Hyundai Mobis Promotes Diversity and Expertise of the Board of Directors by Appointing Global Independent Directors

– Resolved plan to enhance shareholder value at the board meeting on
26th by implementing an advanced management system

– Appointing 2 global independent directors for the first time since
the company’s foundation, operating a pool of leading experts in each
field

– Announcing the mid & long-term shareholder return strategy of total
KRW 2.6 trillion in 3 years to enhance shareholder value

… Paying a dividend of a total of KRW 1.1 trillion, increased to KRW
4,000 per share

… Share buy-back of KRW 1 trillion and treasury share cancellation of
2.04 million shares (459 billion)

– Investing KRW 4 trillion in the core areas of future vehicles for
the next 3 years, pursuing M&A with ICT innovators

– Planning to appoint Executive Vice Chairman, Euisun Chung as new
CEO to strengthen responsible management

SEOUL, South Korea–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/Automotive?src=hash” target=”_blank”gt;#Automotivelt;/agt;–Hyundai
Mobis
(KRX:012330) announced its plan to maximize shareholder value,
which includes improvement of the operation of the board of directors
and active shareholder return strategy.

At the board meeting on 26th, Hyundai Mobis decided on appointing two
global independent directors paying a dividend of a total KRW 1.1
trillion in 3 years (KRW 4,000 per share) buying back shares total KRW 1
trillion for the next 3 years and canceling treasury shares of KRW 459
billion making future investment worth a total KRW 4 trillion for the 3
years to come. The shareholder return such as dividend, share buy-back
and treasury share cancellation for the next 3 years will be worth up to
KRW 2.6 trillion. The resolutions adopted at the BOD meeting which are
subject to shareholder meeting approval will be submitted to the
upcoming annual general shareholder meeting next month.

This is to establish a transparent and rapid decision-making system to
effectively contend with the rapidly changing business environment amid
the Fourth Industrial Revolution, and enhance both corporate and
shareholder value based on strong trust with stakeholders including
shareholders.

  • First since the company’s foundation to appoint global independent
    directors to secure diversity, expertise and independence of the board
    of directors

Hyundai Mobis will be appointing 2 global experts who are considered
leading global specialists in technological strategies in future
vehicles and financial investments. This is the first time since its
foundation that the company is appointing foreign independent directors,
and Hyundai Mobis becomes the only company to have 2 global directors
among the top 10 market value companies on the Korea Stock Exchange.

Currently, the board of directors at Hyundai Mobis consists of 4
internal and 5 independent directors. Of the two foreign directors, one
will replace an existing one whose term will end in March and the other
will fill in the seat that has been vacant since last year.

This is based on the judgment that, in order to promptly deal with the
rapidly changing business environment, it is necessary to organize
independent directors with leading experts that have a broad range of
global experience.

First, Hyundai Mobis decided to appoint Dr. Karl Thomas Neumann, a
former CEO with experience as a professional engineer, to reinforce
competitiveness in the field of technological strategy for future
vehicles.

Dr. Neumann is a leading expert in business & product development from
Germany, encompassing not only the overall automotive industry but also
the future mobility market. Starting out as an automotive semiconductor
director at Motorola, he served as CEO at global automotive supplier
Continental AG, also as CEO of Volkswagen Group China, and OPEL in
Germany.

Currently, he is in charge of mobility, including sales, marketing and
digital strategy at Evelozcity, a startup in the field of electric
vehicles and new mobility solutions in California. Based on his current
experience at a startup in addition to an automotive materials company,
tier 1 supplier and global automaker, he is considered a
well-experienced leader in the automotive industry with a background in
everything from R&D to business development and management. His
experience in working in major global fields of the automotive industry
such as Europe, China and United States is also a great competitive edge.

To promote expertise in finance, Hyundai Mobis also decided to appoint
Brian D. Jones as an independent director, who is an investment
specialist in the U.S. Currently, he is a co-president of the US
investment company, Archegos Capital Management and is well known as a
leading specialist in M&A and investments. For more than a decade, Mr.
Jones served as a senior managing director of IB division at Bear
Stearns, formerly one of the 5 largest investment banks on Wall Street.
He has served as board member of numerous US financial institutions.

His experience and expertise in corporate value analysis and M&A as an
American Institute of Certified Public Accountants will help Hyundai
Mobis make investment decisions for future growth.

Once Hyundai Mobis recruits global experts in technological strategy and
finance, the company will have 5 independent directors representing each
field of expertise, including 3 existing directors. Hyundai Mobis
explains that this will promote diversity, expertise and independence of
the board of directors as constantly emphasized by the company, thereby
maximizing corporate value.

In addition to the new global directors, Hyundai Mobis also currently
has a transparent management specialist (Byung-ju Lee), automotive
industry specialist (Ji-soo Yu), and operation management specialist
(Dae-soo Kim) as independent directors.

Byung-ju Lee serves as executive advisor to Bae, Kim & Lee, LLC after
serving on the standing committee member of Korea Fair Trade Commission,
and is a leading figure that emphasizes the importance of improving
shareholder rights and communication based on rational and transparent
decision making of firms.

Ji-soo Yu, the incumbent president of Kookmin University, is a renowned
scholar with insight in analyzing real economy. He provides advice
regarding the direction for the automotive industry in this unclear
global environment and the Fourth Industrial Revolution.

Another independent director, Dae-soo Kim, is a professor at Korea
University who also served as director of the Korean Production and
Operations Management Society and Korea Association of Procurement and
Supply Management. He is a well-known scholar in business administration
with a keen insight in overall business, such as production and
logistics as well as operation management of firms.

  • Implementing a mid/long-term shareholder-friendly policy with a
    shareholder return of a total KRW 2.6 trillion in 3 years

Hyundai Mobis is also about to enhance shareholder value with active
shareholder return. Having announced the dividend policy of 20-40% of
free cash flow in the first half of last year, Hyundai Mobis plans to
consistently maintain the shareholder-friendly policy and come up with
more diverse ways to enhance shareholder value in the mid/long-term view.

As part of this plan, the company decided on an active shareholder
return policy by increasing dividends, additional share buyback, and
cancellation of some of existing treasury shares. It is a large-scale
shareholder return policy of a total KRW 2.6 trillion in the next 3
years.

Hyundai Mobis decided to first increase the dividends from KRW 3,500 per
share last year to KRW 4,000 per share. The total amount of dividend is
KRW 379 billion, which is 25% of the free cash flow last year. The
dividend payout ratio of 20.1% will also be maintained. The size of
dividend in the next 3 years will exceed KRW 1.1 trillion.

In addition, the quarterly dividend payment plan announced in the first
half of last year will be implemented starting from the first half of
this year (late June expected). This is the first time that Hyundai
Mobis is implementing the quarterly dividend payment, and 1/4 of total
dividend will be paid in advance.

At the board meeting that day, Hyundai Mobis also decided on the plan to
repurchase shares and cancel some of its existing treasury shares. The
total size will be KRW 1.5 trillion in the next 3 years.

First, Hyundai Mobis decided to implement share buyback worth KRW 1
trillion in the next 3 years. This is at least 5 times more than the one
announced in the first half of last year that a total amount of KRW 188
billion-worth of shares to be bought back by 2021. Accordingly, around
1.5% of outstanding shares will be bought back every year.

The plan to cancel treasury shares announced last year will also be
carried out. Hyundai Mobis will cancel 2.04 million treasury stocks in
the second half of this year, and the amount is KRW 460 billion.

  • Mid/long-term strategy for future vehicles, investing over KRW 4
    trillion in 3 years

To constantly enhance shareholder value, Hyundai Mobis plans to
reinforce technological competitiveness and increase investment in
future vehicles.

Over the next 3 years, the company will invest at least KRW 4 trillion
in establishing the production base to prepare for the expansion of the
electrification market, forming partnerships and making equity
investments with Korean and global startups, securing the foundation for
business through M&A.

In particular, Hyundai Mobis plans to invest KRW 200 ~ 300 billion in
forming partnerships and engaging in equity investments in startups to
secure core technologies and accelerate technological development by
2021. Moreover, the company will also consider investing several
trillion in M&A such as acquiring innovative ICT companies to increase
sales to a global automakers.

The global automotive market is expected to grow significantly with a
focus on autonomous driving and vehicle electrification, and ICT. To
secure technology and expand production facilities for this future
market, it is necessary to make strategic investments based on choice
and concentration.

Hyundai Mobis plans to double its revenue in core parts business, which
is currently KRW 9 trillion, to KRW 18 trillion by 2025 by making
concentrated investments in future vehicles.

This demonstrates the will to stably manage cash in consideration of the
uncertain business environment and future investment plans. The
intention is to secure future growth engines by focusing on increasing
investments in this field during the market growth of ICT and
electrification in addition to active shareholder return.

By doing so, Hyundai Mobis will establish its production base to prepare
for the expansion of the electrification market, while also actively
pursuing M&A to increase investment in open innovation and expand the
foundation for business by securing core technological competencies.

  • Executive Vice Chairman Euisun Chung of Hyundai Motor Group, will
    be newly appointed as CEO, anticipated to be a game changer through
    responsible management

With the new independent board members, Hyundai Mobis plans to reappoint
Chairman and CEO Mong-Koo Chung as an internal director and to appoint
President Chung-kook Park and Executive Vice President Hyungkeun Bae. As
a result, there will be 4 internal directors including Executive Vice
Chairman Euisun Chung.

Hyundai Mobis will newly appoint Executive Vice Chairman Euisun Chung
and President Chung-Kook Park along with the Chairman & CEO Mong-Koo
Chung as CEO among these 4 internal directors, which will be approved by
the resolution of the board of directors. With the three CEOs in place,
responsible management will be further promoted for maximization of
corporate and shareholder value.

In particular, by reappointing Chairman & CEO Mong-Koo Chung, who has
exerted strong leadership by pursuing unshakable quality management, the
company is determined to maintain the responsible management system.

Executive Vice Chairman Euisun Chung has been leading the development of
future vehicles. He has been demonstrating powerful leadership in using
the Group’s competencies to strengthen the next era business models.
Based on enthusiastic recruitment of global talents and innovative
ideas, he is expected to play a key role in making Hyundai Mobis a
leader of the automotive industry that is able to bring about a new
paradigm.

President Chung-kook Park is a bona fide engineer who served as director
of Central Research Institute and America Technical Center, and head of
R&D Planning and Coordination Office at Hyundai Motor Company. He is
also widely known for making rational decisions with experience as CEO
at Hyundai NGV which is in charge of the Group’s industry-academia
cooperation and HR development, and CEO at Hyundai Kefico specialized in
technology for electronic controlling systems. He is considered to be
the right person for this job to lead Hyundai Mobis, which is
accelerating R&D in autonomous driving, electrification and
connectivity, to become an expert in new future technology based on
software and advanced technologies.

Executive Vice President Hyungkeun Bae is a former head of Corporate
Strategy Office at Hyundai Motor Company, and is a management specialist
with a financial background with abundant theoretical knowledge and who
has been coordinating key management issues based on in-depth
perspectives about the global business environment. His extensive
interpersonal network in Korea and overseas is a great competitive edge.
He is expected to not only enhance the corporate value of Hyundai Mobis
by promoting organizational competitiveness and increasing
profitability, but also contribute to jumpstarting Hyundai Mobis into
becoming a global company through stable financial management of
reinvestment for future growth engines in the rapidly changing
environment.

In addition, to promote transparency and independence of the board of
directors, Hyundai Mobis decided to newly appoint an independent
director through shareholder nominations when the term of a current
independent director comes to an end in 2020.

About Hyundai MOBIS

Hyundai Mobis is a global tier-1 automotive supplier. It was established
in 1977, and is headquartered in Seoul, Korea. The corporate philosophy
is to become a lifetime partner with technologies for automobiles and
people.

Hyundai Mobis currently employs over 30,000 people. Manufacturing
operations are in over 30 locations in 10 countries, including Korea,
China, Germany, India, and the U.S. Products include automotive modules
(chassis, cockpit and front-end), brakes, suspensions, airbags, lamps,
and automotive electronics. R&D headquarters are in Korea with 4
technical centers worldwide, Germany, China, India, and the U.S.

Hyundai Mobis has mass-produced a great number of ADAS technologies and
electrification components. For more information, please visit the
website at www.mobis.co.kr.

Contacts

Hyundai Mobis
Choon Kee Hwang +82-2-2018-5519 [email protected]
Hanbyul
Kim +82-2-2018-6185 [email protected]

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