assets:
Financial assets at
$ 38,038 $ (2,126) $ - $ - $ - $ - $ -
amortized cost
Financial assets at
fair value through - - - 302 1 - -
profit or loss
Financial assets at
fair value through - - (5,280) - - - -
OCI
Other financial
assets (Hedging - - - - - - (1,210)
derivatives)
$ 38,038 $ (2,126) $ (5,280) $ 302 $ 1 $ - $ (1,210)
Financial liabilities:
Financial liabilities
$ (53,988) $ - $ (1,606) $ - $ - $ (2,251) $ -
at amortized cost
Financial liabilities
at fair value
- - - (860) - - -
through profit or
loss
Other financial
(4,589) - - - - (133) -
liabilities
$ (58,577) $ - $ (1,606) $ (860) $ - $ (2,384) $ -

Nine-month period ended September 30, 2023

Profit for the period
Interest Bad debt Other
income expense Loss on Gain (loss) on Gain (loss) comprehensive
(expense) (reversal) disposal derivatives on valuation Others loss

Financial assets:
Financial assets at
$ 17,624 $ (4,092) $ - $ - $ - $ - $ -
amortized cost
Financial assets at
fair value through - - - 464 1 - -
profit or loss
Financial assets at
fair value through - - (6,131) - - - -
OCI
Other financial
assets (Hedging - - - - - - (189)
derivatives)
$ 17,624 $ (4,092) $ (6,131) $ 464 $ 1 $ - $ (189)
Financial liabilities:
Financial liabilities
$ (61,297) $ - $ (1,699) $ - $ - $ (1,569) $ -
at amortized cost
Other financial
(4,364) - - (30) - (71) -
liabilities
$ (65,661) $ - $ (1,699) $ (30) $ - $ (1,640) $ -

Other comprehensive loss (before tax) stated above resulted solely from cash flow hedge derivatives.

In addition, foreign exchange differences arising from transactions in foreign currencies other than
derivative contracts, including gain or loss from foreign exchange translation and transactions, resulted
mainly from financial assets at amortized cost, financial assets at fair value through OCI and financial
liabilities at amortized cost.

20
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

5.5 Offsetting Financial Assets and Financial Liabilities

The following table presents the recognized financial instruments subject to enforceable master netting
arrangements and other similar agreements as of September 30, 2024 (in thousands of USD):

Subject to application of master netting agreement

Net amounts
Gross amount of presented in the
financial Gross amount of statement of
instruments financial financial
recognized instruments set off position
Financial assets:
Trade receivables $ 8,484 $ (3,488) $ 4,996
Other receivables 30 (28) 2
$ 8,514 $ (3,516) $ 4,998
Financial liabilities:
Trade payables $ (12,473) $ 3,516 $ (8,957)

6. Trade and Other Receivables

Trade and other receivables as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

September 30, 2024

Allowance for
Gross doubtful accounts Net

Current:
Trade receivables $ 338,803 $ (8,832) $ 329,971
Other receivables 28,354 (223) 28,131
Accrued income 10,394 - 10,394
Short-term loans 73 - 73
$ 377,624 $ (9,055) $ 368,569
Non-current:
Long-term other receivables $ 17,153 $ - $ 17,153

December 31, 2023

Allowance for
Gross doubtful accounts Net

Current:
Trade receivables $ 421,578 $ (10,591) $ 410,987
Other receivables 26,233 (42) 26,191
Accrued income 106 - 106
Short-term loans 86 - 86
$ 448,003 $ (10,633) $ 437,370
Non-current:
Long-term other receivables $ 17,476 $ - $ 17,476

21
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

6. Trade and Other Receivables (cont’d)

Changes in allowance for doubtful accounts for each of the nine-month periods ended September
30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Trade Other
receivables receivables Total

Beginning balance $ 10,591 $ 42 $ 10,633

Increase (reversal) 1,835 178 2,013
Write-off (3,580) - (3,580)
Others (14) 3 (11)
Ending balance $ 8,832 $ 223 $ 9,055

Nine-month period ended September 30, 2023

Trade Other
receivables receivables Total

Beginning balance $ 8,005 $ 45 $ 8,050

Increase 3,917 175 4,092
Write-off (1,343) - (1,343)
Others (272) (9) (281)
Ending balance $ 10,307 $ 211 $ 10,518

Past due receivables are considered impaired. An allowance for doubtful accounts is specifically
recognized for the receivables with impairment indicators individually identified. The Group applies the
aging analysis to recognize the lifetime expected credit losses as loss allowances for a group of
financial assets with similar credit risk natures that are not individually significant. The allowance for
doubtful accounts is included in selling and administrative expenses and other non-operating
expenses in the consolidated statements of profit or loss.

22
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

7. Inventories

Inventories as of September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024

Acquisition Valuation Net
cost allowance book value

Merchandise and finished goods $ 845,389 $ (45,120) $ 800,269

Work in progress 57,167 - 57,167
Raw materials 657,142 (37,487) 619,655
Materials in transit 151,345 - 151,345
$ 1,711,043 $ (82,607) $ 1,628,436

December 31, 2023

Acquisition Valuation Net
cost allowance book value

Merchandise and finished goods $ 660,434 $ (40,568) $ 619,866

Work in progress 73,870 - 73,870
Raw materials 574,622 (22,617) 552,005
Materials in transit 161,220 - 161,220
$ 1,470,146 $ (63,185) $ 1,406,961

The cost of inventories recognized as expense and included in cost of sales for the nine-month period
ended September 30, 2024 amounts to $ 3,415,092 thousand (September 30, 2023: $ 4,124,514
thousand). Losses on inventory valuation included in cost of sales amount to $ 19,422 thousand for
the nine-month period ended September 30, 2024 (September 30, 2023: $ 7,941 thousand).

23
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

8. Derivatives

The Group’s derivative contracts are classified as follows:

Type of derivative
Purpose instruments Description

Cash flow hedge Foreign currency forward A contract in which currency forward is designated as
hedging instrument in order to hedge cash flow risk
arising from forecasted payment of borrowings and
forecasted sales in foreign currencies
Foreign currency swap A contract in which currency swap is designated as
hedging instrument in order to hedge cash flow risk
arising from changes in currency rate of forecasted
cash flows in foreign currencies and interest rate
Trading purpose Interest rate swap A contract in which an interest rate swap is entered
into in order to hedge risk arising from future interest
rate changes, but hedge accounting is not applied

Details of valuation of derivatives as of September 30, 2024 and December 31, 2023 are as follows
(in thousands of respective currencies and in thousands of USD):

September 30, 2024

Buy Sell
Contract Contract
exchange exchange
rate(won)/ rate(won)/
Currency Amount interest rate Currency Amount interest rate

Foreign currency forward JPY 1,864 1,072.52 KRW 19,994 1,072.52

Foreign currency forward KRW 20,647,200 1,376.48 USD 15,000 1,376.48
Foreign currency swap JPY 1,906,578 1.00% KRW 20,000,000 2.88%
Foreign currency swap USD 50,000 SOFR +1.05% KRW 68,575,000 4.42%
Interest rate swap EUR 33,911 3M EURIBOR EUR 33,911 3.09%

September 30, 2024

Gain (loss) on Accumulated other
Derivative assets valuation of comprehensive
(liabilities) derivatives income (loss)1

Foreign currency forward $ (2) $ - $ (2)

Foreign currency forward 687 - 687
Foreign currency swap (1,781) - 18
Foreign currency swap (3,599) - (1,633)
Interest rate swap (1,323) (860) -
$ (6,018) $ (860) $ (930)

1
Presents the amount before taxes.

24
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

8. Derivatives (cont’d)

December 31, 2023

Buy Sell
Contract Contract
exchange exchange
rate(won)/ rate(won)/
Currency Amount interest rate Currency Amount interest rate

Foreign currency forward JPY 7,732 1,072.52 KRW 82,930 1,072.52

Foreign currency forward KRW 11,724,300 1,302.70 USD 9,000 1,302.70
Foreign currency swap JPY 1,906,578 1.00% KRW 20,000,000 2.88%
Interest rate swap EUR 39,832 3M EURIBOR EUR 39,832 3.09%

December 31, 2023

Gain (loss) on Accumulated other
Derivative assets valuation of comprehensive
(liabilities) derivatives income (loss)1

Foreign currency forward $ (8) $ - $ (8)

Foreign currency forward 125 - 125
Foreign currency swap (1,853) - 163
Interest rate swap (435) (425) -
$ (2,171) $ (425) $ 280

1
Presents the amount before taxes.

Derivatives are classified as non-current assets (liabilities) if their remaining maturities exceed 12
months from the end of the reporting period; otherwise, they are classified as current assets (liabilities).

25
 Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

9. Property, Plant and Equipment

Changes in property, plant and equipment for each of the nine-month periods ended September 30,
2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Construction Right-of-use
Land Buildings Machinery Vehicles Equipment in progress assets Total

Beginning $ 135,613 $ 235,818 $ 331,608 $ 1,995 $ 34,457 $ 112,149 $ 124,760 $ 976,400

Acquisition / capital
27,986 1,501 27,083 607 3,453 98,657 26,160 185,447
expenditure
Disposal - (427) (1,170) (93) (98) - - (1,788)
Depreciation - (8,284) (62,145) (751) (9,057) - (26,911) (107,148)
Others & transfer1 3,043 13,920 45,620 167 588 (62,921) (3,855) (3,438)
Ending $ 166,642 $ 242,528 $ 340,996 $ 1,925 $ 29,343 $ 147,885 $ 120,154 $ 1,049,473
Acquisition cost $ 166,642 $ 377,452 $ 841,871 $ 7,140 $ 96,561 $ 147,983 $ 216,704 $ 1,854,353
Accumulated
- (132,463) (499,897) (5,215) (67,204) - (96,550) (801,329)
depreciation
Government grants - (1,145) (439) - (13) (98) - (1,695)
Accumulated
- (1,316) (539) - (1) - - (1,856)
impairment losses

1
Others and transfer include machinery that is transferred through sale and leaseback transactions
but recognized as an asset held by the Group as it does not meet the criteria for derecognition.

Nine-month period ended September 30, 2023

Construction Right-of-use
Land Buildings Machinery Vehicles Equipment in progress assets Total

Beginning $ 131,550 $ 220,153 $ 304,730 $ 1,739 $ 33,846 $ 76,273 $ 108,617 $ 876,908

Acquisition / capital
- 1,795 17,285 1,287 3,771 58,800 30,863 113,801
expenditure
Disposal (21) (23) (949) (44) (854) - - (1,891)
Impairment - - - (12) - - - (12)
Depreciation - (8,746) (57,891) (980) (8,703) - (26,092) (102,412)
Others & transfer1 (5,447) 16,332 48,724 49 3,151 (66,735) 1,363 (2,563)
Ending $ 126,082 $ 229,511 $ 311,899 $ 2,039 $ 31,211 $ 68,338 $ 114,751 $ 883,831
Acquisition cost $ 126,082 $ 346,270 $ 753,274 $ 6,793 $ 87,052 $ 68,338 $ 183,765 $ 1,571,574
Accumulated
- (114,365) (440,215) (4,754) (55,818) - (69,014) (684,166)
depreciation
Government grants - (1,134) (643) - (22) - - (1,799)
Accumulated
- (1,260) (517) - (1) - - (1,778)
impairment losses

1
Others and transfer include machinery that is transferred through sale and leaseback transactions
but recognized as an asset held by the Group as it does not meet the criteria for derecognition.

After initial recognition, land is measured using a revaluation model. As of September 30, 2024, the
carrying amount of land would be $ 148,476 thousand if measured based on a cost model.

As of September 30, 2024, certain property, plant and equipment included above are pledged as
collateral in relation to the borrowings (see Notes 15 and 34).

26
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

9. Property, Plant and Equipment (cont’d)

The classification of depreciation expenses for each of the nine-month periods ended September 30,
2024 and 2023 is as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Cost of sales $ 86,811 $ 82,079

Selling and administrative expenses
Depreciation expenses 16,787 17,078
Research and development expenses 3,550 3,255
$ 107,148 $ 102,412

10. Intangible Assets

Changes in intangible assets for each of the nine-month periods ended September 30, 2024 and 2023
are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Industrial Development Construction
Goodwill rights costs in progress Others Total

Beginning $ 2,658,320 $ 985,278 $ 125,261 $ 42,624 $ 54,396 $ 3,865,879

Internal development - - 14,465 - - 14,465
Acquisition - 31 - 36,892 1,413 38,336
Disposal - - - (340) - (340)
Amortization - (84) (25,098) - (12,443) (37,625)
Impairment - - (3,325) - - (3,325)
Others & transfer 7,598 3,303 (188) (14,252) 14,320 10,781
Ending $ 2,665,918 $ 988,528 $ 111,115 $ 64,924 $ 57,686 $ 3,888,171
Acquisition cost $ 2,665,918 $ 1,134,199 $ 447,076 $ 64,924 $ 183,902 $ 4,496,019
Accumulated
amortization and - (145,671) (335,961) - (126,216) (607,848)
impairment losses

Nine-month period ended September 30, 2023

Industrial Development Construction
Goodwill rights costs in progress Others Total

Beginning $ 2,616,809 $ 977,687 $ 136,534 $ - $ 63,460 $ 3,794,490

Internal development - - 18,567 - - 18,567
Acquisition - 123 - 17,555 15,221 32,899
Amortization - (80) (26,209) - (11,347) (37,636)
Impairment - - (1,107) - - (1,107)
Others & transfer (10,513) (2,812) (1,742) 18,826 (17,314) (13,555)
Ending $ 2,606,296 $ 974,918 $ 126,043 $ 36,381 $ 50,020 $ 3,793,658
Acquisition cost $ 2,606,296 $ 1,112,867 $ 417,074 $ 36,381 $ 175,922 $ 4,348,540
Accumulated
amortization and - (137,949) (291,031) - (125,902) (554,882)
impairment losses

As of September 30, 2024, the carrying amount of goodwill and other intangible assets with indefinite
useful lives included in others above is $ 3,657,199 thousand (December 31, 2023: $ 3,646,367
thousand).

27
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

10. Intangible Assets (cont’d)

Certain intangible assets included above are pledged as collateral as of September 30, 2024 in
connection with the borrowings (see Notes 15 and 34).

Details of development costs as of September 30, 2024 are as follows (in thousands of USD):

Remaining
amortization year
Balance (months)

Compact product development Development in progress $ 48,564

(relating to new models and emission
regulations) Being amortized 43,286 32
Portable Power product development Development in progress -
(relating to new models and emission
regulations) Being amortized 6,519 32
Forklift product development Development in progress 6,794
(relating to new models and emission
regulations) Being amortized 5,952 33
$ 111,115

Impairment losses on intangible assets for the nine-month period ended September 30, 2024 and for
the year ended December 31, 2023 are as follows (in thousands of USD):

Accumulated impairment losses

Nine-month
period ended Year ended
September 30, December 31,
Individual asset Book value 2024 2023

Medium Frame GenV

$ - $ 4,139 $ 4,139
and others
Development costs eMEX Shells E32e,
367 2,376 2,405
E19e and others
MEX 1-2T Upgrade 999 3,418 -
Industrial property rights RYAN trademark right - 4,943 4,943
Other Intangible assets Membership 895 176 176

The classification of impairment losses on intangible assets for each of the nine-month periods
ended September 30, 2024 and 2023 is as follows (in thousands of USD):

Nine-month period ended Nine-month period ended

September 30, 2024 September 30, 2023

Other non-operation expenses $ 3,325 $ 1,107

28
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

10. Intangible Assets (cont’d)

The classification of amortization expenses for each of the nine-month periods ended September 30,
2024 and 2023 is as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Cost of sales $ 27,969 $ 29,281

Selling and administrative expenses 9,656 8,355
$ 37,625 $ 37,636

Expenditures on research and development recognized as expenses amount to $ 116,770 thousand

for the nine-month period ended September 30, 2024 (September 30, 2023: $ 110,139 thousand).

11. Investment Properties

Changes in investment properties for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Land Building Total

Beginning balance $ 71,486 $ 15,595 $ 87,081

Acquisition / capital expenditure - 542 542
Depreciation - (812) (812)
Others (1,636) (363) (1,999)
Ending balance $ 69,850 $ 14,962 $ 84,812
Acquisition cost $ 69,850 $ 20,270 $ 90,120
Accumulated depreciation and
- (5,308) (5,308)
impairment loss

Nine-month period ended September 30, 2023

Land Building Total

Beginning balance $ 72,734 $ 19,844 $ 92,578

Acquisition / capital expenditure - 849 849
Transfer1 - (3,733) (3,733)
Depreciation - (810) (810)
Others (4,193) (929) (5,122)
Ending balance $ 68,541 $ 15,221 $ 83,762
Acquisition cost $ 68,541 $ 19,344 $ 87,885
Accumulated depreciation and
- (4,123) (4,123)
impairment loss
1
During the nine-month period ended September 30, 2023, due to the modification of the contract,
the leased area has been adjusted, and the right-of-use assets classified as investment property
have been transferred to lease assets.

Rental income from investment properties occurred during the nine-month period ended September
30, 2024 amounts to $ 2,558 thousand (September 30, 2023: $ 3,102 thousand).

29
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

12. Investment in Associates

Investments in associates that are accounted for using the equity method as of September 30, 2024
are as follows:

Percentages
Fiscal of ownership
Associates Principal business activity Location year end (%)
Manufacturing of electronic sensing
Ainstein AI, Inc.1 U.S.A December 9.09
devices and others
Presto Lite Asia Co., Ltd. Manufacturing of motors and generators Korea December 32.31

1
The Group considers it has significant influence over the entity with the right of decision-making in
the entity’s Board of Directors.

Details of investments in associates that are accounted for using the equity method as of September
30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024

Percentages of Acquisition Net asset
ownership (%) cost Book value value

Ainstein AI, Inc. 9.09 $ 2,000 $ 1,997 $ 119

Presto Lite Asia Co., Ltd. 32.31 2,467 2,808 2,808
$ 4,467 $ 4,805 $ 2,927

December 31, 2023

Percentages of Acquisition Net asset
ownership (%) cost Book value value

Ainstein AI, Inc. 9.09 $ 2,000 $ 1,892 $ 87

Presto Lite Asia Co., Ltd. 32.31 2,467 2,822 2,822
$ 4,467 $ 4,714 $ 2,909

30
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

12. Investment in Associates (cont’d)

Changes in investment in associates for each of the nine-month periods ended September 30, 2024
and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Gain (loss) on
equity
Beginning method Others Ending

Ainstein AI, Inc. $ 1,892 $ 105 $ - $ 1,997

Presto Lite Asia Co., Ltd. 2,822 49 (63) 2,808
$ 4,714 $ 154 $ (63) $ 4,805

Nine-month period ended September 30, 2023

Gain (loss) on
equity
Beginning method Others Ending

Ainstein AI, Inc. $ 1,859 $ (2) $ - $ 1,857

Presto Lite Asia Co., Ltd. 2,478 144 (148) 2,474
$ 4,337 $ 142 $ (148) $ 4,331

The summarized financial information of associates as of September 30, 2024 and for the nine-month
period ended September 30, 2024 is as follows (in thousands of USD):

Nine-month period ended

September 30, 2024 September 30, 2024
Profit Total
(loss) for comprehensive
Assets Liabilities Sales the period income (loss)

Ainstein AI, Inc. $ 6,920 $ 5,609 $ 4,220 $ (177) $ (177)

Presto Lite Asia Co., Ltd. 11,751 3,061 8,575 152 152

31
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

13. Lease
Changes in right-of-use assets for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Land Buildings Machinery Vehicles Tools Equipment Total

Beginning balance $ 3,736 $ 104,361 $ 7,211 $ 6,770 $ 2 $ 2,680 $ 124,760

Acquisition - 19,573 2,438 3,550 - 599 26,160
Depreciation (108) (19,767) (2,128) (3,793) (1) (1,114) (26,911)
Others (101) (3,391) (4) (290) - (69) (3,855)
Ending balance $ 3,527 $ 100,776 $ 7,517 $ 6,237 $ 1 $ 2,096 $ 120,154
Acquisition cost $ 4,166 $ 176,482 $ 13,751 $ 16,717 $ 16 $ 5,572 $ 216,704
Accumulated depreciation (639) (75,706) (6,234) (10,480) (15) (3,476) (96,550)

Nine-month period ended September 30, 2023

Land Buildings Machinery Vehicles Tools Equipment Total

Beginning balance $ 4,288 $ 90,321 $ 5,776 $ 6,151 $ 6 $ 2,075 $ 108,617

Acquisition - 21,773 3,480 4,229 1 1,380 30,863
Depreciation (46) (19,782) (1,852) (3,176) (2) (1,234) (26,092)
Transfer1 - 3,733 - - - - 3,733
Others (560) (1,535) - (771) (1) 497 (2,370)
Ending balance $ 3,682 $ 94,510 $ 7,404 $ 6,433 $ 4 $ 2,718 $ 114,751
Acquisition cost $ 4,233 $ 147,938 $ 11,195 $ 14,789 $ 15 $ 5,595 $ 183,765
Accumulated depreciation (551) (53,428) (3,791) (8,356) (11) (2,877) (69,014)

1
During the nine-month period ended September 30, 2023, the investment properties were replaced
with lease assets as the lease area changed due to the modification of the contract.

Changes in lease liabilities for each of the nine-month periods ended September 30, 2024 and 2023
are as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Beginning balance $ 129,036 $ 115,551

Lease payments (30,999) (28,282)
Acquisition of lease assets 24,853 30,961
Interest expenses 4,589 4,364
Termination of lease agreement (5,824) (186)
Foreign exchange differences 2,713 (3,874)
Ending balance $ 124,368 $ 118,534

32
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

13. Lease (cont’d)

The classification of depreciation expenses of lease assets for each of the nine-month periods ended
September 30, 2024 and 2023 is as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Cost of sales $ 13,643 $ 12,992

Selling and administrative expenses 12,857 12,682
Research and development expenses 411 418
$ 26,911 $ 26,092

The maturity profile of lease liability as of September 30, 2024 is as follows (in thousands of USD):

Contractual nominal cash flow

Less than Less than Less than More than
Total 1 year 2 years 5 years 5 years

Lease liabilities $ 140,044 $ 40,206 $ 30,230 $ 53,485 $ 16,123

Expenditures on short-term leases or leases of low-value assets which are not included in lease assets
for each of the nine-month periods ended September 30, 2024 and 2023 are as follows (in thousands
of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Cost of sales $ 191 $ 390

Selling and administrative expenses 4,261 3,693
Research and development expenses, etc. 15 1
$ 4,467 $ 4,084

Total cash outflows for leases for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Lease liabilities $ 30,999 $ 28,282

Lease payments on short-term leases
4,467 4,084
and leases of low-value assets
$ 35,466 $ 32,366

33
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

14. Trade and Other Payables

Trade and other payables as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

September 30, 2024 December 31, 2023

Current:
Trade payables $ 764,711 $ 895,350
Other payables 76,827 97,938
Accrued expenses 463,975 394,300
$ 1,305,513 $ 1,387,588
Non-current:
Other payables $ 114 $ 21
Accrued expenses 5,759 4,491
Leasehold deposits received 4,848 4,532
$ 10,721 $ 9,044

15. Bonds and Borrowings

Bonds as of September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, December 31,

Category Annual interest rate 2024 2023

Private bonds SOFR+1.05% $ 50,000 $ -

Subtotal 50,000 -
Less: discount on issuance of bonds (403) -
Total $ 49,597 $ -

Borrowings as of September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

1) Short-term Borrowings

September 30, December 31,

Lender Annual interest rate 2024 2023

SB China 3.30% $ 21,454 $ 21,038

CSOB1 EURIBOR+1.5% 17,638 17,470
SB China 3.30% 10,727 9,946
Yes/Sundaram2 - 2,867 -
Hana Bank 6M MOR+1.76% 22,734 -
Kookmin Bank CD91D+1.55% 15,156 -
$ 90,576 $ 48,454

1
Collateral is provided in relation to this loan. (see Note 34).
2
The Group provides guarantees to financial institutions in relation to the Dealer’s default under the
Dealer financing agreement. Accordingly, the borrowings are recognized as the requirements for
writing off trade receivables are not met.

34
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

15. Bonds and Borrowings (cont’d)

2) Long-term Borrowings

September 30, December 31,

Lender Annual interest rate 2024 2023

Syndicated lenders1 3M SOFR+2.00% $ 729,049 $ 735,125

CSOB1 EURIBOR+1.5% 114,645 71,334
Mizuho Bank CD91D+1.5% 30,312 31,022
NongHyup Bank1 3M MOR+1.88% 30,312 31,022
Shinhan Bank Japan1,2 2.88% 13,357 13,495
Shinhan Bank1 CD91D+1.80% 37,890 -
Japan ST Prime
Shinhan Bank Japan1 2,802 2,831
Lending Rate-0.575%
Syndicated lenders1 3M SOFR+1.60% 180,000 -
Subtotal 1,138,367 884,829
Less: present value discount (11,906) (12,642)
1,126,461 872,187
Less: current portion (230,978) (21,995)
Total $ 895,483 $ 850,192

1
Collateral is provided in relation to this borrowing (see Note 34).
2
The Group has entered into the currency swap agreement receiving a fixed interest rate of 1.00%
for Japanese Yen (JPY) and paying a fixed interest rate of 2.88% for Korean won (KRW), and the
interest rate presented has taken into account the effect of the currency swap agreement, in relation
to this borrowing (see Note 8).

16. Sales and Leaseback Liabilities

Sales and leaseback liabilities as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

Annual September 30, December 31,

Lender interest rate 2024 2023

HSBC 7.00% $ 28,232 $ 28,801

Investec 7.00% 3,539 4,085
CMF 7.00% 1,335 1,977
Lombard 7.00% 15,774 16,556
Subtotal 48,880 51,419
Less: current portion (13,147) (13,393)
Total $ 35,733 $ 38,026

35
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

17. Net Defined Benefit Liabilities

Details of net defined benefit liabilities recognized in the statements of financial position as of
September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024 December 31, 2023

Present value of defined benefit obligations $ 469,752 $ 452,775

Fair value of plan assets (358,714) (349,689)
Effects of asset ceiling 1,708 1,708
Net defined benefit liabilities 122,658 112,044
Net defined benefit assets 9,912 7,250

Components of retirement benefits presented on the statements of profit or loss for each of the nine-
month periods ended September 30, 2024 and 2023 are as follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Current service cost $ 3,466 $ 10,683 $ 3,334 $ 11,157

Past service cost and gains on
- - - (52,041)
settlements
Net interest cost 1,184 3,768 1,440 5,734
$ 4,650 $ 14,451 $ 4,774 $ (35,150)

36
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

18. Provisions

The Group estimates provisions based on expected expenditures required to settle its obligations for
product warranty, refund, related after sales service activities, taking into account factors such as
warranty period and historical experiences.

Changes in provisions for each of the nine-month periods ended September 30, 2024 and 2023 are
as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Beginning Increase Decrease Others Ending Current Non-current

Warranty $ 151,408 $ 50,089 $ (61,483) $ (334) $ 139,680 $ 78,664 $ 61,016

Product liability 23,661 4,690 (3,634) - 24,717 4,894 19,823
Litigation 1,457 287 (309) (17) 1,418 1,418 -
Restructuring 768 - - 8 776 776 -
Others 912 1,427 (356) 16 1,999 202 1,797
$ 178,206 $ 56,493 $ (65,782) $ (327) $ 168,590 $ 85,954 $ 82,636

Nine-month period ended September 30, 2023

Beginning Increase Decrease Others Ending Current Non-current

Warranty $ 152,704 $ 40,767 $ (46,589) $ (716) $ 146,166 $ 79,988 $ 66,178

Product liability 25,445 4,102 (3,839) - 25,708 3,699 22,009
Litigation 1,114 767 (111) (114) 1,656 1,656 -
Restructuring 833 - - (7) 826 826 -
Others 1,571 811 (1,371) 178 1,188 776 412
$ 181,667 $ 46,447 $ (51,910) $ (659) $ 175,544 $ 86,945 $ 88,599

19. Capital Stock and Capital Surplus

The Company, DBI, is authorized to issue up to 400,000,000 ordinary shares with a par value of
￦ 500 per share. As of September 30, 2024, 100,249,166 ordinary shares are issued out of which
156,957 shares are ordinary shares with restricted voting rights under the Korean Commercial Law.

Changes in capital stock and capital surplus for each of the nine-month periods ended September 30,
2024 and 2023 are as follows (in thousands of USD):

Capital surplus
Share Other capital
Capital stock premium surplus Total

As of January 1, 2024 $ 43,096 $ 1,657,374 $ (177,878) $ 1,479,496

As of September 30, 2024 $ 43,096 $ 1,657,374 $ (177,878) $ 1,479,496

Capital surplus
Share Other capital
Capital stock premium surplus Total

As of January 1, 2023 $ 43,096 $ 2,432,749 $ (177,878) $ 2,254,871

Transferred to retained
- (775,375) - (775,375)
earnings
As of September 30, 2023 $ 43,096 $ 1,657,374 $ (177,878) $ 1,479,496

37
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

20. Share-based Compensation

The Group has granted share-based compensations to executives of the Group in accordance with
the resolution of the board of directors as follows.

1st wave
Grant type Registered common stock
Granted to Directors incumbent as of the date of resolution and grant date
Grant date March 8, 2022
Grant method Issuance of treasury shares, cash equivalent to share value
Exercise price -
Vesting condition 2 or more years of employment after grant
Prorated by the day from January 1 of grant year to December 31 of 2nd
Vesting method
anniversary year from grant
Payment method Paid at the beginning of 3rd anniversary year from grant

2nd wave
Grant type Registered common stock
Granted to Directors incumbent as of the date of resolution and grant date
Grant date March 2, 2023
Grant method Issuance of treasury shares, cash equivalent to share value
Exercise price -
Vesting condition 2 or more years of employment after grant
Prorated by the day from January 1 of grant year to December 31 of 2nd
Vesting method
anniversary year from grant
Payment method Paid at the beginning of 3rd anniversary year from grant

3rd wave
Grant type Registered common stock
Granted to Directors incumbent as of the date of resolution and grant date
Grant date April 29, 2024
Grant method Issuance of treasury shares, cash equivalent to share value
Exercise price -
Vesting condition 2 or more years of employment after grant
Prorated by the day from January 1 of grant year to December 31 of 2nd
Vesting method
anniversary year from grant
Payment method Paid at the beginning of 3rd anniversary year from grant

38
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

20. Share-based Compensation (cont’d)

Equity-settled share-based compensations as of September 30, 2024 and December 31, 2023 are as
follows (in shares):

September 30, 2024 December 31, 2023

Beginning $ 96,490 $ 33,117

Granted 60,467 67,107
Canceled - (3,734)
Ending $ 156,957 $ 96,490

Cash-settled share-based compensations as of September 30, 2024 and December 31, 2023 are as
follows (in shares):

September 30, 2024 December 31, 2023

Beginning $ 81,268 $ 29,044

Granted1 55,585 60,601
Canceled (27,033) (8,377)
Ending $ 109,820 $ 81,268

1
2,754 shares of cash-settled payment linked to the value of equity shares of the ultimate parent
company are included.

39
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

21. Other Components of Equity

Other components of equity as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

September 30, 2024 December 31, 2023

Capital adjustment from equity transactions

$ 7,700 $ 7,700
among subsidiaries
Ordinary shares issued in kind1 (186,108) (186,108)
Treasury shares2 (5,437) (3,012)
Share-based compensation expenses2 2,404 1,214
$ (181,441) $ (180,206)

1
The Group received Doosan Engine's investment in its subsidiaries as an investment in kind before
the year ended December 31, 2023. The difference from the reduced book value of non-controlling
interests was recognized as other equity item.
2
As of September 30, 2024, 156,957 shares are held by the Group for the purpose of share-based
compensation.

22. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for each of the nine-month periods ended
September 30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Gain (loss) on
valuation of
Gain (loss) Gain on equity
on translation Gain (loss) revaluation of instruments at
of foreign on valuation property, plant fair value
operation of derivatives and equipment through OCI Total

Beginning balance $ (262,342) $ 213 $ 14,811 $ 109 $ (247,209)

Increase (decrease) 7,149 (891) 1 - 6,259
Ending balance $ (255,193) $ (678) $ 14,812 $ 109 $ (240,950)

Nine-month period ended September 30, 2023

Gain (loss) on
valuation of
Gain (loss) Gain on equity
on translation Gain (loss) revaluation of instruments at
of foreign on valuation property, plant fair value
operation of derivatives and equipment through OCI Total

Beginning balance $ (330,539) $ 294 $ 11,087 $ 542 $ (318,616)

Increase (decrease) (23,085) (173) - (325) (23,583)
Ending balance $ (353,624) $ 121 $ 11,087 $ 217 $ (342,199)

40
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

23. Retained Earnings

Details of retained earnings as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

September 30, 2024 December 31, 2023

Legal reserves $ 22,566 $ 22,566

Retained earnings before appropriation 3,707,243 3,500,538
$ 3,729,809 $ 3,523,104

24. Segment Information

The Group operates in a single operating segment and its main products are as follows:

Segment Main products

Compact (Skid Steer Loader, Compact Track Loader, Mini

Construction Equipment
Excavator), Portable Power, Material Handling

Revenue by main products for each of the nine-month periods ended September 30, 2024 and 2023
is as follows (in thousands of USD):

Sales
Nine-month period ended Nine-month period ended
September 30, 2024 September 30, 2023

Compact $ 3,701,057 $ 4,413,483

Portable Power 251,014 300,351
Material Handling 785,277 1,010,349
$ 4,737,348 $ 5,724,183

Revenue by region for each of the nine-month periods ended September 30, 2024 and 2023 is as
follows (in thousands of USD):

Sales
Nine-month period ended Nine-month period ended
September 30, 2024 September 30, 2023

North America $ 3,513,928 $ 4,270,996

Europe, Middle East & Africa 746,671 921,141
Asia, Latin America & Oceania 476,749 532,046
$ 4,737,348 $ 5,724,183

No revenue from transactions with a single external customer or counterparty amounted to 10% or
more of the Group’s total revenue for each of the nine-month periods ended September 30, 2024 and
2023.

41
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

24. Segment Information (cont’d)

As of September 30, 2024 and December 31, 2023, the Group’s non-current assets by region are as
follows (in thousands of USD):

Non-current assets1
September 30, 2024 December 31, 2023

North America $ 1,355,394 $ 1,275,807

Europe, Middle East and Africa 657,908 651,141
Asia, Latin America and Oceania 343,236 344,092
$ 2,356,538 $ 2,271,040

1
Non-current assets by region are based on the country where the asset is located. These assets
consist of property, plant and equipment, investment property, lease assets and intangible assets
(excluding goodwill).

25. Revenue

Details of revenue for each of the nine-month periods ended September 30, 2024 and 2023 are as
follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months
Revenue from contracts
with customers
By type of goods or
services
- Manufactured
$ 1,246,802 $ 4,627,664 $ 1,779,121 $ 5,648,656
products/merchandise
- Others 41,470 55,298 4,548 21,046
1,288,272 4,682,962 1,783,669 5,669,702
By timing of recognition
- Products transferred at
1,246,802 4,627,664 1,779,121 5,648,656
a point in time
- Service rendered over
41,470 55,298 4,548 21,046
time
1,288,272 4,682,962 1,783,669 5,669,702
Revenue from other
sources
- Rental income, etc. 17,270 54,386 19,780 54,481
$ 1,305,542 $ 4,737,348 $ 1,803,449 $ 5,724,183

42
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

26. Contract Balances

Details of receivables, contract assets and contract liabilities from contracts with customers as of
September 30, 2024 and December 31, 2023 are as follows (in thousands of USD):

September 30, 2024 December 31, 2023

Trade and other receivables $ 338,803 $ 421,578

Contract liabilities1 553,193 462,611

1
Contract liabilities are included in the trade payables and other payables, other current liabilities and
other non-current liabilities.

The contract liabilities primarily related to the advance considerations received from customers for
which revenue is recognized on completion of transfer of goods or services.

Among the contract liabilities, $ 52,419 thousand were recognized as revenue during the nine-month
period ended September 30, 2024 (September 30, 2023: $ 19,642 thousand).

27. Expenses by Nature

Expenses classified by nature for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Purchases of inventories
(Raw materials & $ 724,925 $ 2,796,859 $ 1,012,207 $ 3,223,731
merchandises)
Changes in inventories (27,393) (221,475) 24,866 (47,423)
Employee benefits 167,308 544,998 179,741 495,708
Depreciation and amortization 49,693 145,585 47,354 140,858
Other expenses 299,128 960,448 313,068 1,039,347
$ 1,213,661 $ 4,226,415 $ 1,577,236 $ 4,852,221

43
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

28. Selling and Administrative Expenses

Selling and administrative expenses for each of the nine-month periods ended September 30, 2024
and 2023 are as follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Salaries $ 54,588 $ 177,382 $ 55,207 $ 162,557

Retirement benefits 3,727 10,884 3,614 (40,441)
Employee benefits 10,767 32,577 9,590 28,557
Rent 3,519 9,763 2,281 7,762
Depreciation 5,670 16,787 5,794 17,078
Depreciation of investment
276 812 276 810
properties
Amortization 3,356 9,656 2,966 8,355
Research and development 38,608 116,770 38,173 110,139
Advertising 17,676 60,910 18,643 55,248
Commission expenses 35,217 97,617 31,148 75,365
Bad debt expenses 464 1,835 2,425 3,917
Insurance expenses 1,754 8,786 (795) 8,654
Others1 24,774 78,671 31,674 86,098
$ 200,396 $ 622,450 $ 200,996 $ 524,099

1
Include share-based compensation expenses.

44
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

29. Finance Income and Expenses

Finance income and expenses for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months
Finance income:
Interest income $ 11,308 $ 38,038 $ 10,893 $ 17,624
Gain on foreign currency
8,279 34,190 6,029 41,386
transactions
Gain on foreign currency
(4,185) 19,060 8,658 17,172
translation
Gain on derivative
112 302 - -
transactions
Gain on valuation of
(214) - 22 464
derivative
$ 15,300 $ 91,590 $ 25,602 $ 76,646
Finance expenses:
Interest expenses (18,684) (58,577) (23,011) (65,662)
Loss on foreign currency
(10,854) (27,520) (7,770) (28,167)
transactions
Loss on foreign currency
3,106 (24,268) (9,864) (39,938)
translation
Loss on derivative
- - 29 (30)
transactions
Loss on derivative valuation (860) (860) - -
Loss on repayment of
(1,606) (1,606) (1,699) (1,699)
borrowings
Loss on financial guarantee (72) (133) (34) (71)
Others (1,023) (2,251) (531) (1,569)
$ (29,993) $ (115,215) $ (42,880) $ (137,136)
$ (14,693) $ (23,625) $ (17,278) $ (60,490)

45
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

30. Other Non-operating Income and Expenses

Other non-operating income and expenses for each of the nine-month periods ended September 30,
2024 and 2023 are as follows (in thousands of USD):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months
Other non-operating income:
Gain on disposal of property,
$ (4) $ 109 $ 6 $ 13
plant and equipment
Gain on disposal of non-
- - (1) 162
current asset held for sale
Others 600 1,349 392 1,133
$ 596 $ 1,458 $ 397 $ 1,308
Other non-operating expenses:
Loss on disposal of trade
(2,169) (5,280) (2,540) (6,131)
receivables
Other bad debt expenses (169) (291) 118 (175)
Loss on disposal of property,
(154) (198) - (24)
plant and equipment
Loss on disposal of
(340) (340) - -
intangible assets
Loss on impairment of
property, plant and - - (12) (12)
equipment
Loss on impairment of
(3,325) (3,325) (1,107) (1,107)
intangible assets
Donations (776) (7,725) (129) (9,012)
Loss on disposal of
- - - (972)
investment in subsidiaries
Loss on disposal of non-
- - 1 (250)
current asset held for sale
Others (983) (1,446) (1,283) (1,581)
$ (7,916) $ (18,605) $ (4,952) $ (19,264)
Net other non-operating
$ (7,320) $ (17,147) $ (4,555) $ (17,956)
expense

46
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

31. Income Tax Expense

Income tax expense is recognized based on the best estimate of the weighted-average annual income
tax rate expected for full financial year.

The Group is subject to Pillar Two income taxes. However, the Group did not recognize any current
income tax expense arising from Pillar Two income taxes because its constituent entities’ effective tax
rate will be above 15% or the Group may meet the requirements for transitional safe harbour relief in
all jurisdictions in which the Group operates.

32. Earnings Per Share

32.1 Basic Earnings Per Share

Basic earnings per share are computed by dividing profit for the period attributable to owners of the
parent company by the weighted-average number of ordinary shares outstanding during the period
excluding treasury shares.

Earnings per share attributable to owners of the parent company for each of the nine-month periods
ended September 30, 2024 and 2023 are computed as follows (in USD and in shares):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Profit for the period attributable

to owners of the parent $ 46,827,947 $ 324,493,397 $ 143,754,681 $ 541,821,290
company
Weighted-average number of
100,092,209 100,121,604 100,152,676 100,170,318
ordinary shares outstanding
Basic earnings per share $ 0.47 $ 3.24 $ 1.44 $ 5.41

The weighted-average number of shares is computed as follows (in shares):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Number of ordinary shares

100,092,209 100,152,676 100,152,676 100,216,049
outstanding
Treasury shares - (31,072) - (45,731)
Weighted-average number of
100,092,209 100,121,604 100,152,676 100,170,318
ordinary shares outstanding

47
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

32.2 Diluted Earnings Per Share

Diluted earnings per share are computed by dividing profit for the period attributable to owners of the
parent company by the adjusted weighted-average number of ordinary shares with the assumption
that all convertible securities were converted to common shares.

Diluted earnings per share of owners of the parent company for each of the nine-month periods ended
September 30, 2024 and 2023 are computed as follows (in USD and in shares):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Profit for the period attributable

to owners of the parent $ 46,827,947 $ 324,493,397 $ 143,754,681 $ 541,821,290
company
Adjusted weighted-average
number of ordinary shares 100,166,047 100,199,255 100,205,723 100,210,110
outstanding
Diluted earnings per share $ 0.47 $ 3.24 $ 1.43 $ 5.41

Adjusted weighted-average number of shares is computed as follows (in shares):

September 30, 2024 September 30, 2023

Three months Nine months Three months Nine months

Weighted-average number of
100,092,209 100,121,604 100,152,676 100,170,318
ordinary shares outstanding
Restricted Stock Unit 73,838 77,651 53,047 39,792
Adjusted weighted-average
number of ordinary shares 100,166,047 100,199,255 100,205,723 100,210,110
outstanding

Potential ordinary shares for as of are as follows (in shares):

September 30, 2024 September 30, 2023

Restricted Stock Unit 156,957 96,490

48
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

33. Commitments and Contingencies

33.1 Litigations

As of September 30, 2024, the Group is a defendant in several legal actions arising from the ordinary
course of business, including lawsuits related to product liability claim. Provisions are recognized for
those cases with high probability of outflow of resources expected (see Note 18). For other cases, the
assessments have been performed and it has been concluded that the outcome is uncertain and would
not have a material impact on the consolidated financial statements.

33.2 Financial Guarantees and Assets Provided as Collaterals

As of September 30, 2024, guarantees provided by the Group for third parties are as follows (in
thousands of USD):

Provided for Provided to Amount guaranteed

Doosan Bobcat North America Inc. and others End customers, etc. $ 96,337
Doosan Bobcat EMEA s.r.o. and others End customers, etc. 12
Doosan Bobcat Korea Co., Ltd. and others End customers, etc. 28,675
$ 125,024

The Group provides a payment guarantee of $ 130,000 thousand for supply chain financing contracts
entered into between Doosan Bobcat North America Inc. and Doosan Bobcat EMEA, s.r.o, the
subsidiaries of the Group.

Amount
Provided by Type guaranteed

Machinery Financial Cooperative Contracts and defects¹ $ 1,457

Seoul Guarantee Insurance
Performance guarantee 898
Company
Financial guarantee 51,000
Woori Bank
Foreign currency performance guarantee 1,401
Financial guarantee 13,357
Shinhan Bank
Foreign currency performance guarantee 701
CSOB Payment guarantees 5,230
Unicredit Payment guarantees 3,351
Other guarantees Other guarantees 1,474
$ 78,869

1
The Group’s share in Machinery Financial Cooperative is provided as collateral as of September 30,
2024.

49
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

33.3 Key Commitments

33.3.1 Credit agreement

As of September 30, 2024, the Group has contracts with financial institutions for limit loans of
$ 1,334,877 thousand, including general loans and overdrafts, comprehensive loans of $ 59,789
thousand, and loans secured by accounts receivables of $ 33,343 thousand.

33.3.2 Supply Chain Financing commitments

The Group entered into a supply chain financing contract and $ 51,778 thousand is recognized as
trade payable.

33.3.3 Other commitments

As of September 30, 2024, the Group has signed a contract with Doosan New Technology Investment
Association No. 1 for a total investment commitment of $ 15,156 thousand, and the remaining
investment commitment amount as of September 30, 2024 is $ 12,989 thousand.

The Group terminated the lease contract for Bundang Doosan Tower with Doosan Property Co., Ltd.
in January 2021, and entered into a new co-lease contract with Doosan Bobcat Korea Co., Doosan
Corp., Doosan Enerbility Co., Ltd. and HD Hyundai Infracore Co., Ltd. (formerly, Doosan Infracore Co.,
Ltd.) for 5 years. As HD Hyundai Infracore Co., Ltd. withdrew from the lease agreement on December
31, 2023, Doosan Enerbility Co., Ltd. took over the relevant status and rights and obligations. Unless
certain conditions are met, the lease contract will be extended for another 5 years under the same
conditions. Doosan Bobcat Korea Co., Ltd., a subsidiary of the Group, has agreed to jointly conduct a
business of leasing real estate and then sub-leasing it, and has the right to rental income equivalent
to the portion excluding the portion for personal use within the rental ratio of 9.7% and bears the
expenses. In addition, it jointly bears the rental obligation as a responsible lessor within the ratio. The
Group accounts for as joint operations where the related rights to the assets and obligations to the
liabilities are held.
Doosan Bobcat Korea Co., Ltd. was merged into Doosan Industrial Vehicle Co., Ltd. on January 1,
2024, and Doosan Industrial Vehicle Co., Ltd. changed its name to Doosan Bobcat Korea Co., Ltd. on
the same date.

In connection with the business combination that incurred before the year ended December 31, 2023,
the Group has succeeded the joint liabilities for financial and operating debts of Doosan Corporation
and Doosan Industrial Vehicle Co. Ltd., and the Group believes that the possibility of outflow of
resources is low.

50
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

34. Assets Provided as Collaterals

Details of the assets provided as collaterals as of September 30, 2024 are as follows (in thousands of
USD):

Doosan Bobcat Doosan Bobcat Doosan Bobcat

North America Inc. EMEA s.r.o Korea Co., Ltd. etc.

Agreement Borrowings and credit limit Borrowings and credit Borrowings and credit
details agreements limit agreements limit agreements
Agreement
$ 1,930,875 $ 223,410 $ 99,518
limit amount
All equity shares of Doosan
Bobcat North America Inc.,
Assets
Certain property, plant and Accounts receivable Property, plant and
provided as
equipment, intangible assets and inventory, etc. equipment, etc.
collateral
and others of Doosan
Bobcat North America Inc.
Collateral
$ 2,625,976 $ 383,222 $ 118,155
value
Nominal
amount of $ 909,048 $ 132,283 $ 84,361
borrowing

35. Related Party Transactions

The Group’s related party disclosures for each of the nine-month periods ended September 30, 2024
and 2023 are as follows:

Relationship Name

Ultimate parent Doosan Corp.

Immediate parent Doosan Enerbility Co., Ltd.
Associates Ainstein AI, Inc.
Presto Lite Asia Co., Ltd.
Others Doosan Digital Innovation America, LLC
Oricom Inc.
Doosan Business Research Institute
Doosan Cuvex Co., Ltd.
Bundang Doosan Tower Reit Co., Ltd.
Doosan New Technology Investment Association, etc.

51
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

35. Related Party Transactions (cont’d)

Significant transactions with the related parties for each of the nine-month periods ended September
30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Purchases of
investment
Other Other properties &
Relationship Related party Sales income Purchase expense fixed asset

Ultimate parent Doosan Corp. $ 3,273 $ -$ -$ 33,118 $ 899

Doosan Enerbility Co.,
Immediate parent 169 - - - -
Ltd.
Ainstein AI, Inc. - 105 - - -
Associate
Presto Lite Asia Co., Ltd 24 19 4,952 - -
Doosan Digital Innovation
Others 4 - - 36,857 1,499
America, LLC
Oricom Inc. - - - 5,462 -
Doosan Business
- - - 1,445 -
Research Institute
Doosan Cuvex Co., Ltd. - - - 3,070 -
Bundang Doosan Tower
- - - 213 -
Reit Co., Ltd.
Others 752 - - 10,977 84
Subtotal 756 - - 58,024 1,583
Total $ 4,222 $ 124 $ 4,952 $ 91,142 $ 2,482

Nine-month period ended September 30, 2023

Purchases of
investment
Other Other properties &
Relationship Related party Sales income Purchase expense fixed asset

Ultimate parent Doosan Corp. $ 3,270 $ -$ -$ 36,938 $ 568

Doosan Enerbility Co.,
Immediate parent 254 - - - -
Ltd.
Associate Presto Lite Asia Co., Ltd - 24 6,169 - -
Doosan Digital Innovation
Others - 4 - 30,291 -
America, LLC
Oricom Inc. - - - 3,699 -
Doosan Business
- - - 1,264 -
Research Institute
Doosan Cuvex Co., Ltd. - - - 3,372 -
Bundang Doosan Tower
- - - 233 -
Reit Co., Ltd.
Others 752 - 18 8,200 56
Subtotal 752 4 18 47,059 56
Total $ 4,276 $ 28 $ 6,187 $ 83,997 $ 624

52
 Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

35. Related Party Transactions (cont’d)

Related significant balances as of September 30, 2024 and December 31, 2023 are as follows (in
thousands of USD):

September 30, 2024

Trade Other Trade Other Lease
Relationship Related party receivables receivables payables payables liabilities

Ultimate parent Doosan Corp. $ 429 $ 727 $ - $ 8,498 $ -

Associate Ainstein AI, Inc. - 1,075 - - -
Presto Lite Asia
- 4 172 - -
Co., Ltd.
Subtotal - 1,079 172 - -
Others Doosan Digital
Innovation 1 108 - 4,997 1,720
America LLC
Oricom Inc - - - 970 -
Doosan Business
- - - 179 -
Research Institute
Doosan Cuvex Co.,
- 992 - 191 -
Ltd.
Bundang Doosan
Tower Reit Co., - - - - 12,842
Ltd.
Others 91 2 - 2,030 -
Subtotal 92 1,102 - 8,367 14,562
Total $ 521 $ 2,908 $ 172 $ 16,865 $ 14,562

December 31, 2023

Trade Other Trade Other Lease
Relationship Related party receivables receivables payables payables liabilities

Ultimate parent Doosan Corp. $ 408 $ 719 $ - $ 11,840 $ -

Immediate Doosan Enerbility
48 - - 271 -
parent Co., Ltd.
Associate Presto Lite Asia
- - 239 - -
Co., Ltd.
Others Doosan Digital
Innovation - 98 - 4,149 1,744
America LLC
Oricom Inc. - - - 980 -
Doosan Business
- - - 176 -
Research Institute
Doosan Cuvex Co.,
- 552 - 347 -
Ltd.
Bundang Doosan
Tower Reit Co., - - - - 14,522
Ltd.
Others 94 452 - 1,527 -
Subtotal 94 1,102 - 7,179 16,266
Total $ 550 $ 1,821 $ 239 $ 19,290 $ 16,266

53
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

35. Related Party Transactions (cont’d)

Fund transactions (including equity transactions) with the related parties for each of the nine-month
periods ended September 30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Dividend Repayment of
Investment
Relationship Related party paid lease liabilities

Immediate Doosan Enerbility Co.,

$ 54,319 $ - $ -
parent Ltd
Doosan Digital
Others Innovation America, - 474 -
LLC
Bundang Doosan Tower
- 1,515 -
Reit Co., Ltd.
Doosan New Technology
- - 2,114
Investment Association
$ 54,319 $ 1,989 $ 2,114

Nine-month period ended September 30, 2023

Repayment of
Relationship Related party Dividend paid lease liabilities

Immediate
Doosan Enerbility Co., Ltd $ 58,605 $ -
parent
Doosan Digital Innovation America,
Others
LLC - 422
Bundang Doosan Tower Reit Co., Ltd. - 1,553
$ 58,605 $ 1,975

The Parent Company defines key management personnel as a person that has an authority and
responsibility for planning, directing and controlling the activities of the company, regardless of
whether they are registered or non-registered officers. Compensations to key management personnel
for each of the nine-month periods ended September 30, 2024 and 2023 are as follows (in thousands
of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Benefits $ 4,854 $ 3,696

Share-based compensation expenses 1,425 718
Retirement benefits 583 562
$ 6,862 $ 4,976

54
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

36. Interim Consolidated Financial Statements of Cash Flows

Details of adjustments and changes in operating assets and liabilities in the interim consolidated
statements of cash flows for each of the nine-month periods ended September 30, 2024 and 2023 are
as follows(in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Adjustments:
Income tax expense $ 145,821 $ 251,836
Finance income (57,098) (35,260)
Finance expenses 85,320 107,299
Retirement benefits (defined benefit plan) 14,451 (35,150)
Depreciation 107,149 102,412
Depreciation on investment properties 812 810
Amortization 37,625 37,636
Gain on disposal of property, plant and
(109) (13)
equipment
Loss on disposal of property, plant and
198 24
equipment
Loss on impairment of property, plant and
- 12
equipment
Loss on disposal of intangible assets 340 -
Loss on impairment of intangible assets 3,325 1,107
Gain (loss) on equity method investments (154) (142)
Gain on valuation of long-term financial
(1) (1)
investments
Gain (loss) on cancellation of lease agreement (3) 145
Gain on disposal of non-current assets held for
- (162)
sale
Loss on disposal of non-current assets held for
- 250
sale
Share-based compensation 1,756 1,113
$ 339,432 $ 431,915

55
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

36. Interim Consolidated Financial Statements of Cash Flows (cont’d)

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Changes in operating assets and liabilities:

Trade receivables and other receivables $ 70,423 $ 17,269
Inventories (228,994) (55,199)
Other current assets 1,322 (7,456)
Other non-current assets (15,019) (12,688)
Trade payables and other payables (77,152) 228,101
Derivatives 1,769 651
Provisions (8,681) (5,439)
Other current liabilities (29,178) (4,424)
Payment of retirement benefits (defined benefit
(6,750) (11,099)
plan)
Plan assets 3,514 (20,099)
Other non-current liabilities 10,559 9,240
$ (278,187) $ 138,857

Significant non-cash transactions for each of the nine-month periods ended September 30, 2024 and
2023 are as follows (in thousands of USD):

Nine-month Nine-month
period ended period ended
September 30, 2024 September 30, 2023

Transfer from construction-in-progress to

property, plant and equipment and intangible $ 72,343 $ 65,927
assets
Increase(decrease) in other payables related to
(8,985) (7,458)
the acquisition of property, plant, and equipment
Increase(decrease) in other payables related to
4,564 (376)
the acquisition of intangible assets
Acquisition of right-of-use assets 26,160 30,863
$ 94,082 $ 88,956

56
Doosan Bobcat Inc. and its subsidiaries
Notes to the interim consolidated financial statements
September 30, 2024 and 2023 (Unaudited)

36. Interim Consolidated Financial Statements of Cash Flows (cont’d)

Details of adjustments to liabilities arising from financing activities for each of the nine-month periods
ended September 30, 2024 and 2023 are as follows (in thousands of USD):

Nine-month period ended September 30, 2024

Sales and Lease
Bonds Borrowings Leaseback liabilities Total

Beginning balance $ - $ 920,641 $ 51,419 $ 129,036 $ 1,101,096

Acquisition of right-of-use assets - - - 24,853 24,853
Cash flows 49,550 292,745 (4,913) (26,411) 310,971
Foreign exchange differences - 2,916 2,374 2,713 8,003
Other non-financial changes 47 736 - (5,823) (5,040)
Ending balance $ 49,597 $ 1,217,038 $ 48,880 $ 124,368 $ 1,439,883

Nine-month period ended September 30, 2023

Sales and Lease
Borrowings Leaseback liabilities Total

Beginning balance $ 1,015,521 $ 61,034 $ 115,551 $ 1,192,106

Acquisition of right-of-use assets - - 30,961 30,961
Cash flows (98,914) (9,183) (28,282) (136,379)
Foreign exchange differences (7,271) 725 (3,899) (10,445)
Other non-financial changes 3,785 - 4,203 7,988
Ending balance $ 913,121 $ 52,576 $ 118,534 $ 1,084,231

37. Events After the Reporting Period

The Group, in accordance with the resolution of the board of directors on June 12, 2024, acquired
100% shares (493,948 shares) of Mottrol Co.,Ltd. and its subsidiaries for $ 183,491 thousand on
October, 4, 2024.

57