Hyundai Glovis Co., Ltd. · KRX:086280
Hyundai Glovis — Investor Day (2024)
48 slides from Hyundai Glovis's investor day presentation, Aug 9, 2024
Slide 1: 2024 CEO Investor Day
va QODA ESTOR DAY HYUNDAI GLOVIS
Slide 2: Opening
2024 CEO INVESTOR DAY Opening… LOGISTICS AUTOEVER MOBIS CONSIGNMENT RUGBY DELIVERY HYUNDAI TRACKING M O TO R CENTER BATTERY WELFARE INTERVIEW COMPANY GENESIS ORG. CHART EMPLOYMENT AUCTION SALARY COVER LETTER HQ AUTOBELL INTERN KIA GOVERNANCE HYUNDAI DELIVERY TRACKING MOTOR STRUCTURE G R O U P REASON
Slide 3: Value Trapped despite revenue & OP growth
2024 CEO INVESTOR DAY Opening… Value Trapped despite revenue & OP growth Financial Performance Share Price Trend [unit: KRW tn] [unit: KRW tn] 30 250,000 Revenue(LHS) 2.0 Operating Profit(RHS) 25 200,000 1.6 20 1.2 VS 150,000 15 100,000 0.8 10 0.4 50,000 2020 2021 2022 2023 2024(E) 2020 2021 2022 20
Slide 4: Connecting Automotive Industry Value Chain
2024 CEO INVESTOR DAY Hyundai GLOVIS Overview Logistics Shipping Distribution Automotive Logistics Pure Car & Truck Carrier KD Global Forwarding Bulk Carrier Auto Biz. Trading Connecting Automotive Industry Value Chain Automotive Value Chain Procurement Manufacturing Sales After Market Automotive Lo
Slide 5: Steady Growth Since Establishment
2024 CEO INVESTOR DAY Hyundai GLOVIS Overview Steady Growth Since Establishment New Growth Robust Growth Business Portfolio Diversification Post-Pandemic [Unit : KRW tn] 30.0 Exceeded Revenue of KRW 20 tn in 20 years since establishment 25.7 25.0 Economic 21.8 20.0 Recession From Reached Revenue of
Slide 6: What should we strengthen to turn Challenges into Opportunities?
2024 CEO INVESTOR DAY Challenges and Opportunities 01 02 What should we strengthen What are the to turn Challenges into Required Preparations Opportunities? to Continue Our Growth? 6
Slide 7: 2030 Vision: Completing the Value Chain
2024 CEO INVESTOR DAY 2030 Vision Global Smart SCM Solution Provider Completing the VALUE CHAIN Mutual Growth Increase non-affiliate Asset-based with the Group customers Growth Achieve 40% Non-Affiliate Sales Proportion Up/downstream Automobile Automotive Parts Manufacturing Industries Customer Expa
Slide 8: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 9: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 10: Global sole service provider of the entire auto supply chain
2024 CEO INVESTOR DAY 01 Strengthen Outstanding Position in Automobile SCM Solution Global sole service provider of the entire auto supply chain Proactive Expansion of Mutual Growth with the Group Non-affiliate customers Expand legacy OEM volumes, including current US/Europe volume Additional expans
Slide 11: Mutual Growth with the Group, Target EV/Chinese OEMs
2024 CEO INVESTOR DAY 01 Strengthen Outstanding Position in Automobile SCM Solution Mutual Growth with the Group, Proactively Target the Supply Chain needs of EV/Chinese OEMs Export Trend of Affiliate Vehicle Sales Forecast EV Market Forecast Chinese Auto Industry [Unit: mn cars] [Unit: mn cars] 21.
Slide 12: Total Automobile SCM Solution Provider
2024 CEO INVESTOR DAY 01 Strengthen Outstanding Position in Automobile SCM Solution Improve Logistics Operation Stability and Enhance Core Infrastructure Capabilities Total Automobile SCM Solution Provider I N F R A O P E R A T I O N TECHNOLOGY Expand Direct Reinforce Advance logistics Investment in
Slide 13: Enhance Market Transparency via Platform and Expand Business Scope
2024 CEO INVESTOR DAY 01 Strengthen Outstanding Position in Automobile SCM Solution [Auto Biz] Enhance Market Transparency via Platform and Expand Business Scope Including Export Purchase Wholesale / Auction Retail / Export Expand Current Area of Business Areas of Business Expansion Transaction New
Slide 14: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 15: Achieve 40% Non-Affiliate Sales by 2030
2024 CEO INVESTOR DAY 02 Commercialize Global E2E Solution Strategy Achieve 40% Non-Affiliate Sales by 2030 through Global Customer Expansion Integrated Solution Provider: In-land Shipping Point Transportation/Storage/Customs Clearance - Sea/Air/Rail Transportation-Destination Customs Clearance/Stor
Slide 16: Supply Chain Flexibility based on Freight Rate Competitiveness
2024 CEO INVESTOR DAY 02 Commercialize Global E2E Solution Strategy Supply Chain Flexibility based on Freight Rate Competitiveness and Global Network Freight Rate Competitiveness Supply Chain Flexibility Secure vessel space and competitive 147 Global Network across 27 countries freight rates based o
Slide 17: Directly Operated Regional Gateway Hubs
2024 CEO INVESTOR DAY 02 Commercialize Global E2E Solution Strategy Strengthen Global Infrastructure Competitiveness through Directly Operated Regional Gateway Hubs Establish Sea/Air/Rail Hub Infrastructure connecting Europe Asia Americas Sea : Strengthen service competitiveness and logistics stabil
Slide 18: Enhance Customer Retention via Software-based System
2024 CEO INVESTOR DAY 02 Commercialize Global E2E Solution Strategy Enhance Customer Retention via Advanced Software-based System Enhance Visibility and Support Strategic Decision-making based on Market Condition/Customer/Real-Time Cargo Data Integration and Analysis Shipping Company Airline G L O V
Slide 19: Win orders from strategic clients in EV Battery Biz
2024 CEO INVESTOR DAY 02 Commercialize Global E2E Solution Strategy Win orders from strategic clients in EV Battery Biz End-to-End Solution Targeting EV Battery Industry Logistics Global/Local Log. Consulting Raw material Procurement/Transport Procurement Supply. Logistics (storage/transport) Supply
Slide 20: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 21: Strengthen Service Stability and Expand Global OEM Customers
2024 CEO INVESTOR DAY 03 Strengthen Top-Tier Shipping Competitiveness PCTC Strengthen Service Stability and Expand Global OEM Customers PCTC Vessel Fleet : Size and Volume Growth Target Fixed Vessels (Company-owned + Long-Term Charter) Variable Fleet (Mid-to-Short Term Charter) [Unit : vessel] 128 1
Slide 22: Expect Resilient PCTC Demand/Supply Circumstances to Continue
2024 CEO INVESTOR DAY 03 Strengthen Top-Tier Shipping Competitiveness PCTC Expect Resilient PCTC Demand/Supply Circumstances to Continue Global Automobile Shipping Volume Outlook Global PCTC Supply Outlook Far East Outbound Others [Unit: 10,000] [Unit : vessel] ~2,400 900 2,111 47% 2,027 800 49% 57%
Slide 23: Strengthen Vessel Competitiveness and Complete a stable business structure
2024 CEO INVESTOR DAY 03 Strengthen Top-Tier Shipping Competitiveness PCTC Strengthen Vessel Competitiveness and Complete a stable business structure Increased Proportion of Introduction of Fixed Vessel 10,000 RT Large Vessel Fixed Vessel Chartered [Unit: %] Retention of Existing Customer 37 OEM fro
Slide 24: Strengthen Top-Tier Shipping Competitiveness: Bulk Carrier
2024 CEO INVESTOR DAY 03 Strengthen Top-Tier Shipping Competitiveness Bulk Carrier Strengthen Top-Tier Shipping Competitiveness Status of Bulk Carrier Market Cargo Volume, Forecast of Cargo Volume Growth Index by Wet Bulk Item Portfolio Strategy by Bulk Carrier Item [Unit : 1 mn ton] Wet Bulk Dry Bu
Slide 25: Secure Eco-Friendly Energy Transportation Fleet
2024 CEO INVESTOR DAY 03 Strengthen Top-Tier Shipping Competitiveness Bulk Carrier Continuously Secure Eco-Friendly Energy Transportation Fleet and Accumulate Operational Know-How 2031 2028 Start of ammonia carrier operation and preparation 2027 Additional securing of LNG carriers for liquid hydroge
Slide 26: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 27: Strengthen Smart Logistics Competencies
2024 CEO INVESTOR DAY 04 Strengthen and Commercialize Smart Logistics Solution Strengthen Smart Logistics Competencies to Respond to Market Changes Reduce Labor Increase Burden Increase Complexity AI, Robotics Tech. Availability Of Labor cost of Supply Chain Development Strengthen Foundation and Com
Slide 28: Initiate Global Smart Logistics Solution Business
2024 CEO INVESTOR DAY 04 Strengthen and Commercialize Smart Logistics Solution Initiate Global Smart Logistics Solution Business and Create Synergy Smart Logistics Solution Business Strategy Establish ‘solution’ consisting of optimized process, system, and equipment for automation of fulfillment cen
Slide 29: Strengthen S/W, H/W Capabilities for Further Development
2024 CEO INVESTOR DAY 04 Strengthen and Commercialize Smart Logistics Solution Strengthen S/W, H/W Capabilities for Further Development S/W H/W Acquired Altiall, Additional Improvement Strategic Partnership with Accelerate Transition of Auto S/W Company of Productivity based on Infrastructure Compan
Slide 30: 2030 Growth Strategy
2024 CEO INVESTOR DAY 2030 Growth Strategy 01 02 03 04 05 Strengthen Outstanding Commercialize Strengthen Top Tier Strengthen and Establish Closed Loop Position in Automobile Global E2E Solution Shipping Commercialize Smart for Eco-Friendly SCM Solution Strategy Competitiveness Logistics Solution St
Slide 31: Establish Closed-Loop Ecosystem for Resource Circulation
2024 CEO INVESTOR DAY 05 Establish Closed-Loop for Eco-Friendly Strategic Materials Establish Closed-Loop Ecosystem for Resource Circulation Forecast of Global Used EV Battery Market Size Change in Automobile Value Chain [Unit: KRW tn] 300 273 250 Procurement Manufacture Sales After Market 200 16.7%
Slide 32: Lead EoL Value Chain by Securing Materials and Processing
2024 CEO INVESTOR DAY 05 Establish Closed-Loop for Eco-Friendly Strategic Materials Lead EoL Value Chain by Securing Materials and Processing Logistics & Distribution in Front Processing Utilize HMG’s Capabilities Strive for Closed-Loop Business based on to Secure EoLB Synergy Optimized Collection a
Slide 33: Lead Global EoL Market by 2040
2024 CEO INVESTOR DAY 05 Establish Closed-Loop for Eco-Friendly Strategic Materials Lead Global EoL Market by 2040 via Eco-Friendly Material Distribution/Logistics Biz. HMG’s EV Sales Plan Managing Volume Target of Used EV Battery Hyundai Motor KIA [Unit: 10,000] Target ~20% Market Share based in 40
Slide 34: Secure Core Technology and Establish Network
2024 CEO INVESTOR DAY 05 Establish Closed-Loop for Eco-Friendly Strategic Materials Secure Core Technology and Establish Domestic and Global Network Secure and Commercialize Core Technology Establish Domestic and International Network Jeju Technopark : Cooperation in forming a circular cluster Secur
Slide 35: Develop Green Roadmap for 2045 Carbon Neutrality
2024 CEO INVESTOR DAY Develop Green Roadmap for 2045 Carbon Neutrality Earned Dow Jones Sustainability Indices(DJSI) highest rating of ‘World’ for 3 consecutive years Achieved the Highest ESG rating of ‘A+’ from the Korea Institute of Corporate Governance and Sustainability 2023 2024 2030 2040 2045
Slide 36: Financial Goals and Shareholder Return Policy
2024 CEO INVESTOR DAY Financial Goals and Shareholder Return Policy
Slide 37: Expand Non-Affiliate Sales and Initiate New Business
2024 CEO INVESTOR DAY 1. Financial Goals Sales Target Expand Non-Affiliate Sales and Initiate New Business Sales 45 Expand Support HMG’s increased EV production KRW 40+α tn Existing business Expand KD business to new regions 40 35 Expand non-affiliate customers in global 30 KRW 26~27 tn Reinforce lo
Slide 38: Higher Profitability based on Revenue Growth and Cost Improvement
2024 CEO INVESTOR DAY 1. Financial Goals Operating Profit Target Higher Profitability based on Revenue Growth and Cost Improvement Operating Income 3.0 KRW 2.6~3.0 tn Revenue Operating profit growth along with Growth increase in business scale 2.5 2.0 Achieve qualitative profit growth based on Cost
Slide 39: Investment Strategy
2024 CEO INVESTOR DAY 1. Financial Goals Investment Strategy Increase Asset for Proactive Growth Logistics Shipping Secure core infrastructure and 36% 30% Introduce large-scale/ strengthen direct-operation capabilities KRW 9tn eco-friendly PCTCs and eco-friendly energy carriers 11% Strategic Investm
Slide 40: Logistics Business: Growth Driven by Non-Affiliate Sales
2024 CEO INVESTOR DAY 1. Financial Goals Logistics Business Growth Driven by Non-Affiliate Customer Sales Global Korea [Unit: KRW tn] Enhance HMG logistics stability and efficiency 18.0 CAGR 16 Domestic Initiate smart logistics solutions business Logistics 8.6% - Secure dominant position in Korea an
Slide 41: Shipping Business: Global Top Shipping Service Provider
2024 CEO INVESTOR DAY 1. Financial Goals Shipping Business Global Top Shipping Service Provider PCTC Bulk carrier [Unit: KRW tn] Secure fleet competitiveness by expanding fixed vessel & attracting new global OEM 9.0 CAGR PCTC customer base 7 7.2% *Change in Affiliate/Non-affiliate proportion 5 1 202
Slide 42: Distribution Business: Expand New Customer Base
2024 CEO INVESTOR DAY 1. Financial Goals Distribution Business Expand New Customer Base and Initiate New Business KD Auto Biz. Strategic Materials [Unit: KRW tn] Support HMG’s new factories and penetrate into new markets KD CAGR - Increase affiliate supply and emerging 17 market T/A supply 6.9% 18 1
Slide 43: Mid-to-Long Term ROE Target: 15+α%
2024 CEO INVESTOR DAY 1. Financial Goals ROE Mid-to-Long Term ROE Target : 15+α% [unit: %] 18 15+α 14.3 16 14 12 10 10.4 8 6 6.8 4 2 0 Average ROE for Hyundai GLOVIS CoE GLOVIS Average ROE for GLOVIS Target Past 5-year KOSPI Past 5-year ROE 2024-2030 ※ 𝐶𝑜𝐸 (Cost of Equity)=TB 10yrs+(End of May…
Slide 44: New Dividend Policy (2025~2027)
2024 CEO INVESTOR DAY 2. Improving Shareholder Value Dividend Policy and Bonus Issue of Shares New Dividend Policy (2025~2027) Change in To-Be : Minimum 25% Payout ratio & As-Is : 5~50% YoY DPS increase (2022~2024) Dividend Policy minimum 5% YoY DPS increase (2025~2027) Dividend per Share Dividend y
Slide 45: Bonus Issue of Shares to Increase Trading Volume
2024 CEO INVESTOR DAY 2. Improving Shareholder Value Dividend Policy and Bonus Issue of Shares Bonus Issue of Shares to Increase Trading Volume AS-IS TO-BE Issued Shares 37,500,000 shares 75,000,000 shares Floating Shares 18,623,052 shares 1:1 37,246,104 shares (49.7%) Bonus Issue (49.7%) of Shares
Slide 46: Biz. Structure Shift, Customer Expansion, Service Expansion
2024 CEO INVESTOR DAY Closing… Biz. Structure Shift Customer Expansion Service Expansion As-Is Traditional Logistics/ Asset Light Structure Affiliate and OEM-Focused Distribution Business To-Be Asset Expansion of Promote Smart, Focused Non-Affiliate OEM and Eco-Friendly Growth other Industries Busin
Slide 47: 2024 Guidance and Key Targets
2024 CEO INVESTOR DAY Closing… Increase Non-Affiliate OPM Investment Sales over KRW 40 tn sales by 2x+α at 7% level up to KRW 9 tn 2024 Guidance Sales KRW 26~27 tn Operating Income KRW 1.6~1.7 tn Change in Dividend Policy Bonus Issue of Shares Minimum 25% Payout ratio & 1:1 Bonus Issue of Shares min
Slide 48: 2024 CEO Investor Day
2024 CEO INVESTOR DAY 2024 CEO INVESTOR DAY