Hello, this is Pamela Yun, Head of Investor Relations at Kia. Let me begin the fiscal year 2026 Q1 earnings results, starting with the sales summary, followed by the consolidated income statement, earnings analysis, and the consolidated balance sheets. First off, the global retail sales performance. As of Q1 2026, the global industry demand declined by 7.2% YOY due to the downside to NEV purchase tax exemption policy in China, which is the largest automotive market, and the base effect following strong pre-demand in the U.S. prior to the tariff impact in April 2025. Kia's Q1 global retail sales witnessed a 3.7% growth YOY, marking 780K units despite the decline in industry demand led by solid HEV, EV sales, and launch of the new Telluride and Seltos, recording 4.1% of the global market share, exceeding 4% level for the first time. By market, domestic sales skyrocketed by 5.3% YOY, reaching 142K units centered on EVs, including EV3, EV5, PV5, buttressed by reinforced EV subsidy. In the U.S. market, HEV-centered sales continued, ranging from the new Telluride ICE model launched early this year to its HEV model launched in February on top of the Sportage and Carnival. As a result, our sales increased by 4.1% YOY, recording 5.6% market share. In the Western European market, underpinned by sales expansion of our volume model, Sportage, launch of the EV2 and the net increase effect of EV4, EV5 released in second half of 2025. The sales increased 1.2% YOY, marking 140K units. In the Indian market, the new Seltos launch effect and the Sonet benefiting from GST cut since late September last year boosted up the sales to 84K units, an 11.6% increase YOY. In Chinese market, the sales increased 6.5% YOY, backed by K3, Seltos, and other key models despite the NEV policy adjustments. While emerging markets such as Latin America and CIS realized 20% or higher growth, thanks to the increased supply from Chinese plants and SOP initiation in Kazakhstan from Q4 2025. On the other hand, due to the prolonged war in the Middle East since late February, major countries in MEA region have suffered from demand reduction and supply disruption for distributors, resulting in 15.6% decrease YOY. Next is our electrified vehicle sales summary. In Q1 2026, electrified vehicle sales increased by 33.1% YOY to 232K units, driven by Kia's flexible powertrain strategies aligned with shifting demands in each market amidst strong demand for HEVs in the U.S. and EVs in Western Europe. As a result, the mix of electrified vehicle in our global sales expanded by 6.6% point from 23.1% in Q1 2025 to 29.7% in Q1 2026, while HEVs and EVs accounted for 17.6% and 11%, respectively. In the HEV segment, a strong sales momentum of Sportage and Carnival HEV, added on the launch of Telluride HEV in the U.S. and Seltos HEV in Korea, resulted in a 32.1% increase YOY, marking 138K units. Consequently, Kia's HEV market share in the U.S. expanded from 6% in 2025 on a full year basis to 7.5% in Q1 2026, consistently raising our standing in the market. Moving on to EV in Korea and Western Europe, the net increase effect of EV4, EV5, and Kia's first PBV model, PV5, contributed to 86K unit sales, which is a 54.1% increase YOY. The EV market share in Korea and Western Europe grew significantly from 28.2% and 4.1% each in 2025 on a full year basis to 39.1% and 5.2% in Q1 2026 as a result. Following is the regional wholesales performance. In Q1 2026, Kia wholesales increased 0.9% year-over-year to 780,000 units by major region and saw 252,000 unit sales backed by the new Telluride launch and HEV-centered sales expansion achieving Q1 business plan. While the sales decreased year-over-year by 2.1% due to strong base effect on wholesales expansion prior to tariff impact in Q1 last year. In Europe, sales increased 3.8% year-over-year, recording 153,000 units owing to extended sales of Sportage and Stonic PE, the EV2 launch with the start of production in Slovakia plant from February as well as the sales growth of EV4 and EV5. In India, based on the new Seltos launch and solid sales of the Sonet benefiting from GST cut, as mentioned earlier, sales grew 11.6% year-over-year, marking 84,000 units. Finally, in the rest of the world, the conflict between the U.S. and Iran resulted in the blockade of Strait of Hormuz and supply disruptions to distributors in the region, dropping the wholesale sales by 31.2% year-over-year in the MEA region. In Latin America, countries with a strong demand such as Colombia and Ecuador raised the export volume from the domestic and Chinese plants, resulting in 34.6% growth year-over-year. Taken together, despite the sales disruption in MEA countries, Kia succeeded in achieving its quarterly business plan, hitting the record high Q1 sales of 780,000 units. Next, the income statement. Despite limited growth in consolidated sales volumes, revenue for Q1 2026 came in at KRW 29.502 trillion, up by 5.3% year-over-year, supported by higher ASP resulting from positive price effects and favorable exchange rates. As for operating profit, due to the impact of the U.S. tariffs, increased incentives, mainly in overseas markets, and the impact of asset valuation on warranty provisions resulting from a sharp rise in the quarter and $1 exchange rate, the figure decreased by 26.7% year-over-year to KRW 2.205 trillion. Accordingly, the operating profit margin declined by 3.2 percentage points year-over-year to 7.5%. Pretax profit and net profit also fell by 18.8% and 23.5% year-over-year respectively to KRW 2.635 trillion and KRW 1.8 trillion. Next, operating profit analysis. Let me walk you through each factor behind the changes. First of all, the impact of the U.S. tariffs was fully reflected over the three months since the beginning of Q1 2026, leading to a profit decrease of KRW 755 billion year-over-year. In addition, intensified competition in North America and Europe pushed up total incentives by KRW 215 billion year-over-year, reducing earnings. The sharp rise in quarter and exchange rates resulted in an additional cost increase of KRW 75 billion, mainly due to asset valuation on warranty provisions. Regarding volume effect, although consolidated sales volume increased by 0.4% year-over-year, a slight deterioration in the original mix due to sales declines in regions such as the Middle East and Africa led to a KRW 44 billion year-over-year drop in earnings. Even amid the challenging business environment, Kia generated KRW 49 billion in positive price effects through enhanced product value added with the launch of the new Telluride and Seltos, and by extending sales of high margin models such as the Telluride and Carnival in the U.S., it delivered KRW 143 billion in mix effect. Furthermore, favorable USD 1 and EUR 1 exchange rates contributed to an additional KRW 93 billion increase in earnings, leading to KRW 2.205 trillion of operating profit for Q1 2026, down by KRW 804 billion year-over-year. Next, revenue analysis. First, the original sales data on the left show that consolidated revenue increased by 5.3% year-over-year. Despite ASP increases centered on HEV and SUV models, the share of North America declined by 0.2 percentage points from 42.5% in Q1 2025 to 42.3% in Q1 2026 due to lower wholesale volume. The share of domestic revenue came in at 17.6%, the same level as in Q1 2025, supported in part by a 4.1% increase in ASP. In Europe, we witnessed improved sales led by new EV models, a relatively high EV sales mix, and favorable EUR 1 exchange rates, which increased the share of Europe by 1.4 percentage points year-over-year to 24.4%. The share of India remained at around 5%. Moving on to the ASP changes on the right, supported by expanded sales of HEVs and EVs centered around advanced markets including the U.S. and Europe, and favorable foreign exchange effects, global ASP increased by 4.9% year-over-year to KRW 39.9 million in Q1 2026. Domestic ASP also rose by 4.1% year-over-year to KRW 35.9 million, maintaining its growth momentum. Next, cost of sales and SG&A. Revenue expansion supported by higher ASP and favorable foreign exchange effect was offset by the U.S. tariff impact mentioned earlier, driving up the cost of sales ratio by two percentage points year-over-year to 80.3%. For your reference, excluding tariff impact, the cost of sales ratio in Q1 2026 was 77.8%. The SG&A ratio for Q1 2026 went up by 1.2 percentage points year-over-year to 12.2%. One of the main drivers was the significantly bigger impact of asset valuation on warranty provisions with a quarter and USD 1 exchange rate reaching KRW 1,513, leading to a 1.4 percentage point increase in the sales warranty expense ratio. Next, non-operating income. First, equity methods gains declined by KRW 47 billion year-over-year to KRW 128 billion due to weaker earnings from affiliates. Financial and other non-operating income growth by KRW 243 billion year-over-year to KRW 302 billion, mainly due to an improvement in foreign exchange translation gains and losses. As a result, non-operating income for Q1 2026 reported KRW 430 billion, up by KRW 195 billion year-over-year. Next, the balance sheet. As of the end of Q1 2026, the total value of assets stood at KRW 105.36 trillion, up by KRW 6.381 trillion from the end of 2025. The main drivers include higher liquidity, increased accounts receivable, expanded inventory assets, and higher equity in affiliates. Total liabilities at the end of Q1 2026 went up by KRW 5.933 trillion from the end of 2025 to KRW 43.722 trillion. Despite a KRW 96 billion reduction in borrowings, the figure increased from the end of 2025 due to higher accounts payable, expanded sales warranty provisions, and a reflection of over KRW 2.6 trillion of accrued dividends. Total equity increased by KRW 448 billion from the end of 2025 to KRW 61.638 trillion. Although the debt ratio rose by 9.1 percentage points points from that of the end of 2025 to 70.9% due to the impact of accrued dividends. It dropped by one percentage point when compared to the figure at the end of Q1 2025. This concludes the presentation on Kia's Q1 2026 earnings results. Thank you. Next, CFO SVP Seung Jun Kim will deliver a review on Kia's earnings for Q1 2026 and business outlook for Q2. Hello. This is CFO SVP Seung Jun Kim of Kia. The Q1 earnings will be divided into the sales and the profitability. As mentioned earlier by Mr. Yun, I think the overall explanation is well delivered. When it comes to Q1 sales, we have reached the global market share of 4.6%. During the COVID-19 era, there has been a short-term impact due to the shortage of the semiconductor. Before, we have surpassed the level of 4% for two times. This year, the global brands are fast advancing into the global markets. The sales growth was not concentrated in the specific regions. We had a very balanced growth, reaching the 4.6% of the market share of the global market. I believe that this was one of the great transitional points when it comes to our sales growth. To add on some explanation on the profitability as well. Compared to Q1 last year, we have been under the full impact of the tariff, and the OP has decreased about KRW 800 billion, and about KRW 750 billion is due to the tariff impact. Excluding the tariff impact, I believe the numbers are quite similar to that of Q1 last year. Compared to Q3, OP was 3.1%, and this Q1, it has been upgraded to 7.1% once again. Last Q3 was the lowest point, and now we are continuously increasing after Q3 throughout the Q1 of 2026. I believe that you are wondering the annual sales of 2026, especially the Q2's. When it comes to any region, will be launched as of April 1st, as well as the hybrid model. When it comes to Telluride, we will sell the Telluride model for Q2 in a full swing. When it comes to Europe, ranging from EV2 to EV5 to EV6, we have established the mass market EV lineup. We are currently expanding the EV lineup in the European region as well. When it comes to emerging markets, including India, we're trying to expand the sales of the region-specific models. Last year we have suffered a lot in the European region. Partially it was due to the transitional points from the ICE to the EVs, and there has been some discontinuation of the existing models last year. However, since March and April this year, we believe that our European market sales are once again increasing, overcoming the uncertainties and difficulties of the past. Since Q2 2026, as we have announced in the recent CID, we believe that we can maintain the business plan for this year as it is. I think some of you are wondering the external risks of 2026 as well. The raw material price increase and the war in the MEA region would be the prime examples. When it comes to raw material price increase, not only the oil price, but aluminum, nickel, rhodium and palladium could be the great examples. It has been impacting our revenue since March. When it comes to the oil price, even though the war comes to an end this year, I believe that the oil price will be maintained on the level of $100, bringing about the additional cost increase risks. We are currently selling about 216K units of our models due to MEA region. However, we believe that there is room for our recovery in other regions such as India, in order to cover up the losses in the MEA region where there is a war still going on. Of course, there could be some shortage in the EV region this year. However, we will try very hard to offset the losses in the other regions such as India. That is our current take. When it comes to the raw material price increase, I believe that you are wondering about a specific number. Of the OP of 10.2 trillion KRW of the Revenue this year expected. I believe that the raw material price increase will impact about 5%, and when it comes to the war impact, it will be around 2%-3%. However, we believe that we need to fully respond to the price competitiveness, cost competitiveness, responding to the fair price of the Chinese brands. This is the part that we have been working very hard from the past. I am very confident that we have spare no effort to increase the price competitiveness from the past up until this quarter. At the moment, at CID, we presented on annual OP of 10.2 trillion KRW and I believe we are going to stick toward the number. This concludes the presentation on Q1 2026. Thank you. From now, we are going to take questions. Please follow the instructions from the operator. 지금부터 질의응답을 시작하겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오. 별표와 1번을 누르신 순서대로 발언 기회를 드리겠습니다. 질문을 취소하고 싶으신 분들은 별표와 2번을 누르시면 됩니다. Now Q&A session will begin. Please press star 1. That is star and 1. If you have any questions will be taken according to the order you have pressed the number star 1. For cancellation, please press star 2. That is star and 2 on your phone. 처음으로 질문해 주실 분은 삼성증권의 임은영 님입니다. The first question will be provided by Eun-young Lim from Samsung Securities. Please go ahead with your question. 네, 안녕하세요. 삼성증권 임은영입니다. 질문 기회 주셔서 감사합니다. 저 두 가지 질문드리고 싶은데 첫 번째는 아까 본부장님이 원자재 가격 효과라든지 아·중·동 수출 영향, 이런 것들에 대해서 부정적인 요인 말씀해 주셨는데요. 그게 긍정적인 요인 관련해서는 저희가 환율이 워낙 약세니까 이걸로 좀 상쇄할 수 있지 않을까라고 생각을 하고 있는데 이게 다만 전체 판매 대수가 줄어들거나 하면 또 환율 효과를 저희가 볼 수가 없다면, 그래서 이거 관련해서 두 가지 질문인데 일단 원 달러 10원 움직일 때 영업이익의 sensitivity가 어떻게 되는지, 그리고 지금 저희가 부품사 화재 때문에 2분기에 생산 차질이 나는 걸로 저희 알고 있는데 이게 2분기에 어느 정도 생산 차질이 있을지 말씀해 주시면 좋을 것 같고요. 그리고 두 번째는 OP 증감 분석에서 인센티브 2,000억 증가했다라고 해주셨는데 저희가 알기로는 미국 인센티브 같은 경우는 전년이랑 거의 비슷하지 않았나요? 이게 그러면 유럽 쪽 인센티브인지, 지역별로 어느 쪽에서 주로 인센티브가 증가를 했는지, 그리고 앞으로 인센티브 추이는 어떻게 될 건지, 아까 유럽에서 향후에 좋을 거라고 말씀을 해주셨으니까 그러면 올해 인센티브가 다시 줄어드는 플러스 효과로 들어올 수 있는지 이거 가이던스 주시면 좋을 것 같습니다. 감사합니다. Hello. This is Eun-young Lim from Samsung Securities. Thank you for giving me the opportunity to ask a question. I have two questions in total. First is on the raw material increase and the negative impact of the MEA region's exports, as SVP Seung Jun Kim has just mentioned. I believe when it comes to the negative impact, it can be offset by the positive impact, which is the high FX rate. However, at the moment, if the total sales are going down, we believe that high FX rate is not enough to offset the negative impact. I would like to understand what is the OP sensitivity of Kia if KRW 10 of differences occur between the FX rate of won and dollars. I believe that the vehicles that are being produced in the U.S. are continuously increasing. I would like to understand the specific number in the Q2 based on the expectation. My second question is on the operating profits ups and downs. You have mentioned that there has been an increase of the incentive about KRW 200 billion. I believe when it comes to the U.S. numbers, it is very similar to that of last year. If they increase from the European region, I would like to understand the updates going forward, and I wonder whether there could be any possibility of increased incentive going down this year. Thank you. 네, 질문 주신 거 답변을 드리겠습니다. 일단 원 달러 10원에 따른 임팩은 제가 구체적으로 얼마가 늘어납니다 말씀드리는 것보다는, 저희가 매출 연간으로 120조 원이고 이거에 해당되는 외화 매출액이 얼마인지는 너무나 잘 아실 것 같고요. 그다음에 이 외화 매출액에 10원의 변동이 있을 때, 외화 매출액 대비 외화로 나가는 재료비라든지 여러 가지 비용들이 있거든요. 이 금액이 많지는 않습니다. 그렇다면 제가 숫자를 구체적으로 말씀드리는 것보다는 대략 어느 정도 임팩이 영향이 좋은 점이 있겠다라고는 저보다 너무 더 잘 아실 것 같고요. 제가 원 달러 환율을 굳이 앞에서 말씀을 안 드렸던 이유는, 환율 영향에 따라서 저희가 베네핏을 본다거나 이런 회사가 아니라는 걸 말씀을 드리고 싶었고요. 저희가 신차 가격 결정이나 목표 수익률 결정을 할 때는 지금 이 환율이 아니라 훨씬 더 보수적인 환율로 가격 결정이나 목표 수익성을 세팅하고 있습니다. 그에 따라서 환율이 좋아지게 되면 분명히 저희한테는 플러스 요인이 있고, 그렇기 때문에 그런 것들이 Kia가 어떻게 보면 좋은 탄탄한 수익 구조를 유지할 수 있었던 원동력이 아닌가 싶습니다. To answer your first question when it comes to the FX changes between KRW and USD, I would like to mention the KRW revenue first. Based on KRW, our revenue is about KRW 120 trillion. I believe based on the revenue of KRW, you will be able to calculate that of the USD as well. I think it is not appropriate at the moment to mention the changes of the USD-based revenue whenever there is KRW 10 differences between the USD and KRW. However, it is true that there would be some changes when it comes to the material costs that we have to pay in USD. Based on my explanation, I believe that you will be able to understand the changes that is coming from the KRW and USD changes or differences. Earlier I have not mentioned the FX rates, I want to tell you that Kia is not the company that is benefiting from the slight changes of FX rates. Whenever we set our pricing or the instances for the new model, we take a very conservative approach and set our standards for the pricing and profitability. If the FX rate goes up down the road, it is very true that our profitability will go up. I believe this kind of calculations was one of our drivers that made the Kia of today. 두 번째 질문 주셨던 2분기 생산 차질 관련돼서는 저희가 impact 있던 안전공업을 말씀하셨던 것 같고요. 모닝 그다음에 스토닉 같은 차종에 차질이 분명히 있었습니다. 약 한 2만 대 가까운 물량 차질이 있었지만, Kia가 어떻게 보면 엔진을 다변화해서 저희가 impact이 있었는데 좋았던 점은 대신에 전기차 물량 전환을 더 했고요. 그리고 실제로 생산 차질은 그 반 이하로 줄였고, 5월 이후로는 생산 차질은 없을 겁니다. Regarding your second question on the production disruption, I think you have mentioned about the production when it comes to the safety, there has been a disruption accounting for 220,000 units, including the Morning and Picanto. However, based on our engine verification, we are able to have a transition towards the EV, we are able to offset the losses up to a half. I believe from May this year, there won't be any additional production disruptions. 마지막 인센티브 영향은 저희보다 더 너무나 잘 아시네요. 미국은 변동 별로 없습니다. 대신 유럽이 늘어난 부분이 제일 크고요. 유럽 쪽은 다른 이유라기보다는 중국 업체들이 유럽에 지금 penetration이 아주 좋고요. 그러면 그거에 대한 저희는 대응이 있어야 된다고 보여졌고, 그 부분에 대한 인센티브 지출이 늘어난 건 사실이고, 이거를 단기간에 다 줄여나가긴 쉽지 않을 것 같고요. 올해는 1분기 수준의 인센티브는 계속 유지할 것으로 예상하고 있습니다. Regarding your second question, which is the second part about the incentive impact, I think you are better understanding when it comes to the incentive trends than us. When it comes to the U.S. region, the incentive level is very similar to that of last year. However, it is true that the incentives for the U.S. region has increased due to the fast increase of the Chinese brands in the European market. We thought that we need to slightly increase the incentives in order to respond to the fast penetration of the Chinese brands in the region. However, we believe that we cannot revise the incentive level downwards in the short term. Throughout Q1, the current incentive level will be maintained. 다음 질문을 받겠습니다. Next question, please. 다음으로 질문해 주실 분은 신영증권의 문용권 님입니다. The following question will be presented by Moon Yong-kwon from Shinyeong Securities. Please go ahead with your question. 안녕하세요. 신영증권 문용권입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문드리겠습니다. 일단 첫 번째는 판보증인데요. 이번에 기말환율로 인해서 판보증 증가한 게 한 2천억 좀 넘게 있었다고 말씀을 해 주시긴 했는데, 이거 제외하더라도 거의 1조 가까운 금액이 있었던 것 같고, 매출액 대비 비율이 한 3.7%였던 것 같습니다. 저희가 작년에 이런 품질 리스크 같은 거, 사전적으로 모니터링하는 조직, 이런 걸 내부에 만드셨고, 이런 것들을 좀 엄격하게 하겠다라고 말씀을 해주셨던 건 기억을 하는데, 저희가 예전에는 한 2% 중반 이렇게 하던 비율이 최근에 들어서는 지난 3개 분기 중에 판보증비용이 제일 낮았었던 게 한 3.9%였던 것 같거든요. 기말환율 효과 제외하더라도 혹시 이게 저희가 전체 판매 중에서 전기차가 한 10% 이상 올라가면서 전기차 판매 증가에 따른 판보증 비용이 이제 앞으로는 3에서 4% 정도로 유지가 돼야 된다고 봐야 되는지 좀 궁금하고요. 그다음에 두 번째로는 수출 관련된 질문입니다. 저희가 지금 1분기 때 국내 공장 수출이 전년이랑 유사한 수준을 기록하긴 했는데, 이게 한 2년, 3년 전 대비랑 비교해 보면 한 10% 정도가 줄어든 것 같습니다. 저희가 유럽에서도 전기차 현지 생산을 할 계획이고, 그다음에 북미에서도 하이브리드 만드시고, 또 전기차는 지금 당장 북미, 미국으로 많이 보낼 필요가 없다 보니까, 아중동 사태로 인해서 국내 공장 수출이 실적 영향차 해외 현지산 확대랑 맞물려서 하반기 때나 이럴 때 영향이 있지 않을까 보고 있는데요. 혹시 올해 국내 공장 연간으로 25년 대비 물량 증가를 어느 정도 보고 계시는지 답변 가능하시면 부탁드리겠습니다. 감사합니다. Hello, this is Moon Yong-kwon from Shinyeong Securities. Thank you for taking my question. I have two questions. First is on the warranty provisions. Because of quarter and exchange rate fluctuations, the warranty provisions have increased by KRW 200 billion. Even we exclude the impact of KRW 1 trillion impact, it is still very high compared to 3.7% towards revenue ratio. I would like to ask that previously you mentioned about your quality risk sensing organization, and you are going to rigorously sense any risks related to quality issues. You previously said that mid 2% range was maintained, but this was the first time we see this high increase of warranty provisions compared to previous quarters. Even excluding the quarter and exchange fluctuations as we increase EV sales volume overseas, provisions on EVs are going to increase, I believe. Should we expect that it is going to increase by 3%-4% range? My second question is about exports from domestic markets. For Q1, the volume of domestically produced vehicles was around the same as previous quarters. Compared to six years ago, it has slightly decreased by about 10%. In European market, EV local production is projected to be expanded, and in North America, hybrids volumes will increase as well. As we do not have to send a lot of EVs to the U.S., I would like to talk about the situation in the Middle East first. Are we going to have second half impact on domestically produced vehicles volume? Should we expect that compared to 2025, the volume will change slightly to this year? Thank you. 네, 먼저 첫 번째 질문 주셨던 판관비율 관련돼서 아마 1조 2,000억 원 올해 저희가 쌓아놓은 총 금액을 보고 말씀하신 것 같고요. 전년 1분기 대비로 약 4,400억 정도 늘어난 거 맞습니다. 이 중에 2,500억 정도는 외화로 갖고 있는 저희가 외화 판매금액 충당금 부채에 대한 환평가고요. 그다음에 나머지 늘어난 부분도 저보다 더 잘 아시는 것 같아서 드릴 말씀이 없는데, 전기차 판매 비중이 늘었고요. 확실히 늘어났고, 그에 따른 대당 워런티 충당금 규모 차이 때문에 그렇습니다. 실제로 판매 초기에 1년, 2년, 3년, 4년 차 가면서 대당 쌓게 되는 충당금 대당 금액이 줄어들긴 하는데 저희가 올해 신차가 나오면서 EV에 대한 충당금 쌓아야 되는 규모가 늘어난 게 맞습니다. ICE보다 EV가 부품 가격이나 이런 것 때문에 더 높고요, 대당 워런티 비용은. 근데 그게 또 1년 차인 신차 초기에 더 높은 상황이다 보니까 이 부분이 높게 나타났고. 다만 이게 2년, 3년, 4년 차 되면서는 분명히 빠지는, 줄어드는 영향이 있을 겁니다. 그러니까 그 부분은 너무 염려 안 하셔도 될 것 같습니다. Let me address your first question. You mentioned warranty provisions first, and you were right on the mark when you said that we have KRW 1.2 trillion of total warranty provisions. Compared to Q1 2025, the figure has increased by KRW 440 billion, and among the figure, KRW 250 billion was because of FX valuation on warranty provisions. I believe you are well aware of this, but we are experiencing a high increase in the EV share, and this has an impact on per unit warranty provision scale. In the first initial phases of the new model launch, about one to four years have no choice but to see a deep increase in warranty provisions. Over time, the figure is bound to decrease. This year we had a lot of EV launches, so that is why we have a high increase in warranty provisions, because ICE parts have lower parts prices than EVs. EVs parts are more expensive, and this is because a lot of new launches are in their first year of the model cycle. Down the road, about two to three and four years down the road, we are going to decrease the warranty provision. I believe you do not have to worry about that much. 두 번째로 국내 공장 물량 부분에 대해서는 아중동이 계속된다면 올해 물량 차질은 분명히 있을 거긴 하지만, 저희가 올해 사업 계획을 수립하면서 전년 대비 6%가 넘는 판매 물량 성장을 계획을 했고요. 일정 부분 아중동 쪽에 차질이 생긴다고 하더라도 국내 공장에서 수출하는 물량이 작년 대비로 줄지는 않을 거고요. 오히려 조금 더 늘어나는 상황입니다. 그러니까 계획상으로는 전년 대비 약 5% 성장하는 기준이긴 한데, 일정 부분 아·중동이 차질이 생기더라도 중남미나 이쪽에 오히려 요청이 더 있는 상황이고, 전년 대비 후퇴하는 일은 없을 거라고 지금까지는 판단하고 있습니다. Regarding the production volume decrease, even if we have Middle East situations prolonged, we are not going to have that many disruptions on our volume. Our business plans included a 6% growth year-over-year of volume. Even if the situations in the Middle East intensify further, exports from domestic plants will remain similar or even increase. Our business target was a 5% increase in volume. Even if there are some difficulties in our businesses in the Middle East, there will be more requirements from Central and South America, rather. We believe there is not much impact on domestic volume. 추가적으로 조금 말씀드리면, 저희가 지금 이머징 마켓 전체에서의 전반적인 수요 환경은 상당히 양호합니다. 인도, 그다음에 말씀하셨던 중남미라든지, 그다음에 나머지 아·태 지역도 대략 2분기에 저희가 한 10% 이상 수요 성장을 보고 있고요. 지금 신흥 시장에서의 수요를 대응하는 공장이 주로 국내 공장하고 중국 공장입니다. 국내 공장도 지금 전반적인 공급을 계속 늘려가고 있고요. 그다음에 중국 공장도 계속 수출이 확대되면서 올해 국내 공장 한 5%, 중국 공장은 대략 한 10% 이상 전체적인 생산을 늘려갈 계획입니다. I would like to add something on his explanation. When it comes to the total demand from emerging markets, the demand environment we have today is very favorable. In markets including India, Central and South America, and Asia Pacific regions, we have experienced a higher than 10% growth in Q2. This shows that we have a lot of growth in demand. Plants that address the demand from emerging markets include domestic plants and Chinese plants. Both plants are increasing their volume. In particular, we are expanding exports from Chinese companies. The figure for domestic markets is 5%, and the figure for Chinese markets is more than 10%. 다음 질문을 받겠습니다. Next question, please. 다음으로 질문해 주실 분은 메릴린치 증권의 황현재 님입니다. The following question will be presented by Hwang Hyun-jae from Merrill Lynch. Please go ahead with your question. 네, 안녕하세요. 메릴린치 증권 황현재입니다. 저는 아까 잠깐 얘기 나왔던 재료비 관련해서 하나 더 여쭙고 싶은데요. 아까 말씀하셨던 게 올해 예상되는 재료비 인상 효과가 매출액 대비 5%라고 하신 게 맞는지 일단 확인하고 싶습니다. 왜냐하면 사업보고서 작년 거를 기준으로 보면 저희의 재료비 사용액 기준으로 봤을 때 약 80조 원, 매출액 대비 한 70% 정도 되는데 그러면 5% 정도의 매출 임팩트다 그러면 실제로 재료비가 한 7% 정도 올라갈 수 있다라고 가정한 걸로 보여서 그게 일단 맞는지 확인을 좀 부탁드리고. 두 번째는 아까 예시로 말씀을 해주신 알루미늄 등등 외에도 사실 오늘 아침에 좀 화두가 되는 게 반도체 관련된, 전장 관련된 이런 원가 인상일 것 같은데요. 이런 부분들에 대해서는 일단 완성차가 직접적인 부담을 하지 않는 걸로 받아들여도 되는지 두 가지 말씀 부탁드리겠습니다. Hello, this is Hwang Hyun-jae from Merrill Lynch Securities. Thank you for giving me the opportunity to ask a question. I have a question on the material cost that you have mentioned. You have said that you are expecting an increase of the material cost of 5% per the revenue. Based on the last year's business report, we believe that material cost payments have been about KRW 80 trillion. Based on the revenue, it accounts for 70%. You have said that if there will be an increase of 5%, then can we understand it as a 7% increase based on the revenue this year? You have mentioned the materials, including the aluminum and others. However, this morning there have been some mentions regarding the semiconductor and electronic components, and I believe that the OEMs are not directly managing the material costs when it comes to semiconductor and electronic components material cost increases. Is this right? 첫 번째로 매출액 대비 5%면 저희는 원자재가로 올해 손익이 다 날아가는 상황인데 이거는 고려 안 하셔도 됩니다. 설명을 제가 잘못 드린 것 같고요. 그러니까 저희가 올해 계획했던 영업이익이 약 5% 내외 수준이라고 다시 한번 말씀드리겠습니다. 매출액 대비 아니고요. 영업이익 대비 약 5%의 임팩이 있을 것으로 예상을, 지금 상황이 계속된다면, 3월 수준으로 계속 간다면 그렇게 말씀드릴 수 있을 거고. 두 번째로 알루미늄이나 이런 원자재가에 대해서 말씀을 드렸던 것 중에 알루미늄을 제가 말씀드렸던 거는 가장 소요량이 많기 때문에 그 부분을 말씀드렸고, 반도체 부분도 제가 올초에 말씀드릴 때는 "큰 영향이 없을 거다"라고 말씀을 드렸는데 일부 영향이 있습니다. 다만 그게 다른 원자재나 유가나 이런 거에 비해서는 상대적으로 임팩트가 적긴 한데요. 그 부분이 분명 반도체도 완성차에 부담되는 부분이 일부 있습니다. To answer your first question on the material cost, if the level of the March is maintained throughout the year, I believe that the material cost increase would account for 5% per operating profit. On the types of the raw materials that I have mentioned, the reason why I have first mentioned the aluminum is because the use of the aluminum is one of the highest out of all raw materials. When it comes to semiconductor, of course, there will be an impact on our side as well. However, compared to oil price increase or aluminum cost increase of the semiconductor would likely be lower than others. That is the reason why I have not mentioned it earlier. On the OEM side, there will be some impact due to the semiconductor price increase as well. 다음 질문을 받겠습니다. Next question, please. 다음으로 질문해 주실 분은 맥쿼리증권의 홍광표 님입니다. The following question will be presented by Hong Kwang-pyo from Macquarie Securities. Please go ahead with your question. 예, 질문 기회 주셔서 감사합니다. 맥쿼리 홍광표입니다. 두 가지 질문이 있는데요. 첫 번째는 인도인데, 일단 저희가 1분기에 사업 수요에는 살짝 못 미쳤지만 그래도 많은 성장을 deliver 해 주셨는데 이게 지금 보면은 인도가 성장성이나 GST rationalization 이후 성장성은 좋게 나오긴 하는데, 회사들이 다 마진 우려, 원가율 상승 우려를 얘기하고, 실제 현대모터 인도 법인 같은 경우도 대략 차량 값을 한 1%씩 다 올리겠다는 얘기를 하거든요. 그래서 저희는 가격 대응은 어떻게 하실 건지, 그리고 하반기에 예정된 가솔린 가격 tax 세금 올라가는 부분이 있어서 이거에 대한 대응이 아마 저희가 hybrid mix나 battery EV mix가 상대적으로 낮은 시장이고, 그렇다면 저희가 CNG로 대응을 하실 건지, 하반기 성장 전략, 특히 앞서서 인도에서 성장성을 highlight 해 주셨으니까 그 부분 설명해 주시면 감사할 것 같고요. 그리고 두 번째 질문은 간단히 언급해 주신 거에 한 게 있는데, 서유럽에서 저희가 EV share 나오면서 믹스가 올라가시면서 incentive가 줄어들 거라고 저희가 작년에 얘기를 많이 했었던 것 같은데, 실제 이 정도 수준이 이어져서 가면 저희가 올해 보는 유럽, 서유럽 전체적인 수익성 수준이 어느 정도인지 궁금하거든요. 그래서 물론 정확한 숫자로 서유럽이 몇%다 말씀은 못 주시겠지만, 이게 수익성 trend나 신규 모델들 나와서 extension 되는 거에 따라서 마진 효과나 방향성에 대해서 설명해 주시면 저희가 실제로 추정하는데 도움이 많이 될 것 같습니다. 감사합니다. Hello, this is Hong Kwangpyo from Macquarie Securities. I have two questions. The first one is on India. In Q1, you showed an exponential growth trend, although that was slightly falling short of industry demand. In India, growth potential is huge, and due to the GST cuts, you have a lot of potential there. But there are also some concerns about cost increase and the downside risks on margins. As for the changes of February, the prices of steel are expected to increase by 1%. How are you going to respond to price increases? In the second half of the year, there will be tax increases for gasoline. What are your response strategies in order to respond to this tough situation? How are you going to execute your growth strategies in a market where the battery EV mix is very low? Could you elaborate on your strategies on growth in India again? Second of all, in Western Europe, the EV mix is continuously increasing, and last year you mentioned that this will decrease its total incentive. How would you expect the profitability in the Western European market would be in total? Could you provide some specific numbers on profitability trends and new models launches? There will be some impact on margins, did you set some directions? Could you please provide some specifics so that we can estimate figures down the road? Thank you. 첫 번째, 인도의 가격 인상 부분에 대해서는 저희가 인위적으로 가격을 추가로 더 올리거나 할 계획은 현재로는 아직은 없습니다. 인플레이션이나 물가 상승에 따라서 자연적으로 올라가는 부분이 있으면 그 부분을 따라갈 텐데요. 저희가 시장에 앞서서 먼저 가격을 올려서 대응할 계획은 아직은 없습니다. 두 번째 말씀드렸던 서유럽 인센티브 부분에 대해서는 작년에 제가 작년 초에 이 자리에서 말씀드릴 때는 EV 신차가 나오면서 "인센티브는 줄여가겠습니다."라고 말씀드렸는데, 사실 그 약속은 제가 지키지 못했고요. 그 이유는 앞서도 말씀드렸지만, 중국 업체들의 저가 EV 차종에 대한 공격이 들어와 있고, 일부 유럽 국가에서는 시장 점유율 늘어나는 부분이 저희가 생각했던 거 이상으로 너무 빨랐고요. 또한 저희와의 가격 격차가 거의 25% 가까이 나는 부분이다 보니, 그 부분에 대한 일정 부분 저희가 인센티브 증액을 시행하게 되었고, 그럼에도 원유 환율의 도움도 있긴 했지만, 현재 유럽 지역의 이익률은 하이 싱글 정도의 이익률을 보이고 있습니다. First, on price increases in the Indian market, we don't have any plans to proactively increase the prices. If there's inflation and other external variables, naturally prices go up, we're going to align our plans accordingly. We don't have any plans to proactively increase the prices. Second of all, on incentives in Western Europe. Early in 2025, we mentioned that we are going to decrease incentives with increasing EV new models, we couldn't keep the promises we made. That's because Chinese players have attacked our profitability with low priced EVs. In some European countries, the MS of Chinese players has gone up too rapidly compared to our expectations. The price gap between us and theirs is about 25%. We couldn't have choice but just increase incentives. That was inevitable. There have been some benefits from the one zero exchange rates. Our profitability ratio is about in the high single digit range. 시간 관계상 마지막 질문을 받도록 하겠습니다. Due to time constraints, let me take the last question. 마지막으로 질문해 주실 분은 메리츠증권의 김준성 님입니다. The last question will be presented by Junsung Kim from Meritz Securities. Please go ahead with your question. 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 두 가지 여쭙겠습니다. 좀 전에 맥쿼리증권의 질문에서 답변을 주시길, 중국 쪽 위협으로 인해서 인센티브 상승 코멘트를 주셨는데요. 저는 볼륨 관점에서 올해 저희가 연초에 제시해 주셨던 볼륨 성장 가이드가 지켜질 수 있을지에 대해서 우려하고 있습니다. 아시겠지만 지금 1분기에 중국 자동차 수출이 YOY로 60% 증가해서 223만 대가 밖으로 나왔거든요. 아마 작년 820만 대에서 올해는 천만 대를 넘게 밖으로 수출이 될 것 같고, 또한 알고 계신 것처럼 유럽에서 작년에 가동된 헝가리 공장에 이어서 지금 터키 공장이 가동이 되며 BYD의 유럽 내 생산 계획이 50만 대에 육박을 하고 있습니다. 또 우리나라에서도 지금 ZEEKR와 Xpeng이 출격을 할 것으로 제보가 되고 있는데요. 한국 시장하고 유럽 시장에서의 위협을 아울러서 전 세계에서 저희가 목표하고 있는 판매 가이던스를 이런 위협 상황에서도 지켜낼 수 있는지, 그걸 지키기 위해서 인센티브가 지금 1분기에도 좀 올라간 모습으로 보이는데 연간으로 봤을 때 이런 인센티브의 상승 강도가 1분기와 유사하게 2, 3, 4분기에도 YOY로 작동을 할 것인지 궁금합니다. 두 번째는 Investor Day에 대한 팔로우업 질문인데요. 사실 저희 주가가 지금 굉장히 높은 상황이거든요. 연초 올라갔던 최고점 대비로는 좀 빠져 있지만, 사실 작년부터 저희의 로보틱스와 관련된 전략이 역사상 가장 높은 밸류에이션, 높은 주가를 양산하고 있는 것 같습니다. 그래서 Investor Day에서 얘기해 주셨던 두 가지 내용에 대해서 추가로 궁금한데요. CEO께서 말씀하셨던 Robotics in America 지분 출자를 하신다고 했는데, Atlas의 양산 시기가 적어도 올해는 가동이 시작이 돼야 될 것 같습니다. 그래서 해당 법인이 언제쯤 셋업이 되고, 저희의 지분 출자의 확정되는 시기는 언제인지 궁금하고요. 스마트카 데모가 NVIDIA 협업을 통해서 공개된다고 하셨는데 올해 공개가 되는 건지, 올해 된다면 연말인지 언제쯤 저희가 그 데모카를 볼 수 있고, 타볼 수 있는지 궁금합니다. 감사합니다. Hello, this is Kim Junsung from Meritz Securities. Thank you for giving me the opportunity to ask the questions. I have two questions in total. In addition to your answer regarding the question from Meritz Securities, you have mentioned that the incentive increase was due to the price competitiveness of the Chinese brands. I would like to ask question regarding the volume growth. Considering the rise of the Chinese brands, the sales of the models of Chinese brands has increased about 60% YOY, and currently they are selling about 2.23 million units worldwide. I believe that it will increase to 100 million this year. Considering the production in Hungarian plant and other European plants, the viewer gains a production capacity at the moment amounts to 500K units. There is a rumor that ZEEKR and Xiaomi will advance into Korean market as well. Considering the situation both in Korea and the European markets, do you think that we can keep the guidance when it comes to the sales and the volume growth? I would like to understand whether the incentive increase rate will be maintained throughout Q3, Q2 and Q4 as well. I also have one more question regarding the recent Investor Day. As you well know, our stock price is very high at the moment, it is a bit lower than our record high price. I believe this is one of the highest valuation when it comes to our stock price in our history. CEO also mentioned about the assessments into the Robotics America as well. I believe that this is the timing to start the operation when it comes to the assets, I would like to learn about the specific timing for the Robotics America plan. CEO has also mentioned about our smart car project in collaboration with NVIDIA, and I would like to also understand when would be the timing where we can experience the demo for the smart car. Thank you. 먼저 첫 번째 질문 주셨던 판매 물량과 인센티브 부분에 대해서는 다시 한번 말씀드리겠습니다. 저희가 올해 335만 대 도매 판매 목표를 제시를 드렸었고요. 이에 따른 1분기 계획도 있었고, 이 계획 대비 현재 저희가 초과 달성한 상황입니다. 이게 어떤 한 권역에 잘하고 못하고에 따라서 이 결과가 나온 게 아니라 아·중동은 어떤 문제가 있었지만, 그 부분을 전 권역이 골고루 다 지금 판매를 더 사업 계획 대비 초과하면서 그걸 다 만회하고도 계획을 초과해서 가고 있기 때문에 지금 상황에서 저희가 판매 물량을 지킬 수 있느냐, 저는 지킨다고 말씀드릴 거고요. 인센티브 서유럽 쪽의 레벨은 작년 4분기 수준을 올해 1분기 유지를 했었고, 이 부분을 작년 기간에 앞서서 말씀드렸던 거하고 동일하게 작년 기간에 추가로 더 올리거나 하지는 않을 것으로 저희는 판단을 하고 있고요. 이 1분기 수준을 아마 유지하게끔 될 것 같습니다. 아마 낮출 수 있느냐라고 앞서서 여쭤보셨는데 낮춘다고 말씀드리기는 어렵고, 다만 1분기 수준 유지하면서 저희는 마켓 셰어를 지켜나가는 부분에 대해서, 오히려 지켜나가는 게 아니죠. 마켓 셰어를 끌어올리는 부분에 대해서 조금 더 집중을 할 거고요. 그에 대한 내부적인 대비책도 현재 준비하고 있습니다. To answer your first question on the sales volume and the incentives. In the early of this year, we have mentioned that our whole sales target is about 3.35 million units. As of Q1 performances, we have already exceeded our target. This is not a result from the single region. Though there has been some negative impact from the MEA region, we were able to recover the shortages of the MEA region in all other regions in a balanced manner. We were able to achieve the target when it comes to the sales volume, and we have already exceeded it based on our business plan. At the moment, I can confidently say that we can keep the promises for the sales volume. When it comes to the incentive level in the Western European region, currently the Q1 incentive level is same to the level of Q4 level last year. For the remaining period throughout this year, I believe that there won't be any additional changes. The Q1 level will be maintained. Some of you might wonder whether there is any possibility for the incentive rate to go down. However, at the moment, we do not have a plan to do so. Rather, we will maintain the level of Q1 in order to increase the market share, and currently we are preparing for a countermeasure to it. Robotics in America 투자 관련하고 그다음에 concept phase 관련한 질문은, Robotics in America는 지금 저희 어차피 생산법인이기 때문에 저희 방향성은 명확히 말씀드린 바 있습니다. CEO께서도 한국에서 하든 아니면 미국에서 하든 각각 로보틱스 방향에 대해서, 지금 생산법인 관련해서는 기아가 참여한다는 어떤 방향성에 대해서 말씀을 드렸고요. 다만, 이게 규모라든지 출자 방식, 출자 조치 이런 부분들에 대해서는 지금 검토가 진행되고 있고, 저희가 하반기 중에 준비가 되면 말씀을 드릴 수 있을 것 같습니다. 그다음에 phase car도 말씀드릴 게, SDV가 저희가 2026년에 concept phase, 그다음에 2027년에 개발 완료, 그다음에 아마 2028년 초 정도에 출시가 가능할 걸로 보이고요. 그 이후에 점진적으로 저희가 도심 주행까지 가능한 L2++로 SDV 양산차 해가지고 같이 넘어가는 걸로 말씀을 드렸고요. 그 부분에 스케줄은 큰 변화가 없습니다. 지금 아마 phase car에 대해서는 저희가 아마도 하반기 중에서도 연말에 가까운 시기 정도에 저희가 그 스케줄대로 나올 수 있을 것 같고요. 실제 시승 여부나 이런 부분들에 대해서는 아직 확정된 부분이 없어서, 그 부분들을 시장에 공개를 어떤 방식으로 할지에 대해서는 저희가 확정된 바가 없습니다. 이 부분도 하반기 중에 내부적으로 어느 정도 결정이 되면 적절하실 때 말씀을 드리도록 하겠습니다. To answer your second question on the Robotics America contributions and the phase car and base car plans. When it comes to the production subsidiary, our CEO have mentioned the overall direction. Whether it be Korea or the U.S., when it comes to the production subsidiary, it is certain that Kia will take part, will be participating in the project. When it comes to the specific scale or the measures of the contributions, it will be determined in the second half. Regarding question with the collaboration of NVIDIA, of SDV and the phase car. The phase car will be launched within the 2026, and I believe that the development will be complete at 2027 and the official release will be made around 2028. Then we will work on our project to launch the L2++ model, the mass-market model of SDV. I believe that the schedule for our smart car and the phase car collaboration will be similar to that we have mentioned earlier. To be specific, when it comes to the phase car, it will be released in the second half or at the end of the year. When it comes to the test drive or the demonstration, the schedule is yet to be confirmed, and we have not yet confirmed how to release it to the public yet. Once the schedule and the measures to release our phase car is finalized in the second half, we will get back to you with the correct information. Thank you.