H Business Result

Transcription

1 H Business Result

2 H business result is prepared for investors consideration only before completion of independent auditors review. Therefore, parts of contents on this material could be changeable during independent auditors review. 1

3 Contents I. H Overview II. Market analysis III. Performance analysis IV. Financials - Income Statement V. SYMC s Focus in H

4 H Review Market Domestic total market decrease : 3.4% (vs. H1 2016) due to tax support during H SUV market decrease : 7.6% in spite of growth in SUV-B & E segments - SUV-B : +12.5%, SUV-E : +21.0% Overseas : Growth in Europe & China Currency Unfavorable F/X movements (Q USD/KRW Avg.: KRW 1,129/USD, -2.9% yoy) 1,670 1,473 1,436 1,429 1,443 1,313 1,251 1,247 1,230 1,243 1,121 1,157 1,163 1,154 1,129 1,076 1,095 1,058 1,015 1,017 Q Q Q Q Q USD/KRW EUR/KRW JPY/KRW GBP/KRW Q vs. Q Chg. % vs. Q USD/KRW -2.9% -2.2% EUR/KRW -5.4% +1.1% JPY/KRW -5.5% +0.2% GBP/KRW -13.6% +1.0% SYMC Vehicle sales SYMC H1 domestic growth : 5% driven by G4 Rexton (5,411 units) - Market share grows from 5.4% to 5.9%. Export : Steep decline due to Iran, Peru, Egypt, etc. Tivoli brand portion in the small SUV market in H : 53%

5 Domestic Market Trend Quarterly market trend (Including imported cars) 28.4% 27.4% 29.0% 454K 62K 35K 129K 228K Q PC SUV MPV Commercial SUV M/S 446K 56K 33K 122K 234K Q K 60K 33K 154K 283K Q % 424K 59K 28K 115K 223K Q Unit: vehicles (Imported cars PC, SUV, MPV) 28.9% 28.4% 28.8% 510K 65K 30K 147K 267K Q K 48K 27K 111K 204K Q K 59K 31K 144K 265K Q % 26.9% 429K 61K 30K 115K 224K Q K 65K 31K 128K 250K Q Q (vs. Q2 2016) - Total market : -7.1% (Domestic makers: -8.7%, Imported: +4.0%) - PC : -6.4%, SUV : -13.5%, MPV : +1.5% - SUV M/S : 26.9% (-2.0%p vs. Q2 2016) - SYMC Market share in SUV market: +4.1%p Q : Q = 17.9% : 22.0% - SYMC Market share in total market: +0.6%p Q : Q = 5.5% : 6.1% H (vs. H1 2016) - Total market : -3.4% (Domestic makers : -4.1%, Imported : +1.2%) - PC: -3.0%, SUV: -7.6%, MPV: +1.8% - SYMC Market share in SUV market: +3.1%p H : H = 18.1% : 21.2% - SYMC market share in total market : +0.5%p H : H = 5.4% : 5.9%

6 Domestic SUV Market Trend Vehicle sales by segment Portion by segment K -9% 196K K +13% 54K 100% 90% 80% 22% +5%p 27% K 87K 16K -27% -13% +21% 47K 76K 19K 70% 60% 50% 40% 30% 20% 10% 0% 30% -6%p 24% 41% -2%p 39% 7% +3%p 10% Total SUV market : -8.7% SUV-B segment : +5%p SUV-B segment : +12.5% SUV-E segment : +3%p SUV-E segment : +21.0% Unit : Vehicle, % Excluding imported car & pick-up ( ) : Example SUV-B SUV-C SUV-D SUV-E (Tivoli) (Korando C) (G4 Rexton) 5

7 Overseas Market Trend Europe (28 Countries) Russia Jan.~May ,164K (24.4%) 1,600K 614K 6,547K Jan.~May K (37.0%) 203K 15K 549K Jan.~May ,199K (27.2%) 1,861K 589K 6,850K Jan.~May K (41.2%) 238K 15K 577K - Total market : +4.6% - SUV market : +16.3% - Total market : +5.1% - SUV market : +16.8% China Jan.~May 2016 Jan.~May ,626K 4,490K (31.2%) 3,195K (35.8%) 3,785K 1,044K 872K K 10,582K - Total market : +3.5% - SUV market : +18.5% Unit : Vehicle Source : Automotive News, Jato Excluding commercial vehicles ( ) : SUV portion out of total market PC SUV MPV Others 6

8 SYMC Sales Volume in Q ,911 12,837 (31%) -12% -45% 36,117 6,998 (19%) Sales volume decrease - Total Sales : -4,794 units (-12%) Domestic : +1,045 units (+4%) Export : -5,839 units (-45%) 28,074 +4% 29,119 (69%) (81%) Q Q Domestic portion increase : +12%p - Q : Q = 69% : 81% G4 Rexton - A leading SUV model in SUV-E segment (Market share of 46% in Q2 2017) Domestic Export Unit: vehicle (including CKD) 7

9 SYMC Sales Volume in H ,577-6% 70,345 23,881-29% 16,876 (32%) (24%) 50,696 +5% 53,469 (68%) (76%) Sales volume decrease - Total Sales : -4,232 units (-6%) Domestic : +2,773 units (+5%) Export : -7,005 units (-29%) Domestic portion increase : +8%p - H : H = 68% : 76% Steady Tivoli sales in domestic market - H : 28,624 units (+2% YoY) Domestic Export Unit: vehicle (including CKD) 8

10 Region-wise Export in H W. Europe % out of export sales volume (Including CKD) 50% 52% Asia Pacific Including: China Others 10% 5% South America 21% 17% 19% 26% Others: ME, AF, E. Europe 9

11 Income Statement(Consolidated) / Q Q (vs. Q2 2016) (Unit: billion krw) Category Q Q Change Change(%) Sales % Cost of sales % Gross Profit % SG&A % Operating Profit OP margin % 2.0% -0.7% -2.7%p - PAT

12 Operating Costs / Q Q (vs. Q2 2016) Cost of sales (%) SG&A expense (%) 82.6% +1.1%p 83.7% 15.4% +1.7%p 17.1% Q Q Q Q (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 11

13 Income Statement(Consolidated) / Q Q (vs. Q1 2017) (Unit: billion krw) Category Q Q Change Change(%) Sales % Cost of sales % Gross Profit % SG&A % Operating Profit OP margin % -2.0% -0.7% +1.3%p - PAT

14 Operating Costs / Q Q (vs. Q1 2017) Cost of sales (%) SG&A expense (%) 85.3% -1.6%p 16.7% 83.7% +0.4%p 17.1% Q Q Q Q (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 13

15 Income Statement(Consolidated) / H (Unit: billion krw) Category Change Change(%) Sales 1, , % Cost of sales 1, , % Gross Profit % SG&A % Operating Profit OP margin % 1.5% -1.3% -2.8%p - PAT

16 Operating Costs / H Cost of sales (%) SG&A expense (%) 84.4% 16.9% 82.7% +1.7%p 15.8% +1.1%p (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 15

17 Financial Ratio(Consolidated) / H Net Cash Borrowings Ratio Cash Borrowings (Unit: KRW billion) Net Debt : 31 Net Debt : % 24.2%

18 SYMC s Focus in H Vehicle sales - Domestic G4 Rexton variant model in H2 Tivoli product improvement model (Tivoli Armour) launch in July - Export G4 Rexton launch in H2 Cost control - Profitability priority - SY Auto capital - Cost reduction New car development - KorandoSports FMC in late 2017 or early Korando C FMC in 2019 Stable labor management relations - Sound relationship between SYMC management and labor union No production disruption for 8 years Profitability Management 17