2018 Annual Business Result

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

Contents

I. 2018 Review

II. Market Analysis

III. Performance Analysis

IV. Financials

- Income Statement

V. Awards

VI. Rexton Sports “KHAN” launch

VII. Way Forward in 2019 & Beyond

2

2018 Review

3

• 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

2018 Review

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

Currency

• F/X movements (2018 USD/KRW Avg.: KRW 1,100/USD, -2.7% yoy)

2018 avg. PriceChg. %

(vs. 2017)

USD/KRW 1,100 -2.7%

EUR/KRW 1,299 +1.7%

100JPY/KRW 996 -1.2%

GBP/KRW 1,468 +0.9%

SUV

Market

4

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

1,106 1,072 1,079 1,122

1,128

1,302 1,323 1,287 1,304

1,286

979 1,011 989 1,007 989

1,468 1,498 1,469 1,462 1,451

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018USD/KRW EUR/KRW 100JPY/KRW GBP/KRW

Quarterly market trend(Including imported cars)

Domestic Market Trend

5

265K224K

250K216K 224K 215K 229K

201K229K

144K

115K

128K

142K 142K134K

149K

147K

166K

31K

30K

31K28K 26K

24K

35K

29K

28K

59K

61K

65K

57K 55K54K

62K

51K

60K

28.8%

26.7% 26.9%

32.1% 31.8% 31.3% 31.3%

34.4% 34.4%

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

PC SUV MPV Commercial SUV M/S

※ Unit: vehicles

※ Imported cars → PC, SUV, MPV / Sports models : SUV

474K499K

429K

474K443K 447K

Q4 2018 (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)

- SYMC market share

· Total market : 6.4% (+0.4%p yoy)

· SUV market : 18.3% (+0.1%p yoy)

427K 429K

483K

Domestic Market Trend

6

959K 915K 874K

517K 526K 596K

118K 114K 117K

232K 238K 227K

28.3% 29.3%

32.9%

2016 2017 2018

PC SUV MPV Commercial SUV M/S

Yearly market trend (Including imported cars)

1,825K 1,793K 1,813K

-5%

+2%

-3%

+3%

-1.8%

-4%

+13%

+2%

-5%

+1.1%

※ Unit: vehicles

※ Imported cars → PC, SUV, MPV / Sports models : SUV

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)

- SYMC market share

· Total market : 6.0% (+0.0%p yoy)

· SUV market : 17.8% (-1.7%p yoy)

Overseas Market Trend

※ Unit : Million vehicle

※ Source : IHS, SYMC

※ Excluding commercial vehicles

※ ( ) : Portion out of total market

Global demand by segments

43.6 42.1

29.5 31.8

5.4 5.0

8.3 8.6

2017 2018(F)

86.8 87.6

- Total market : +0.9%

- SUV market : +8.1%

PC SUV MPV Others (pick-up)

(36%)(34%)

(50%) (48%)

SUV demand by segments

5.9 6.7

14.315.4

6.8 7.2

2.52.5

2017 2018(F)

20% 21%

49% 48%

23% 23%

8% 8%

2017 2018(F)

SUV-A/B SUV-C SUV-D SUV-E

Sales volume Sales volume

29.531.8

- SUV-A/B : +14.3%

- SUV-C : +7.6%

Sales portion

7

SUV-E

SUV-D

SUV-C

SUV-A/B+14.3%

+7.6%

+6.6%

+0.1%

-3.4%

+8.1%

-8.6%

+8.1%+0.9%

+4.5%

SYMC Sales Volume in Q4 2018

8

26,830 31,068

10,204

9,995

Q4 2017 Q4 2018

37,034

41,063

-2%

+16%

+11%

(28%)

(72%)

Sales volume increase

- Total Sales : +4,029 units (+11%)

· Domestic : +4,238 units (+16%)

· Export : -209 units (-2%)

Domestic portion : +4%p

- Q4 2017 : Q4 2018 = 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

Domestic Export

※ Unit: vehicle (including CKD 504 units)

(24%)

(76%)

SYMC Sales Volume in 2018

9

106,677

109,140

37,008 34,169

2017 2018

143,309143,685

-8%

+2%

-0.3%

※ Unit: vehicle (including CKD 1,314 units)

(26%)

(74%)

(24%)

(76%)

Sales volume decrease

- Total Sales : -376 units (-0.3%)

· Domestic : +2,463 units (+2%)

· Export : -2,839 units (-8%)

Domestic portion : +2%p

- 2017 : 2018 = 74% : 76%

Export by region (vs. 2017)

- Asia Pacific : +116% (Australia, India CKD)

Sports model vehicle sales increase

- Total 49,367 units (+64% yoy vs. K/Sports only)Domestic Export

Region-wise Export in 2018

W. Europe

Asia Pacific

※ % out of export sales volume

(Including CKD)

Others

South America

47%

41%

5%

13%

27% 26%

20%21%

2017 2018

2017 2018

2017 20182017 2018

※ Including: India, Australia

10※ Others: ME, AF, E. Europe

Income Statement(Consolidated) / Q4 2018

CategoryQ4 2017

[K-IFRS 1018]

Q4 2017[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

vs. Q4 2017[K-IFRS 1018]

vs. Q4 2017[K-IFRS 1115]

ChangeChange

(%)Change

Change

(%)

Sales 902.2 891.2 1,052.7 150.5 16.7% 161.5 18.1%

Cost of sales 780.5 788.3 910.5 130.0 16.7% 122.2 15.5%

Gross Profit 121.7 102.8 142.2 20.5 16.9% 39.4 38.3%

SG&A 147.4 131.6 145.7 -1.7 -1.2% 14.1 10.7%

Operating Profit -25.7 -28.8 -3.5 +22.3 - +25.3 -

OP margin % -2.9% -3.2% -0.3% +2.6%p - +2.9%p -

PAT -30.2 -31.9 -4.0 +26.2 - +27.9 -

(Unit: billion krw)

11

vs. Q4 2017

Operating Costs / Q4 2018

Q4 2017[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

-2.0%p

Cost of sales % SG&A expense %

14.8%

13.8%

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

Q4 2017[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

88.5%

86.5%

-1.0%p

12

vs. Q4 2017 (K-IFRS 1115)

Income Statement(Consolidated) / Q4 2018

CategoryQ3 2018

[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

Change Change(%)

Sales 901.5 1,052.7 151.2 16.5%

Cost of sales 792.5 910.5 118.0 14.2%

Gross Profit 109.0 142.2 33.2 34.3%

SG&A 131.0 145.7 14.7 5.9%

Operating Profit -22.0 -3.5 +18.5 -

OP margin % -2.4% -0.3% +2.1%p -

PAT -18.2 -4.0 +14.2 -

(Unit: billion krw)

13

vs. Q3 2018 (K-IFRS 1115)

Operating Costs / Q4 2018

Q3 2018[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

-1.4%p

Cost of sales % SG&A expense %

14.5%

13.8%

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

Q3 2018[K-IFRS 1115]

Q4 2018[K-IFRS 1115]

14

87.9%

86.5%

-0.7%p

vs. Q3 2018 (K-IFRS 1115)

Income Statement(Consolidated) / 2018 Annual

Category2017

[K-IFRS 1018]

2017[K-IFRS 1115]

2018[K-IFRS 1115]

vs. 2017[K-IFRS 1018]

vs. 2017[K-IFRS 1115]

ChangeChange

(%)Change

Change

(%)

Sales 3,494.6 3,463.0 3,704.8 210.2 6.0% 241.8 7.0%

Cost of sales 2,978.6 3,007.2 3,242.5 263.9 8.9% 235.3 7.8%

Gross Profit 516.1 455.8 462.3 -53.8 -10.4% 6.5 1.4%

SG&A 581.4 530.7 526.4 -55.0 -9.4% -4.3 -0.8%

Operating Profit -65.3 -74.9 -64.2 +1.1 - +10.7 -

OP margin % -1.9% -2.2% -1.7% +0.2%p - +0.5%p -

PAT -65.8 -71.9 -61.8 +4.0 - +10.1 -

(Unit: billion krw)

15

Operating Costs / 2018 Annual

2017[K-IFRS 1115]

2018[K-IFRS 1115]

+0.7%p

Cost of sales % SG&A expense %

15.3%

14.2%

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

2017[K-IFRS 1115]

2018[K-IFRS 1115]

86.8%87.5%

-1.1%p

16

Awards

17

G4 Rexton in U.K.

- 4×4 of the Year Awards

- Best Value for 2 years in a row

Altruras (Rexton) G4 in India

- 2019 Auto Car Awards

- Premium SUV of this year

※ 4×4 : 4WD special magazine in UK

↑

Musso(Rexton Sports) in U.K.

- Pick-up of the year Awards

- Best Value

※ Auto Car : Automobile special magazine

(Unit: vehicle)

+64%

Rexton Sports “KHAN” Launch

18

Sales trend of Sports model

Features

- 2018 : 49,367 units +64% yoy compared to K/Sports

thanks to successful launch of Rexton Sports

- 2019 : Expectations of vehicle sales increase with

Rexton Sports “KHAN” launch

• 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

22,912 42,021

7,276

7,346 30,188

49,367

2017 2018 2019

Domestic Export

Wild Utility Deck

19

Way Forward in 2019 & Beyond

Profitability

priority

Capacity rate increase

- Expectations of cost

reduction effect

Sales volume increase

- Domestic : Steady vehicle sales growth with

new car effect and tax support

- Export : Focus on W. Europe, Australia

and India

Capital increase for

new car development

- KRW 50 bn from M&M

Continuous focus on

new car development

- EV : 2020 (Target)

- New RV models

New model launch schedule

- Rexton Sports “KHAN” (Jan.)

- Korando C FMC (Mar.)

- Tivoli F/L (H1)