Kia (000270) Investor presentation summary

Third-quarter financial performance

• Sales revenue W26.52tn, up 3.8% YoY; operating profit W2.881tn, up 0.6%, with OPM easing to 10.9% from 11.2%.

• Net profit W2.268tn, up 2.1% YoY; pre-tax profit W3.232tn, down 2.8%.

• Operating profit benefited from pricing, mix, material costs and FX; warranty costs, incentives and lower volume were detractors.

• Revenue rose 3.8% YoY as consolidated ASP increased 5.8% to W36.4mn; domestic ASP rose 5.6% to W33.8mn.

• Revised FY24 guidance targets W105-110tn revenue and OPM of 12% or higher, versus initial revenue guidance of W101.1tn and 12% OPM.

Sales and market developments

• Global retail sales were 735k units in 3Q, down 3.9% YoY; consolidated sales units were 727,601, down 1.9%.

• Global green-car sales increased 3.6% YoY to 155k units; HEV share rose to 11.4% from 9.9%, while BEV share was 7.3%.

• Korea 3Q sales fell 6.7% YoY, but HEV and RV contributions increased to 28.2% and 65.4%, respectively; ASP rose 5.6% to W33.8mn.

• U.S. sales declined 6.0% YoY; RV contribution reached 75.1% and green-car contribution 18.3%, while 2024 YTD residual value was 55.3%, ranked fourth.

• India sales rose 12.3% YoY to 67k units as product enhancements supported sequential sales gains; China exports reached 37.6k units, up 175% YoY.

Business strategy and capital allocation

• Mid- to long-term sustainable OPM target is 10%+, supported by product value, cost competitiveness, HEV profitability and EV cost reduction.

• The 2024-2028 investment plan totals W38tn, W5tn above the prior five-year plan; 65% is allocated to electrification, 19% to PBV and 8% to SDV business.

• Shareholder policy targets a 20-35% payout of net profit; the 2024-onward buyback plan allows up to W500bn annually, with 50% cancellation and an additional 50% upon meeting 3QTD financial targets.

• 2030 global sales target is 4.3mn units, comprising 2.6mn in major markets and 1.7mn in emerging markets; green-car sales target is 2.48mn units, or 58% of total sales.

• 2030 major-market sales mix targets 52% EV and 28% XHEV; the strategy also expands HEV offerings and mass-EV models.