HD Hyundai Infracore : 2023 3Q Investor Meeting

2023 3Q Earnings Release

October 2023

Disclaimer

This presentation contains preliminary figures which may be materially different from the final figures.

The financial information in this document are consolidated earnings results based on K-IFRS. Previous earnings results have also been restated in compliance with K-IFRS.

While the statements in this presentation represent our current assumptions plans and expectations and we believe these judgments are reasonable they are not guarantees of future performance and involve known and unknown risks uncertainties such as FX & raw material costs and other factors that may cause actual results to differ materially from the results performance achievements or financial position expressed or implied in this presentation.

This presentation is provided only as a reference material. It does not constitute or form part of an offer, invitation or recommendation to purchase any securities. HD Hyundai Infracore assumes no responsibility for investment decisions. We trust your decisions will be based on your own independent judgment.

2

Table of Contents

1. 3Q23 Results
2. Highlights

3

3Q23 Results

• Sales decreased due to weakness in Asian markets including Korea and China, despite solid performance from the construction equipment division in developed markets and engine division.
• However, EBIT continued to grow by +20% YoY thanks to enhanced product mix, price hike and improvement in cost structure as part of company-wide effort towards profitability.

Income Statement

4

3Q23 Sales & EBIT by division

• Construction Equipment : Sales declined due to weakness in Asian markets, but EBIT grew year-on-year due to enhanced profitability in developed and emerging markets.
• Engine : Sales remained stable thanks to vehicle, materials/parts and defense engine sales, while EBIT margin remained a stable double-digit in view of price hike and product mix improvement.

Note : Sales breakdown based on 3rd party revenue

* Numbers in parenthesis are based on total sales of engine business, which includes internal sales

5

Regional breakdown (Construction Equipment)

• Emerging/Korea : Sales declined due to global tightening measures and particularly weak demand in Asia. However, demand in Middle East stayed firm, and our presence was further solidified in Latin America and Oceania.
• NA/EU : Market in North America continued to grow. Market in Europe declined, however, demand within Europe for regeneration of inner cities remained stable. Furthermore, EBIT increased double-digit thanks to price hike and enhanced product line-up.

6

Financial structure

• Net debt decreased by KRW77.8 billion compared to end-2022 thanks to increase in net profit. (Net debt-to-equity ratio improved by 13.1%p compared to end-2022.)
• Going forward, we expect to lower net debt to less than KRW1tr at end-2023 in line with debt maturity schedule.

7

Table of Contents

1. 3Q23 Results
2. Highlights

8

Construction Equipment (NA/EU)

• Developed market declined marginally year-on-year due to sluggish construction cycle in Europe despite continued infrastructure investment and reshoring of manufacturing companies in North America.
• However, sales in NA/EU increased thanks to regionwide favorable sales in North America and demand for compact equipment in Europe to regenerate inner cities. Volume growth and price hike also contributed towards profitability.

Developed Market & HDI sales in NA/EU HDI - Profitability trend in NA/EU

(unit : KRW bn, YoY)

+12%

-2%

Construction Equipment (Emerging/Korea)

• In view of last year's high comparison basis and global quantitative tightening, Korea and emerging markets, particularly in Southeast Asia, declined year-on-year. However, resource-rich countries continued to see solid demand from infrastructure investment and mining activities.
• Sales efforts were focused on growth markets, and we continued to see improvement in market share. We also endeavored to protect sales and profitability in the region by strengthening sales capability in non-growth markets, which resulted in multiple fleet deals.

+13%

-30%

+15%