Hello, this is Pamela Yun, Head of Investor Relations at Kia. Let me begin the fiscal year 2026 Q1 earnings results, starting with the sales summary, followed by the consolidated income statement, earnings analysis, and the consolidated balance sheet.

First off, the global retail sales performance as of Q1 2026. The global industry demand declined by 7.2% YoY due to the downside to NEV purchase tax exemption policy in China, which is the largest automotive market, and the base effect following strong pre-demand in the U.S.

prior to the tariff impact in April 2025. Kia Q1 global retail sales witnessed a 3.7% growth YoY, marking 780K units, despite the decline in industry demand led by solid HEV, EV sales and launch of the new Telluride and Seltos, recording 4.1% of the global market share, exceeding 4% level for the first time.

By market, domestic sales skyrocketed by 5.3% YoY, reaching 142K units, centered on EVs, including EV3, EV5, PB5, while trends by reinforced EV subsidy. In the U.S.

market, HEV-centered sales continued ranging from the new Telluride IC model launched early this year to its HEV model launched in February, on top of the Sportage and Carnival. As a result, our sales increased by 4.1% YoY, recording 5.6% market share.

In the Western European market, underpinned by sales expansion of our volume models, Sportage, launched of the EV2, and the net increase effect of EV4, EV5 released in the second half of 2025, the sales increased 1.2% YoY, marking 140K units. In the Indian market, the new Seltos launch effect and the Sonet benefiting from GST cut since late September last year boosted up the sales to 84K units, a 11.6% increase YoY.

In Chinese market, the sales increased 6.5% YoY, backed by Kia 3, Seltos, and other key models, despite the NEV policy adjustments, while emerging markets such as Latin America and CIS realized 20% or higher growth, thanks to the increased supply from Chinese plants and SOP initiation in Kazan plant from Q4 2025. On the other hand, due to the prolonged war in the Middle East since late February, major countries in MEA region have suffered from demand reduction and supply disruption for distributors, resulting in a 15.6% decrease YoY.

Next is our electrified vehicle sales summary. In Q1 2026, electrified vehicle sales increased by 33.1% YoY to 232K units, driven by Kia's flexible powertrain strategy, aligned with shifting demands in each market, amid strong demand for HEVs in the U.S.

and EVs in Western Europe. As a result, the mix of electrified vehicle in our global sales expanded by 6.6 percentage points, from 23.1% in Q1 2025 to 29.7% in Q1 2026, while HEVs and EVs accounted for 17.6% and 11% respectively.

In the HEV segment, a strong sales momentum of Sportage and Carnival HEV, added on the launch of Telluride HEV in the U.S. and Seltos HEV in Korea, resulted in a 32.1% increase YoY, marking 138K units.

Consequently, Kia's HEV market share in the U.S. expanded from 6% in 2025 on a full-year basis to 7.5% in Q1 2026, consistently raising our standing in the market.

Moving on to EV, in Korea and Western Europe, the net increase effect of EV4, EV5, and Kia's first PBV model, PB5, contributed to 86K unit sales, which is a 54.1% increase YoY. The EV market share in Korea and Western Europe grew significantly from 28.2% and 4.

1% each in 2025 on a full-year basis to 39.1% and 5.2% in Q1 2026 as a result. Following is the regional wholesale performance.

In Q1 2026, Kia wholesale sales increased 0.9% YoY to 780K units by major region. NA saw 252K unit sales, backed by the new Telluride launch and HEV-centered sales expansion, achieving Q1 business plans, while the sales decreased YoY by 2.1% due to strong base effect following wholesale expansion prior to tariff impact in Q1 last year.

In Europe, sales increased 3.8% YoY, recording 153K units, owing to expanded sales of Sportage and Sonet PHEV, the EV2 launch with the start of production in Slovakia plant from February, as well as the sales growth of EV4 and EV5. In India, based on the new Seltos launch and solid sales of the Sonet, benefiting from GST cut as mentioned earlier, sales grew 11.6% YoY, marking 84K units.

Finally, in the rest of the world, the conflict between the U.S. and Iran resulted in the blockade of Strait of Hormuz and supply disruption to distributors in the region, dropping the wholesale sales by 31.2% YoY in the MEA region.

In Latin America, countries with the strong demand such as Colombia and Ecuador raised export volume from domestic and Chinese plants, resulting in 34.6% growth YoY. Taken together, despite the sales disruption in MEA countries, Kia succeeded in achieving its quarterly business plan, hitting the record high Q1 sales of 780K units.

Next, the income statement. Despite limited growth and consolidated sales volume, revenue for Q1 2026 came in at 29.502 trillion won, up by 5.3% YoY, supported by higher ASP resulting from positive price effects and favorable exchange rate.

As for operating profit, due to the impact of the U. S.

tariff, increased incentives mainly in overseas markets, and the impact of FX valuation on warranty provisions resulting from a sharp rise in the quarter-end won-dollar exchange rate, the figure decreased by 26.7% YoY to 2.205 trillion won. Accordingly, the operating profit margin declined by 3.2 percentage points YoY to 7.

5%. Pre-tax profit and net profit also fell by 18.8% and 23.5% YoY respectively to 2.635 trillion won and 1.8 trillion won.

Next, operating profit analysis. Let me walk you through each factor behind the changes.

The impact of the U.S. tariffs was fully reflected over the three months since the beginning of Q1 2026, leading to a profit decrease of 755 billion won YoY.

In addition, intensified competition in North America and Europe pushed up total incentives by 215 billion won YoY, reducing earnings. The sharp rise in quarter-end exchange rates resulted in an additional cost increase of 75 billion won, mainly due to FX valuation on warranty provisions regarding volume effect.

Although consolidated sales volume increased by 0.4% YoY, a slight deterioration in the regional mix due to sales declines in regions such as the Middle East and Africa led to a 44 billion won YoY drop in earnings. Even amid the challenging business environment, Kia generated 49 billion won in positive price effects through enhanced product value added with the launch of the new Telluride and Seltos, and by expanding sales of high-margin models such as the Telluride and Carnival in the U.S., it delivered 143 billion won in mix effect.

Furthermore, favorable won-dollar and won-euro exchange rates contributed to an additional 93 billion won increase in earnings, leading to 2.205 trillion won of operating profit for Q1 2026, down by 804 billion won YoY. Next, revenue analysis.

First, the regional sales data on the left showed that consolidated revenue increased by 5.3% YoY. Despite ASP increases centered on HEV and SUV models, the share of North America declined by 0.

2 percentage points from 42.5% in Q1 2025 to 42.3% in Q1 2026 due to lower wholesale volume. The share of domestic revenue came in at 17.6%, the same level as in Q1 2025, supported in part by a 4.1% increase in ASP.

In Europe, we witnessed improved sales led by new EV models, a relatively high EV sales mix, and favorable won-euro exchange rates, which increased the share of Europe by 1.4 percentage points YoY to 24.4%. The share of India remained at around 5%.

Moving on to the ASP changes on the right, supported by expanded sales of HEVs and EVs centered around advanced markets including the U.S. and Europe and favorable foreign exchange effects, global ASP increased by 4.9% YoY to 39.9 million won in Q1 2026.

Domestic ASP also rose by 4.1% YoY to 35.9 million won, maintaining its growth momentum. Next, cost of sales and SG&A.

Revenue expansion supported by higher ASP and favorable foreign exchange effects was offset by the U.S. tariff impact mentioned earlier, driving up the cost of sales ratio by 2 percentage points YoY to 80.3%.

For your reference, excluding tariff impact, the cost of sales ratio in Q1 2026 was 77. 8%.

The SG&A ratio for Q1 2026 went up by 1.2 percentage points YoY to 12.2%. One of the main drivers was the significantly weaker impact of FX valuation on warranty provisions, with the quarter-end won-dollar exchange rate reaching 1,513, leading to a 1.4 percentage point increase in the sales warranty expense ratio.

Next, non-operating income. First, equity method gains declined by 47 billion won YoY to 128 billion won due to weaker earnings from affiliates.

Financial and other non-operating income rose by 243 billion won YoY to 302 billion won, mainly due to an improvement in foreign exchange translation gains and losses. As a result, non-operating income for Q1 2026 recorded 430 billion won, up by 195 billion won YoY.

Next, the balance sheet. As of the end of Q1 2026, the total value of assets stood at 105.

36 trillion won, up by 6.381 trillion won from the end of 2025. The main drivers include higher liquidity, increase of accounts receivable, expanded inventory assets, and higher equity in affiliates.

Total liabilities at the end of Q1 2026 went up by 5.933 trillion won from the end of 2025 to 43.72 trillion won. Despite a 96 billion won reduction in borrowings, the figure increased from the end of 2025 due to higher accounts payable, expanded sales warranty provisions, and the reflection of over 2.6 trillion won of accrued dividends.

Total equity increased by 448 billion won from the end of 2025 to 61.638 trillion won. Although the debt ratio rose by 9.1 percentage points from that of the end of 2025 to 70.

9% due to the impact of accrued dividends, it dropped by 1 percentage point when compared to the figure at the end of Q1 2025. This concludes the presentation on Kia's Q1 2026 earnings results.

Thank you. Next, CFO SP, Sung Jun Kim will deliver a review on Kia's earnings for Q1 2026 and business outlook for Q2.

Hello, this is CFO, SP, Sung Jun Kim of Kia. The Q1 earnings will be divided into the sales and the profitability.

As mentioned earlier by Mr. Yun, I think the overall explanation is well delivered when it comes to Q1 sales.

We have reached the global market share of 4.6%. During the COVID-19 era, there has been a short-term impact due to the shortage of the semiconductors.

Before, we have surpassed the level of 4% for two times. However, this year, the global brands are fast advancing into the global markets.

The sales growth were not concentrated in the specific regions. However, we had a very balanced growth, reaching the 4.6% of the market share of the global market.

I believe that this was one of the great transitional points when it comes to our sales growth. To add on some explanation on the profitability as well, compared to Q1 last year, we have been under the full impact of the tariffs, and the OP has decreased about 800 billion won, and about 750 billion won is due to the tariff impact.

Excluding the tariff impact, I believe these numbers are quite similar to that of Q1 last year. Compared to Q3, OP has increased.

OP was 3.1%, and this Q1 it has been upgraded to 7.1% once again. Last Q3 was the lowest point, and now we are continuously increasing after Q3 throughout the Q1 of 2026.

I believe that you are wondering the annual sales of 2026, especially the Q2s. When it comes to any region, sales will be launched as of April 1st, as well as the hybrid model.

When it comes to Telluride, we will sell the Telluride model for Q2 in a full swing. When it comes to Europe, ranging from EV2 to EV5 to EV6, we have established the mass market EV lineup.

We are currently expanding the EV lineup in the European region as well, and when it comes to emerging markets including India, we are trying to expand the sales of the region-specific models. Last year, we have suffered a lot in the European region, and partially it was due to the transitional points from the ICE to the EVs, and there has been some discontinuation of the existing models last year.

However, since March and April this year, we believe that our European market sales are once again increasing, overcoming the uncertainties and difficulties of the past. Since Q2 2026, as we have announced in the recent CI Day, we believe that we can maintain the business plan for this year as it is.

I think some of you are wondering the external risks of 2026 as well. The raw material price increase and the war in the MEA region would be the prime examples.

When it comes to raw material price increase, not only the oil price, but aluminum, nickel, rhodium, and palladium could be the great examples. It has been impacting our revenue since March.

When it comes to the oil price, even though the war comes to an end this year, I believe that the oil price will be maintained on the level of $100, bringing about the additional cost increase risks. We are currently selling about 216K units of our models to the MEA region.

However, we believe that there is room for our recovery in other regions such as India in order to cover up the losses in the MEA region where there is a war still going on. Of course, there could be some shortage in the other regions this year.

However, we will try very hard to offset the losses in the other regions such as India. That is our current take.

When it comes to the raw material price increase, I believe that you are wondering of a specific number. Of the OP of 10.21 trillion won of the revenue this year expected, I believe that the raw material price increase will impact about 5%, and when it comes to the war impact, it will be around 2 to 3%.

However, we believe that we need to fully respond to the price competitiveness, cost competitiveness, responding to the sales price of the Chinese brands, and this is the part that we have been working very hard from the past. I am very confident that we have spare no effort to increase the price competitiveness from the past up until this quarter.

At the moment, KI, we presented an annual OP of 10. 21 trillion won, and ideally we are going to hit toward the number.

This concludes the presentation on Q1 2026. Thank you.

From now, we are going to take questions, please follow the instructions from the operator. 지금부터 질의응답을 시작하겠습니다.

질문이 있으신 분들은 전화기 버튼에 별표와 1번을 눌러 주십시오. 별표와 1번을 누르신 순서대로 발언 기회를 드리겠습니다.

질문을 취소하고 싶으신 분들은 별표와 2번을 누르시면 됩니다. Now Q&A session will begin.

Please press star 1, that is star and 1. If you have any questions, questions will be taken according to the order you have pressed the number star 1.

For cancellation, please press star 2. That is star and 2 on your phone.

다음으로 질문해 주실 분은 삼성증권의 이문영님입니다. The first question will be provided by Yun Young Lim from Samsung Securities.

Please go ahead with your question. 네, 안녕하세요 삼성증권 이문영입니다.

저 질문 기회 주셔서 감사합니다. 저 두 가지 질문 드리고 싶은데 첫 번째는 그러니까 아까 그 본부장님이 원자재 가격 효과라든지 아중동 수출 영향 이런 것들에 대해서 부정적인 요인 말씀해 주셨는데요.

그게 긍정적인 요인 관련해서는 저희가 환율이 워낙 약세니까 이걸로 좀 상쇄할 수 있지 않을까라고 생각을 하고 있는데 이게 다만 판매 대수 전체 판매 대수가 줄어들거나 하면 또 환율 효과를 저희가 볼 수가 없잖아요. 그래서 이거 관련해서 두 가지 질문인데 일단 원달러 10원 움직일 때 영업이익의 센서티비티가 어떻게 되는지 그리고 지금 저희가 부품사 화재 때문에 2분기 생산 차질이 나는 걸로 저희 알고 있는데 이게 2분기 어느 정도 생산 차질이 있을지 말씀해 주시면 좋을 것 같고요.

그리고 두 번째는 OP 증감 분석에서 인센티브 2천억 증가했다라고 해주셨는데 저희가 알기로는 미국 인센티브 같은 경우는 전년이랑 거의 비슷하지 않았나요? 이게 그러면 유럽 쪽 인센티브인지 지역별로 어느 쪽에서 주로 인센티브가 증가를 했는지 그리고 앞으로 인센티브 추이는 어떻게 될 건지 아까 유럽에서 향후에 좀 좋을 거라고 말씀을 해주셨으니까 그러면 올해 인센티브가 좀 다시 줄어드는 플러스 효과로 들어올 수 있는지 이거 가이던스 주시면 좋을 것 같습니다.

감사합니다. Hello, this is In-won from Samsung Securities.

Thank you for giving me the opportunity to ask a question. I have two questions in total.

First is on the raw material increase and the negative impact of the MEA region's exports, as SP Kim has just mentioned. I believe when it comes to the negative impact, it can be offset by the positive impact, which is the high FX rate.

However, at the moment, if the total sales are going down, we believe that high FX rate is not enough to offset the negative impact. I would like to understand what is the OP sensitivity of Kia if 10 won of differences occur between the FX rate of won and dollars.

I believe that the vehicles that are being produced in the U.S. are continuously increasing.

I would like to understand the specific number in Q2 based on the expectation. My second question is on the operating profits ups and downs.

You have mentioned that there has been an increase of the incentive about 200 billion won. I believe when it comes to the U.S.

numbers, it is very similar to that of last year. Then if the increase from the European region, I would like to understand the updates going forward, and I wonder whether there could be any possibility of the increased incentive going down this year.

Thank you. 네 질문 주신 거 답변을 드리겠습니다.

일단 원달러 10원에 따른 임팩은 제가 구체적으로 얼마가 늘어납니다 말씀드리는 것보다는 저희가 매출 연간으로 120조 원이고 이거에 해당되는 외화 매출액이 얼마인지는 너무나 잘 아실 것 같고요. 그 다음에 이 외화 매출액에 10원 변동이 있을 때 저희가 순 외화 매출액 대비 그러니까 외화로 나가는 재료비라든지 여러 가지 비용들이 있거든요.

이 금액이 많지는 않습니다. 그렇다면 제가 숫자를 구체적으로 말씀드리는 것보다는 대략 어느 정도 임팩이 영향이 좋은 점이 있겠다라고는 저보다는 너무 더 잘 아실 것 같고요.

제가 원달러 환율을 굳이 앞에서 말씀을 안 드렸던 이유는 환율 영향에 따라서 저희가 베네핏을 본다거나 이런 회사가 아니라는 것 좀 말씀을 드리고 싶었고요. 저희가 신차 가격 결정이나 목표 수익성 결정할 때는 지금 이 환율이 아니라 훨씬 더 보수적인 환율로 가격 결정이나 목표 수익성을 세팅하고 있습니다.

그에 따라서 환율이 좋아지게 되면 분명히 저희한테는 플러스 요인이 있고 그렇기 때문에 그런 것들이 저희 기아가 어떻게 보면 좋은 탄탄한 수익 구조를 유지할 수 있었던 원동력이 아닌가 싶습니다. To answer your first question, when it comes to the FX changes between won and dollars, I would like to mention the won revenue first.

Based on won, our revenue is about 123 trillion won, and I believe based on the revenue of won, you will be able to calculate that of the dollars as well. I think it's not appropriate at the moment to mention the changes of the dollar-based revenue whenever there is a 10 won difference between the dollars and won.

However, it is true that there would be some changes when it comes to the material cost that we have to pay in dollars. Based on my explanation, I believe that you will be able to understand the changes that is coming from the won and dollar changes or differences.

Earlier I have not mentioned the FX rate, and I want to tell you that Kia is not the company that is benefiting from the slight changes of FX rate. Whenever we set our pricing or the incentives for the new model, we take a very conservative approach and set our standards for the pricing and profitability.

If the FX rate goes up down the road, it is very true that our profitability will go up. I believe this kind of calculations was one of our drivers that made the Kia of today.

두 번째 질문 주셨던 2분기 생산 차질에 관련돼서는 저희가 임팩이 있던 안전공업을 말씀을 하셨던 것 같고요. 모닝이나 피칸토가 모닝 그다음에 스토닉 같은 차종에 차질이 분명히 있었습니다.

약 한 2만대 가까운 물량 차질이 있었지만 기아가 어떻게 보면 엔진을 다변화해서 저희가 임팩이 좋았던 점은 대신에 전기차 물량 전환을 더 했고요. 실제로 생산 차질은 그 반 이하로 줄였고 5월 이후로는 생산 차질은 없을 겁니다.

Regarding your second question on the production disruption, I think you have mentioned about the production disruption. There has been a disruption, accounting for 220 units, including the Morning and Picanto.

However, based on our engine verification, we were able to have a transition towards the EVs. We are able to offset the losses up to half, and I believe from May this year there won't be any additional production disruptions.

마지막 인센티브 영향은 너무나 잘 아셔야 되네요. 저희보다 더.

미국은 변동 별로 없습니다. 대신 유럽이 늘어난 부분이 제일 크고요.

유럽 쪽은 다른 이유라기보다는 중국 업체들이 유럽에 지금 penetration이 아주 좋고요. 그럼 그거에 대한 저희는 대응이 있어야 된다고 보여졌고 그 부분에 대한 인센티브 집행이 늘어난 건 사실이고 이거를 단기간에 다 줄여나가기는 쉽지 않을 것 같고요.

올해는 1분기 수준의 인센티브는 계속 유지할 것으로 예상하고 있습니다. Regarding your second question, which is the second part about the incentive impact, I think you are better understanding when it comes to incentive trends than us.

When it comes to the U.S. region, the incentive level is very similar to that of last year.

However, it is true that the incentive for the U.S. region has increased due to the fast increase of the Chinese brands in the European markets.

We thought that we need to slightly increase the incentive in order to respond to the fast penetration of the Chinese brands in the region. However, we believe that we cannot revise the incentive level downwards in the short term.

Throughout Q1, the current incentive level will be maintained. 다음 질문을 받겠습니다.

다음 질문 please. 다음으로 질문해 주실 분은 신영증권의 문영권님입니다.

The following question will be presented by Young Kwon Moon from Shinyoung Securities. Please go ahead with your question.

안녕하세요. 저 신영증권 문영권입니다.

질문 기회 주셔서 감사합니다. 저 두 가지 질문 드리겠습니다.

일단 첫 번째는 판보정인데요. 이번에 저희 기말 환율로 인해가지고 판보정 증가한 게 한 2천억 좀 넘게 있었다라고 말씀을 해주시긴 했는데 이거 제외하더라도 거의 1조 가까운 금액이 있었던 것 같고 매출액 대비 비율이 한 3.7%였던 것 같습니다.

저희가 작년에 이런 품질 리스크 같은 거 사전적으로 좀 모니터링하는 조직 이런 걸 내부에 만들으셨고 이런 것들을 좀 엄격하게 하겠다라고 말씀을 해주셨던 거는 기억을 하는데 저희가 예전에는 한 2% 중반 이렇게 하던 비율이 최근에 들어서는 지난 세 개 분기 중에 판보정 비중이 제일 낮았었던 게 한 3.9%였던 것 같거든요. 개발 환율 효과 제외하더라도 혹시 이게 저희가 전체 판매 중에서 전기차가 한 10% 이상 올라가면서 전기차 판매 증가에 따른 판보정 비용이 앞으로는 3에서 4% 정도로 유지가 돼야 된다고 봐야 되는지 좀 궁금하고요.

그다음에 두 번째로는 저희 수출 관련된 질문입니다. 저희가 지금 1분기 때 국내 공장 수출이 전년이랑 유사한 수준을 기록을 하시긴 했는데 이게 한 2년 3년 전 대비랑 비교해 보면 한 10% 정도가 줄어든 것 같습니다.

저희가 유럽에서도 전기차 현지 생산을 할 계획이고 그다음에 북미에서도 하이브리드 만들시고 또 전기차는 지금 당장 북미 미국으로 많이 보낼 필요가 없다 보니까 이 아중동 사태로 인해서 조금 국내 공장 수출이 신흥시장 해외 현지 생산 확대랑 맞물려서 조금 하반기 때나 이럴 때 좀 경향이 있지 않을까 좀 이렇게 보고 있는데요. 혹시 올해 국내 공장 연간으로 25년 대비 물량 증가를 어느 정도 보고 계시는지 답변 가능하시면 좀 부탁드리겠습니다.

감사합니다. Hello, this is Munyong Kwon from Shinyoung Securities.

Thank you for taking my question. I have two questions.

First is on the warranty provisions. Because of quarter and exchange rate fluctuations, the warranty provisions have increased by 200 billion won.

Even if we exclude the impact of 1 trillion won, it's still very high compared to 3.7% towards revenue ratio. I'd like to ask that previously you mentioned about your quality risk sensing organization and you're going to rigorously sense any risks related to quality issues.

You previously said that 2% range was maintained. This was the first time we see this high increase of warranty provisions compared to previous quarters.

Even excluding the quarter and exchange fluctuations, as we increase EV sales volume overseas, provisions on EVs are going to increase, I believe. Should we expect that it is going to increase by 3 to 4% range?

My second question is about exports from domestic market. For Q1, the volume of domestically produced vehicles was around the same as previous quarters, but compared to six years ago, it has slightly decreased by about 10%.

In European market, EV local production is projected to be expanded, and in North America, hybrid volumes will increase as well. As we don't have to send a lot of EVs to the U.

S., I'd like to talk about the situation in the Middle East first. Are we going to have a second half impact on domestically produced vehicles volume?

Should we expect that compared to 2025, the volume will change slightly to this year? Thank you.

먼저 첫 번째 질문 주셨던 판보정 비율 관련돼서 아마 1조 2천억은 올해 저희가 쌓아놓은 총 금액을 보고 말씀을 하신 것 같고요. 전년 대비로 전년 1분기 대비로는 약 4,400억 정도 늘어난 건 맞습니다.

이 중에 2,500억 정도는 외화로 갖고 있는 저희가 외화 판매분 충당금 부채에 대한 환평가고요. 나머지 늘어난 부분도 저보다 더 잘 아시는 것 같아서 드릴 말씀이 없는데 전기차 판매 비중이 늘었고요.

확실히 늘어났고 그에 따른 대당 워런티 충당금 규모 차이 때문에 그렇습니다. 실제로 출시 판매 초기에 1년 2년 3년 4년차 가면서 대당 쌓게 되는 충당금 금액 대당 금액이 줄어들긴 하는데 저희가 올해 신차가 나오면서 그 EV에 대한 충당금 쌓아야 되는 규모가 늘어난 게 맞습니다.

ICE보다 EV가 부품 가격이나 이런 것 때문에 더 높고요. 대당 워런티 비용은.

근데 그게 또 1년차에 신차 초기에 더 높은 상황이다 보니까 이 부분이 높게 나타났고 다만 이게 2년, 3년, 4년차 되면서는 분명히 빠지는, 줄어드는 영향이 있을 겁니다. 그 부분은 너무 염려 안 하셔도 될 것 같습니다.

Let me address your first question. You mentioned warranty provision first, and you were right on the mark when you said that we have 1.2 trillion won of total warranty provisions, and compared to Q1 2025, the figure has increased by 440 billion won, and among the figure, 250 billion won was because of FX valuation on warranty provisions.

I believe you are well aware of this, but we are experiencing a high increase in the EV share, and this has an impact on per unit warranty provision scale. In the first initial phases of the new model launch, about one to four years, we have no choice but to see an increase in warranty provisions.

Over time, the figure is bound to decrease. This year, we had a lot of EV launches, so that's why we have a high increase in warranty provisions, because ICE parts have lower parts prices than EVs.

EVs parts are more expensive, and this is because a lot of new launches are in their first year of the model cycle. Down the road, about two to three and four years down the road, we're going to decrease the warranty provisions.

I believe you don't have to worry about that that much. 두 번째로 국내 공장 물량 부분에 대해서는 아중동이 계속 된다면 올해 물량 차질은 분명히 있을 거긴 하지만 저희가 올해 사업계획을 수립하면서 전년 대비 6%가 넘는 판매물량 성장을 계획을 했고요.

일정 부분 아중동 쪽에 차질이 생긴다고 하더라도 국내 공장에서 수출하는 물량이 전년 대비로 줄지는 않을 거고요. 오히려 조금 더 늘어나는 상황입니다.

계획상으로는 전년 대비 5% 성장하는 기준이긴 한데 일정 부분 아중동이 차질이 생기더라도 중남미나 이쪽에 오히려 저희 요청이 더 있는 상황이고 전년 대비 후퇴하는 일은 없을 거라고 지금까지는 판단하고 있습니다. Regarding the production volume decrease, even if we have Middle East situation prolonged, we're not going to have that many disruptions on our volume, and our business plans included a 6% growth YoY of volume.

Even if the situations in the Middle East intensify further, exports from domestic plants will remain similar or even increase. Our business target was a 5% increase in volume.

Even if there are some difficulties in our businesses in the Middle East, there will be more requirements from Central and South America rather. We believe there is not much impact on domestic volume.

추가적으로 말씀드리면 저희가 지금 이머징 마켓 전체에서의 전반적인 수요환경은 상당히 양호합니다. 그래서 인도, 그다음에 지금 말씀하셨던 중남미라든지 그다음에 저희 나머지 아태지역도 대략 2분기 저희가 80% 이상 수요 성장을 보고 있고요.

그래서 지금 국내 이런 지금 신시장에서의 수요를 대응하는 공장이 주로 국내 공장하고 중국 공장입니다. 그래서 국내 공장도 지금 전반적인 공급을 계속 늘려가고 있고요.

그다음 중국 공장도 계속 수출이 확대되면서 올해 지금 국내 공장 한 5%, 중국 공장은 대략 10% 이상 전체적인 생산을 늘려갈 계획입니다. I'd like to add something on his explanation.

When it comes to the total demand from emerging markets, the demand environment we have today is very favorable. In markets including India, Central and South America, and Asia Pacific regions, we have experienced a higher than 10% growth in Q2.

This shows that we have a lot of growth in demand, and plants that address the demand from emerging markets include domestic plants and Chinese plants, and both plants are increasing their volume. In particular, we're expanding exports from Chinese companies.

The figure for domestic markets is 5% and the figure for Chinese markets is more than 10%. 다음 질문을 받겠습니다.

Next question, please. 다음으로 질문해 주실 분은 메릴린치 증권의 황경재님입니다.

The following question will be presented by Kwangpyo Hong from Macquarie Securities. Please go ahead with your question.

네, 질문 기회 주셔서 감사합니다. 메리츠 홍광표입니다.

저 두 가지 질문이 있는데요. 첫 번째는 이제 인도인데, 일단 저희가 1분기에 사업 수요에는 살짝 못 미쳤지만 그래도 많은 성장을 딜리버 해주셨는데 이게 지금 보면은 인도가 성장성이나 GST rationalization 이후 성장성이 좋게 나오긴 하는데 회사들이 다 마진 우려 원가단 상승 우려를 좀 얘기하고 실제 현대 모터 인도 법인 같은 경우도 대략 한 차값을 한 1%씩 다 올리겠다는 얘기를 좀 하거든요.

그래서 저희는 가격 대응은 어떻게 하실 건지 그리고 하반기에 예정된 가솔린 가격 택스 세금 올라가는 부분이 있어서 이거에 대한 대응이 이제 아마 저희가 하이브리드 믹스나 배터리 EV 믹스 상대적으로 낮은 시장이고 그렇다 보면 이제 저희가 CNG로 대응을 하실 건지 조금 하반기 성장 전략 특히 앞서서 인도에서 성장성을 하이라이트 해주셨으니까 그 부분 좀 설명해주시면 감사드릴 것 같고요. 그리고 두 번째 질문은 간단히 언급해주신 거에 한인데 서유럽에서 저희가 EV 믹스가 나면서 믹스가 올라가시면서 인센티브가 줄어들 거라고 저희가 작년에 얘기를 많이 했었던 것 같은데 실제 이 정도 수준이 이어진다고 하면 저희가 올해 보는 유럽 서유럽 전체적인 수익성 수준이 어느 정도 좀 궁금하거든요.

그래서 물론 정확한 숫자로 서유럽이 몇 프로다 말씀은 못 주시겠지만 수익성 트렌드나 신규 모델들 나와서 익스펜션 되는 거에 따라서 마진 효과나 방향성에 대해서 좀 설명해주시면 저희가 실적 추정하는 데 도움이 많이 될 것 같습니다. 감사합니다.

Hello, this is Hong Kwangpyo from Macquarie Securities. I have two questions.

The first one is on India. In Q1, you showed an excellent growth trend, although that was slightly falling short of industry demand.

In India, growth potential is huge, and due to the GST cuts, you have a lot of potential there. There are also some concerns about cost increase and the downside risks on margins.

As for the HMG subsidiary, the presence of steel are expected to increase by 1%. How are you going to respond to price increases?

In the second half of the year, there will be tax increases for gasoline. What are your response strategies in order to respond to this tough situation?

How are you going to execute your growth strategies in a market where the battery EV mix is very low? Could you elaborate on your strategies on growth in India again?

Second of all, in Western Europe, the EV mix is continuously increasing, and last year you mentioned that this will exceed total incentives. Then how would you expect the profitability in the Western European market would be in total?

Could you provide some specific numbers on profitability trends and new models launches? There will be some impacts on margins or figures that some directions.

Could you please provide some specifics so that we can estimate figures down the road? Thank you.

첫 번째 인도의 가격 인상 부분에 대해서는 저희가 인위적으로 가격을 추가로 더 올리거나 할 계획은 현재로는 아직은 없습니다. 그러니까 인플레이션이나 물가 상승에 따라서 자연적으로 올라가는 부분이 있으면 그 부분에 따라갈 텐데요.

저희가 시장에 앞서서 먼저 가격을 올려서 대응할 계획은 아직은 없습니다. 그리고 두 번째 말씀드렸던 서유럽 인센티브 부분에 대해서는 작년에 제가 작년 초에 이 자리에서 말씀드릴 때는 EV 신청하다 나오면서 인센티브는 줄여가겠습니다라고 말씀드렸는데 사실 그 약속은 제가 지키지 못했고요.

그 이유는 지금 중국, 앞서도 말씀드렸지만 중국 업체들의 어떻게 보면 저가 EV 차종에 대한 공격이 들어와 있고 일부 유럽 국가에서는 시장 점유율 늘어나는 부분이 저희가 생각했던 것 이상으로 너무 빨랐고요. 또한 저희와의 가격 격차가 거의 25% 가까이 나는 부분이다 보니 그 부분에 대한 일정 부분 저희가 인센티브 증액을 시행하게 되었고 그럼에도 원유로 환율의 도움도 있긴 했지만 지금 현재 유럽 지역의 이익률은 하이싱글 정도의 이익률은 지금 현재 보이고 있습니다.

네, 안녕하세요. 질문 기회 주셔서 감사합니다.

두 가지 여쭙겠습니다. 좀 전에 맥쿼리 증권의 질문에서 답변을 주시길 중국 쪽 위협이면서 인센티브 상승 포멘트를 주셨는데요.

저는 볼륨 관점에서 올해 저희가 연초에 제시해 주셨던 볼륨 성장 가이드가 지켜질 수 있을지에 대해서 우려하고 있습니다. 아시겠지만 지금 1분기에 중국 자동차 수출이 YoY로 60% 증가해서 223만 대가 밖으로 나왔거든요.

아마 작년 820만 대에서 올해는 천만 대를 넘게 밖으로 수출이 될 것 같고 또한 알고 계신 것처럼 유럽에서 작년에 가동된 헝가리 공장에 이어서 지금 터키 공장이 가동이 되며 BYD의 유럽 내 생산_capacity가 50만 대에 육박을 하고 있습니다. 우리나라에서도 지금 지카와 샤오펑이 출격을 할 것으로 제보가 되고 있는데요.

한국 시장하고 유럽 시장에서의 위협을 아울러서 전 세계에서 저희가 목표하고 있는 판매 가이던스를 이런 위협 상황에서도 지켜낼 수 있는지 그걸 지키기 위해서 인센티브가 지금 1분기에도 좀 올라간 모습으로 보이는데 연간으로 봤을 때 이런 인센티브의 상승 강도가 1분기와 유사하게 2, 3, 4분기에도 YoY로 작동을 할 것인지 궁금합니다. 그리고 두 번째는 인베스터 데이에 대한 follow-up 질문인데요.

사실 저희 주가가 지금 굉장히 높은 상황이거든요. 연초 올라갔던 최고점 대비로는 좀 빠져 있지만 사실 작년부터 저희의 로보틱스와 관련된 전략이 역사상 가장 높은 밸류에이션, 높은 주가를 양산하고 있는 것 같습니다.

그래서 인베스터 데이에서 얘기해 주셨던 두 가지 내용에 대해서 추가로 궁금한데요. 말씀하셨던 CEO께서 말씀하셨던 로보틱스 아메리카 지분 출자를 하신다고 했는데 플라스의 양산 시기가 적어도 올해는 가동이 시작이 돼야 될 것 같습니다.

그래서 저희 해당 법인이 언제쯤 세트업이 되고 저희의 지분 투자의 확정되는 시기는 언제인지 궁금하고요. 데모카 스마트카 데모가 엔비디아와의 협업을 통해서 공개된다고 하셨는데 올해 공개가 되는 건지 올해가 된다면 연말인지 언제쯤 저희가 그 데모카를 볼 수 있고 타볼 수 있는지 궁금합니다.

감사합니다. Hello, this is Kim Jun-seong from Mary Securities.

Thank you for giving me the opportunity to ask a question. I have two questions in total.

In addition to your answer regarding the question from Macquarie Securities, you have mentioned that the incentive increase was due to the price competitiveness of the Chinese brands, and I would like to ask a question regarding the volume growth. Considering the rise of the Chinese brands, the sales of the models of Chinese brands has increased about 60% YoY, and currently they are selling about 2.23 million units worldwide, and I believe that it will increase to 100 million this year.

Considering the production in Hungarian plant and other European plants, BYD’s production capacity at the moment amounts to 500k units, and there is a rumor that BYD and Xiaopeng will advance into Korean market as well. Considering the situation both in Korea and the European markets, do you think that we can keep the guidance when it comes to the sales and the volume growth?

I would like to understand whether the incentive increase rate will be maintained throughout Q3, Q2, and Q4 as well. I also have one more question regarding the recent CI.

As you well know, our stock price is very high at the moment, though it is a bit lower than our record high price, and I believe this is one of the highest valuations when it comes to our stock price in our history. CEO also mentioned about the investment into the Robotics America as well, and I believe that this is a timing to start the operation when it comes to the assets, and I would like to learn about the specific timings for the Robotics America plant.

CEO has also mentioned about our smart car project in collaboration with NVIDIA, and I would like to also understand when would be the timing where we can experience the demo for the smart car. Thank you.

네. 먼저 첫 번째 질문 주셨던 판매 물량과 인센티브 부분에 대해서 다시 한번 말씀드리겠습니다.

저희가 올해 335만 대 도매 판매 목표를 제시를 드렸었고요. 이에 따른 1분기 계획도 있었고 이 계획 대비 현재 저희가 초과 달성한 상황입니다.

이게 어떤 한 권역의 잘하고 못하고에 따라서 이 결과가 나온 게 아니라 아중동은 어떤 문제가 있었지만 그 부분을 전 권역이 골고루 다 지금 판매를 더 사업계획 대비 초과하면서 그걸 다 만회하고도 계획을 초과해서 가고 있기 때문에 지금 상황에서 저희가 판매 물량을 지킬 수 있느냐 저는 지킨다고 말씀드릴 거고요. 인센티브 서유럽 쪽의 레벨은 작년 4분기 수준을 올해 1분기 유지를 했었고 이 부분을 전년 기간에 앞서서 말씀드렸던 거하고 동일하게 전년 기간에 추가로 더 올리거나 하지는 않을 것으로 저희는 판단하고 있고요.

이 1분기 수준을 아마 유지하게끔 될 것 같습니다. 아마 낮출 수 있느냐라고 앞서서 여쭤보셨는데 낮춘다고 말씀드리기는 어렵고 다만 1분기 수준 유지하면서 저희는 마켓 쉐어를 지켜나가는 부분에 대해서 오히려 지켜 나가는 게 아니죠.

마켓 쉐어를 끌어올리는 부분에 대해서 조금 더 집중을 할 거고요. 그에 대한 내부적인 대비책도 현재 준비하고 있습니다.

To answer your first question on the sales volume and the incentive, in the early of this year we have mentioned that our wholesale sales target is about 3.35 million units, and as of Q1 performances, we have already exceeded our target, and this is not any result from the single region, though there has been some negative impact from the MEA region, we were able to recover the shortages of the MEA region in all other regions in a balanced manner. We were able to achieve the target when it comes to the sales volume, and we have already exceeded it based on our business plan.

At the moment, I can confidently say that we can keep the promises for the sales volume, and when it comes to the incentive level in the Western European region, currently the Q1 incentive level is the same to the level of Q4 level last year. For the remaining period throughout this year, I believe that there won't be any additional changes, but Q1 level will be maintained.

Then some of you might wonder whether there is any possibility for the incentive rates to go down. However, at the moment we do not have a plan to do so.

Rather, we will maintain the level of Q1 in order to increase the market share, and currently we are preparing for a countermeasure to it. 그리고 로보틱스 아메리카 투자 관련하고 그다음에 지금 페이스카 관련한 질문은 로보틱스 아메리카는 지금 저희 어쨌든 생산법인이기 때문에 저희 방향성을 명확히 말씀드린 바 있습니다.

지역에서도 한국에서 하든 아니면 미국에서 하든 이제 각각 로보틱스 방향에 대해서 지금 생산법인 관련해서는 기아가 참여한다는 어떤 방향성에 대해서 말씀을 드렸고요. 다만 이제 이게 규모라든지 출자 방식, 출자 주체 이런 부분들에 대해서는 검토가 진행되고 있고 저희가 하반기 중에 준비가 되면 좀 말씀을 드릴 수 있을 것 같습니다.

그다음에 페이스카도 말씀드릴게, STB가 저희가 26년에 페이스카 그다음에 27년에 개발 완료, 그다음에 아마 28년 초 정도에 아마 출시가 가능할 걸로 보이고요. 그 이후에 점진적으로 저희가 도심 자율주행까지 가능한 L2++으로 STB 양산차 해가지고 같이 넘어가는 걸로 말씀을 드렸고 그 부분에 스케줄은 큰 변화가 없습니다.

그래서 지금 아마 페이스카에 대해서는 저희가 아마도 하반기 중에서도 연말에 가까운 시기 정도에 저희가 그 스케줄대로 나올 수 있을 것 같고요. 실제 시승 여부나 이런 부분들에 대해서는 아직 확정되는 부분이 없어가지고 그 부분들을 시승의 공개를 어떤 방식으로 할지에 대해서는 저희가 좀 확정된 바가 없습니다.

그래서 이 부분도 하반기 중에 내부적으로 어느 정도 결정이 되면 적정한 시기에 말씀드리도록 하겠습니다. To answer your second question on the Robotics America contributions and the smart car and face car plans, when it comes to the production subsidiary, our CEO has mentioned the overall direction.

Whether it be in Korea or the U.S., when it comes to the production subsidiary, it is certain that Kia will take part, will be participating in the project. When it comes to the specific scale or the measures of the contributions, it will be determined in the second half.

Regarding the question with the collaboration of Nvidia, of SDG and the face car, the face car will be launched within 2026, and I believe that the development will be complete as of 2027, and the official release will be made throughout 2028. Then we will work on our project to launch the autonomous pop-up model, the mass market model of SDG.

I believe that the schedule for our smart car and the face car collaboration will be similar to that we have mentioned earlier. To be specific, when it comes to the face car, it will be released in the second half or at the end of the year.

When it comes to the test drive or the demonstration, the schedule is yet to be confirmed, and we have not yet confirmed how to release it to the public yet. Once the schedule and the measures to release our face car is finalized in the second half, we will get back to you with the correct information.

Thank you.