2018 Annual Business Result

Transcription

1 2018 Annual Business Result

2 2018 Annual 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 Review II. III. IV. Market Analysis Performance Analysis Financials - Income Statement V. Awards VI. Rexton Sports KHAN launch VII. Way Forward in 2019 & Beyond 2

4 2018 Review Rank 3rd in domestic market Growth for 9 consecutive years : +2% yoy in 2018 Successful launch of Rexton Sports Continuous popularity of Rexton & Tivoli brand Australia : Set-up local sales company & start of sales in Q4 India : Launch G4 (CKD) in November 2018 Stable relationship between company and labor leading to 9 consecutive years without production interruption Smooth implementation of day-time 2 shift system (8+8) Decision to rehire dismissed workers 3

5 2018 Review SUV Market Steady SUV market growth in both domestic and overseas - Domestic : +13.3% yoy thanks to new car effect and continuous consumers preference for SUV - Overseas : Continuous SUV growth in global market SYMC vehicle sales 2018 Total : 143,309 units (-0.3% yoy) - Domestic : 109,140 units (+2%) thanks to successful launch of Rexton Sports - Export : 34,169 units (-8%) due to Iran sanction and WLTP issue in Europe F/X movements (2018 USD/KRW Avg.: KRW 1,100/USD, -2.7% yoy) Currency 1,468 1,498 1,469 1,462 1,451 1,302 1,323 1,106 1,072 1, ,011 1,287 1, , , ,286 1,128 Q Q Q Q Q USD/KRW EUR/KRW 100JPY/KRW GBP/KRW 2018 avg. Price Chg. % (vs. 2017) USD/KRW 1, % EUR/KRW 1, % 100JPY/KRW % GBP/KRW 1, %

6 Domestic Market Trend Quarterly market trend (Including imported cars) 28.8% 499K 59K 31K 144K PC SUV MPV Commercial SUV M/S 34.4% 34.4% 32.1% 31.8% 31.3% 31.3% 26.7% 26.9% 474K 474K 483K 429K 443K 447K 427K 65K 62K 429K 60K 57K 55K 61K 28K 31K 54K 35K 51K 28K 26K 30K 24K 29K 128K 115K 142K 142K 149K 166K 134K 147K Q (vs. Q4 2017) - Total market : +8.2% (Domestic makers : +8.3%, Imported : +6.9%) - PC : +2.3% - SUV : +17.1% thanks to new car effect (Domestic makers : +17.5%, Imported : +13.9%) - SUV M/S : 34.4% (+2.6%p vs. Q4 2017) 265K 224K 250K 216K 224K 215K 229K 201K 229K - SYMC market share Total market : 6.4% (+0.4%p yoy) SUV market : 18.3% (+0.1%p yoy) Q Q Q Q Q Q Q Q Q Unit: vehicles Imported cars PC, SUV, MPV / Sports models : SUV 5

7 Domestic Market Trend Yearly market trend (Including imported cars) PC SUV MPV Commercial SUV M/S 32.9% 28.3% 29.3% 1,825K -1.8% 1,793K 1,813K +1.1% 232K +3% 238K 227K -5% 118K -3% 114K 117K +2% 517K +2% 526K +13% 596K 2018 (vs. 2017) - Total market : +1.1% (Domestic makers : -0.5%, Imported : +11.8%) - PC : -4.5% - SUV : +13.3% thanks to new car effect (Domestic makers : +17.5%, Imported : +13.9%) - SUV M/S : 32.9% (+3.6%p vs. 2017) 959K -5% 915K -4% 874K - SYMC market share Total market : 6.0% (+0.0%p yoy) SUV market : 17.8% (-1.7%p yoy) Unit: vehicles Imported cars PC, SUV, MPV / Sports models : SUV 6

8 Overseas Market Trend Global demand by segments Sales volume % % % 5.0 SUV demand by segments Sales volume % % % Sales portion SUV-E 8% 8% SUV-D 23% 23% % 31.8 (34%) (36%) % 15.4 SUV-C 49% 48% % 42.1 (50%) (48%) % 6.7 SUV-A/B 20% 21% (F) (F) - Total market : +0.9% - SUV market : +8.1% (F) - SUV-A/B : +14.3% - SUV-C : +7.6% PC SUV MPV Others (pick-up) Unit : Million vehicle Source : IHS, SYMC Excluding commercial vehicles ( ) : Portion out of total market 7 SUV-A/B SUV-C SUV-D SUV-E

9 SYMC Sales Volume in Q ,034 10,204 (28%) 26,830 (72%) +11% -2% +16% 41,063 9,995 (24%) 31,068 (76%) Q Q Domestic Export Unit: vehicle (including CKD 504 units) Sales volume increase - Total Sales : +4,029 units (+11%) Domestic : +4,238 units (+16%) Export : -209 units (-2%) Domestic portion : +4%p - Q : Q = 72% : 76% Export by region (vs. Q4 2017) - W. Europe : +20% - Asia Pacific : +196% (Australia, India CKD) Rexton Sports vehicle sales increase - Total : 13,714 units (+64% YoY vs. K/Sports) thanks to new car launch effect 8

10 SYMC Sales Volume in , % 143,309 37,008-8% 34,169 (26%) (24%) Sales volume decrease - Total Sales : -376 units (-0.3%) Domestic : +2,463 units (+2%) Export : -2,839 units (-8%) Domestic portion : +2%p 106,67 (74%) 7 +2% 109,140 (76%) : 2018 = 74% : 76% Export by region (vs. 2017) - Asia Pacific : +116% (Australia, India CKD) Domestic Export Sports model vehicle sales increase - Total 49,367 units (+64% yoy vs. K/Sports only) Unit: vehicle (including CKD 1,314 units) 9

11 Region-wise Export in 2018 W. Europe % out of export sales volume (Including CKD) 47% 41% Asia Pacific Including: India, Australia Others 21% 20% 5% 13% South America 27% 26% Others: ME, AF, E. Europe

12 Income Statement(Consolidated) / Q vs. Q (Unit: billion krw) Category Q [K-IFRS 1018] Q Q vs. Q [K-IFRS 1018] Change Change (%) vs. Q Change Change (%) Sales , % % Cost of sales % % Gross Profit % % SG&A % % Operating Profit OP margin % -2.9% -3.2% -0.3% +2.6%p %p - PAT

13 Operating Costs / Q vs. Q (K-IFRS 1115) Cost of sales % SG&A expense % 88.5% -2.0%p 86.5% 14.8% -1.0%p 13.8% Q Q Q Q (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 12

14 Income Statement(Consolidated) / Q vs. Q (K-IFRS 1115) (Unit: billion krw) Category Q Q Change Change(%) Sales , % Cost of sales % Gross Profit % SG&A % Operating Profit OP margin % -2.4% -0.3% +2.1%p - PAT

15 Operating Costs / Q vs. Q (K-IFRS 1115) Cost of sales % SG&A expense % 87.9% -1.4%p 86.5% 14.5% -0.7%p 13.8% Q Q Q (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 Q

16 Income Statement(Consolidated) / 2018 Annual (Unit: billion krw) Category 2017 [K-IFRS 1018] vs [K-IFRS 1018] Change Change (%) vs Change Change (%) Sales 3, , , % % Cost of sales 2, , , % % Gross Profit % % SG&A % % Operating Profit OP margin % -1.9% -2.2% -1.7% +0.2%p %p - PAT

17 Operating Costs / 2018 Annual Cost of sales % SG&A expense % 86.8% +0.7%p 87.5% 15.3% -1.1%p 14.2% (Cost of Sales/Sales)*100 (SG&A expenses/sales)*

18 Awards G4 Rexton in U.K of the Year Awards - Best Value for 2 years in a row Altruras (Rexton) G4 in India Auto Car Awards - Premium SUV of this year Musso(Rexton Sports) in U.K. - Pick-up of the year Awards - Best Value Auto Car : Automobile special magazine : 4WD special magazine in UK

19 Rexton Sports KHAN Launch Sales trend of Sports model 30,188 7,276 22, % Domestic 49,367 7,346 42,021 Export (Unit: vehicle) : 49,367 units +64% yoy compared to K/Sports thanks to successful launch of Rexton Sports : Expectations of vehicle sales increase with Rexton Sports KHAN launch Features Wild Utility Deck Versatility for the most value : Outdoor activities and application with deck (length +310mm) Safety first: 6 Airbags, Advanced high-strength steel, Quad frame Powerful driving : 4 Tronic, Rear wheel drive 18

20 Way Forward in 2019 & Beyond Sales volume increase - Domestic : Steady vehicle sales growth with new car effect and tax support - Export : Focus on W. Europe, Australia and India New model launch schedule - Rexton Sports KHAN (Jan.) - Korando C FMC (Mar.) - Tivoli F/L (H1) Continuous focus on new car development - EV : 2020 (Target) - New RV models Capacity rate increase - Expectations of cost reduction effect Profitability priority Capital increase for new car development - KRW 50 bn from M&M 19