H1 2016 Business Result

H1 2016 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. H1 2016 Overview

II. Market analysis

III. Performance analysis

IV. Financials

- Income Statement

V. SYMC’s Focus in H2 2016

2

H1 2016 Overview

Tivoli Brand

• Tivoli Brand : Continuous vehicle sales

increase (40,752 vehicles, +50.9% vs. H1 2015)

• Tivoli Air/XLV : Successful launch in March

• The best selling vehicle among small SUVs

in Korea

: 59% portion out of small SUV segment

SYMC

SUV Market

• Operating profit for 3 consecutive quarters (Q2 2016: 19.3 bn krw, OP margin : 2.0%)

• H1 2016 : Operating profit 27.4 bn krw ( OP margin : 1.5%)

PAT 20.4 bn krw (PAT margin : 1.1%)

3

• Continued SUV market demand growth

: Domestic +12.9% (vs. H1 2015)

• Domestic SUV-B (Small SUV) segment

: +40.5% (vs. H1 2015)

• Overseas : Growth in Europe & China

Quarterly market trend (Including imported cars)

Domestic Market Trend

4

248K 227K

259K 214K 228K 234K

283K

223K 267K

97K 89K

105K

103K

129K 122K

154K

115K

147K 23K

33K

29K

29K

35K 33K

33K

28K

30K

58K 49K

62K

58K

62K 56K

60K

59K

65K

22.7% 22.3% 23.1%

25.6%

28.4% 27.4%

29.0%

27.0%

28.9%

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

PC SUV MPV Commercial SUV M/S

Q2 2016 (vs. Q2 2015)

- Total market : +12.5% (Domestic makers : +14.4%, Imported : -0.2%)

- PC : +17.2%

- SUV : +14.4%

· Continued strong demand (ex> Small SUVs)

· New car effects : Tivoli Air, Sportage

- MPV : -12.3%

- SUV M/S : 28.9% (0.5%p vs. Q2 2015)

- SYMC Market share in total market

Q2 2015 : Q2 2016 = 5.4% : 5.5%

※ Unit: vehicles

(Imported cars → PC, SUV, MPV)

425K 398K

455K

404K

454K 446K

531K

424K

H1 2016 (vs. H1 2015)

- Total market : +9.0% (Domestic makers : +10.9%, Imported : -2.6%)

- PC: +10.9%, SUV: +12.9%, MPV: -8.0%

- SYMC market share in total market

H1 2015 : H1 2016 = 5.3% : 5.4%

510K

Overseas Market Trend

5

Others

※ Unit : Vehicle

※ Source : Automotive News, Jato

※ Excluding commercial vehicles

※ ( ) : SUV portion out of total market

Europe (28 Countries)

4,083K

3,911K

1,584K

1,266K

643K

634K

Jan.~May 2016

Jan.~May 2015

China

Russia

5,988K

6,521K

- Total market : +8.9%

- SUV market : +25.2%

4,587K

4,928K

3,155K

2,214K

1,038K

903K

Jan.~May 2016

Jan.~May 2015

- Total market : +5.6%

- SUV market : +42.5%

290K

356K

203K

224K

15K

22K

Jan.~May 2016

Jan.~May 2015

- Total market : -14.7%

- SUV market : -9.2%

PC SUV MPV Others

642K

547K

9,675K

10,214K

(21.1%)

(24.3%)

(34.8%)

(37.1%)

(22.9%)

(30.9%)

0

50

100

150

200

250

H1 2015 H1 2016

15K 16K

85K 87K

69K 76K

34K 48K

SUV Market Trend

6

※ Unit : Vehicle

※ Source : SYMC, Automotive News

※ Korea : excluding imported car

※ ( ) : Example

Korea Europe (28 Countries)

SUV-B SUV-C SUV-D SUV-E

Total SUV market : +25.2%

SUV-B market : +26.8%

(Small SUV)

- Portion out of SUV market

: 29.3% → 29.6%

Total SUV market : +12.8%

SUV-B market : +40.5%

(Small SUV)

- Portion out of SUV market

: 16.9% → 21.0%

202K 227K

(Tivoli) (Korando C) (Rexton)

+3%

+10%

+12%

+41%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Jan.~May 2015

Jan.~May 2016

92K 124K 170K 195K

634K 795K

370K

470K

1,266K

1,584K

+27%

+35%

+15%

+26%

SYMC Sales Volume in Q2 2016

7

24,303 28,074

12,582

12,837

Q2 2015 Q2 2016

36,885

40,911

+2%

+16%

+11%

(34%)

(66%)

(31%)

(69%)

Sales volume increase

- Total Sales : +4,026 units (+11%)

· Domestic : +3,771 units (+16%)

· Export : +255 units (+2%)

Domestic portion increase : +3%p

- Q2 2015 : Q2 2016 = 66% : 69%

Export by region

- ME & AF : +28%, South America : +19%

Tivoli brand sales increase

- Monthly avg. : 7,799 units

(Domestic : 5,525 units, Export : 2,274 units) Domestic Export

※ Unit: vehicle (including CKD)

Region-wise Export in Q2 2016

W. Europe

Asia Pacific

※ % out of export sales volume

(Including CKD)

Others South America

E. Europe

※ Including: Russia

45% 44%

0% 2%

19%

11%

20% 23%

20% 16%

Q2 2015 Q2 2016

Q2 2015 Q2 2016

Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016

※ Including: China

8

※ Others: ME & AF

SYMC Sales Volume in H1 2016

9

45,410 50,696

24,390 23,881

H1 2015 H1 2016

69,800 74,577

-2%

+12%

+7%

※ Unit: vehicle (including CKD)

(35%)

(65%)

(32%)

(68%)

Sales volume increase

- Total Sales : +4,777 units (+7%)

· Domestic : +5,286 units (+12%)

· Export : -509 units (-2%)

Domestic portion increase : +3%p

- H1 2015 : H1 2016 = 65% : 68%

Export by region

- ME & AF : +41%, W. Europe : +14%

- South America : -17%

Tivoli brand sales

- H1 2016 : 40,752 units

(Domestic : 27,969 units,

Export : 12,783 units)

- Tivoli Air/XLV launch: March 2016

Domestic Export

Region-wise Export in H1 2016

W. Europe

Asia Pacific

※ % out of export sales volume

(Including CKD)

Others South America

E. Europe

※ Including: Russia 43%

50%

1% 1%

19%

10%

23% 19% 20%

14%

H1 2015 H1 2016

H1 2015 H1 2016

H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016

※ Including: China

10

※ Others: ME & AF

Income Statement(Consolidated) / Q2 2016

Category Q2 2015 Q2 2016 Change Change(%)

Sales 835.5 964.0 128.5 15.4%

Cost of sales 711.5 796.3 84.8 11.9%

Gross Profit 124.0 167.7 43.7 35.2%

SG&A 143.9 148.4 4.5 3.1%

Operating Profit -19.9 19.3 39.2 -

OP margin % -2.4% 2.0% 4.4%p -

PBT -22.7 18.0 40.7 -

PAT -22.7 18.0 40.7 -

(Unit: billion krw)

11

Operating Costs / Q2 2016

Q2 2015 Q2 2016

-2.6%p

Cost of sales (%) SG&A expense (%)

17.2%

15.4%

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

Q2 2015 Q2 2016

12

85.2%

82.6% -1.8%p

Income Statement(Consolidated) / H1 2016

Category H1 2015 H1 2016 Change Change(%)

Sales 1,595.9 1,777.2 181.3 11.4%

Cost of sales 1,373.0 1,469.5 96.5 7.0%

Gross Profit 222.9 307.6 84.7 38.0%

SG&A 277.0 280.3 3.3 1.2%

Operating Profit -54.1 27.4 81.5 -

OP Margin % -3.4% 1.5% 4.9%p -

PBT -53.9 20.4 74.3 -

PAT -53.9 20.4 74.3 -

(Unit: billion krw)

13

Operating Costs / H1 2016

H1 2015 H1 2016

Cost of sales (%) SG&A expense (%)

17.4%

15.8%

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

H1 2015 H1 2016

14

86.0%

82.7% -3.3%p

-1.6%p

SYMC’s Focus in H2 2016

15

Profitability

Priority

New product launch

- Korando Sports 2.2

(Jul., Euro 6 engine)

- Tivoli Air/XLV gasoline model (Jul.)

Efficient cost management

Collaboration of vehicle

development (platform sharing,

engine, etc.) with M&M

SY auto capital

Rexton FMC : H1 2017

New car development :

One new model every year till 2019

H2 2016

Vehicle sales

Cost control New car

development

Domestic : Focus on Tivoli brand

Export volume growth

- Tivoli XLV in W. Europe

- Iran, Peru, Etc.