Kia (000270) Investor presentation summary

1H24 performance

• Revenue rose 7.7% YoY to KRW 53.8tn; operating profit increased 12.6% to KRW 7.1tn, with OPM at 13.1% vs. 12.6%.

• Net profit advanced 16.8% YoY to KRW 5.8tn; consolidated sales volume declined 1.4% to 1.485m units.

• Cost of sales fell to 76.0% of revenue from 77.1%; SG&A rose to 10.8% from 10.3%.

• Global retail sales increased 1.0% YoY to 1.489m units; regional performance varied, including North America wholesale +5.0% and Europe -5.4%.

Profitability strategy

• Mid- to long-term sustainable OPM target is 10%+; strategy combines EV cost competitiveness with high ICE/HEV profitability and SDV business development.

• HEV strategy targets double-digit margins through premium mix, system-cost reduction, expanded line-up and higher volumes; model count is planned to rise from 6 in 2024 to 9 in 2028.

• EV roadmap moves from flagship models to mass adoption and a full EV line-up by 2027; 2030 target is ICE-equivalent profitability.

• EV cost actions target PE cost reduction of 45%+ vs. 2022 by 2031 onward; battery costs targeted 10–20% below NCM and non-PE parts costs 10–20% below the current platform.

2030 sales and electrification plans

• Global sales target is 4.3m units in 2030: 2.6m in major markets and 1.7m in emerging markets.

• Green-car sales target is 2.48m units, or 58% of total sales, in 2030; planned mix is 1.6m EVs, 882k XHEVs and 2.439m ICEs as shown in the powertrain plan.

• Global EV sales target is 1.6m units in 2030, including 1.372m in major markets; EVs are planned to represent 52% of major-market sales.

• HEV sales are planned to reach 800k units in 2028, with a 21% CAGR from 2024 to 2028; HEV line-up expands from 6 to 9 models.

• Mass EV launches expand from 2024, alongside PBV market entry; flexible ICE–XEV production and EV-dedicated plants are planned to support demand and scale.