Kia (000270) Investor presentation summary

Third-quarter performance

• Global retail sales 765k units, down 3.9% YoY; consolidated sales revenue W26.52tn, up 3.8%, and operating profit W2.881tn, up 0.6%.

• Operating margin 10.9%, vs. 11.2% YoY; net profit W2.268tn, up 2.1%, while consolidated sales units fell 1.9% to 727,601.

• Operating profit gains from pricing, mix, lower material costs and FX were offset by quality costs, higher incentives and lower volume.

• Consolidated ASP rose 5.8% YoY to W34.0mn; domestic ASP increased 5.6% to W33.8mn.

Sales and product mix

• Green-car retail sales reached 155k units, up 3.6% YoY; 4Q forecast was 178k, up 15.2% YoY, with HEV share forecast to rise to 13.1%.

• India retail sales grew 12.3% YoY to 67k units as Sonet and Carens posted sequential sales gains.

• Korea HEV share rose to 28.2%, up 2.3 percentage points YoY; RV share reached 65.4%, up 5.2 points.

• U.S. green-car contribution increased to 18.3%, up 2.4 points YoY; residual value was 55.3% in 2024 YTD, ranked fourth.

• Western Europe HEV sales rose 41.1% YoY to 25.2k units; EV3 launch was planned to help offset subcompact supply shortfalls.

Guidance and financial position

• Revised FY2024 sales guidance to W105–110tn and operating margin to 12%+; 3Q YTD sales were W80.3tn, 5.5% above plan, with margin 12.4%.

• At 3Q-end, cash was W21.512tn, debt W2.933tn and net cash W18.579tn; liability-to-equity ratio was 67.5%, down 5.7 points from year-end 2023.

• Shareholder policy targets a 20–35% net-profit payout ratio and annual share buybacks of up to W500bn, with 50% cancellation and additional cancellation tied to 3Q YTD targets.