[ S1 = Mr Jean-Charles Lievens ] Thank you [ name here ] and good afternoon ladies and gentlemen. 3, 4, 18, 29, 35, 45, 46, 70, 85, 500, 10.000, 180.000, 280.000, 500.000 / These are not winning lottery numbers / These are not the odds against Trinidad & Tobago winning the World Cup either! / They are the bald facts and figures behind the success of Kia and they might be surprising. [ S2 = Facts & figures behind our success ] 3 New additional Kia factories producing 300,000 vehicles each 4 Successive years of profitable growth. 18 Months – the duration of Kia’s intensive dealer recruitment campaign. 29 Markets under the control of Kia Motors Europe. 35 % Percentage of market segments covered by Kia in 2003. 45 % Sales volume rise in percentage terms each year for last three years. 46 % The European share of Kia’s global exports in percentage terms. But Only 70 Total staff number at Kia’s European HQ. [ S3 = …facts & figures behind our success ] 85 % Percentage of market segments covered by Kia today. 500 New dealers appointed by Kia in last 18 months. 10,000 Job applications to work at Kia’s first-ever factory in Europe. 180,000 Picantos supplied since our entry into the A-segment. 280,000 Total number of vehicles delivered in Europe during 2005. 500,000 Total number of vehicles we intend to deliver in 2010 in Europe. Surprising facts and figures about Kia… In the last five years in Europe, we have grown sales, made money and laid the foundations for sustainable long- term prosperity. [ S4 = Why are we so successful? ] So, why are we successful in Europe? Partly because we strive to fully understand our customers and their needs, while positioning ourselves to respond rapidly to market trends. / And partly because of the careful consideration we are giving to European consumers’ requirements. Our long-term vision is to become one of the leading automotive brands in Europe, by placing the European Continent at the focal point of all of our global business strategies, from product development and design to marketing and after-sales activities. Part of our strategy is also to change consumer perceptions of Kia as a ‘foreign’ manufacturer, and instead, to be seen as a good ‘European Citizen’. / By building our first assembly plant in Slovakia, creating jobs for more than 10,000 people, and by supplying markets with ‘Europe Only’ models made here in Europe, we are confident we will gradually change how we are viewed. / Our investment in Slovakia is not an invasion, it’s a collaboration – and a collaboration on a massive scale. [ S5 = Crossroads of Change ] In the automotive world, we are all at the crossroads of change. / The focus of attention is moving from West to East – both within Europe and across the world in China, India and Asia – and with that move comes different challenges for our industry. Kia is well positioned globally to benefit from these many changes, thanks to its worldwide strategies. / We already have under construction new manufacturing plants in Eastern Europe, and in China. We already have component synergies and economies of scale in place with Hyundai in Central Europe. What experiences can other auto makers learn from Kia’s strategy? What lessons can they take on board and adapt for their own ventures in Central and Eastern Europe and the Chinese markets? The answers are many and varied and will emerge throughout my presentation. [ S6 = Automotive ‘Buzz’ ] Change is exciting as well as challenging. I’m sure we all get a thrill, a real buzz from working in this industry which is so often packed with surprises – and so often, hard to predict. / Twenty years ago observers were forecasting that only six big brands or major groups would survive into the 21 st Century as “the Big Fish” - the giants of the industry - absorbed the minnows. / So what are the results today? Today we have more brands than ever before, with Korean, with 42 Chinese brands and Indian companies joining the battle for sales around the globe – not just in their domestic markets. And it is the small brands, those minnows, which are now the thriving survivors, the fittest and most profitable. / OK – many of these brands were rescued by the giants or taken over, in what to some people, seemed like charitable or even questionable ventures. / But today it is companies like Volvo and Mazda, which are keeping Ford afloat. Audi with Volkswagen is an example of the smaller, but more dynamic company, that is acting as the corporate “lifebelt” and bolstering the fortunes of their parents. [ S7 = Failing to focus… ] Those parents, the traditional giants, may have failed to focus in sufficient detail on the specific needs of individual markets and internal consolidation might have harmed the efficiency of such business models. It’s not so long since those brands each created ‘world cars’ which they intended to impose on customers globally in an early attempt to harvest the benefits of economies of scale. / The corporate view was that customers would, of course, be only too pleased to purchase products from such ‘renowned’ global brands. Now we all know that such confidence, or even arrogance, was badly misplaced… [ S8 = Staying sharp and hungry ] Kia may not yet be an automotive giant or a truly famous brand, but we are a lean company and a hungry one. / For example, our European head quarters has a staff of 70, while some European and Japanese giants’ headquarters house more than 2,000 people. Admittedly Kia in Korea supports Kia Europe, but even making that allowance 2,000 seems, and is, excessive. [ S9 = Enormous enterprise ] You may not be aware of the enormous enterprise that Kia has become. / Today, Kia is a global corporation and Korea’s second largest automobile manufacturer. / It has an annual turnover of 14 billion Euros, over 32,000 employees worldwide, manufacturing and assembly operations in 10 countries producing more than 1.5 million vehicles – much more than many better-known brands. / We have 3,300 distributors and dealers in 155 countries. So, Kia has certainly come a very long way in 61 years. Crucially, despite our unprecedented rapid growth in recent times, we are determined to remain a lean and hungry company, even though we will certainly continue to grow in sales and stature throughout the next decade. [ S10 = Product-led success ] With the increased sophistication of consumers in Western Europe, it is now accepted that the lure of a low price cannot attract customers in sufficient numbers to build a sustainable and profitable future. / A strong product line-up, appropriate to individual markets, is a crucial ingredient to creating long-term viability. / We can all name one or two failing carmakers with a good product line- up BUT can anyone name a thriving carmaker with a poor product line-up? I think not. Though relatively small, Kia diversified its products early on, introducing MPV and SUV models – ahead of many of the ‘Big Fishes’ in Europe – because we focused more on customers’ real needs and on local trends. And of course, the opportunity to generate larger profits on larger vehicles was an element which played a part in our decision making process… [ S11 = Regenerated line-up ] The path to achieving the status of ‘leading automotive brand’ begins with continually raising the competitiveness of our products. / Kia is in the midst of a complete regeneration of its entire line-up. In a single year, we will have unveiled 6 all-new vehicles in the B and D- segment, MPV segment (New Carnival), compact MPV segment (New Carens) and in September at the Paris Motor-Show, we will introduce our all-new C- segment model specifically designed for, and made in Europe – and then our flagship, the new Opirus. As well as regenerating our product range, we have expanded our model line-up to provide a broad variety of passenger and recreational models with both gasoline and diesel engines. / Three years ago our products covered just 35% of market segments. / Today we offer competitive products across 85% of the market. We are now a true generalist brand. [ S12 = Building locally, for local customers ] Kia has a long history of building locally for local customers, with assembly operations using KD kits in: Ecuador, Egypt, Indonesia, Iran, Malaysia, Pakistan, Russia, Vietnam, Thailand and Morocco…a total of a ½ a million units when we include the existing factory in China. At present, we are boosting Kia’s presence in Russia with the refurbishment of the Izh-Avto plant and the installation of a new paint shop. This joint venture with the SOK Group will see 150,000 C-segment sedans produced for the local market. When potential sales volumes in a region justify the investment, Kia is quick to commit to full manufacturing locally. / Demonstrating its flexibility, Kia is already building cars in China which are tailored to those consumers’ needs and tastes – consequently our TianLiMa model is hugely successful. From launch three years ago, sales have soared to more than 130,000 units annually and the car has won numerous accolades, including ‘Best small car for customer satisfaction’ awarded by the Chinese Quality Association. Powered by demand for the TianLiMa and the Cerato, our total sales in China during 2005 rose by 76% -- outperforming the 26% market growth. Last year we announced the investment of €800 million to build our second plant in China. / Due for completion in 2007, this highly automated facility will employ 2,800 people and have an annual capacity of 300,000 units. [ S13 = First-ever factory in Europe ] The same philosophy ‘building appropriate vehicles and building them locally for local customers’ is the driving force behind the creation of our first-ever plant in Europe in Slovakia.