2013 1H Business Results Kia Motors AWS
Kia Motors 2013 1H Business Results July 26, 2013
Notes for Investors This presentation has been prepared with unaudited 1st half results of year 2013 for investor’s convenience. Therefore, some numbers may change upon the review of Kia’s independent auditors.
Table of Contents
Sales Summary
Financial Summary
Revenue & Profit Analysis
Appendix
Sales Summary • Retail Sales • Ex- factory Sales
▣ 2013 1H Sales Summary : Retail Sales (Unit : Thousand)
+25.0% -3.9% +1.3% 221 174
276
China
176
-4.9% 289
* Europe
277 US
+0.3%
+2.7%
238
226
Korea
426
428
Rest of World
1,348
1,384
2012 1H
2013 1H
Global Retail Sales 2012 1H
2013 2H
* Europe : EU + EFTA
1
▣ 2013 1H Sales Summary : ExEx-factory Sales
2012 1H
2013 1H
Change (%)
ExEx-factory Volume by Plant
(Unit : Thousand)
(Unit : Thousand)
+3.6%
ExEx-factory Sales
1,395
1,445
+3.6
1,445 1,395
851
818
-3.9
15.9%
19.1%
Domestic
238
226
-4.9
10.7%
11.0%
Export
613
592
-3.5
12.4%
13.3%
Korea Plant
544
627
+15.4
US
173
192
+10.7
China
221
276
+25.0
Europe
149
159
+6.4
Overseas Plant
China
61.0%
2012 1H
Europe
56.6%
US Korea
2013 1H
2
Financial Summary • Income Statement • Statement of Financial Position • Cash Flow Highlights
▣ Income Statement (Unit : Billion Won)
2012 1H
as % of Rev.
2013 1H
as % of Rev.
Change (%)
Revenue
24,341
100
24,197
100
-0.6
Cost of Sales
18,499
76.0
18,863
78.0
+2.0
Gross Profit
5,842
24.0
5,335
22.0
-8.7
Operating Profit
2,317
9.5
1,831
7.6
-21.0
Income before Tax
3,074
12.6
2,440
10.1
-20.6
Net Income
2,298
9.4
1,965
8.1
-14.5
3
▣ Statement of Financial Position (Unit : Billion Won)
20122012-End
201 2013 1H1H-End
Change (%)
32,398
35,778
+3,380
Current Assets
11,139
13,928
+2,789
(Cash)
(4,271)
(5,917)
+1,646
15,550
17,137
+1,587
Debt
3,876
3,784
-92
(Net Debt)
(-395)
(-2,133)
-1,738
Current Ratio
111.4%
116.3%
+4.9%p.
Equity
16,848
18,642
+1,794
DebtDebt-toto-Equity Ratio
23.0%
20.3%
-2.7%p.
Net DebtDebt-toto-Equity Ratio
-2.3%
-11.4%
-13.7%p.
Assets
Liabilities
* Cash = Cash & Cash Equivalents + Short-term Financial Instrument ** Net Debt-to-Equity = Net Debt / Equity
4
▣ Cash Flow Highlights (Unit : Billion Won)
Net Income
Depreciation / Amortization
Tangible / Intangible Asset
572
-628
Others
-975 1,965
+934 2,837
1,903
Beginning Cash Balance
Ending Cash Balance * Above cash excludes short–term financial instruments
5
Revenue & Profit Analysis • Revenue Analysis • COGS and SG&A • Non-Operating Items
▣ Revenue Analysis Revenue by Region
Contributing Factors ▶ ASP Improvement
-0.6%
Positive
· Korea : 18.6mn → 18.9mn (+1.7%) · Export: $13.3 thou. → $13.7 thou. (+3.7%)
24,341
24,197
19%
Korea
18%
35%
North America
37%
25%
Europe
25%
21%
Other
2012 1H
20% 2013 1H
• Korea : KMC domestic revenue • North America : KMA/KCI wholesale revenue + KMMG OEM revenue • Europe : Europe sales subsidiaries’ wholesale revenue + KMS OEM revenue
Negative
▶ Won Appreciation
· USD / KRW 1,142 → 1,107 (-3.1%)
Sales by Segment 4.5% 28.8%
4.8% 27.8%
52.7%
53.4%
14.0%
14.0%
2012 1H
2013 1H A+B+C
D+E
RV
CV
• Others : KMC direct export revenue + KMAU/KMNZ wholesale revenue * Global retail sales (excluding China)
6
▣ COGS and SG&A
COGS
SG&A (% of Revenue)
(% of Revenue)
+0.0%p.
+2.0%p.
78.0% 76.0%
2012 1H
2013 1H
14.5%
14.5% 1.9
Salary & Wages
2.2
4.8
Marketing Expense
4.8
2.1
Export Expense
1.9
2.3
Warranty Expense
2.4
3.4
Others
3.2
2012 1H
2013 1H
7
▣ NonNon-Operating Items (Unit : Billion Won)
Equity Earnings
Finance Income / Expense
Other Income / Expense
-49 68 666 617
-113 +14
37 23
-45
2012 1H
2013 1H
2012 1H
2013 1H
2012 1H
2013 1H
8
Thank You http://kmcir.com
Appendix • Retail Sales by Region (Korea, US, Europe, China, Rest of World) • Overseas Plant Sales Volume & Revenue • Quarterly Income Statement
▣ Korea Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
Industry -0.7%
[YoY Growth]
▣ Segment Sales & M/S
31.4%
30.1%
-0.2% 482
480
11%
11%
25%
25%
238
2012
64%
2013(P)
28K
K3/Forte
-4.9%
(Small Sized)
(Large Sized)
25%
64% 65%
64%
2012 1H
2013 1H
PC
62%
RV
13K
K7
13%
‘12.1H Sales
CV
30.0%
11K
226
11% 24%
64%
KIA -4.9%
21.4%
8K
’13 2H Sales
’13.2H Segment M/S
▶ 1H : Despite launching of New Carens, waiting demand for K5(Jun)/Sportage(Jul) F/L led to weak sales results ▶ 2H : New model launch of Sportage F/L(Jul) and Soul(Oct)
* M/S is based on demand including imported car
9
▣ US Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
3.5%
+2.2%
31%
69%
4.0%
4.0%
KIA -3.9%
4.0% 3.4%
570 28%
[YoY Growth]
▣ Quarterly Sales Volume
4.0%
558
Industry+7.6%
3.6% 3.4%
-3.9% 289
151
277
138
31%
26%
69% 64%
64%
72%
74%
'12.1Q
'12.2Q
150
146
'12.3Q
123
127
'12.4Q
'13.1Q
Sales
2012
2013(P)
2012 1H
2013 1H PC
'13.2Q
M/S
▶ 1H : New model launch of K3, K7 and Sorento F/L ▶ 2H : Marketing focus on launch of K5 F/L(Sept), New Soul(Oct) ▶ 2H : Reinforce auto financing programs
RV
10
▣ Europe Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
2.7%
2.5%
Industry -6.6%
27%
73%
3.0%
2.8%
2.7%
+1.3%
335 32%
68%
2.7%
176
28%
31%
93 80
'12.1Q
'12.2Q
93
85
80
83
'12.3Q
'12.4Q
'13.1Q
2013(P)
2012 1H
'13.2Q
69% Sales
2012
2.8%
2.3%
174
72%
KIA +1.3%
▣ Quarterly Sales Volume
-0.9% 338
[YoY Growth]
2013 1H PC
RV
M/S
▶ 1H : Launch of New Carens & extended sales of Sportage, cee’d continued (cee’d +29% yoy, Sportage +12% yoy) ▶ 2H : Introducing New cee’d in 3DR and high performance version(GT) 11
▣ China Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
3.6%
+4.0% 481 24%
28%
KIA +25.0%
▣ Quarterly Sales Volume
3.7% 3.6%
+25.0% 276
22%
23%
78%
77%
76%
2013(P)
2012 1H
64%
2013 1H PC
3.8%
3.9%
138
139
'13.1Q
'13.2Q
3.5% 147
221
64%
2012
[YoY Growth]
4.2%
500
76%
3.8%
Industry+16.0 %
RV
110
112
112
'12.1Q
'12.2Q
'12.3Q
'12.4Q
Sales
M/S
▶ 1H : K3 new model effect & strong sales of K-series and Sportage continued (K2 +10%, K5 +17%, Sportage +26% yoy) ▶ 2H : Launch of Forte & K5 F/L version Focus on dealership expansion plan (up to 670 by year-end)
12
▣ Rest of World Sales & Market Share
Analysis & Strategy ▣ Sales by Region
(Unit : Thousand)
+1.0% 852 5%
31%
64%
2012
+0.3%
Rest of World
Sales
YoY(%)
Weight
Middle East / Africa
141
+0.6%
33%
Russia
95
+4.3%
22%
Eastern Europe / Turkey
26
+20.1%
6%
Latin America
79
-3.0%
19%
Canada
37
-6.8%
9%
Asia / Pacific
51
-3.8%
12%
860 6% 28%
66%
2013(P)
428
426 5%
6%
30%
29%
64% 64%
64% 65%
2012 1H
2013 1H ▶ 1H : Strong sales of K2/cee’d in Russia & Eastern Europe
PC
RV
CV
▶ 2H : New model launch of K5 F/L & Sportage F/L expected
13
▣ Overseas Plant : KMMG & KMS KMMG
KMS (Unit : Thousand / Billion Won)
Sales
(Unit : Thousand / Billion Won)
Revenue
Sales
Revenue Revenue
Revenue
192 173 54 48
63
2012 1H
3,709
2013 1H
4,227
Change
+14.0%
* Based on standalone financials.
69
159 149 19
2013 1H
3,289
Change
+10.1%
76 74
67
68
55
2012 1H
2013 1H
2012 1H
Sorento
2,986
* Based on standalone financials.
62
Optima SantaFe
16
2012 1H
cee’ cee’d Venga
2013 1H Sportage
14
▣ Overseas Plants : DYK DYK (Unit : Thousand / Billion Won)
Sales
Revenue
276 221
22
32
64
51
28
24
14 88
Revenue
2012 1H
3,583
2013 1H
4,541
Change
+26.7%
* Based on standalone financials.
47
67
2012 1H K2
74
2013 1H
K3 / Forte K5 Sportage Others
15
▣ Quarterly Income Statement (Unit : Billion Won)
2012 1H
2013 1H
1Q
2Q
1Q
2Q
2Q’ 2Q’13 vs. 2Q’ 2Q’12 (YoY) YoY)
Revenue
11,790
12,551
11,085
13,113
+4.5%
+18.3%
COGS
9,068
9,431
8,740
10,123
(76.9)
+7.3%
+15.8%
(75.1)
(78.8)
(77.2)
2,722
3,120
2,345
2,990
-4.2%
+27.5%
(24.9)
(21.2)
(22.8)
1,085
1,231
704
1,126
-8.5%
+60.0%
(9.2)
(9.8)
(6.4)
(8.6)
1,568
1,506
971
1,469
-2.5%
+51.2%
(13.3)
(12.0)
(8.8)
(11.2)
1,201
1,096
784
1,181
(7.1)
+7.7%
+50.6%
(9.0)
Margin(%) Gross Profit
Margin (%) Operation Profit
Margin (%)
Recurring Profit
Margin (%) Net Profit
Margin (%)
(23.1)
(10.2)
(8.7)
2Q’ 2Q’13 vs. 1Q’ 1Q’13 (YoY) YoY)
16
Notes for Investors This presentation has been prepared with unaudited 1st half results of year 2013 for investor’s convenience. Therefore, some numbers may change upon the review of Kia’s independent auditors.
Table of Contents
Sales Summary
Financial Summary
Revenue & Profit Analysis
Appendix
Sales Summary • Retail Sales • Ex- factory Sales
▣ 2013 1H Sales Summary : Retail Sales (Unit : Thousand)
+25.0% -3.9% +1.3% 221 174
276
China
176
-4.9% 289
* Europe
277 US
+0.3%
+2.7%
238
226
Korea
426
428
Rest of World
1,348
1,384
2012 1H
2013 1H
Global Retail Sales 2012 1H
2013 2H
* Europe : EU + EFTA
1
▣ 2013 1H Sales Summary : ExEx-factory Sales
2012 1H
2013 1H
Change (%)
ExEx-factory Volume by Plant
(Unit : Thousand)
(Unit : Thousand)
+3.6%
ExEx-factory Sales
1,395
1,445
+3.6
1,445 1,395
851
818
-3.9
15.9%
19.1%
Domestic
238
226
-4.9
10.7%
11.0%
Export
613
592
-3.5
12.4%
13.3%
Korea Plant
544
627
+15.4
US
173
192
+10.7
China
221
276
+25.0
Europe
149
159
+6.4
Overseas Plant
China
61.0%
2012 1H
Europe
56.6%
US Korea
2013 1H
2
Financial Summary • Income Statement • Statement of Financial Position • Cash Flow Highlights
▣ Income Statement (Unit : Billion Won)
2012 1H
as % of Rev.
2013 1H
as % of Rev.
Change (%)
Revenue
24,341
100
24,197
100
-0.6
Cost of Sales
18,499
76.0
18,863
78.0
+2.0
Gross Profit
5,842
24.0
5,335
22.0
-8.7
Operating Profit
2,317
9.5
1,831
7.6
-21.0
Income before Tax
3,074
12.6
2,440
10.1
-20.6
Net Income
2,298
9.4
1,965
8.1
-14.5
3
▣ Statement of Financial Position (Unit : Billion Won)
20122012-End
201 2013 1H1H-End
Change (%)
32,398
35,778
+3,380
Current Assets
11,139
13,928
+2,789
(Cash)
(4,271)
(5,917)
+1,646
15,550
17,137
+1,587
Debt
3,876
3,784
-92
(Net Debt)
(-395)
(-2,133)
-1,738
Current Ratio
111.4%
116.3%
+4.9%p.
Equity
16,848
18,642
+1,794
DebtDebt-toto-Equity Ratio
23.0%
20.3%
-2.7%p.
Net DebtDebt-toto-Equity Ratio
-2.3%
-11.4%
-13.7%p.
Assets
Liabilities
* Cash = Cash & Cash Equivalents + Short-term Financial Instrument ** Net Debt-to-Equity = Net Debt / Equity
4
▣ Cash Flow Highlights (Unit : Billion Won)
Net Income
Depreciation / Amortization
Tangible / Intangible Asset
572
-628
Others
-975 1,965
+934 2,837
1,903
Beginning Cash Balance
Ending Cash Balance * Above cash excludes short–term financial instruments
5
Revenue & Profit Analysis • Revenue Analysis • COGS and SG&A • Non-Operating Items
▣ Revenue Analysis Revenue by Region
Contributing Factors ▶ ASP Improvement
-0.6%
Positive
· Korea : 18.6mn → 18.9mn (+1.7%) · Export: $13.3 thou. → $13.7 thou. (+3.7%)
24,341
24,197
19%
Korea
18%
35%
North America
37%
25%
Europe
25%
21%
Other
2012 1H
20% 2013 1H
• Korea : KMC domestic revenue • North America : KMA/KCI wholesale revenue + KMMG OEM revenue • Europe : Europe sales subsidiaries’ wholesale revenue + KMS OEM revenue
Negative
▶ Won Appreciation
· USD / KRW 1,142 → 1,107 (-3.1%)
Sales by Segment 4.5% 28.8%
4.8% 27.8%
52.7%
53.4%
14.0%
14.0%
2012 1H
2013 1H A+B+C
D+E
RV
CV
• Others : KMC direct export revenue + KMAU/KMNZ wholesale revenue * Global retail sales (excluding China)
6
▣ COGS and SG&A
COGS
SG&A (% of Revenue)
(% of Revenue)
+0.0%p.
+2.0%p.
78.0% 76.0%
2012 1H
2013 1H
14.5%
14.5% 1.9
Salary & Wages
2.2
4.8
Marketing Expense
4.8
2.1
Export Expense
1.9
2.3
Warranty Expense
2.4
3.4
Others
3.2
2012 1H
2013 1H
7
▣ NonNon-Operating Items (Unit : Billion Won)
Equity Earnings
Finance Income / Expense
Other Income / Expense
-49 68 666 617
-113 +14
37 23
-45
2012 1H
2013 1H
2012 1H
2013 1H
2012 1H
2013 1H
8
Thank You http://kmcir.com
Appendix • Retail Sales by Region (Korea, US, Europe, China, Rest of World) • Overseas Plant Sales Volume & Revenue • Quarterly Income Statement
▣ Korea Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
Industry -0.7%
[YoY Growth]
▣ Segment Sales & M/S
31.4%
30.1%
-0.2% 482
480
11%
11%
25%
25%
238
2012
64%
2013(P)
28K
K3/Forte
-4.9%
(Small Sized)
(Large Sized)
25%
64% 65%
64%
2012 1H
2013 1H
PC
62%
RV
13K
K7
13%
‘12.1H Sales
CV
30.0%
11K
226
11% 24%
64%
KIA -4.9%
21.4%
8K
’13 2H Sales
’13.2H Segment M/S
▶ 1H : Despite launching of New Carens, waiting demand for K5(Jun)/Sportage(Jul) F/L led to weak sales results ▶ 2H : New model launch of Sportage F/L(Jul) and Soul(Oct)
* M/S is based on demand including imported car
9
▣ US Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
3.5%
+2.2%
31%
69%
4.0%
4.0%
KIA -3.9%
4.0% 3.4%
570 28%
[YoY Growth]
▣ Quarterly Sales Volume
4.0%
558
Industry+7.6%
3.6% 3.4%
-3.9% 289
151
277
138
31%
26%
69% 64%
64%
72%
74%
'12.1Q
'12.2Q
150
146
'12.3Q
123
127
'12.4Q
'13.1Q
Sales
2012
2013(P)
2012 1H
2013 1H PC
'13.2Q
M/S
▶ 1H : New model launch of K3, K7 and Sorento F/L ▶ 2H : Marketing focus on launch of K5 F/L(Sept), New Soul(Oct) ▶ 2H : Reinforce auto financing programs
RV
10
▣ Europe Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
2.7%
2.5%
Industry -6.6%
27%
73%
3.0%
2.8%
2.7%
+1.3%
335 32%
68%
2.7%
176
28%
31%
93 80
'12.1Q
'12.2Q
93
85
80
83
'12.3Q
'12.4Q
'13.1Q
2013(P)
2012 1H
'13.2Q
69% Sales
2012
2.8%
2.3%
174
72%
KIA +1.3%
▣ Quarterly Sales Volume
-0.9% 338
[YoY Growth]
2013 1H PC
RV
M/S
▶ 1H : Launch of New Carens & extended sales of Sportage, cee’d continued (cee’d +29% yoy, Sportage +12% yoy) ▶ 2H : Introducing New cee’d in 3DR and high performance version(GT) 11
▣ China Sales & Market Share
Analysis & Strategy
(Unit : Thousand)
3.6%
+4.0% 481 24%
28%
KIA +25.0%
▣ Quarterly Sales Volume
3.7% 3.6%
+25.0% 276
22%
23%
78%
77%
76%
2013(P)
2012 1H
64%
2013 1H PC
3.8%
3.9%
138
139
'13.1Q
'13.2Q
3.5% 147
221
64%
2012
[YoY Growth]
4.2%
500
76%
3.8%
Industry+16.0 %
RV
110
112
112
'12.1Q
'12.2Q
'12.3Q
'12.4Q
Sales
M/S
▶ 1H : K3 new model effect & strong sales of K-series and Sportage continued (K2 +10%, K5 +17%, Sportage +26% yoy) ▶ 2H : Launch of Forte & K5 F/L version Focus on dealership expansion plan (up to 670 by year-end)
12
▣ Rest of World Sales & Market Share
Analysis & Strategy ▣ Sales by Region
(Unit : Thousand)
+1.0% 852 5%
31%
64%
2012
+0.3%
Rest of World
Sales
YoY(%)
Weight
Middle East / Africa
141
+0.6%
33%
Russia
95
+4.3%
22%
Eastern Europe / Turkey
26
+20.1%
6%
Latin America
79
-3.0%
19%
Canada
37
-6.8%
9%
Asia / Pacific
51
-3.8%
12%
860 6% 28%
66%
2013(P)
428
426 5%
6%
30%
29%
64% 64%
64% 65%
2012 1H
2013 1H ▶ 1H : Strong sales of K2/cee’d in Russia & Eastern Europe
PC
RV
CV
▶ 2H : New model launch of K5 F/L & Sportage F/L expected
13
▣ Overseas Plant : KMMG & KMS KMMG
KMS (Unit : Thousand / Billion Won)
Sales
(Unit : Thousand / Billion Won)
Revenue
Sales
Revenue Revenue
Revenue
192 173 54 48
63
2012 1H
3,709
2013 1H
4,227
Change
+14.0%
* Based on standalone financials.
69
159 149 19
2013 1H
3,289
Change
+10.1%
76 74
67
68
55
2012 1H
2013 1H
2012 1H
Sorento
2,986
* Based on standalone financials.
62
Optima SantaFe
16
2012 1H
cee’ cee’d Venga
2013 1H Sportage
14
▣ Overseas Plants : DYK DYK (Unit : Thousand / Billion Won)
Sales
Revenue
276 221
22
32
64
51
28
24
14 88
Revenue
2012 1H
3,583
2013 1H
4,541
Change
+26.7%
* Based on standalone financials.
47
67
2012 1H K2
74
2013 1H
K3 / Forte K5 Sportage Others
15
▣ Quarterly Income Statement (Unit : Billion Won)
2012 1H
2013 1H
1Q
2Q
1Q
2Q
2Q’ 2Q’13 vs. 2Q’ 2Q’12 (YoY) YoY)
Revenue
11,790
12,551
11,085
13,113
+4.5%
+18.3%
COGS
9,068
9,431
8,740
10,123
(76.9)
+7.3%
+15.8%
(75.1)
(78.8)
(77.2)
2,722
3,120
2,345
2,990
-4.2%
+27.5%
(24.9)
(21.2)
(22.8)
1,085
1,231
704
1,126
-8.5%
+60.0%
(9.2)
(9.8)
(6.4)
(8.6)
1,568
1,506
971
1,469
-2.5%
+51.2%
(13.3)
(12.0)
(8.8)
(11.2)
1,201
1,096
784
1,181
(7.1)
+7.7%
+50.6%
(9.0)
Margin(%) Gross Profit
Margin (%) Operation Profit
Margin (%)
Recurring Profit
Margin (%) Net Profit
Margin (%)
(23.1)
(10.2)
(8.7)
2Q’ 2Q’13 vs. 1Q’ 1Q’13 (YoY) YoY)
16
