1 st Half 2010 Business Results July 30, 2010
2 Notes for Investors This presentation has been prepared with unaudited 1st half 2010 results for investors’ convenience. Therefore, some parts may change upon the review of Kia’s independent auditors.
CONTENTS H Business Results Appendix Sales Overview Income Statement Balance Sheet Cash Flow Revenue COGS and SG&A Non-Operating Income/Expense Global Retail Sales Korea market US market Europe market China market Rest of world Income Statement (Quarterly)
H Business Results Sales Overview Income Statement Balance Sheet Cash Flow Revenue COGS and SG&A Non-Operating Income/Expense Global Retail Sales
H `09 1H `10 Chg (%) Sales Overview Sales Volume Korea Plants Domestic Export Overseas Plants China Europe U S (thousand units) * Figures based on Shipment and Revenue
6 1H `09 1H `10 (%) Chg (%) ,179 10, ,038 4, ,141 6, ,139 2, , , Income Statement Sales Volume Domestic Export Revenue Domestic Export Gross Profit Operating Profit Recurring Profit Net Profit EBITDA* (thousand units, KRW billion) *EBITDA = Operating profit + Depreciation + Amortization
7 As of Dec. 31st, 2009 As of Dec. 31st, 2009 As of June 30st, 2010 As of June 30st, 2010 Change 16, , ,205 1,885 9, , ,122 9,009 3,438 2, ,095 1,553 7, , % % p 19.0% Balance Sheet (KRW billion) Assets Cash & Cash Equivalent Liabilities Debt Net Debt Equity Net Debt-to-Equity ratio * Net Debt-to-Equity ratio = Net Debt / Equity * Cash & Cash Equivalent = Cash + Short-term Financial Instrument
,335 Total Total -1, ,118 Total 1, ( 1,885 ) ( 1,912 ) Cash Flows Net Operating Cash FlowsNet Investment Cash Flows Net Financing Cash Flows Net Income Depreciation Amortization Warranty Provision (net) Decrease in Accounts Receivable Increase in Inventory Increase in Accounts Payable Equity Earnings Others Increase in Tangible Assets (PP&E) Increase in Intangible Assets (R&D) Purchase of Equity Securities Short-term financial instrument Others Decrease in Debt (net) Warrant Exercise payment of dividends Others Beginning Cash Balance Ending Cash Balance *( ) ; cash balance including short-term financial instrument (KRW billion)
9 1H `09 +2,450 (+30.0%) +2,450 (+30.0%) F/X rate Sales volume Product mix Others - 1, , , F/X rate Sales volume & Product mix Others USD / KRW 1,353 → 1,158 (-14.4%) EURO / KRW 1,801 → 1,521 (-15.5%) Sales units (thousand units) 510 → 650 (+27.6%) ASP Domestic (KRW million) : 15.3 → 17.7 (+ 15.8%) Export (U$ thousand) : 10.8 → 11.7 (+ 7.9%) Others (KRW billion) 609 → 894 (+46.9%) 1H `10 10,629 8,179 Revenue (KRW billion)
10 Salary & Wage Domestic Marketing Exp. Domestic Marketing Exp. Overseas Marketing Exp. Overseas Marketing Exp. Warranty Exp. Export Exp. Others COGSSG&A % % 1H `09 1H ` H `09 1H ` % p - 4.4% p COGS and SG&A (% to revenue)
NET H `09 1H ` H `09 1H `10 Non-Operating Income/Expense Interest Expense * F/X Loss OthersEquity Earnings * Includes Gain/Loss on F/X evaluation (KRW billion)
12 `09 `10 [ P ] Chg (%) 1,651 Retail sales 1, , Korea US Europe China Rest of world * Europe : EU + EFTA 1H `09 1H `10 Global Retail Sales (thousand units)
13 Thank you
Appendix Korea market US market Europe market China market Rest of world Income Statement (Quarterly)
15 Sale & M/S 27.4% 29.6% 31.1% 32.1% Growth rate Oct `09DecFeb `10Jun 27.4% 29.7% 36.6% 31.2% ▷ Promote Volume models ▷ Enhance Brand image : K5, K7, SportageR, SorentoR : ‘Design Kia Kia % Market % year-on-year 13% 24% 63% 11% 26% 63% 11% 23% 66% 10% 25% 65% `08 `09 1H`09 1H`10 CV RV PC % Korea market [ thousand units ] Market share
16 Sale & M/SGrowth rate % % year-on-year 2.1% 2.9% 3.1% 3.0% 44% 56% 40% 60% 47% 53% 46% 54% % CV RV PC ’09Feb’10Jun 2.9% 3.1% 3.2% ▷ New Models ▷ Strengthen Dealer network : New Sportage (3Q), K5 (Pre-marketing) ☞ `09 : 691 → 1H`10 : 708 → 2H: 735 US market [ thousand units ] KiaMarket `08 `09 1H`09 1H`10 Market share
17 Sale & M/SGrowth rate % % year-on-year 1.5% 1.7% 1.6% 1.8% ▷ New Models : New Sportage (3Q) ▷ Kia’s Dealer enhancement network ▷ Strengthen auto financing % 27% 71% 1% 20% 79% 1% 19% 80% 1% 15% 84% % CV RV PC 37% 28% -7% 3% 22% -6% 13% -8% -5% Kia Market 7% 13% 11% Europe market [ thousand units ] KiaMarket `08 `09 1H`09 1H`10 Monthly Sales Growth (year-on-year) JanFeb May MarAprJun
18 Sale & M/SGrowth rate % % year-on-year 2.6% 2.9% 2.6% 3.0% ▷ Increase in SUV demand ▷ Subsidy for high efficiency vehicles ▷ Strengthen Dealer network % 76% 81% 83% 77% 24% 19% 17% 23% CV RV PC 242% 103% 51% 128% 38% 55% 31% 19% Kia Market 27% 117% 63% 20% China market [ thousand units ] KiaMarket `08 `09 1H`09 1H`10 Monthly Sales Growth (year-on-year) JanFeb May MarAprJun
19 SaleSales by Region ▷ New Models ▷ Recovering Markets : New Sportage (3Q), K5 (4Q) Strategy ▷ Growing Markets SalesPortionGrowth rate (45) 38 (12) % % % % ( %) % ( %) % 100 % 40 % 20 % 19 % (15 %) 12 % (4 %) 9 % 8% 34% 68% 7% 31% 61% 8% 32% 60% 8% 29% 64% % CV RV PC Rest of world [ thousand units ] `08 `09 1H`09 1H`10 [ thousand units ] Rest of world Middle East & Africa Latin America East Europe (Russia) Asia & Pacific (Australia) Canada : Middle East & Africa : Latin America, Asia & Pacific, Russia
Q 2Q 3Q 4Q `09 `10 1Q 2Q `10 2Q VS. `09 2Q (%) `10 2Q VS. `09 2Q (%) `10 2Q VS. `10 1Q (%) `10 2Q VS. `10 1Q (%) ,502 1,169 2,333 4,676 1,869 2,808 4,509 1,703 2,806 5,728 2,212 3,516 4,861 1,959 2,902 5,768 2,291 3, Margin (%) Margin (%) Margin (%) Income Statement (Quarterly) (thousand units, KRW billion) Sales volume Domestic Export Revenue Domestic Export Operating Profit Recurring Profit Net Profit