Hyosung : 1Q.2024 Hyosung Corporation Earnings Release

Appendix

Quarterly Profit/Loss Statement (Consolidated)

Gross Profit Margin	10.5%	11.5%	12.4%
Operating Profit Margin	1.5%	2.1%	3.0%

Balance Sheet (Consolidated)

Net Debt to Equity Ratio

35.2%

38.9%

3.8%p

Quarterly P/L Trends (Consolidated)

OPM	10.4%	3.9%	(5.9%)	(1.4%)
NPM	5.1%	4.9%	(4.7%)	(2.5%)

OPM	1.5%	2.1%	5.5%	2.1%
NPM	(1.3%)	0.4%	1.9%	(1.0%)

	1Q
OPM	3.0%
NPM	0.4%

1.7%

0.7%

2.7%

(0.0%)

Financial Performance by Company

Apply (to)

Turnaround driven by Improved Demand despite Lower Chemical Prices/Margins Globally

			• 1Q24 turned to profit QoQ
		2.4%	- Turned to profit with improvements in equity method subsidiaries,
(10.3%)	(13.3%)	despite the generally weak conditions in the global chemical industry
		- Gains/Losses on equity method
			: ￦15.4bn loss (1Q23) → ￦12.5bn loss (4Q23) → ￦4.0bn (1Q24)
(13.1)	(15.7)		1) Hyosung TNC: Profit increased led by widened spread and
	recovery in demand

2) Hyosung Advanced: Turnaround with improved demand in Tire Cord - Others: Brand loyalty fees, Transworld (Transportation), etc up QoQ

• TNS, turned to loss (Revenue increased YoY)

Sales Increase in U.S. & Europe, Better Sales Expected in light of Order Expanding from India and Indonesia

• 1Q24: Sales and Profit down QoQ

- Additional orders from Chase bank (U.S.)

(2.0%)(0.8%)- Lower sales due to reduced investment from banks and retail in the U.S. - Revenue delayed due to postponed installation schedule in Europe

• 2Q24: key status of the business

(4.5)	(2.0)	- Order expansion from major banks in the U.S.
		- M/S expanding with additional orders from India and Indonesia

- Sales of existing orders from Germany/Greece/France

Reduced Losses on Better Sales of Ferrari, further Improvement Expected in 2024

			• Ferrari: Sales volume expected to continue to increase in 2Q24
(1.1%)	(3.6%)	(2.5%)	- Sales volume decreased QoQ; 75 cars sold in 1Q24 (86 cars in 4Q23),
370 cars expected to be sold in 2024 (vs. 341 cars sold in 2022)
			- OP expected to increase in 2024 with sales of new SUV, Purosangue
			• Maserati: Lower sales of new SUV, Grecale in 4Q23
(0.5)	(2.1)	(1.2)	- Sales volume decreased QoQ; 59 cars sold in 1Q24 (81 cars in 4Q23)
			- 420 cars expected to be sold in 2024 (vs. 417 cars sold in 2023)

• HGS: 1Q24 Profit up QoQ

(0.4%)

(1.6)

• • Revenue slightly decreased, but margin increased QoQ (3.7% → 9.9%)
  • • Better sales of high-margin product with lower SG&A expenses
  • Revenue expected to be flat QoQ in 2Q24
  • • Profit anticipated to decrease due to existing low-margin orders
• Overseas production & distribution subsidiaries:
• • Sales volume decreased due to lower ASP and weak demand
  • Revenue decreased QoQ in U.S.

Spandex - Revenue and OP Increased due to Higher Volume/ASP/Spread

(2.4%)

(43.2)

	•	Textile
2.6%		- SPANDEX : Revenue and operating profit increased by higher volume
1.6%	/ASP, spread expanded (lower input cost given lagging effect)
		- PET/NY : Profitability remained below break even on account of
		sluggish demand, reduced deficit by higher ASP
	•	Trading & Others

• Trading : Strong results primarily driven by renewed restocking cycle
• Tire Cord : Revenue and profit recovered amid improved demand for tires worldwide

Tire Cord Profitability Improved amid Recovering Demand, whereas Super Fibers saw Heightened Price Competition

• PET T/C: Global demand recovered, leading to improved profitability

• Steel Cord: Sales recovered to the same level as 2022

• Tech Yarn & GST: Turn to profit thanks to one-off charges eliminated

• Carbon Fiber: ASP adjusted down sequentially in China

• Aramid: Heightened competition resulted in lower ASP

• Spandex: Spandex shows gradual increase in profit

Margin Squeeze resulting from New Expansions in China, Compounded by Rising Ocean Freight Rates

• PP homo(Korea)-Propane(CP) Spread QoQ

(6.8%) (5.4%) (4.9%)

(45.2)	(37.4)	(34.8)	- Continued losses attributed to a slew of new startups in China, along
			with higher ocean freight rates stemming from ongoing geopolitical

issues in the Middle East

Orders Procured via Meticulous Selection of Projects Featuring Minimal Risk and Assured Profitability

		• Heavy: Continuing to increase margin as U.S. subsidiary production
		expands
		- Secured special TR order from UK's National Electricity Authority
		(PST : Phase Shifting Transformer)
4.9%	5.7%	- New entry into the Swedish market of ultra-high voltage transformer
	market
1.7%
	- Receive first GIS order from APTRANSCO, local electricity authority

in Andra Pradesh, India

• Construction: Focused on fixed-condition,high-margin orders

- Expansion of orders for public projects

(Suseo Gwangju double-track railway, Seoul Yangju Expressway, etc) - Size up existing contract to improve profitability