Kia Motors Corporation Investor Presentation October 2018 Table of Contents 241 131 144
187 22 43 178 201 230 1. Recent Developments 3
85 147 185 2. Strategy for Sustainable Growth 12 75 108 167 3. Financial & Fundamentals 20 228 229 230 Appendix : 2018.1H Business Results 29 59 71 87
34 35 37
2 1. Recent Developments 1 2018 YTD Wholesale, Retail & Ex-factory Sales Results (up to Sep) 9월 가마감 반영
(in thousands) Sep. ’17 Sep. ’18 Change % (in thousands) Sep. ’17 Sep. ’18 Change % 241 131 144 +2.7 Ex-factory -3.5 187 22 43 Wholesale 2,019 2,073 2,009 1,937
178 201 230 Korea 386 392 +1.7 Korea Plant 1,151 1,061 -7.7 US 464 450 -2.8 85 147 185 *Europe 369 378 +2.5 Domestic 386 392 +1.7
75 108 167 China 213 242 +14.0 Export 765 669 -12.5 ROW 589 610 +3.6 228 229 230
59 71 87 Retail 2,052 2,091 +1.9 Overseas 858 876 +2.1
34 35 37 Korea 386 392 +1.7 US 235 176 -25.1 US 458 454 -1.0 China 213 242 +14.0 *Europe 365 386 +5.7 Europe 257 248 -3.7 China 255 246 -3.8 ROW 588 613 +4.3 Mexico 154 210 +37.0
* Europe : EU + EFTA
4 1 2018.1H Retail Sales
업데이트 완료
(in thousands) +3.7% 10,950 241 131 144 10,576 +1.9%
8,452 8,611 +1.3% 187 22 43 -0.7% 166 168 296 294 178 201 230 China US 85 147 185 12.1% 21.0% +2.8% 75 108 167 8,462 8,696 -0.3% +5.0% 903 901 +4.7 % 228 229 230 252 264 +3.5% 254 266 46,649 48,294 59 71 87 *Europe +2.8% Korea 1,356 1,395 18.9% 34 35 37 19.1%
Global
’17.1H ’18.1H ‘17.1H ‘18.1H % Sales by Region Industry Industry Kia Sales Kia Sales * Europe : EU + EFTA 5 1 Korea Market
업데이트 완료 Sales & Market Share Sales Summary
241 131 144 (In thousand units,%) Industry -0.3% [YoY] Kia +4.7% 187 22 43
<2018 New Models> 178 201 230 29.6% 28.1% 85 147 185 266 Model Niro - EV Sportage 254 75 108 167 11.8% Segment C-RV C-RV 13.2% Launch July. 2018 July. 2018
228 229 230 Dimension 4,388 / 1,805 / 4,480 / 1,855 / 43.4% (L/W/H/WB) 1,560 / 2,700 1,635 / 2,670 43.5% Domestic 5K units / year 39K units / year 59 71 87 Sales Plan Export 16K units / year 240K units / year
34 35 37 62.6% ▶ 1H Results 43.3% 44.8% · New model effect of Stinger & K-series such as K3, K9 · Robust sales of RV volume cars such as Carnival F/L & Sorento
▶ 2H Initiatives '17.1H '18.1H · Plan to launch Sportage F/L, Niro EV, Soul CV RV PV · Expect better-than-expected sales on the back of tax-cut benefit provided by the government * Industry demand & MS : Imported brands included · Enhance green car line-up (Niro EV)
6 1 US Market
업데이트 완료
Sales & Market Share Sales Summary 241 131 144
(in thousand units,%) 187 22 43 Industry +1.9% [YoY] Kia -0.7%
178 201 230
3.5% 3.4% (unit : MOS) 3.839 3.842 85 147 185 5.1 4.9 3.848 4.4 75 108 167 296 294 3.8 3.509 3.349 3.3 228 229 230 2.9 2.888 38.7% 40.6% (thousand $/unit)
59 71 87 '18.1 2 3 4 5 6 '17.1Q 2Q 3Q 4Q '18.1Q 2Q
34 35 37 ▶ 1H Results · Reached optimal inventory level (Jan’18 : 5.1 → Jun’18 : 2.9 MOS) 61.3% 47.2%59.4% · Higher incentive spending(+14.3% YoY) due to clearing out inventories of aged models
▶ 2H Initiatives '17.1H '18.1H · Expect to see stabilized incentive spending due to lower RV PV inventory level · Launching new and F/L models (K3, K900, Niro EV, Soul)
7 1 Europe Market
업데이트 완료
Sales & Market Share Sales Summary 241 131 144
(in thousand units,%) [YoY] 187 22 43 Industry +2.8% Kia +5.0%
178 201 230
228 229 230 42.6% 51.7% 59 71 87 51 52 32 35 31 32 28 28 20 23
UK Spain Germany Italy France 34 35 37 '17.1H '18.1H Industry Growth 62.6% 57.4% 47.2% 48.3% ▶ 1H Results · Better-than-expected sales with newly launched Stonic (sold 31K during 1H18) offset weak sales of PCs
'17.1H '18.1H ▶ 2H Initiatives
RV PV · Scheduled to launch new cee’d wagon, Soul and Sportage F/L · Enhance green car sales with the newly launched Niro EV
8 1 China Market
업데이트 완료
Sales & Market Share Sales Summary 241 131 144
(in thousand units,%) 187 22 43 Industry +3.7% [YoY] Kia +1.3%
178 201 230
1.5% (k unit) (k unit) SUV % of sales (%) 85 147 185 2017 2018 1.6% 40 60 40% QE sales 168 NP sales starts 166 starts in 3Q 75 108 167 30 40 in 2Q 30%
20.5% 20 228 229 230 27.8% 20 20% 10
59 71 87 0 0 10% Jan Feb Mar Apr May Jun '18.1Q 2Q 3Q(F) 4Q(F) 34 35 37 79.5% 72.2% ▶ 1H Results · Sales gradually recovered due to the low base effect · Overall aged RV model line-up limited the volume growth during 1H18 despite of the launch of new Zhi-Pao(NP)
'17.1H '18.1H ▶ 2H Initiatives
RV PC · Strengthen SUV line-up with the China strategic model (QE) in 3Q · Focus on enhancing dealer competitiveness and brand image
9 1 Rest of World Market
업데이트 완료
Retail Sales 241 131 144 Mexico
(in thousands) 6.7% 187 22 43 5.5% (in units) 45,468 41,055 178 201 230 Region ’18.1H YoY % M/S 3.3%
23,496 +10.7% 85 147 185 Latin America 116 +5.8% 28.7% +74.7%
75 108 167 16.1H '17.1H '18.1H Middle East Africa 90 -10.4% 22.4% 228 229 230 Russia
59 71 87 12.2% Russia 103 +28.7% 25.7% (in units) 11.2% 34 35 37 103,275 M/S 9.7% 80,233 Others 93 -5.0% 23.2% 65,172 +28.7% +23.1% Rest of World 402 +3.6% 100.0%
16.1H '17.1H '18.1H
10 1 Profitability Protected in Russia
Sales Growth in Russia & Volatility of Rubles Price Increase to Offset Ruble Weakening
228 229 230 2013 2014 2015 2016 2017 2018.1H
59 71 87 Sales Mix Improvement
34 35 37
'17.1Q 2Q 3Q 4Q '18.1Q 2Q 19.6% 21.0% Retail Sales M/S(%) 6.1% 9.6%
Recent strong sales recovery in Russia is pressed with weakening 74.3% 69.4% value of Russian Ruble But, Kia has managed to minimize the damage by increasing price ’17.1H ’18.1H and sales mix improvement (→ more RVs and D+E segment) A+B+C D+E RV
11 2. Strategy for Sustainable Growth 12 2 Further Volume Growth Secured with India Capacity
Location of New Plant India Auto Market
241 131 144 Auto Demand (in Thousand units, 5yr CAGR) 187 22 43 4,930
178 201 230 3,200 Vehicles Per India 32 China 115 85 147 185 1,000 Persons Korea 415 (2015) US 847
75 108 167 2017 2020(F)
Source: IHS Global Insight, KAMA 228 229 230
Kia Motors India (KMI) 59 71 87
Design Capacity 300,000 units 34 35 37
Andhra Pradesh Production Commence 2H 2019 Anantapur 390km Chennai Location Anantapur HMI Plant Capacity : 650K units CAPEX (E) USD1.1 billion
Models Compact SUV, Compact Sedan
13 2 Continuous Introduction of Competitive New Models
업데이트 완료 신차 –Y2018,2019 Key New Model Launches by Region Future Product Pipeline (Concept Car)
241 131 144 2018 2019 Telluride – Luxury Premium Full-size SUV
187 22 43 New Model : 4 New Model : 3 • Premium full-size SUV with 3-row, 7-passenger, Domestic K3, Soul Soul EV targeted for NA market 178 201 230 Premium Large Sedan Global B-segment SUV (Korea) Niro EV K5 • Based on an existing platform and will contribute to Kia’s SUV 85 147 185 line-up New Model : 4 New Model : 3 *Introduced at North American International Auto Show (NAIAS) in Jan 2016 75 108 167 Forte, Soul Full-Sized Premium SUV US Premium Large Sedan Soul EV Global SUV Line-up Enhancement Plan Niro EV Global B-segment SUV 228 229 230 12 Models +1 59 71 87 New Model : 6 9 +2 New Model : 2 +3
Europe cee’d, cee’d Wagon 7 +1 34 35 37 cee’d GT, Soul cee’d CUV +2 +1 Niro EV, Soul EV K5 Niro KX3 Sportage New Model : 5 New Model :3 Sorento Mohave C-segment SUV K3 Carens China A-segment SUV K3 PHEV Carnival K3, KX3 EV, K5 PHEV KX3 2016 2017 2018~
Current China Europe US
14 st 2 K3 with New Powertrain Utilizing Kia’s 1 IVT (Intelligent Variable Transmission)
All New K3 Introduced in February (Korea) Global Top Fuel-Efficiency in Segment
241 131 144 First in-house designed and built Intelligent Variable Transmission (IVT) introduces new line of “Smart Stream” technologies to help increase 187 22 43 fuel efficiency and deliver an estimated 15.2km/L for Gasoline model.
178 201 230
85 147 185
75 108 167
Smart Stream Smart Stream 228 229 230 Advanced Safety with ADAS Technology G1.6L Engine IVT
59 71 87 Fuel-Efficiency Comparison
34 35 37
3 HMC i30 11.8
4 GM Cruise 11.3
Smart Parking Assist System Lane Departure Warning System Previous K3 All New K3
15 2 Vision for Future Mobility
241 131 144
187 22 43 Autonomous 178 201 230 Eco / Electric Kia plans to commercialize Kia will introduce 16 models by Level 4 autonomous driving 2025, including a range of HEV, 85 147 185 technology, with ‘Smart City’ PHEV, EV, as well as an all-new autonomous vehicle testing fuel-cell electric vehicle in 2020 75 108 167 due to commence in 2021
228 229 230
59 71 87 Connected Mobility Kia will adopt connected car Kia launched ‘WiBLE’ car-sharing technologies by 2025 across 34 35 37 service in Korea in 2017 and every vehicle segment, and aim plans to roll-out this service to to make every single model a certain European markets from connected car by 2030 late 2018
Focused on Consumers’ Fundamental Mobility Needs : Accessibility, Convenience, and Efficiency
16 2 Eco-Friendly Initiatives
Green Car Roadmap Historical Sales Trend
Total of 6 Models in 2017 125,852 241 131 144 70,000
FCEV HEV 3 PHEV 2 EV 1 Retail Sales in Units 60,000 50,004 4.6%
% of Total Global Sales 50,000 187 22 43
40,000 1.7% 27,781 25,039 26,378 30,000 178 201 230 23,172 Niro 1.0% 0.9% 0.9% 0.9% 20,000 76% 7,751 10,000 85 147 185
0.3% - 2011 2012 2013 2014 2015 2016 2017 75 108 167 Green Car Line-up by 2025 : 16 Models in Total Global No.2 in Green Car Sales in 2017 228 229 230 FCEV 1 HEV 5 PHEV 5 EV 5 1,234 (Thousand units)
59 71 87 234 211 34 35 37 171
95 89 87 Hyundai Motor Group to have 38 different models by 2025 72 54 41 • Global No. 2 in Green Car Sales in 2017
• Target to be Global Top 3 in EV Market VW
GM
Ford
Tesla
BMW Honda
• Kia’s Niro EV (Jul’18) : will offer driving range of 380km Toyota Daimler • Will introduce its own Fuel Cell EV in 2020
Hyundai-Kia Source : IHS Global Insight Renault-Nissan 17 2 All-electric Kia Niro EV
Product Information
241 131 144 A unique position in the global market as an all-electric CUV
187 22 43 Completes eco-friendly Niro crossover range, alongside HEV, PHEV
nd 178 201 230 2 globally launched EV after the Soul EV
85 147 185 Capable of up to 385km(239miles) of Zero-Emissions driving on single charge, with next-generation EV powertrain
75 108 167 - Dual option of driving range : 385km(64kWh), 246km(39.2kWh)
228 229 230 Advanced Driver Assistance System to support convenience and safety (ex. Forward Collision Warning with Forward Collision-Avoidance Assist, Smart Cruise Control with Intelligent Stop & Go, and Lane Following Assist) 59 71 87 Maximum Distance 385km/h
34 35 37 Battery Capacity 64kWh Global Launch Schedule
Maximum Power Output 150kW Jul 2018 Q4 2018 2019
Fast Charging 54 min. (with 100kW fast charger) Korea Europe US
18 2 Autonomous Driving & Intelligent Safety Initiatives
ADAS Roadmap
241 131 144 ~2017 ADAS Enhancement
187 22 43 2019 Mass Fleet Operation 2021 Level 4 Smart City Autonomous Pilot 178 201 230 2025 Hyper-Connected Mobility Service
85 147 185
75 108 167 Level 1 Most of Kia vehicles offer Function-Specific Level 1 technology Automation 228 229 230 Lane Departure Blind Spot Smart Parking Autonomous Warning System Detection Assist System Emergency Brake
59 71 87
Level 2 High-performance sedan Stinger and 34 35 37 Combined Function refreshed K5 offers Level 2 technology Automation
Highway Driving Assist Traffic Jam Assist
Level 3 Gradually Moving on to Partially Limited Self-Driving Automated Driving in 2019 Automation
Highway Autonomous Driving Remote Parking Assist System
Source : NHTSA Definition, Company 19 3. Financial & Fundamentals 20 3 Profitability & Capital Expenditure Trend
업데이트 완료 Revenue Operating Profit
(KRW trn) (KRW/USD FX Rate) (KRW trn) (% Margin) 241 131 144 1,161 1,131 1,131 1,075 1,054 187 22 43 5.5% 4.8% 4.7% 2.5% 1.2% 52.7 53.5 178 201 230 47.1 49.5 2.6 2.5 26.6 2.4
85 147 185 0.7 0.7
75 108 167
2014 2015 2016 2017 '18.1H 2014 2015 2016 2017 '18.1H 228 229 230 EBITDA EBITDA vs. CapEx
(KRW trn) (% Margin) (KRW trn) 59 71 87 EBITDA CapEx
8.3% 7.9% 4.6 7.6% 4.1 34 35 37 6.0% 3.9 3.8 4.7%
3.9 4.1 2.4 2.5 2.4 3.8 2.0 1.6 2.5 1.6 1.1
2014 2015 2016 2017 '18.1H 2014 2015 2016 2017 '18.1H Note: CapEx = Acquisition of property, plant and equipment + Acquisition of intangible assets
21 3 Liquidity & Debt Position Trend
업데이트 완료 Total Debt vs. Net Cash Total Liquidity (1) (KRW trn) (KRW trn) 241 131 144 10.0 8.7 9.6 8.1 8.6 7.2 7.3 187 22 43 6.3 7.1
4.7 178 201 230 2.8 2.6 85 147 185 0.7 0.5 0.9
75 108 167 2014 2015 2016 2017 '18.1H 2014 2015 2016 2017 '18.1H Total Debt Net Cash Cash & Cash Equivalent 228 229 230 Debt Composition Debt Maturity Profile (3) (‘18.1H -end) (KRW bn, ’18.1H-end) 59 71 87
LT Debt LT 2,738 34 35 37 (67%) Debt Bond 24% 43% ST (2) Current Borrowing 23% 1,110 Portion of 904 LT Debt 733 10% Total: KRW7.2trn ST Debt (KRW 5.6trn excluding trade finance) 107 Note: (10%) 1. Liquidity includes ST Financial Instruments & ST Available for Sales Financial Assets 2. ST Borrowing : 100% trade finance 2018 2019 2020 2021 2022~ 3. Excludes trade finance
22 3 Prudent Investment Spending
Historical Trend R&D/Maintenance Breakdown (KRW bn) (KRW bn) 241 131 144
2013 2014 2015 2016 2017 187 22 43 3,878 3,707 3,612 178 201 230 Domestic 1,431 1,552 1,975 1,993 2,122
2,972 1,318 85 147 185 1,085 1,009 Overseas 167 250 585 629 481 2,615 75 108 167
1,375 R&D 1,597 1,802 2,560 2,622 2,603 813 228 229 230
Domestic 673 488 422 468 636 59 71 87 2,560 2,622 2,603 34 35 37 Overseas 702 325 896 617 673 1,802 1,597
Expansionary & 1,375 813 1,318 1,085 1,009 Maintenance
2013 2014 2015 2016 2017 Total 2,972 2,615 3,878 3,707 3,612 R&D Expansionary & Maintenance
Note: Numbers indicate total investment spending
23 3 Historical Dividend Trend
2,000 33.1% 35.0%
1,800 241 131 144 Dividend Per Share Payout Ratio 30.0% 1,600 (KRW) 187 22 43 1,400 19.0% 25.0%
(excluding 178 201 230 1,200 17.0% 16.0% ordinary wage 20.0% 13.5% related expense) 1,000 85 147 185 15.0% 800 7.4% 6.8% 6.9% 75 108 167 600 7.4% 1,100 1,100 10.0% 1,000 6.7% 400 800 700 228 229 230 600 650 500 5.0% 200 250 59 71 87 - 0.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 34 35 37
2009 2010 2011 2012 2013 2014 2015 2016 2017
Dividend 1.2% 1.0% 0.9% 1.1% 1.3% 1.9% 2.1% 2.8% 2.4% Yield
24 3 Strategically Located Production Sites
Kia Motors Slovakia (KMS) Kia Motors Manufacturing Georgia (KMMG) Capacity: 330,000 Capacity: 340,000 241 131 144 (Sportage, cee’d, Venga) (K5, Sorento, SantaFe*)
• W.Europe • US 187 22 43 • MENA • LatAm • Russia • Others • LatAm Korea Domestic Plants • Others 178 201 230 Capacity: 1,591,000 • Domestic • Export (Pride, K5, Sportage, etc.) ‧ US 85 147 185 ‧ W.Europe ‧ LatAm ‧ Others 75 108 167
228 229 230 Kia Motors India (KMI)
59 71 87 Capacity: 300,000 (Production to commence 2019.2H)
34 35 37
DYK Automobile Manufacturing Plant Capacity: 890,000 Kia Motors Mexico (KMM) No.1 Plant – Capacity: 140,000 • US • China 100% No.2 Plant – Capacity: 300,000 Capacity: 400,000 • Mexico Note: Capacity is based on official designed capacity. • LatAm No.3 Plant – Capacity: 450,000 * Hyundai Models (Pride/Rio, K3, Accent*) 25 3 ASP Improvement via RV Sales Increase
RV Sales Growth in Tandem with Global Trend Significant RV Sales Increase in Every Market
36% 37% 32% 35% 241 131 144 29% 46.0% 44.4% 1,098 43.7% 1,010 37.9% 42.4% 40.0% 937 37.1% 37.2% 187 22 43 36.4% 23.7% 825 33.0% 30.7% 31.1% 38% 27.6% 26.1% 178 201 230 36% 37% 업데이트 완료 33% 536 21.2% 28% 85 147 185
75 108 167 2014 2015 2016 2017 '18.1H Korea US Europe China
Kia's RV Sales (in Thousand units) % of Total Sales 2014 2015 2016 2017 228 229 230 Note: 1. RV = SUV + MPV + CUV
59 71 87 Continuous Improvement of Average Selling Price
23.2 23.7 23.8 34 35 37 21.7 Domestic ASP (mn KRW)
19.0 19.1 19.5 Export ASP (Thousand USD)
15.4 15.6
14.2 13.8 13.9 14.0 13.2
2012 2013 2014 2015 2016 2017 '18.1H
26 3 Significant Improvement in Quality
No.1 in Initial Quality Study for Two Consecutive Years Continuous Improvement in Vehicle Dependability Study
241 131 144
187 22 43
126 178 201 230 Industry 125 125 CAGR Average +5.7% 288 125 118119 278 85 147 185 CAGR 113 112 +6.4% 112 75 108 167 114 107 107 106 106 228 105 218 108 107 Industry 228 229 230 106 Average 200 216 97 188 206 170 167 169 169 59 71 87 160 158 95 95 141 153 156 155 151 161 140 Ranked No.1 for 2016-2017 Initial 34 35 37 86 151 132 152 148 Quality by J.D. Power 88 148 147 158 Ranks highest in overall initial quality 133 83 132 133 for two consecutive years 125 126 Forte, Soul, Cadenza & Niro recognized as best-in-segment 72
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: 1. Initial Quality Study (IQS): examines issues experienced within the first 90 days of new-vehicle ownership 2. Vehicle Dependability Study (VDS): examines issues reported by original owners of 3-year-old vehicles by analyzing problems experienced over the past 12 months of ownership
27 3 Stellar Improvement in Design & Brand
Triple Triumph for Kia at 'iF Design Awards 2017' Increased Recognition in Brand Value (USD bn) 241 131 144 Year Model Category 6.7 6.3 2010 Venga Product Design 187 22 43 5.4 5.7 Rank 4.7 Rank 2011 Sportage / Optima Product Design 69 4.1 Rank 69 178 201 230 Rank 74 2012 Picanto Product & Communication Design Rank 74 Rank 83 85 147 185 2013 Pro-cee’d / Optima Product & Communication Design 87
2014 Soul Product Design 75 108 167 2015 Sorento Product Design 2012 2013 2014 2015 2016 2017
228 229 230 2016 Sportage / Optima Product Design Top 11 Automotive Brand (2017)
2017 Optima Wagon / Niro / Rio Product Design Brand Brand Value Overall Ranking Auto Ranking 59 71 87 Toyota 50.3 7 1 M-Benz 47.8 9 2 BMW 41.5 13 3 34 35 37 8th Consecutive Year ‘iF Design Award’ since 2010 Honda 22.7 20 4 Ford 13.6 33 5 Hyundai 13.2 35 6 3 iF Design Awards won by Kia’s latest models Audi 12.0 38 7 (Optima Sportswagon, Niro and new Rio) Nissan 11.5 39 8 Porsche 10.1 48 9 Total number of iF Design Awarded models to date: 12 Land Rover 6.1 73 12 MINI 5.1 87 13 Source : Interbrand
28 Appendix : 2018.1H Business Results ▣ Consolidated Income Statement
(in Billion Won) ’17.1H % ’18.1H % Change (%)
Sales Revenue 26,422 100 26,622 100 +0.8
Cost of Sales 21,596 81.7 22,577 84.8 +4.5
Gross Profit 4,826 18.3 4,046 15.2 -16.2
SG&A 4,039 15.3 3,388 12.7 -16.1
Operating Profit 787 3.0 658 2.5 -16.3
Pre-tax Profit 1,285 4.9 958 3.6 -25.4
Net Profit 1,155 4.4 764 2.9 -33.9
* Average USD/KRW Rate : ’17.1H W1,142.06 → ’18.1H W1,075.4 (-W66.66↓) 30 ▣ Quarterly Income Statement
2017 2018 ’17.2Q vs. (in Billion Won) 1Q 2Q 3Q 4Q 1Q 2Q ’18.2Q
Revenue 12,844 13,578 14,108 13,006 12,562 14,060 +3.5
Cost of Sales 10,375 11,221 12,317 10,706 10,629 11,948 +6.5
(%) (80.8) (82.6) (87.3) (82.3) (84.6) (85.0)
Gross Profit 2,468 2,357 1,791 2,300 1,933 2,112 -10.4 (%) (19.2) (17.4) (12.7) (17.7) (15.4) (15.0)
Operating Profit 383 404 -427 302 306 353 -12.7 (%) (3.0) (3.0) (-3.0) (2.3) (2.4) (2.5)
Pre-tax Profit 767 518 -448 303 514 444 -14.2 (%) (6.0) (3.8) (-3.2) (2.3) (4.1) (3.2)
Net Profit 765 390 -292 105 432 332 -14.8 (%) (6.0) (2.9) (-2.1) (0.8) (3.4) (2.4) 31 ▣ Consolidated Balance Sheet
(in Billion Won) 2017 ’18.1H Change
Asset 52,294 52,708 +414
Current Asset 21,642 21,719 +77
* Cash 9,619 10,018 +399
Liability 25,433 25,478 +45
Debt 8,750 7,216 -1,534
Net Cash 869 2,802 +1,933
Current Ratio 141.2% 142.1% +0.9%p
Equity 26,861 27,230 +369
Debt to Equity Ratio 32.6% 26.5% -6.1%p
* Cash = Cash & Cash Equivalents + ST Financial Instrument + ST Available for Sales Financial Asset ** Debt = Interest-bearing debt 32 ▣ Cash Flow Highlights
(in Billion Won)
1,753 2,072
1,005 939 321 764
2,258 1,562 -3,079 +3,775 Cash Cash increase decrease
*Beginning Cash Net Profit D&A Inventories & Debt Tangible & Dividend *Ending Cash Balance others Intangible Assets Balance
*Cash balance excludes ST financial instruments & ST Available for Sales Financial Asset
ncluding ST financial including ST financial instruments instruments
Total Liquidity +399bn Total Liquidity 9,619 bn 10,018 bn 33 ▣ Revenue Analysis
Sales Revenue by Region Contributing Factors
(in Billion Won)
+0.8% · Domestic(KRW) : W23.5mn → W23.8mn (+1.3%) ASP · Export(USD) : 15.0K → 15.6K (+4.0%)
26,422 26,622
· USD / KRW : W1,142.1 → W1,075.4 (-5.8%) 23.2% 24.5% F/X · EUR / KRW : W1,236.1 → W1,302.2 (+5.3%) · RUB / KRW : W19.7 → W18.2 (-7.9%)
33.8% 29.0% Sales by Segment
23.1% 4.5% 4.1% 21.5% Domestic North America Europe 21.5% 23.4% ROW 38.4% 43.4% 45.2% 40.9%
’17.1H ’18.1H 11.9% 11.6%
* Korea: KMC domestic revenue * North America: KMA/KCI wholesale revenue(KMM volume included) + KMMG OEM revenue ’17.1H ’18.1H * Europe: Europe sales subsidiaries’ wholesale revenue + KMS export revenue * ROW: KMC direct export revenue + Russia/KMAU/KMNZ/KMM wholesale revenue A+B+C D+E RV others * Global retail sales (excluding China) 34 ▣ COS & SG&A
Cost of Sales SG&A
(% of revenue) (% of revenue)
-2.6%p +3.1%p 84.8% 15.3% 81.7% 2.0% 12.7%
3.3% 2.1%
1.6% 3.4%
0.3% 3.5% Salary & Wage 2.3% Marketing Expense Export Expense Warranty Expense 4.9% 4.7% Others
’17.1H ’18.1H ’17.1H ’18.1H
35 ▣ Non-Operating Items
Equity Earnings Financial & Other Income / Expense
(in Billion Won) (in Billion Won)
457 +80
377 121
-278
-157
’17.1H ’18.1H ’17.1H ’18.1H
’17.1H Non-OP Income ’18.1H Non-OP Income
498 bn -198bn 300 bn 36 ▣ Full Model Line-up
Mohave
K9 Sorento/KX7 cee’d Carnival/Sedona
Stinger Sportage
Venga K3 New Carens/Rondo Cadenza/K7 Zhi-Pao
Pride/Rio/K2 K5/Optima Niro
Ray Granbird
KX3
K4 Soul Morning/Picanto Stonic Bongo
A B C D E SUV CUV MPV CV
37 Thank you.
Thank you.