This is Michael Yoon, Head of Investor Relations team. Now let me start Hyundai Motor Company's 2023 Q3 Business Results Conference Call. Please refer to the presentation HMC 2023 Q3 business results on our IR website. Today's presentation consists of two parts: sales summary and financial summary. For more information, please refer to the appendix page. First part is sales summary. Our 2023 Q3 global wholesales increased by 2.0% year-on-year to 1,045,510 units, while retail sales increased by 1.8% year-on-year to 1,019,849 units. In third quarter, our wholesales increased due to strong sales in North America and Europe, despite seasonality. In domestic market, sales increased by 3% year-over-year due to strong sales of the all-new Kona, along with steady demand of hybrid vehicles and launch of new Santa Fe in August. In North America, wholesales increased by 13% year-over-year due to strong sales led by high-value models like Genesis and significant increase in EV sales after active response to IRA. Especially in the U.S. market, wholesales increased by 27% year-over-year, helped by strong sales of SUV models. In addition, EV retail sales increased by 183% year-over-year due to proactive marketing. In the European region, wholesales increased by 8% year-over-year due to steady sales of eco-friendly vehicles with new Kona EV and HEV. In India, we had stable sales in SUV segments with the launch of micro SUV Exter in July. Starting with the launch of Creta facelift next year, SUV sales momentum is expected to strengthen. Next is sales by model and key status. Global SUV sales portion increased by 4.1 percentage point year-on-year to 54.7% due to global launch of the all-new Kona and solid sales of our flagship models, such as Tucson and Santa Fe. Genesis portion in Q3 increased by 0.2 percentage point year-on-year to 5.1% due to strong sales of flagship models such as GV70. Sales of eco-friendly vehicles increased with stable sales of EVs and HEVs. Global HEV portion increased 2.9 percentage point year-on-year to 8.6%, with the global sales of the all-new Kona, especially in Korea and European markets. Also, global EV portion increased 1.2 percentage points year-on-year to 6.3%, with increased sales of EVs in Q3 U.S. market, due to appropriate use of incentives to respond to IRA. More details on sales for major markets such as Korea, the U.S., and Europe, are provided in the appendix, page 11. This is the end of presentation on sales, and now I'll move on to financial summary. This is the income statement. Consolidated revenue increased by 8.7% year-on-year to KRW 41 trillion, and operating profit increased by 146.3% year-on-year to KRW 3.8 trillion. The automotive division's revenue increased 9.3% year-on-year due to increase of volume, mix improvement with high-margin vehicles. The operating profit increased by 207% year-on-year. Finance division revenue increased by 0.9% year-on-year, and the operating profit increased by 1.3% due to strong sales of vehicles and growth in penetration rate. Accordingly, net income increased by 133.9% year-on-year to KRW 3,303.5 billion. Next is revenue and operating income analysis. Volume effect from sales increase was KRW 1.6 trillion. Despite the increase of incentives, mix improvement with high-margin models had an impact of KRW 1.1 trillion. Despite the unfavorable won to US dollar rate, revenue increased by 8.7% year-on-year. Regarding operating profit, volume impact was KRW 314.4 billion. Positive mix improvement effect that offsets increased incentives was KRW 460.9 billion. Also, due to base effect of provision cost in Q3 2022, operating profit increased 146.3%. Cost of goods sold ratio decreased by 1.1 percentage points to 79.4% due to the decrease of raw material prices. Despite the increase of labor and R&D costs, SG&A decreased by 20.1% year-on-year to KRW 4.6 trillion, due to base effect of one-off provision cost in Q3 2022. Non-operating income increased by 72.7% year-on-year to KRW 4,845 billion. Net income increased by 134% year-on-year to KRW 3.3 trillion. This is the end of our Q3 2023 business results. Thank you. Next, EVP Gang Hyun Seo, HMC, Head of Planning and Finance Division, will discuss Q3 performance evaluation, annual earnings outlook, and third quarter dividend plan. Good afternoon, I'm Gang Hyun Seo, Head of Planning and Finance Division of HMC. Let me share the overview of Q3 2023 business results, full year outlook, and Q3 dividend plan. In Q3 2023, despite the market concerns over global automotive demand and a low season, HMC posted global wholesales of 1.05 million units, thanks to the continuously solid market demand, achieving operating profit of KRW 3.8 trillion, with OP margin of 9.3%. Our sales mix continued to improve with higher ASP models such as Genesis and SUVs sold more, combined with our regional mix improvements, such as the record sales in the U.S. and strong sales in Europe and Korea. With the favorable average $1 exchange rate of KRW 1,300, all this contributed to the Q3 performance. I understand that the rapidly changing auto market and macro uncertainties, such as interest rate hike and inflation, keep creating worries over the global auto demand. Still, HMC has been showing a robust growth in major markets such as the U.S., Europe, and India, while expecting record sales in the U.S. As a result, HMC's global wholesales posted 1.05 million units, up 2.0% year-on-year. Following the first half, in the third quarter, the impact of product mix improvement continued. While the total volume increased, the share of SUV and Genesis improved even more, marking 54.7% and 5.1% respectively, which is close to 60% of the total sales. Also, despite the market concerns over the worsening EV sales environment, our EV sales grew 6.3% by 26.2%. Overall, the product mix improvement, sales volume growth, and positive FX impact all drove strong third quarter results. I would now like to touch upon the market concerns over the increasing incentive spending. Excluding the increased incentive for EV sales in the U.S. market to respond to the IRA, the incentives for ICE vehicles in the U.S. have been managed stably below the industry level throughout the third quarter, and the profitability-driven sales policy will continue in the future. HMC has completely reorganized our decision-making and evaluation system, focusing on profitability away from volume growth, and has been implementing incentive policies through careful analysis of each market and vehicle type. Next, let me briefly explain our quality cost. Even if there's media coverage on our new quality cost, the precise amount, calculation of liability ratio, and evaluation of the existing provision amount due to the consistent quality improvement may cause quite a gap to this quarter's provision. Also, the amount of provision may change significantly depending on the difference between the US dollar exchange rate at the end of the previous and the current quarters. As we keep improving the quality of our products, the impact is recognized by evaluating the existing provision according to the accounting standards, and the current amount of re-provision to the total revenue is at a stable level. Next is our full-year 2023 forecast. In the second quarter earnings call, we raised the annual guidance, revenue growth of 14%-15% and OP margin of 8%-9%. In Q4, macro uncertainties are expected to grow significantly, such as interest rate hikes, Israel-Hamas war, prolonged Russia-Ukraine war, and rapidly changing EV market environment. However, we expect to achieve annual results near the upper end of our annual guidance for sales and OP margin through robust growth in key markets, continued improvement of our product mix, minimal increase in incentives, and favorable exchange rates. Even with the growing macro uncertainties, the company will proactively respond to the market environment based on the profit-driven decision making and strengthening regional HQs in each market. As evidenced by our response to the supply shortage through our flexible production and response capacity, we will keep the direction of the EV strategy announced at the CEO Investor Day, while executing sales and production strategies for EV, HEV, and ICE by closely monitoring the local market demand in order to consistently maximize profits. Finally, Q3 dividends. As announced at the first quarter earnings call, we set the quarterly dividend payment and dividend payout ratio of 25% or higher as part of our mid to long-term shareholder return policy. The third quarter dividend will be paid accordingly. The third quarter dividend was decided at KRW 1,500 per common share, the same as the second quarter. Thank you for listening. Next, SVP Lee Hyung-seok, Head of Hyundai Capital Finance Division, will brief on third quarter finance segment earnings and fourth quarter outlook. Good afternoon, I'm Lee Hyung-seok. I'll report the Q3 2024 business results and outlook for the fourth quarter. In the third quarter, while downside risk persists, including interest rate hike and concerns over slowing economic recovery, Hyundai Capital is the captive finance company of the HMG. We are sustaining our performance with a portfolio led by solid auto financing segment. In the fourth quarter, although internal and external uncertainties will continue, Hyundai Capital will respond with agility to secure competitive edge. I'll elaborate on details of each company. First is Hyundai Capital. Based on the HMC's production normalization and close cooperation with subsidiaries, we strengthened installment products competitiveness. As a result, financing assets increased by 2% year-on-year. Moreover, supported by the company's stable financing capabilities by providing the captive auto financing in a stable manner, the share of profitable auto financing exceeded 80% in our portfolio. As a result, on a basis of excluding Forex and derivative valuation gains and losses, offsetting the profit and loss effect, third quarter cumulative operating income increased, mainly in installment and lease, by 35% year-on-year. In terms of cost, interest costs increased from continued high interest rates and deteriorated asset quality across the financial sector, resulted to the increased cost of bad debts, decreasing operating profit by 8% year-on-year. However, preemptive risk management efforts led to delinquency ratio below 1%, the lowest this year, suggesting very strong soundness. In Q4, while the uncertainties are heightened due to continued tightening monetary policies in major countries and geopolitical risk, Hyundai Capital will manage an auto finance-led portfolio so that the external impact will be limited. Also, we will remain proactive in risk management to safeguard against the concerns over worsening soundness. Despite the volatile financing market, we successfully issued KRW 1 trillion worth ABS this week. We will diversify funding sources to stably secure liquidity and respond to volatility of the financing market. Moreover, in support of HMC's upcoming CPO business, we will expand the financing for used cars and enlarge global finance coverage to solidify the leadership in auto finance market. Next is Hyundai Capital America, HCA. Supported by strong sales of vehicles, cumulative auto financing volume of Q3 increased by 48% year-on-year. Improved mix, led by Genesis and SUVs, and continuous increase of ASP, caused financial assets to go up by 9% year-on-year. Q3 cumulative operating income increased 8% year-on-year, but due to the interest cost increase from high interest rates and rise in provision cost led by asset growth, operating expenses have also increased. As a result, won-denominated operating profit went down by 43% year-on-year. But in terms of credit risk, prime asset ratio was raised to 88% within our portfolio, by which we recorded favorable delinquency ratio, securing stable soundness. In September, following March and June, we issued global bonds worth of KRW 7.5 billion total. In Q4, as concerns over prolonged high interest rates and high inflation continue, HCA is preparing in every way to minimize negative impact from risk. By pursuing proactive risk management, focusing on prime customers through conservative underwriting strategies, enhanced collection activities to minimize asset insolvency and reduction of OpEx, we will continue our efforts to defend profitability. This is all for the presentation on the finance segment. Thank you. This is all for presentations, and now we will take questions. The first question will be presented by Eun Young Lim from Samsung Securities. 전기차, 생산 계획에 대해서 좀 그 외산 업체들이 좀 늦추고 있는 것 같거든요. 2024년 하반기 내지는 2025년으로. 그래서 이 전기차 가격 경쟁이 너무 심하게 붙었고, 지금 수요 부진, 고금리 이런 우려들 때문에 내년에 저희 미국 공장 돌아가는 스케줄, 이게 조금 늦어질 가능성이 있는지, 그리고 2026년, 2023년 이런 전기차 중장기 판매에 대해서 조금 하향 조정 가능성이 있는지 여쭤보고 싶고요. 두 번째는 이제 충당부채에 대해서도 굉장히 여러 가지 전수가 있어서 언론에 나오는 거와 다르게 이제 설정이 될 거다라고 말씀해주셨는데, 일단 엔진 그 충당보증금 때문에 상반기 말 기준으로 충당부채가 KRW 10 trillion 정도 쌓여 있더라고요. 그래서 지금 분기별로 나가는 거보다 좀 과도하게 쌓여 있다라는 느낌을 받게 되는데요. 이게 뭐 올해 당장, 뭐 내년은 아니겠지만 엔진이라는 게 이제 2011년 말부터였으니깐 이제 얼추 10년이 더 지나가는 것 같은데. 이게 이제 3년 정도의 기간을 놓고 봤을 때 환입될 가능성이 있는지 질문드리고 싶습니다. 이상입니다. So the first question was asked by Eun Young Lim of Samsung Securities. Thank you for the opportunity. Congratulations on the great result despite the difficulties in the market. I have two questions. First, you mentioned the direction of your EV plan. According to the sales report and the earnings calls in the previous quarters, I believe that there has been some slowdown in the EV demand, and some OEMs are adjusting their EV production plans, maybe shifting the focus from 2024 to 2025 and so on. I believe there is going to be more intensified competition on EV price, and the demand seems to be slowing down. So I was wondering about the U.S. plant and the timeline for your U.S. plant, and also between 2026 and 2030. I was wondering if the company has a plan to reduce or maybe adjust the mid- to long-term sales, EV sales plan. And the second question is about the provision. I believe there are many aspects at play regarding the provision. You mentioned that the amount of provision may be different from what's been covered by the media, but I believe in the first half of this year, Hyundai Motor Company set aside about KRW 10 trillion provision for engine. It seems to be quite excessive, so it may not be this year or next year. But I was wondering, because it has been about 10 years since you introduced the new engine, because it has been launched by the end of 2020-2011. I was wondering if there is going to be additional provision regarding the Theta engine? 예, 성현모 사장입니다. 예, 질문하신 거 답변드리겠습니다. 전기차 수요에 대한 그 반응, 뭐 글로벌하게 예, 여러 시장에서 좀 허들을 만나고 있는 것, 뭐 저희들도 리포트 받고 있고요. 또 현대자동차도 뭐 그런 부분에 대한 거는 어느 정도 예상을 또 하고, 저희들이 뭐 시나리오 경영을 하고 있습니다. 지난번에 그 CEO 메시지에서도 저희들이 말씀드렸지만, 예, 항상 이렇게 그 패러다임이 좀 변경될 때 저희들이 기대는 뭐 리니어하게 계획을 짜지만, 실제로는 뭐 그 약간 계단식으로 변하는 게 이제 보통의 경우고요. 이 전기차도 충전 인프라라든가 뭐 가격 부담이라든가 하는 어떤 일반 소비자들을 얼리 어댑터에서 일반 소비자들로 가는 과정에 어떤 그런 좀 제한, 제약 요인들이 뭐 발생해서 그런 반응들이 나타나고 있는 걸로 저희들도 이해를 하고 있고, 시장의 리포트를 받고 있습니다. 당장에 질문하신 미국 공장은 하지만 뭐 IRA 저희들 그 혜택을 받는 측면에서 저희들이 또 의사결정을 좀 빠르게 해서 진행되고 있는 것인 만큼 2024년 하반기에 예, 양산 일정 자체를 예, 늦추거나 할 계획은 현재까지는 없습니다. 그래서 지켜나가고, 저희들이 어쨌든 시장에서 또 그 저희들 차를 가지고 경쟁하면서 다른 업체들도 받고 있는 보조금들을 좀 저희들도 받을 수 있는 그런 환경을 좀 만들면서 갈 거고요. 전체적인, 그러면 그 EV에 대한 판매 계획을 수정하겠냐? 기본적으로 저희들이 사업계획 세울 때는 장기 계획이 한번 수립된다고 그걸 그대로 갖고 가지는 않지 않습니까? 지금 현재 각 권역별로 내년에 그 수요들을 다 차종별로 예측을 하고 있고요. EV도 시장에 맞춰서 그 차종들을 예측을 하고 있습니다. 다소 저희들이 원래 기대했던 것만큼 전기차의 판매 계획이 내년에 약간 낮아질 수는 있겠지만, 전체적인 총 판매에서는 큰 영향을 미치지 않을 것으로 생각을 하고 있습니다. 왜냐하면 저희들 말씀드린 대로 저희들은 동일 라인에서 그 ICE 엔진과 그 EV를 예, 그 병행 생산하고 있는 라인들도 많이 가지고 있고, 또 그 부분에 그 생산을 대체할 수 있는 뭐 그 구매 체계나 그런 부분들도 유연하게 대응할 수 있기 때문에, 그런 부분을 통해서 시장 수요에 대응해 나갈 거고요. 하지만 뭐 급하게 저희들이 EV를 전략적으로 줄이고 하는 생각을 가지고 있지 않습니다. 뭐냐하면, 지금 잠깐의 허들은 있더라도 기본적으로 EV 쪽으로 확대되는 부분에 대한 거는 저희들은 맞다고 보고요. 우상향 곡선으로 EV는 성장해 나갈 거기 때문에 당장의 허들 때문에 너무 보수적으로 전기차를 우선적으로 생산 기일을 늦춘다든가, 개발을 늦춘다든가 하는 거는 예, 생각하고 있지 않습니다. Yes, I'm going to answer your question. Yes, we are aware of the some of the challenges that we have against the EV demand globally in many different markets. But this is something that we have been expecting for a long time ago with different scenarios. As we announced it at the CEO Investor Day, when the paradigm is shifting, things may change in steps, not linearly. So in case of the EV, there can be many different aspects at play, including charging infrastructure and the prices. Therefore, we believe there are some changes that we are going through as the early adopter phase is now shifting towards more mass adoption of EVs. Regarding our U.S. plant, we made the strategic decision to go with the U.S. plant and start production from the second half of 2024 to respond to the IRA. So we do not have any plan to adjust the timeline regarding the U.S. plant SOP, so that we can be eligible for the incentives in the U.S. market. Regarding your question on the overall EV sales plan adjustment, just because once the business plan is set, it's not gonna be changed, it's not gonna just stay there. It may have to be changed according to the different demand and the changes in demand in different regions. Therefore, we might change our business plan regarding the EV, but the total sales impact will not be huge. Because we do have some assembly lines and plants where we can produce both ICE and EVs, and we can flexibly adjust our procurement and other elements as well to flexibly respond to the change in demand. So long story short, we are not having any plan to drop EV sales plan anytime soon just because of the short-term hurdles. But we believe that in the long term, the EV growth will continue, so we do not have any plan to reduce production or sales targets. 그리고 두 번째 질문하신 그 충당 부채에 대한 부분인데요. 그. 물론 뭐 그 시장에서 보시기에 그 충당부채 실제로 집행하는 거에 대해 대비해서 그 좀 과도하지 않냐라는 의견을 보이실 수도 있는데, 사실 뭐 그 부분은, 회계 기준에 의해서 저희 뭐 최근에 이제 그 지정 감사인으로 이제 바뀌기도 하고, 지정 감사인제가 되면서 그 시장에서도 아시다시피 좀 보수적인 그 회계 기준에 맞춰서 저희들이 비용 산정을 하고 있고요. 지금 시점에서 환입 가능성을 말씀드릴 수는 없습니다. 왜냐하면 엔진이라는 게, 저희들이 스케줄대로 해가지고 그 진행을 하고 있지만, 저희들은 이제 그 수리를 해드리고 리콜 프로그램에 맞춰서 그 진행한 고객들의 차량의 경우에 다시 문제가 있는지 없는지는 또 시장이 시간이 지나면서 또, 체크를 좀 받아야 되고 하는 그 사항들이 있어서, 저희들은 보수적으로 비용 산입은 돼 있지만, 당장의 환입 계획은 없고, 저희들은 지금 잡혀있는 그 충당금, 충당부채 자체는 적정하게 보수적인 관점에서 회계 기준에 맞게 잘 산정돼 있다고 판단하고 있습니다. On the second question regarding the provision, regarding the Theta Engine, you might believe that it is excessive, but it's set aside according to the accounting standards, and we have introduced a registered auditor, and so we are calculating such cost according to the conservative, conservative standards. So at this point, we cannot really say there is a possibility that we are going to recognize further provision. By the nature of engine, it will take some time to really see the market feedback after doing some repairs and running recall programs. So at the moment, we do not have a plan to recognize or set aside additional provision for Theta Engine. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 키움증권의 신윤철 님입니다. The next question will be presented by Yoon Chul Shin from Kiwoom Securities. exchange rate effect has been reflected, as a negative exchange rate effect in revenue and a positive exchange rate effect in operating profit. Could you please provide the specific background on by what kind of mechanism this part was reflected differently? And the second is, earlier the Vice President mentioned a profitability-focused strategy, now compared to our Q target of 4.32 million units, in the fourth quarter we need to sell about 1.2 million units to actually reach the Q target. But since you mentioned focusing more on profitability than Q, I understand it as strengthening profitability even if we miss Q a little, rather than additionally increasing incentives in the fourth quarter, could you please provide your outlook on how you will handle the incentive policy in the fourth quarter? 그리고 이제 마지막으로는, 최근에 뭐 테슬라나 GM 실적 발표 있었던 미국 OEM들 그 실적 발표 내용을 좀 보면, 뭐 비단 파업이나 아니면 전기차 수요 둔화뿐만이 아니라, 이런 이제 미국에서의 매크로 환경, 특히 이제 저희 현대차에게도 미국이 가장 큰 시장이다 보니까 그쪽에서의 좀 자동차 산업 전반의 둔화가 많이 우려가 되고 있는데. 저희가 이제 가이던스를 상단을 말씀 주셨다 보니까, 경쟁사 대비해가지고 저희가 미국 시장에서 가질 수 있는 그 경쟁력이 무엇이라고 지금 분석하고 계시는지 궁금합니다. 감사합니다. Thank you for the opportunity. My name is Yoon Chul Shin, and I'm from Kiwoom Securities. I have- questions. My first question is about the Forex impact, because if I see the presentation of your earnings report, and I see the revenue and operating profit, and the Forex impact on revenue was negative, and it was plus for operating profit. So what was the mechanism behind this? My second question is about the profitability-driven strategy, because to meet the target for the 1.2 million units for sales in the fourth quarter, you have to meet 1.2 million units to meet the target. So if you focus on profitability, then you might have to miss in terms of the quantity. So how would you deal with this, and what is your policy behind this? And then my third question is about the U.S. market. If we see the U.S. OEM earnings report, especially Tesla, we see that there is a strike from the labor union, and also we see the demand weakening in the U.S. market. Along with the macroeconomic uncertainty surrounding the environment for the auto industry, we see that there is a big risk for the HMC in the market. So since there are concerns over the market slowing down, although despite these risk, you said that you will reach the upper end of your guidance that you suggested. So what is your competitiveness compared to your peers in the U.S. market? Thank you. Yes, Uh, Yes, on your first question about the Forex impact on different directions for revenue and operating profit. So when the Forex goes, the exchange rate goes down, the revenue will have a negative impact, of course. But why the operating profit has increased? Well, if there is a huge impact from the Forex, then there will be a large impact as well for in terms of the expenses, so on the operating profit as well. However, as Miss Eun Young Yim from Samsung Securities suggested about the provision accounts, we do have overseas liabilities account in terms of the provision. So at the end of the term, we will have the evaluation on that. And also in terms of the Forex, we do have U.S., accounts, but for other currencies as well, we deal with, Euro or the Australian dollar as well. So these could also affect, our books. So, it does not, it's something that we see, all revenue or operating profit go in the same direction all the time, so it could go different ways. Your second question was about the profitability that we will be focusing on. You said that if even if we miss, the target for the quantity in the fourth quarter, the question was, would- will we, increase the incentives? Well, this will not be an easy decision-making, but whenever, we make decisions, it's not something that there's always one option. So we could take, different approaches as well. So to raise profitability and also to keep the volume, sometimes it has to be impacted on the fixed cost as well. So sometimes there are situations when incentives cannot be very effective, so we will have to think about this quantity and the profitability as well. And for the KPIs of local corporations, executives, not only the volume, the profitability KPI is their goal. So to meet those targets, we will have to keep making efforts. 그 세 번째 질문, 예, 미국에서의 당사 경쟁력이 뭐냐라는 질문이신데요. 기본적으로 상품을 파는 제조업에서 그 프로덕 얘기를 일단 빼놓을 수는 없을 것 같고요. 저희들이 아시아, 미국에 그 SUV 쪽으로 전환한 그 전략 굉장히 잘 먹혀 들어가고 있었죠. 팰리세이드, 산타페, 최근 아마 신형 나온 산타페도 미국 시장에서 굉장히 국내보다도 훨씬 더, 반응이 그 딜러들 반응이 굉장히 좋았고요. 저희들은 내년 사분기 이후에 그 신형 산타페의 그 선전을 기대하고 있습니다. 전체적인 프로덕트를 개발하고, 초기 상품 구상을 하고 개발하는 단계에서의 현지와의 코웍, 미국 디자인 센터나 미국 연구소나 저희들 전체적인 현지 의견들을 초기 개발 단계부터 받아서 미국 현지 소비자들이 원하는 제품들을 만들 수 있도록 하는 프로세스 개선 등 그런 부분이 자리를 잡으면서 저희 프로덕트에 대한 미국 고객들의 선호도가 굉장히 높아진 거, 그 부분이 브랜드 이미지로 연결이 되면서 제네시스 차량까지 지금 잘 팔리고 있는 그런 걸로 저희들은 긍정적으로 보고 있고요. 그와 동시에 저희들이 네트워크 개선을 위해서 굉장히 많은 애를 쓰고 있습니다. 저희들 시장하고 커뮤니케이션 할 그런 단계는 없지만, 저희들 딜러 바디, 잘하는 딜러 위주로, 또 대형 딜러 위주로, bigger and better 전략으로 해서 대형 위주로 편중을 하면서 네트워크를 저희들이 강화시키려는 노력을 최근 1-3년간 계속적으로 지금 진행을 하고 있고요. 그 네트워크에 해당되는 부분의 보조금이나 그런 부분들도 저희들이 열심히 줘 가면서 시설 개선도 하고, 네트워크를 강화해 가는 부분. 또 아까 말씀드렸지만, 현지인 체제로 저희들이 운영을 하면서 확실히 그 딜러 바디, 미국이라는 시장은 고객들하고의 관계에도 브랜드가 직접적으로 중요하지만, 결국은 네트워크, 딜러를 통해서 파는 체제이기 때문에 저희들이 현지인 체제로 전환한 부분이 그 부분에서 굉장히 많은 저희들의 경쟁력을 좀 강화시키고 있다라고 판단하고 있습니다. Also, your third question about our competitiveness in the U.S. market. I think that as a manufacturer, a product competitiveness is very important. So I think our strategy towards the SUV-focused sales is very effective and led by Palisade and Santa Fe, and also for the new model of Santa Fe in the U.S. market, we are getting very good feedback from the dealers, and we expect highly on the sales outlook from the first fourth quarter of 2024 for the new Santa Fe model. And our competitiveness will lie with the initial development stage, with the local R&D center and design studios. Because we can get opinions from them, we could receive what our customers would want in the U.S. market. So along the all process, we do have a very systematic system in place, and so this will lead to our brand image and also it led to Genesis performance, really strong performance for the Genesis as well. And what's more important is the network improvement, and we are trying really hard to improve the networking with our dealers. We have the strategy of bigger and better. So by strengthening the network with our dealers, we have been making this effort for the last three years. And also facility improvement and also the subsidies are the important factors as well. And as I said earlier, we are operating the system with locally hired people for dealerships. So with the dealer body, we can reach our customers in the market. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 맥쿼리 증권의 홍광표 님입니다. The next question will be presented by Gwang Pyo Hong from Macquarie. 아, 예, 질문 기회 주셔서 감사합니다. 저 두 가지 여쭤보고 싶은데요. 하나는 이제 미국에서 UAW가 포드랑 잠정적으로 25% 임금 인상에 대해서 얘기를 합의를 했다고 하는데, 그 저희가 느낄 수 있는 이제 미국에서 임금 부담, 임금 인상에 대한 부담이나 향후 이런 노사 전략 같은 건 어떻게 생각해야 되는지 좀 궁금하고요. 예, 뭐 숫자를 주시기 어렵겠지만, 대략적으로 어떤 뭐 프레셔가 있을 수 있는지 좀 말씀해 주시면 감사할 것 같고. 두 번째는 이제 가이던스에 대한 부분인데, 물론 이제 보수적인 관점에서 접근하셨겠지만, 상반기에는 말씀하신 이제 15% 매출 상승이 9% OP 마진인데, 그렇게 되면 이제 사분기가 3.1% 정도밖에 안 나오거든요. 근데 이제 특별히 저희가 생각하시는 리스크 요인을 제일 크게 보시는 건 뭔지 좀 궁금하고요. 그리고 내년을 봤을 때, 이제 저희가 제시해 주시는 물량이나 믹스나 기타 등등 팩터 중에서 어떤 팩터에서 조금 안 좋게 봐야 되는, 보수적으로 봐야 되는 부분이 있고, 어떤 부분에 좀 더 긍정적으로 볼 수 있는지 좀 간단히 설명해 주셨으면 감사하겠습니다. I am Gwang Pyo Hong from Macquarie. I have two questions. First, regarding the UAW agreement with Ford on the 25% wage increase in the US. I was wondering if Hyundai Motor Company is under pressure from this deal regarding your strategy with the UAW in the US. And my second question is about the guidance. You mentioned that there is a high possibility to achieve the upper end of the guidance, which is 15% revenue and OP margin as well. But the company only achieved KRW 3.1 trillion revenue in the fourth quarter. So I was wondering why. What's behind the confidence for achieving the upper end of the guidance for the full year 2023? And in 2024, I believe, of course, there will be a lot of different variables at play, including the volume and the mix improvement, but which factor do we need to approach more positively and which more conservatively? I will answer the first question. Yes, the 25% wage increase agreement will affect our HMMA Alabama plant, and then the ongoing GMA, the EV plant being built in Georgia, we expect it to impact our wage increases. But whether we have to go with the exact same amount as the 25% that Ford did, or since we have had some recent increases, considering the overall wage levels and such, we probably need to come up with a negotiation strategy. Of course, we are not included in the UAW, not included in the UAW, but since the US is still in a state of full employment, we expect to proceed with negotiations on wage increases with our workers. 그 부분은 기타 물류비들 절감을 위한 노력들도 계속 하고 있고, 또 원자재 부분들이 조금씩 한참 올라갔던 때 대비해서는 좀 하락하고 있어서 그런 원가 절감 요인 등으로 충분히 커버할 수 있다고 생각합니다. On your question regarding the 25% wage increase deal with Ford. Yes, we do. We are expecting some impact on our employment regarding our HMMA's Alabama plant and our Georgia plant, which is HMGMA, which we are building at the moment. But just because Ford struck the deal of 25% wage increase with the, with the, with its employees, so we really have to follow suit? I don't think so, because we already increased our wage, and we will have to have our own negotiations with our employees. And we are not part of the UAW in the U.S. But considering the situation of full employment in the U.S., we somewhat have to also consider increasing some wages. But I believe this can be offset by the impact that we can have from bringing down the logistics costs, as well as the reduced commodities costs as well. 두 번째 질문하신 그 가이던스 부분에 대한 질문을 먼저 답해드리면, 그렇습니다. 뭐 저도, 저희들도 가이던스를 살짝 초과할 수도 있다라는 거 생각을 하고 있습니다, 당연히. 근데 이제 그 저희들이 가이던스를 수정할 때, 그 그래도 커뮤니케이션 할 때는 뭐 0.5% 이상의 어떤 변동 요인들이 있거나 할 때, 그 저희들이 가이던스를 수정해 드리는 게 맞겠지, 뭐 그 가이던스 상단을 살짝 초과한다고 또 가이던스를 수정하고 하는 거 정도는 아니라고 판단해서 가이던스 상단 정도로 말씀을 드린 거고요. 저희들은 뭐 그 사분기에, 올해 사분기에 그럼 리스크 요인이 있어서 그 가이던스 상단 부분을 얘기하셨느냐라는 질문에는 저는 no라고 대답하고 싶고요. 그런 특별한 요인이 있는 건 아니고, 리스크 요인이 뭐 여러분들 다 그 언론상에서 나오고 있듯이, 뭐 저희들 당장에 딱 그 뭐 약간 큰 건 아니지만 말씀드리면, Israel. Israel Hamas 전쟁이 있는데, 저희들이 Israel 판매 영향이 있습니다. 사분기에만 15,000대 정도 예상이 될 것 같고요. 그 이스라엘에서는 저희들이 또 시장 점유율 1, 2위를 하는 업체이기 때문에 당연히 그런 영향들이 있고, 또 경기 침체나 그런 부분들이 또 사분기에 급격하게 진행된다면 영향이 조금 있겠지만, 실제로 그 연말 예상을 했을 때, 그 가이던스 상단 부분을 살짝 초과하지 않을까라는 게 저희들 일반적인 전망입니다. On your second question regarding guidance. Yes, my answer was that it, we are likely to hit the upper end of the guidance. We might exceed a little bit, but the thing is when, when the guidance is set, it has to be adjusted when we expect more than 0.5% difference. Therefore, that's why I said we are going to be achieving the upper end of the guidance. On your second part of the second question regarding the risk factors in the first quarter, if we have any risk factors that we are seeing, my answer is no. We do not see any particular risk, other than things that have been covered by the media. One of which will be Israel-Hamas war, which will have some impact on around 5-6K units sales in Israel, because we are number one or two in Israel currently. And also in the fourth quarter, the economy might be hit, which will also have an impact on our sales. So, but however, I believe, we are keeping the guidance by the end of this year. 그다음에 계속해서 질문해 주신 그 2024년 전망 중에 어떤 요인을 보수적으로 보느냐, 또 긍정적인 요인은 어떠냐라고 말씀하셨는데, 당연히 뭐 보수적으로 보는 부분은 경기 침체에 의한 그 수요 위축이 제일 보수적인 요인이 되겠죠. 거기다가 추가적으로 계속 그 언론사에서 나오고 있는 전기차 수요 위축이라는 부분을 저희들도 엄중하게 보고 있습니다. 그 부분이 저희들 내년 비즈니스를 성장하는 데 좀 보수적인 요인이 될 것으로 보고 있고요. 긍정적인 요인은 뭐냐? 긍정적인 요인은 말씀드렸지만, 뭐- 저희들 지금 어쨌든 강세를 보이고 있는 북미 시장에 어쨌든 Santa Fe를 신형을 론칭을 해서 굉장히 좀 큰 반향을 불러일으키기를 기대하고 있습니다. 결국은 제조업체는 긍정적인 요인은 저희들이 새로 개발하는 제품을 기준으로 해가지고 자신감을 가져야 되고요. 지속적으로 지금 저희들 아시다시피 그 글로벌 네트워크를 강화하고 브랜딩을 하고, 그 SUV와 Genesis 위주로 해가지고, 저희들 소비자들의 그 신뢰를 계속 회복해 나가는 부분들은 내년에도 여전히 저희들의 강점으로 작용할 것으로 예상하고 있습니다. On the last part of your question regarding the ups and downs of our 2024 outlook, the downside will be a potential economic slowdown, which will lead to the demand slowdown as well. And again, the EV demand weakening, that's one of the things that we are closely looking at right now, because that may be a big challenge to our business growth. On the flip side, we are very strong in North America and the launch of the all-new Santa Fe, we are expecting a lot for those models. As a manufacturer, we are feel strongly confident about the new products. As mentioned earlier, we are strengthening our global dealer network and branding, as well as the sales of SUVs and Genesis, with which we'll be able to gain our customers' confidence in 2024. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 JP Morgan 자산운용의 티어드로 사디위자님입니다. The next question will be presented by Theodore Sadiwija from JP Morgan Asset Management. Hi, guys. Thank you for taking my questions. I have three questions. So the first one is, looking at the slide four in terms of the sales performance in the third quarter. It seems that the volume growth trailed the industry in the U.S., in Europe, and in India. Can you share some color on what drove the performance being slightly lower than the industry? And second question is, in terms of the recent decision from China to require license to export graphite and the impact that you expect on the company. And the question I have is: Can you share the net cash position at the auto unit as of the third quarter? Thank you. 네, 질문해 주셔서 감사드립니다. 저는 JP Morgan Asset Management의 Theodore Sadiwija입니다. 저는 3가지 질문이 있는데요. 첫 번째는 슬라이드 4번째 장을 보면 이 판매량, 볼륨, 실적 발표가 있습니다. 여기에서 미국과 유럽, 인도에서 물량 성장이 있었는데, 산업 수요 대비해서 이 성장을 이끌었던 요인은 무엇인지 궁금하고요. 두 번째는 이 중국의 수출 관련한 것인데요. 중국의 전략과 또 중국 수출 관련한 이 회사의 영향이 무엇이 있을지 궁금합니다. 세 번째로는 회사의 net cash position에 대해서 질문드리고 싶습니다. Yeah. Hi, good afternoon, Theo. This is Zayong Koo, head of IR. Just, I didn't quite understand your second question, that on China. Can you repeat that, please? 테오 질문 감사합니다. 주자영 전무이고요. 두 번째 질문을 정확히 이해를 못한 것 같은데요. 두 번째 질문을 다시 한번 해주시겠습니까? Yeah, thank you. So my second question is on the recent requirement by the Chinese authorities for export of graphite to require license starting next year. What will be the impact to Hyundai? 제 두 번째 질문은 그 중국에서, 중국 당국에서 흑연 수출 규제를 하고 있는 소식이 들리고 있는데, HMC에는 이 영향이 없을지 그게 궁금합니다? Okay, let me quickly answer the third part first. On the net cash position. Our net cash position is about fourteen, a little over fourteen trillion won as of the end of the third quarter. In terms of the first question, in terms of the volume growth, I mean, basically, of course, like in countries like the U.S. and India, we've had that actually, especially in the U.S. part, you know, the EV sales have actually been somewhat slower than what we'd expect anticipated overall. And our new volume growth products will not be launched until next year, especially in the U.S. market with the Santa Fe. In the year, in the Indian market, basically, you know, they, we've lost a little bit of market share because we didn't have the micro SUVs, but those are now coming to the market. So we do will see the volume actually picking up in India over the next 6-12 months as we had introduced a new mini SUV in the Indian market. So overall, the volume growth that we will see, although it has been a bit weak, we nevertheless believe that we will be able to pick up as we introduce the new vehicle, new models in these markets starting from next year. U.S. and India and such places, those countries. In the case of the U.S., as electric vehicle demand slowed, compared to our expectations, the volume pickup was not that large. So until the new Santa Fe launches next year, it seems we need to watch a bit more. The Indian market is similarly, there will be SUV models, but a bit, a bit more, it seems we need to watch the market, and for now from six months to 12 months, a bit more, it seems we need to watch. So overall, although that volume growth trend is falling short of expectations, centered on the new models, I think we can achieve that pickup. Finally, to look at the answer to your second question, I guess, I mean, we're right now, I think, basically, we've been focusing on our overall exports of our battery related supplies to the U.S. and the European market. As a result, we have not been really focusing on the Chinese side. So I think we need to look into a bit more on that, but nevertheless, it has been more because of the geographical distribution rather than the other issues. 네, 두 번째 질문 관련해서는 저희가 흑연, 배터리, 그 소재 관련해가지고는 미국이나 유럽 쪽으로 저희가 수출 물량은 있겠지만, 중국과는 큰 수출 물량이 없기 때문에 이거는 조금 더 지켜봐야 될 거라고 생각합니다. When we have a bit more detail, we'll get back to you on that with more details. 이 사항에 대해서 조금 더 상세하게 저희가 알아본 뒤에 다시 말씀드리도록 하겠습니다. 네, 시간 관계상 마지막 질문을 받도록 하겠습니다. Due to the time constraint, we will take the last question. is Kyung Jae Hwang from Merrill Lynch Securities. The last question will be presented by Kyung Jae Hwang from Merrill Lynch. 네, 안녕하세요. Merrill Lynch 황경재입니다. 시간 관계상 빨리 여쭙겠습니다. 그 대당 영업이익으로 환산을 해보면, 이번 3분기 그 영업이익이 지난 분기 대비해서 그 차이가 발생한 게 대당 20만 KRW이 채 안 되는 걸로 보여집니다. 저희가 지난 한 삼사개월 동안 인센티브 추이를 시장에서 오픈되는 데이터로 계산을 해봤었을 때는 거의 $500 상당의 비용이 올라왔기 때문에 시장에서 우려가 많았던 걸로 보여지는데요. 이제 그 숫자 대비 저희가 견조한 실적을 이번에 낸 배경에, 이제 product mix가 좋아진 부분이 거의 전부 다인지, 그리고 혹은 그 외 추가적으로 재료비를 비롯한 추가적인 어떤 비용 개선이 있었는지 그 부분이 궁금하고, 인센티브 관련해서는 미국 숫자는 그렇게 보이지만, 타 지역의 이제 인센티브 추이를 저희가 시장 데이터를 다 보진 못하나 상대적으로 그 인센티브 올라가는 비용이 미국만큼은 크지 않았다고 봐도 괜찮은지 확인 한번 부탁드리겠습니다. So, I am Kyung Jae Hwang from Merrill Lynch. When I look at the per unit operating profit, I believe in the third quarter, there has been a gap from the second quarter. When I calculated it, it was around KRW 20,000 per unit. I believe when I look at the incentive trend for the last 3-4 months, I believe it, the spending went up around $500, which is creating some worries in the market. But despite that increased spending, you achieved a strong result in this quarter. Is it from the product mix improvement or any other improvement from the materials cost or any other factors? I am able to look at the incentive trend in the U.S., but I'm not aware of the incentive trends of the other regions. Is it safe to say that incentive spending is not increasing as quickly as it is in the U.S.? 예, 서영민 부사장입니다. 질문 답변드리겠습니다. 그 대당 영업이익이 예, 전분기 대비 KRW 120,000 정도 안 좋아진 건데, 실제 인센티브는 뭐 $500 이상 올라간 걸로 알고 있다라고 말씀하셨네요. 그 제품 믹스, 이해하시는 대로 제품 믹스 좋아진 부분도 그중에 상당히 영향을 미치고요. 제품 믹스는 꾸준히 아까 저희가 실적 발표할 때 말씀드렸지만, 제네시스하고 그 SUV 비중이 60% 가까이 되면서 이제 그 부분이 점차적으로 계속 늘어나고 있고요. 그다음에 이제 또 하나는 재료비, 그 지난 분기에 제가 말씀드렸지만, 실제 원자재 가격들이 많이 하락하고 있고요. 그 원자재가 하락을 하면 저희들한테는 1-5개월에서 6개월 정도 뒤에 그 임팩이 됩니다. 그래서 그 부분들이 지금 삼분기 실적부터 이제 들어오기 시작했고요. 재료비 쪽이 좀 떨어지는 요인들, 저희들이 영업이익 개선 요인으로 지금 가지고 있습니다. 그래서 인센티브는 늘고, 믹스는 개선되고, 재료비는 줄고 하는 부분들이 영향을 미쳐서, 예, 삼분기에 실적이 예, 그렇게 큰 이분기 대비 영향이 없었다고 보시면 되고요. I'm EVP Gang Hyun Seo of Planning and Finance Division. To answer your question regarding the operating profit deteriorating by KRW 200,000 per unit, whereas the incentive spending went up. Again, we improved our product mix with our SUVs and Genesis sales share close to 60% of the total now. And also, yes, the material cost went down with the commodity prices going down. And when the commodity prices go down, it takes about 5-6 months to really see the impact on our bottom line. And so now it's showing in our third quarter earnings results. So with the incentive spending increase and the decrease of the material costs, with the mix improvement, this all contributed to the stronger than expected result in the third quarter. 그리고 저 두 번째 질문하신 미국 지역 외 타 지역 인센티브 증가 추이는 뭐, 지금 현 시점에서 삼분기 실적 나온 거는 그 이해하고 계신 것처럼 미국만큼 많이 증가하고 있지는 않습니다, 유럽 쪽. 하지만 그 증가 추세로 전환된 부분들은 예, 일정 정도 맞는 얘기고요. 유럽이나 일반 지역들도 조금씩 늘고는 있습니다만, 어쨌든 증가폭은 그 미국이 제일 많은데. 근데 또 하나 주의하셔야 될 부분은 미국 쪽의 인센티브가 많다 하더라도, 그게 그 전기차 쪽 위주로 편중이 돼 있지, 실제 그 ICE 엔진들을 단 SUV나 그런 부분들은 시장 평균보다 저희들이 인센티브가 증가하고 있지 않기 때문에, 전체적으로 향후에 지속적으로 그럼 인센티브가 늘어날 거냐라는 부분은, 그 시장 상황에 따라서 좀 달라지긴 하겠지만, 그 저희들은 전기차에 이제 쓸 수 있는 인센티브 레벨은 이제, 예, 그 다 지급하고 있다고 판단하고 있기 때문에, 인센티브가 그렇게 크게 사분기에 갑자기 증가될 거라고 예상하고 있지는 않습니다. Your second part of the question was about the incentive spending, or the trend in other regions in addition to the U.S. and, in the fourth quarter. Yes, your understanding is correct, as the incentive spending is not increasing as quickly in other regions, including Europe, unlike the U.S. But it is true that incentive spending is increasing in other regions as well, but the increase is not as big as in the U.S. But we have to understand that most of the incentive spending increase is coming from the EVs, not SUVs or ICE on average in the U.S. So will we continue to see the increase in the incentive spending? I don't think so. I do not believe there is going to be a big jump in the EV incentive spending in the fourth quarter. 네, 감사합니다. 이것으로 2023년 3분기 현대자동차 실적 발표 컨퍼런스 콜을 모두 마치겠습니다. 경청해 주셔서 감사합니다. Thank you. This is the end of the earnings call in the third quarter, 2023. Thank you for joining. 추후 궁금하신 사항은 현대자동차 IR 팀으로 연락 바랍니다. 경청해 주셔서 대단히 감사합니다. If you have any further questions, please contact Hyundai Motor IR team. Thank you very much for your attendance.