TOM LOVELESSTOM LOVELESSVice President SalesVice President Sales

Kia Motors AmericaKia Motors America

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VEHICLE SALES AND RECESSIONS

• The volume decline over the last several years is the largest in history. Where do we go from here?

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2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

WO

RLD

WA

R I

I

20 Years

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• The Future?

� Economy

� Technology

� Demographics

• Kia

� Who are we

� Our approach

• Q&A

AGENDA

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ECONOMY OUTLOOK

• GDP is expected to return to a more normal level, providing some much needed stability to the market place.

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CONSUMER OUTLOOK

• Consumer sentiment is improving in early 2012. Pent-up demand for vehicles and other durable goods is helping on the spending side. Both are good signs.

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EMPLOYMENT OUTLOOK

• Unemployment remains high compared to historical standards but is projected to improve gradually over time.

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HOUSING OUTLOOK

• No significant sign of housing market improvement is expected until 2013. A modest recovery in home sales and construction is expected in 2012, but house prices will likely drop more over the course of 2012.

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GAS PRICE OUTLOOK

• According to U.S. Department of Energy, regular‐grade motor gasoline retail prices are expected to average $3.55 per gallon in 2012. Recent options and futures price data imply that the U.S. average pump price of regular gasoline could exceed $4 by June.

$2.81 $3.26 $2.35 $2.78 $3.53 $3.55 $3.59

2007 2008 2009 2010 2011 2012 2013

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AUTO INDUSTRY SALES OUTLOOK

• Pent-up demand, slowly improving labor market and better availability of credit will contribute to industry growth in 2012.

Forecast data source: IHS

17.0 16.6

16.1

13.2

10.4

11.6

12.8

14.7

15.6 16.2

8

10

12

14

16

18

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

SEASONALLY ADJUSTED ANNUALIZED RATE (UNITS IN MILLIONS)

Baseline Forecast 55% Optimistic 20% Pessimistic 25%

13.6

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ALTERNATIVE POWERTRAIN MARKET

• Alternative powertrains will double in volume over the next few years, accounting for about 15% of the total industry.

85%

15%

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ALTERNATIVE POWERTRAIN MARKET

• Diesel and Hybrid will grow the most. Electric vehicles will grow significantly on a percentage basis, but will remain a minor portion of the overall industry.

Diesel

Hybrid (Full, Mild)

EV (Battery, PHEV)

Hydrogen

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2012 2015In market now

RAV4 EV (2Q ‘12)

Tesla Model X (1Q/’14)Tesla Model S (2Q / ‘12) Infiniti EV (1Q/’13)

Tesla Model C (2Q/’15)

Coda EV (1Q/’12)

Ford Focus Electric (1Q/’12)

Volvo C40 EV (4Q/’13)

VW Golf EV (4Q/’13)Nissan Leaf

smart fortwo EV Mitsu i Honda Fit EV(3Q/’12)

Chevy Spark EV(4Q ’12)

BMW i3 (4Q/’13)

Fiat 500 EV(1Q/’13)

Scion iQ EV(2Q/’12)

BMW Z2 EV (1Q/’15)

Audi e-Tron (1Q ‘13)Ford Transit Connect EV

Mini E

BMW 1-Series EV

Tesla Roadster

VW Up! EV

(4Q/’13)

M-B SLS AMG (3Q/’14)

2013 2014

Nissan NV EV (1Q/’14)

Nissan Maxima (2Q/’13)

28 EV COMPETITORS BY ~2015

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POPULATION GROWTH BY AGE CATEGORY

• Population is aging

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POPULATION GROWTH BY AGE CATEGORY

• This shift will be even greater 10 years out

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INDUSTRY TRENDS – VEHICLE SEGMENTS

• The midsize and compact segments will continue to be the majority of the car market, but sub-compact and luxury segments are expected to grow.

Micro/Sub-Compact

Compact

Midsize

LargeGreenSporty

Luxury

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INDUSTRY TRENDS – VEHICLE SEGMENTS

• The CUV segments will continue to grow. The pickup segment is also expected to rebound somewhat.

Sub-Compact CUV

Compact CUV

Mid MPVOther MPV

SUV

Mid/Large CUV

Pickup

Luxury

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NEW PRODUCT INTRODUCTIONS

• The number of new model launches will be well above the historical average for the next two years.

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TOP 20 MARKETS

• The top 20 markets account for nearly half of the total industry

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TOP 20 MARKETS IN THE U.S.

1-10 11-20

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• New York and Los Angeles are by far the biggest metro markets.

Kia … Who Are We?

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KIA’S HISTORY

• Founded in 1944, Kia has evolved to become a key player in the global auto industry.

1951 Production of Korea’s First Bicycle

1998 Hyundai Automotive Group

1974 Korea’s First Domestically Produced Passenger Car

1994 Kia Enters U.S. Market

2010 Kia Motors Manufacturing Georgia Production Begins

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2011 KIA GLOBAL SALES BY REGION

NorthAmerica

Korea Europe China MiddleEast &Africa

Central &South

America

Asia &Pacific

U.S.485K

• Annual sales are nearly 2.5 million. North America has surpassed Korea as Kia’s largest market.

Global Sales 2.5 Million

551K

493K 478K 462K

263K

184K

59K

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Kia Design Center America

U.S. HeadquartersIrvine, Calif.

Kia Motors Manufacturing Georgia

755 U.S. dealers

KIA MOTORS AMERICA

• Entered the U.S. market in 1994

• More than $1.4 billion invested in U.S. market in the past decade

• State-of-the-art:– Headquarters– Design Studio– Manufacturing Plant– New Products

• Expanding dealer network

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0

100

200

300

400

500

0%

1%

2%

3%

4%

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Sales Share

U.S. SALES AND MARKET SHARE TREND

• 17 Straight years of market share growth

2011

Up 36%

2011 Sales

Up 36%

25

2012

Up 33%

2012 YTD

Up 33%

42%

SubaruKia

78%

Hyundai

61%

VW

45%

Jeep

26%

Buick

29%

• Kia is the fastest growing mainstream brand in the U.S.

THREE-YEAR GROWTH (2011 VS. 2008)

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How is Kia doing it?

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Value has become the new “cool”

Design

Brand

Network

Price

Content

Quality

• Many critical factors play a role in establishing “Value”.

“VALUE FUNNEL”

Design

Brand

Network

Price

Content

Quality

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QualityQuality

Warranty Costs

Design

Brand

Network

Price

Content

• The price of entry. A prerequisite to compete.

“VALUE FUNNEL”

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KIA MOTORS MANUFACTURING GEORGIA (KMMG)

• KMMG has been a key growth enabler– $1.1 billion investment– More than 3,000 team members operating three shifts– Created 10,000 new jobs in West Point and surrounding areas– 2012 Optima added to production line in September; 360,000

capacity in 2012

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Design

Brand

Network

Price

Content

Quality

“VALUE FUNNEL”

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• Good design evokes an emotional response.

DESIGN-LED TRANSFORMATION

• Nine all-new products in three years driving ALG residual values up 49%

Peter SchreyerChief Design

Officer

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Design

Brand

Network

Price

Content

Quality

• Brand must be relevant to consumers. Builds pride in ownership.

“VALUE FUNNEL”

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60 Soul30 Dunk

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Design

Brand

Network

Price

Content

Quality

“VALUE FUNNEL”

• Useful content that meets consumers needs and wants helps connect Consumers with their vehicle.

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Design

Brand

Network

Price

Content

Quality

“VALUE FUNNEL”

• Delight the customer. A positive experience is critical to future success

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Design

Brand

Network

Price

Content

Quality

“VALUE FUNNEL”

• Price is a function of the success level in all other factors.

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Design

Brand

Network

Price

Content

Quality

“VALUE FUNNEL”

Measure of Success

Distinctive and Athletic

Proud to Own

Relevant to Consumers

Delight the Customer

Prerequisite to Compete

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RECAP

iMarket landscape is changing with unprecedented speed- Demographic Shifts- Technological advances- Economy and Government Policy

iValue is the new “cool”

iU.S. Market is critical to Kia’s success- Capital Investment- Product Investment “Quality & responsibility”

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Thank You!

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