2013 Business Results

January 24, 2014

Kia Motors

Notes for Investors

This presentation has been prepared with unaudited

4th quarter 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

• 2014 Business Plan

• Appendix

2013 Sales Summary

• Retail Sales

• Ex-factory Sales

▣ 2013 Sales Summary : Retail Sales

1

(Unit : Thousand)

Korea

481 458

China

481 547

-4,8%

+13.8%

US

558 535

-4.0%

Europe

338 339

+0.1%

Rest of World

852 868

+1.9%

2012 2013

Global Retail Sales

2,709 2,746

+1.4%

2012 2013

* Europe : EU + EFTA

*

Ex-factory Volume by Plant

2

▣ 2013 Sales Summary : Ex-factory Sales

2,720 +4.0

1,589 +0.6

481 -4.8

1,108 +2.9

2,827

1,598

458

1,140

1,131 +8.7

292 +7.2

481 +13.8

1,229

313

547

358 +3.2 370

(Unit : Thousand)

2012 Change (%) 2013

(Unit : Thousand)

2012 2013

2,720 2,827

+4.0%

58.4%

13.2%

10.7%

17.7%

56.5%

13.1%

11.1%

19.3%

Korea

US

Europe

China

Ex-factory

Sales

Domestic

Export

Korea Plant

Europe

China

Overseas Plant

US

Financial Summary

• Income Statement

• Statement of Financial Position

• Cash Flow Highlights

Revenue 47,243 100 +0.8 47,598 100

Operating Profit 3,522 7.5 -9.8 3,177 6.7

Recurring Profit 5,164 10.9 -6.5 4,829 10.1

Net Profit 3,865 8.2 -1.2 3,817 8.0

Gross Profit 10,707 22.7 -5.8 10,086 21.2

2012 2013 Change (%) as %

of Rev.

(Unit : Billion Won)

3

▣ Income Statement

Cost of Sales 36,536 77.3 +2.7 37,512 78.8

as %

of Rev.

2012 2013 Change (%)

32,398 +3,784

11,139 +2,333

36,182

13,472

15,550 +377

3,876 -537

(-395) (-2,613)

15,927

3,339

(-3,008)

16,848 +3,407

92.3% -13.7%p.

-2.3% -17.2%p.

20,255

78.6%

-14.9%

(4,271) (6,347) (+2,076)

(Unit : Billion Won)

111.4% +13.3%p. 124.7%

4

▣ Statement of Financial Position

* Cash = Cash & Cash Equivalents + Short-term Financial Instrument

** Net Debt-to-Equity = Net Debt / Equity

Assets

Current Assets

Liabilities

Debt

(Net Debt)

Equity

Debt-to-Equity Ratio

Net Debt-to-Equity Ratio

(Cash)

Current Ratio

*

* *

(Unit : Billion Won)

+408

기 타

5

▣ Cash Flow Highlights

1,903

3,817

1,200

2,311

-1,750

-2,859

Beginning

Cash Balance

Ending

Cash Balance

Net Profit

Depreciation/

Amortization

Tangible/

Intangible Asset

Others +5,017 -4,609

* Excluding Short-term Financial Instrument

Revenue & Profit Analysis

• Revenue Analysis

• COS and SG&A

• Non-Operating Items

Revenue by Region

2013

47,243

2012

+0.8%

6

▣ Revenue Analysis

▶ ASP Improvement

· Korea : 19.0mn → 19.1mn (+0.7%)

· Export : $13.2thou. → $13.8thou. (+4.3%)

▶ Won Appreciation

· USD / KRW 1,127 1,095 (-2.9%)

Contributing Factors

Positive

Negative

Sales by Segment

A+B+C D+E RV Others

2012 2013

52.2%

4.4%

14.2%

29.2%

52.2%

4.7%

13.9%

29.2%

* Global Retail Sales (excluding China)

47,598

19.4%

25.0%

35.6%

20.0%

19.2%

26.0%

35.9%

18.9%

Others

Europe

North America

Korea

• Korea : KMC domestic revenue

• North America : KMA/KCI wholesale revenue + KMMG OEM revenue

• Europe : Europe sales subsidiaries’ wholesale revenue + KMS export revenue

• Others : KMC direct export revenue + KMAU/KMNZ wholesale revenue

3.8 3.7

2.2 2.2

2.0 1.9

5.3 4.5

2.0

2.1 77.3%

78.8%

2012 2013

+1.5%p.

(% of Revenue) (% of Revenue)

15.2%

14.5%

2012 2013

7

SG&A COS

▣ COS and SG&A

Warranty Expense

Export Expense

Marketing Expense

Salary & Wages

Others

-0.7%p.

(Unit : Billion Won)

1,414

1,320

2012 2013 2012 2013 2012 2013

36 16

192

8

Equity Earnings Finance Income / Expense Other Income / Expense

▣ Non-Operating Items

+124

-94

-20

316

2014 Business Plan

9

▣ 2014 Business Plan

2013 Change (%) 2014

(Unit : Thousand)

2,827 +4.7

1,598 +3.9

458 +4.9

1,140 +3.5

2,960

1,660

480

1,180

1,229 +5.8

313 -1.0

547 +15.2

1,300

310

630

370 -2.6 360

Ex-factory

Sales

Domestic

Export

Korea Plant

Europe

China

Overseas Plant

US

2,746 +6.2

Retail

Sales

2,918

458 +4.9 Domestic 480

535 +9.3 US 585

339 +1.1 Europe 342

547 +15.2 China 630

868 +1.4 ROW 881

*

* Europe : EU + EFTA

2013 Change (%) 2014

Thank you.

http://kmcir.com

Appendix

• Retail Sales by Region (Korea, US, Europe, China, Rest of World)

• Quarterly Income Statement

• Quarterly Global Sales Results (Retail Sales, Ex-factory Sales)

(Unit : Thousand)

CV RV PC

481

-4.8%

31.2%

2014(P)

+4.9%

29.8%

2013 2012

10

2014 Outlook & Strategy Sales & Market Share

▣ Korea

64.3%

25.0%

10.7%

61.2%

26.9%

12.0%

458 480

59.6%

29.1%

11.4%

▣ Strategy

Industry Demand : +2.4%

▣ Market Outlook

▷ Improved domestic/export economy conditions

▷ with launch of new volume models will lead

▷ demand recovery

▷ Sales growth of imported cars are expected to

continue with additional individual consumption tax

cuts and increased incentives from foreign

automakers

▷ Enhance product competiveness and profitability

with new RV models (1H : Carnival : 1H, 2H : Sorento)

▷ Other new model launch schedule

- 1H : Soul EV

- 2H : Pride F/L, Morning F/L, K9 F/L

* MS is based on demand including imported cars.

11

▣ US

2014 Outlook & Strategy Sales & Market Share

RV PC

▷ Strengthen sales of New Soul, K3 and Sportage

▷ Enhance Kia’s brand image by introducing

K900 and penetrating into luxury segment

(Unit : Thousand)

558

-4.0%

3.8%

2014(P)

+9.3%

3.4%

2013 2012

68.9%

31.1%

72.8%

27.2%

535

585

72.5%

27.5%

Industry Demand : +3.4%

▣ Market Outlook

▣ Strategy

▷ Enhanced consumer sentiment with increased

promotional activities by automakers will expand

demand growth

▷ However, possible interest rate hike caused by

tapering, growth rate is expected to slow down

compared to the previous year

12

▣ Europe

2014 Outlook & Strategy Sales & Market Share

RV PC

(Unit : Thousand)

338

+0.1%

2.7%

2014(P)

+1.1%

2.8%

2013 2012

72.5%

27.5%

66.9%

33.1%

339 342

66.1%

33.9%

Industry Demand : +2.9%

▣ Market Outlook

▷ Expand sales of New Carens and concentrate on

successful launch of New Soul and Sportage F/L

▷ Increase brand exposure in Europe through

Brazil World Cup sponsorship and marketing activities

▷ Auto demand is likely to turn positive after 7 years

of negative growth with improved sentiment and

expectation for economic recovery

▷ However, growth rate may be weak due to

still-high unemployment rate and ongoing concerns

for insolvency of southern European banks

▣ Strategy

13

▣ China

2014 Outlook & Strategy Sales & Market Share

RV PC

(Unit : Thousand)

481

+13.8%

3.8%

2014(P)

+15.2%

2013 2012

75.6%

24.4%

75.6%

24.4%

547

630

80.2%

19.8%

3.6%

Industry Demand : +7.9%

▣ Market Outlook

▷ K3 production starts from the 3rd plant in 1Q and

will introduce D1 segment sedan in 4Q as a strategic

model

▷ Penetrate into Tier 3~4 cities with dealer network

expansion (+100 more to reach 780 dealers in ‘14)

▷ In spite of capacity additions by key automakers,

slow domestic economy and stabilization will limit

demand growth compared to the previous year

▷ Competition in SUV and C segment will likely to

get intensified with more introduction of new

models

▣ Strategy

+0.9% 33%

-0.6% 6%

+5.6% 9%

-0.5% 22%

+5.0% 12%

(Unit : Thousand)

288

53

77

197

106

+1.3% 18% 160

14

▣ Rest of the World

2014 Sales Plan Sales & Market Share

CV RV PC

▣ Strategy

(Unit : Thousand)

852

+1.9%

2014(P)

+1.4%

2013 2012

63.5%

30.9%

5.6%

64.3%

30.1%

5.6%

868 881

63.6%

31.1%

5.3%

▷ Maximize sales by initiating early promotion in 1Q and

enhance dealer network competitiveness

▷ Improve brand image by sponsoring various sports events

(ex : Brazil World Cup, Australian Open Tennis Championship)

Canada

Russia

▣ Sales by Region

Sales Weight YoY(%) Rest of the world

Middle East/Africa

Eastern Europe/Turkey

Latin America

Asia/Pacific

15

▣ Quarterly Income Statement

11,790

2,722

1,085

1,568

1,201

12,551

3,120

1,231

1,506

1,096

9,068 9,431

(76.9) (75.1)

(23.1) (24.9)

(9.2) (9.8)

(10.2) (8.7)

(13.3) (12.0)

2012

11,085

2,345

704

971

784

8,740

(78.8)

(21.2)

(6.4)

(7.1)

(8.8)

1Q 2Q 1Q 2Q

13,113

2,990

1,126

1,469

1,181

10,123

(77.2)

(22.8)

(8.6)

(9.0)

(11.2)

2013

+4.3

+2.9

+60.8

+36.7

+28.7

+4.7

3Q

11,634

2,357

696

1,226

903

9,277

(79.7)

(20.3)

(6.0)

(7.8)

(10.5)

11,625

2,539

801

1,239

830

9,086

(78.2)

(21.8)

(6.9)

(7.1)

(10.7)

3Q

11,277

2,326

404

851

737

8,951

(79.4)

(20.6)

(3.6)

(6.5)

(7.5)

4Q 4Q

11,767

2,395

650

1,163

949

9,372

(79.6)

(20.4)

(5.5)

(8.1)

(9.9)

4Q’13 vs.

4Q’12

Revenue

Gross Profit

Operating Profit

Recurring Profit

Net Profit

COGS

as % of Rev.

Margin (%)

Margin (%)

Margin (%)

Margin (%)

(Unit : Billion Won)

16

▣ Quarterly Sales Result (Retail Sales)

(Unit : Thousand)

2012 1Q 2Q 3Q 4Q Change(%)

Retail Sales 635 712 686 675 2,709

Korea

U S

Europe

China

ROW

115 123 112 131 481

138 151 146 123 558

80 93 85 80 338

110 112 112 147 481

193 234 231 194 852

2013 1Q 2Q 3Q 4Q

653 730 690 672 2,746

109 118 112 119 458

127 150 139 119 535

83 93 83 80 339

138 139 124 146 547

197 230 232 209 868

+1.4

-4.0

+0.1

+13.8

+1.9

-4.8

*

* Europe : EU + EFTA

17

▣ Quarterly Sales Result (Ex-factory Sales)

(Unit : Thousand)

2012 1Q 2Q 3Q 4Q

Ex - factory

Sales 691 704 614 711 2,720

2013 1Q 2Q 3Q 4Q

702 743 630 752 2,827 +4.0

+2.9

+8.7

+3.2

+13.8

-4.8 115 123 112 131

313 300 225 270

109 118 112 119

287 305 227 321

481

1,108

458

1,140

1,589 401 337 422 429 1,598 440 340 422 396 +0.6

1,131 310 277 282 262 1,230 312 290 321 306

83 90 95 90

110 112 112 147

94 98 90 87

138 139 124 146

370

547

+7.2 69 80 70 73 75 84 76 78 292 313

481

358

Domestic

Export

Korea Plant

Europe

China

Overseas Plant

US

Change(%)