Q1 2018 Business Result

본 자료는 2018년 1분기 실적에 대한 외부 감사인의 회계검토가 완료되지 않은상태에서 투자자 여러분의 편의를 위하여 작성된 자료입니다. 따라서 본 자료의일부 내용은 회계검토 과정에서 변경될 수 있음을 양지하시기 바랍니다.

Q1 2018 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. Q1 2018 Review

II. Market analysis

III. Performance analysis

IV. Financials

- Income Statement

V. SYMC Focus in 2018

2

Q1 2018 Review

• Q1 2018 Total : 30,664 units (-10% vs. Q1 2017 )

- Domestic : Steady vehicle sales with Rexton brand launch effect

· Rexton Sports: 8,214 units (+40%), G4 Rexton : 4,019 units (+356%)

- Export decreased by 32% (yoy)

• F/X movements (Q1 2018 USD/KRW Avg.: KRW 1,072/USD, -7.1% yoy)

• Q1 2018 domestic market decrease : -0.6% (vs. Q1 2017)

- PC market decrease (-4.2%)

- SUV market growth (+16.3%) with new car effect

3

1,154 1,129 1,132 1,106

1,072

1,230 1,243 1,330 1,302 1,323

1,015 1,017 1,020 979 1,011

1,429 1,443 1,481 1,468 1,498

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

USD/KRW EUR/KRW 100JPY/KRW GBP/KRW

Q1 2018 avg. PriceChg. %

(vs. Q1 2017)

USD/KRW 1,072 -7.1%

EUR/KRW 1,323 7.1%

100JPY/KRW 1,011 -2.6%

GBP/KRW 1,498 4.4%

SYMC

Vehicle sales

Currency

Market

Quarterly market trend(Including imported cars)

Domestic Market Trend

4

223K267K

204K

265K224K

250K216K 224K 215K

115K

147K

111K

144K

115K

128K

142K 142K133K

28K

30K

27K

31K

30K

31K28K 26K

24K

59K

65K

48K

59K

61K

65K

57K 55K54K

27.0%28.9% 28.4% 28.8%

26.7% 26.9%

32.1% 31.8% 31.2%

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

PC SUV MPV Commercial SUV M/S

※ Unit: vehicles

(Imported cars → PC, SUV, MPV)

424K

510K

391K

499K

429K

474K443K 447K

Q1 2018 (vs. Q1 2017)

- Total market : -0.6%(Domestic makers : -4.1%, Imported : +22.6%)

- PC : -4.2%

- SUV : +16.3%

(Domestic makers : +16.8%, Imported : +13.0%)

- MPV : -16.0%

- SUV M/S : 31.2% (+4.5%p vs. Q1 2017)

- SYMC market share in total market: -0.1%p

Q1 2017: Q1 2018 = 5.7% : 5.6%

427K

Overseas Market Trend

5

Others

※ Unit : Vehicle

※ Source : Automotive News, Marklines

※ Excluding commercial vehicles

※ ( ) : SUV portion out of total market

Europe (28 Countries)

1,399K

1,398K

817K

657K

141K

173K

YTD Feb.2018

YTD Feb.2017

China

Russia

2,305K

2,433K

- Total market : +5.5%

- SUV market : +24.4%

1,827K

1,840K

1,734K

1,553K

309K

364K

YTD Feb.2018

YTD Feb.2017

- Total market : +2.2%

- SUV market : +11.6%

111K

89K

101K

77K

8K

5K

YTD Feb.2018

YTD Feb.2017

- Total market : +27.5%

- SUV market : +30.8%

PC SUV MPVOthers

(US Pick-up)

185K

236K

3,918K

4,005K

(29%)

(33%)

(42%)

(43%)

(40%)

(43%)

787K

892K

1,124K

1,020K

393K

394K

YTD Feb.2018

YTD Feb.2017

USA

2,409K

2,393K

(47%)

(42%)

- Total market : -0.7%

- SUV market : +10.2%

SYMC Sales Volume in Q1 2018

6

24,350 23,988

9,878 6,676

Q1 2017 Q1 2018

34,22830,664

-32%

-1%

-10%

※ Unit: vehicle

(29%)

(71%)

(22%)

(78%)

Sales volume decrease

- Total sales : -3,564 units (-10%)

· Domestic : -362 units (-1%)

· Export : -3,202 units (-32%)

Domestic portion increase : +7%p

- Q1 2017 : Q1 2018 = 71% : 78%

G4 Rexton

- A leading SUV model in SUV-E segment

· 52% portion in domestic SUV-E segment

Sports model sales : 9,217 units (+23%, vs. Q1 2017)

- Rexton Sports sales : 8,449 units

Domestic Export

Region-wise Export in Q1 2018

W. Europe

Asia Pacific

※ % out of export sales volume

(Including CKD)

Others

South America

54%

46%

5% 5%

25%

33%

16%16%

Q1 2017 Q1 2018

Q1 2017 Q1 2018

Q1 2017 Q1 2018Q1 2017 Q1 2018

※ Including: China

7

※ Others: ME, AF, E. Europe

Income Statement(Consolidated) / Q1 2018

CategoryQ1 2017

[K-IFRS 1018]

Q1 2017[K-IFRS 1115]

Q1 2018[K-IFRS 1115]

vs. Q1 2017[K-IFRS 1018]

vs. Q1 2017[K-IFRS 1115]

ChangeChange

(%)Change

Change

(%)

Sales 788.7 781.5 808.8 20.1 2.5% 27.3 3.5%

Cost of sales 672.7 678.6 718.7 46.0 6.8% 40.1 5.9%

Gross Profit 116.0 102.9 90.1 -25.9 -22.3% -12.8 -12.5%

SG&A 131.5 120.5 121.3 -10.2 -7.7% 0.8 0.7%

Operating Profit -15.5 -17.6 -31.3 -15.8 - -13.7 -

OP margin % -2.0% -2.2% -3.9% -1.9%p - -1.7%p -

PAT -13.9 -15.3 -34.2 -20.3 - -18.9 -

(Unit: billion krw)

8

Operating Costs / Q1 2018

Q1 2017[K-IFRS 1115]

Q1 2018[K-IFRS 1115]

+2.9%p

Cost of sales % SG&A expense %

15.3%

15.0%

※ (Cost of Sales/Sales)*100 ※ (SG&A expenses/Sales)*100

Q1 2017[K-IFRS 1115]

Q1 2018[K-IFRS 1115]

9

86.0%

88.9%

-0.3%p

vs. Q1 2017 (K-IFRS 1115)

SYMC Focus in 2018

10

Profitability

Improvement

Cost management

- Cost reduction program

with part suppliers

- Working expenses control

- SY Auto Capital

Vehicle sales

• G4 Rexton & Rexton Sports :

Production increase with

day-time 2-shift implementation

from April

• New market penetration

- India CKD (G4 Rexton) in H2

- Brazil, Australia, etc.

• 2019 : SUV model

(Korando C FMC)

• Electric vehicle & Connected car

New car development