H1 2016 Business Result
H1 2016 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
Contents I. H1 2016 Overview II. Market analysis III. Performance analysis IV. Financials - Income Statement V. SYMC s Focus in H2 2016 2
H1 2016 Overview SUV Market Continued SUV market demand growth : Domestic +12.9% (vs. H1 2015) Domestic SUV-B (Small SUV) segment : +40.5% (vs. H1 2015) Overseas : Growth in Europe & China Tivoli Brand Tivoli Brand : Continuous vehicle sales increase (40,752 vehicles, +50.9% vs. H1 2015) Tivoli Air/XLV : Successful launch in March The best selling vehicle among small SUVs in Korea : 59% portion out of small SUV segment SYMC Operating profit for 3 consecutive quarters (Q2 2016: 19.3 bn krw, OP margin : 2.0%) H1 2016 : Operating profit 27.4 bn krw ( OP margin : 1.5%) PAT 20.4 bn krw (PAT margin : 1.1%) 3
Domestic Market Trend Quarterly market trend (Including imported cars) 22.7% 22.3% 23.1% 425K 58K 23K 97K PC SUV MPV Commercial SUV M/S 398K 49K 33K 89K 455K 62K 29K 105K 25.6% 404K 58K 29K 103K 28.4% 27.4% 29.0% 454K 62K 35K 129K 446K 56K 33K 122K 531K 60K 33K 154K 27.0% 424K 59K 28K 115K 28.9% 510K 65K 30K 147K Q2 2016 (vs. Q2 2015) - Total market : +12.5% (Domestic makers : +14.4%, Imported : -0.2%) - PC : +17.2% - SUV : +14.4% Continued strong demand (ex> Small SUVs) New car effects : Tivoli Air, Sportage - MPV : -12.3% - SUV M/S : 28.9% (0.5%p vs. Q2 2015) - SYMC Market share in total market Q2 2015 : Q2 2016 = 5.4% : 5.5% 248K 227K 259K 214K 228K 234K 283K 223K 267K H1 2016 (vs. H1 2015) - Total market : +9.0% (Domestic makers : +10.9%, Imported : -2.6%) - PC: +10.9%, SUV: +12.9%, MPV: -8.0% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 - SYMC market share in total market H1 2015 : H1 2016 = 5.3% : 5.4% Unit: vehicles (Imported cars PC, SUV, MPV) 4
Overseas Market Trend Europe (28 Countries) Russia Jan.~May 2015 3,911K (21.1%) 1,266K 634K 5,988K Jan.~May 2015 356K (34.8%) 224K 22K 642K Jan.~May 2016 4,083K (24.3%) 1,584K 643K 6,521K Jan.~May 2016 290K (37.1%) 203K 15K 547K - Total market : +8.9% - SUV market : +25.2% - Total market : -14.7% - SUV market : -9.2% China (22.9%) Jan.~May 2015 Jan.~May 2016 4,928K 4,587K 2,214K 903K (30.9%) 3,155K 1,038K 9,675K 10,214K - Total market : +5.6% - SUV market : +42.5% Unit : Vehicle Source : Automotive News, Jato Excluding commercial vehicles ( ) : SUV portion out of total market PC SUV MPV Others 5
SUV Market Trend Korea Europe (28 Countries) 250 200 150 100 50 0 202K 34K 69K 85K 15K +41% +12% +3% +10% 227K 48K 76K 87K 16K H1 2015 H1 2016 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1,266K 370K 634K 170K 92K Jan.~May 2015 +27% +26% +15% +35% 1,584K 470K 795K 195K 124K Jan.~May 2016 Total SUV market : +12.8% SUV-B market : +40.5% (Small SUV) - Portion out of SUV market : 16.9% 21.0% Total SUV market : +25.2% SUV-B market : +26.8% (Small SUV) - Portion out of SUV market : 29.3% 29.6% Unit : Vehicle Source : SYMC, Automotive News Korea : excluding imported car ( ) : Example SUV-B SUV-C SUV-D SUV-E (Tivoli) (Korando C) (Rexton) 6
SYMC Sales Volume in Q2 2016 36,885 12,582 (34%) +11% +2% 40,911 12,837 (31%) Sales volume increase - Total Sales : +4,026 units (+11%) Domestic : +3,771 units (+16%) Export : +255 units (+2%) Domestic portion increase : +3%p - Q2 2015 : Q2 2016 = 66% : 69% 24,303 (66%) +16% 28,074 (69%) Export by region - ME & AF : +28%, South America : +19% Q2 2015 Q2 2016 Domestic Export Tivoli brand sales increase - Monthly avg. : 7,799 units (Domestic : 5,525 units, Export : 2,274 units) Unit: vehicle (including CKD) 7
Region-wise Export in Q2 2016 W. Europe 45% 44% E. Europe Including: Russia % out of export sales volume (Including CKD) 0% 2% Q2 2015 Q2 2016 Q2 2015 Q2 2016 Others Asia Pacific South America Others: ME & AF Including: China 16% 20% 19% 11% 20% 23% Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016 8
SYMC Sales Volume in H1 2016 69,800 24,390 (35%) +7% -2% 74,577 23,881 (32%) Sales volume increase - Total Sales : +4,777 units (+7%) Domestic : +5,286 units (+12%) Export : -509 units (-2%) Domestic portion increase : +3%p - H1 2015 : H1 2016 = 65% : 68% 45,410 (65%) +12% 50,696 (68%) Export by region - ME & AF : +41%, W. Europe : +14% - South America : -17% H1 2015 H1 2016 Domestic Export Unit: vehicle (including CKD) Tivoli brand sales - H1 2016 : 40,752 units (Domestic : 27,969 units, Export : 12,783 units) - Tivoli Air/XLV launch: March 2016 9
Region-wise Export in H1 2016 W. Europe 43% 50% E. Europe Including: Russia % out of export sales volume (Including CKD) 1% 1% H1 2015 H1 2016 H1 2015 H1 2016 Others Asia Pacific South America Others: ME & AF Including: China 14% 20% 19% 10% 23% 19% H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 10
Income Statement(Consolidated) / Q2 2016 (Unit: billion krw) Category Q2 2015 Q2 2016 Change Change(%) Sales 835.5 964.0 128.5 15.4% Cost of sales 711.5 796.3 84.8 11.9% Gross Profit 124.0 167.7 43.7 35.2% SG&A 143.9 148.4 4.5 3.1% Operating Profit -19.9 19.3 39.2 - OP margin % -2.4% 2.0% 4.4%p - PBT -22.7 18.0 40.7 - PAT -22.7 18.0 40.7-11
Operating Costs / Q2 2016 Cost of sales (%) SG&A expense (%) 85.2% 17.2% -2.6%p 82.6% -1.8%p 15.4% Q2 2015 Q2 2016 Q2 2015 Q2 2016 (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 12
Income Statement(Consolidated) / H1 2016 (Unit: billion krw) Category H1 2015 H1 2016 Change Change(%) Sales 1,595.9 1,777.2 181.3 11.4% Cost of sales 1,373.0 1,469.5 96.5 7.0% Gross Profit 222.9 307.6 84.7 38.0% SG&A 277.0 280.3 3.3 1.2% Operating Profit -54.1 27.4 81.5 - OP Margin % -3.4% 1.5% 4.9%p - PBT -53.9 20.4 74.3 - PAT -53.9 20.4 74.3-13
Operating Costs / H1 2016 Cost of sales (%) SG&A expense (%) 86.0% -3.3%p 82.7% 17.4% -1.6%p 15.8% H1 2015 H1 2016 H1 2015 H1 2016 (Cost of Sales/Sales)*100 (SG&A expenses/sales)*100 14
SYMC s Focus in H2 2016 Domestic : Focus on Tivoli brand Export volume growth - Tivoli XLV in W. Europe - Iran, Peru, Etc. H2 2016 Vehicle sales New product launch - Korando Sports 2.2 (Jul., Euro 6 engine) - Tivoli Air/XLV gasoline model (Jul.) Profitability Priority Cost control Efficient cost management Collaboration of vehicle development (platform sharing, engine, etc.) with M&M New car development Rexton FMC : H1 2017 New car development : One new model every year till 2019 SY auto capital 15