Hello, this is Michael Yun, Head of Investor Relations Team. Welcome everyone to Hyundai Motor Company's 2024 Q2 business results conference call. On behalf of Hyundai Motor Company, I appreciate your time for participating in today's call. Please refer to the presentation HMC 2024 Q2 business results on our IR site. 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 2024 Q2 global wholesale decreased by 0.2% year-on-year to 1,055,168 units, while retail sales decreased by 3% year-on-year to 1,033,612 units. In the second quarter, our global wholesale decreased slightly compared to the previous year. However, excluding China, our Q2 wholesale increased by 2.2% compared to the previous year, as sales momentum continued in North America. In the domestic market, sales decreased by 9.6% compared to the previous year, driven by the slowdown due to consumer sentiment and weakened EV demand. North America saw a 15.2% increase in sales, driven by continuous strong sales of high-margin vehicles. The US market witnessed increased sales of SUVs and hybrids, with growth rates of 13.9% and 60.7% respectively. Compared to the previous year, boosted by the launch of all-new Santa Fe and all-new Santa Fe Hybrid in the first quarter. Genesis also saw a 9.0% increase in sales, driven by the success of the G80 facelift launch in March. In Europe, despite strong sales of the Kona and Tucson hybrids, sales decreased by 5.1% compared to the previous year on a wholesale basis, due to weaker demand for EVs. In India, despite a slight slowdown in the second quarter, affected by the policy uncertainty and seasonality, sales increased by 0.7% compared to the previous year on a wholesale basis, driven by the strong sales of the Creta facelift released in the first quarter and continued growth in the SUV segment with Exter and Venue. Next is sales by model and key status. Global SUV sales accounted for 64.8%, a 1.4 percentage point increase compared to the previous year, influenced by the global expansion of Santa Fe and the release of the Creta facelift in emerging markets. For eco-friendly vehicle sales, despite a 25% decrease in EVs due to weakened demand, hybrid sales increased by 26% compared to the previous year. Hybrid sales are also increasing globally, including but not limited to Korea, the U.S., and Europe. This is the end of presentation on the sales summary, and now I'll move on to financial summary. This is the income statement. In the second quarter of 2024, revenue increased by 6.6% year-on-year to KRW 45 trillion, as well as operating profit increasing by 0.7% year-on-year to KRW 4.2 trillion. In the online division, revenue increased by 4.4% year-on-year, due to regional mix improvements centered on North America and product mix improvements centered on high-margin vehicles. Meanwhile, operating profit, including consolidation adjustments, decreased by 1.6% year-on-year due to increase in SG&A. Despite increased provisioning costs associated with asset growth and rising interest costs, the financial division saw revenue increase by 23.6% year-on-year, due to ASP increase, resulting from OEM's mix improvement and a continuous increase in penetration rate. Operating profit increased by 32.1% year-on-year. Net profit increased by 24.7% year-on-year to KRW 4.2 trillion. Next is revenue and operating income analysis. In terms of revenue, there was a positive volume effect of KRW 713 billion, caused by increase in sales. Despite increased incentives, there was a mixed effect of KRW 200 billion, due to the strong North American sales and ASP increase. Favorable exchange rate environment and increase in financial and others division revenue resulted in a 6.6% increase in total revenue compared to the previous year. As for operating profit, there was a positive effect of KRW 400 billion, due to the weaker Korean won, and a positive volume effect of KRW 153 billion. Also, there was a total mixed effect of KRW 95 billion, due to expansion of North American sales and increased ASP, which offset increased incentives. As a result, there was a 0.7% increase in operating profit. Our second quarter cost of goods sold ratio recorded a 0.5 percentage point decrease year-on-year to 78.4%. SG&A increased by 17.2% year-on-year to KRW 5.5 trillion, due to increase of labor and provisioning costs. Non-operating income increased by 70.2% year-on-year to KRW 1.3 trillion, mainly due to the base effect caused by inventory impairment loss in Russia from previous year, and an increase in equity method income. Net profit increased by 24.7% year-on-year to KRW 4.2 trillion, affected by an increase in both operating and non-operating income. That concludes the presentation of the second quarter 2024 business results. Thank you. Next. Senior Vice President Seung Jo Lee, the Head of Planning and Finance Division, will discuss the company's business results and share information about the dividend payout for the second quarter. Hello, this is Seung Jo Lee, Senior Vice President of the Planning and Finance Division. Allow me to share our business results for the second quarter of 2024, as well as the outlook for the business ahead, and quarterly dividends. In Q2, driven by strong sales in the U.S., our performance showed a slight increase in wholesale compared to the previous year. The favorable exchange rate and continued improvement in product mix also contributed to the increase in sales and operating profit year-on-year. First, let me report on the sales volume. In Q2, wholesale, including China, amounted to 1,570,000 units, decreasing by 0.2 percentage point year-on-year. Despite a significant decline in EV sales due to weakening demand, we continued to see strong sales of SUVs and hybrids, helping us maintain robust sales. As we mentioned in Q1, our lineup of eco-friendly vehicles, including hybrids and plug-in hybrids, allow us to adapt flexibly to the rapidly changing market and maintain stable sales and profit. While domestic and European markets declined year-on-year, we achieved our business plan targets for the first half of the year. The U.S. market exceeded our business plan, maintaining a strong sales momentum. The Indian market also continues to show steady sales, and we have some major events coming up, such as the IPO of Hyundai Motor India in the second half of the year. Next is operating profit. In the second quarter, we achieved an operating profit of KRW 4.279 trillion, with an operating profit margin of 9.5%. The consolidated sales volume, excluding China, saw a slight increase year-on-year, and product mix improvement continued with more SUVs and hybrids. The share of SUVs increased by 1.6 percentage points year-on-year to 58.4%, while hybrids recorded an increase of 2.4 percentage points, reaching 11.6%, both contributing to the profitability of the company. Additionally, with cost reduction and foreign exchange rate effects, we maintained a high level of operating profit margin. Next, I will discuss incentives. As you may know, HMC has been focusing on securing profitability and has been improving the business fundamentals over the past few years. Through product enhancement, increasing brand awareness, and HMC's strength and flexible market responses, we have consistently gained market share. Although there are external factors that raise concerns about incentive increases in the market recently, we have been closely managing the incentives under our management principles, and we will continue to do so in the future. With timely new model launches and continuous product enhancements through relentless technological development, we will expand our market share while also keeping the incentives at healthy levels. Next, I will discuss the outlook for the second half of the year. Due to the continued high volatility in the market, we do not expect the sales in major markets, except for the U.S., will improve easily. However, the challenging market conditions for this year have already been reflected in our business plans, and we expect a strong performance in the U.S. market and a favorable FX rate to continue in the second half. Therefore, we will continue to focus on profitability and make efforts to fulfill our guidance. At this point, the outlook for the second half of the year is not expected to deviate significantly from the annual guidance, but if necessary, we will provide a revised guidance based on market conditions in the Q3 earnings conference call. Lastly, I will talk about the dividends for Q2. We have decided to maintain the dividend at KRW 2,000, which was raised by KRW 500 in the previous quarter. Going forward, we will continue to make efforts to deliver the promised shareholder returns. Moreover, we are planning to hold a 2024 CEO Investor Day at the end of August. We plan to announce our short-term and long-term business strategies and share our financial goals accordingly. Thank you for listening. Next, Senior Vice President Hyung Suk Lee, the Head of Planning and Finance Division of Hyundai Capital, will assess the Q2 results for the finance business. Hello, I'm Hyung Suk Lee, Senior Vice President and Head of Finance of Hyundai Capital. Allow me to report on the earnings of the finance business in the second quarter of 2024 and outlook for the second half of the year. Despite the sluggish economy caused by high inflation and high interest rates in the first half of 2024, Hyundai Capital has not only strengthened its support for auto sales, but also solidified its market position with unrivaled financial capability and business soundness. As a result, we have achieved strong sales results. Now, let me provide more details of each business entity. First is Hyundai Capital. With strengthened collaboration between sales and finance, installments and leases grew, increasing total financial assets by 3% year-on-year. By continuing to operate a solid auto financing center for the portfolio, the proportion of auto finance within the operating assets increased to 83%. As a result, with more revenue from installments and leases, the operating income for the first half of the year increased by 16% year-on-year. Although there was an increase in interest costs due to the sustained high interest rates, the operating profit increased by 28% year-on-year, as the provisioning cost increased by 5%. In overseas markets, the profitability of several subsidiaries in the UK, France, Canada and Brazil improved, resulting in a significant increase of 396% in equity methods income year-on-year. As a result, the net profit for the first half of the year increased by 46% year-on-year. An unstable business environment is expected in the second half of 2024 due to interest rate uncertainty and sluggish real estate market. However, Hyundai Capital plans to enhance profitability by proactively managing risks and improving asset quality, including keeping the delinquency rate below 1% for over a year. The company will also focus on strengthening support for automobile sales. Additionally, in line with the global strategy of the Hyundai Motor Group, Hyundai Capital plans to expand its overseas business, including starting operations in Australia this year and Indonesia next year. Next is Hyundai Capital America, or HCA. Back by solid market demand in the US, HCA's penetration rate increased nine percentage points compared to the same period last year, along with a 10% increase in total financing volume. In addition, with the effect of mixed improvement with more high-margin vehicle types, the financial assets increased by 22% year-on-year. With increased installment sales of new cars, HCA's operating income in the first half increased by 27% year-on-year. In the U.S., however, a prolonged high interest rate increased interest costs and provisions, resulting in a 26% increase in operating expenses compared to the same period last year, but operating profit increased by 33%. In the second half of 2024, we expect to see higher market volatility in the U.S. due to interest cut rate cost and political issues. To prepare for such uncertainty, HCA is working to ensure financial soundness by maintaining a high share of prime customers, accounting for 88% of all customers, as well as keeping lease assets at 30% or lower to mitigate residual value risk. Furthermore, HCA has issued a total of $8 billion in global bonds over three occasions in the first half of the year to proactively secure liquidity. Such efforts will enable HCA to continue its role of providing financial support for Hyundai Motor Group's auto sales. This concludes my report on the finance business. Thank you for listening. With that, we will conclude the presentation and take your questions. The first question will be presented by Eun Young Lim from Samsung Securities. [cross talk] Yeah. Thank you for giving me the opportunity. So I have two questions. My first question, you mentioned that for the U.S. market, you'll be keeping an appropriate level of incentives to reach a certain market share. So from HMC's perspective, I'm sure you have already set a budget for this incentive, so what would be your appropriate level of incentive? Because I understand that incentives may have gone up as of May, however, with the recent hybrids coming in, the incentive is now going down. So will this trend continue in the latter half of the year, and what is your target for the U.S. market share for this year? And so my second question is regarding the political situation in the U.S. We have the presidential election coming up, and you have a production plant currently to be operated in the U.S. However, the EV demand in the U.S. is not very high, and if Trump does get elected, he is saying that it's, the incentives through the IRA for EVs will be removed completely, and for any imports and foreign vehicles, a tariff of 10% is to be planned. So the market is pretty much concerned if such measures are taken into effect. You mentioned that your EV plant in the U.S., it is able to do mixed production. So how flexible is that mixed production? How much of hybrids can be produced, and how much percentage of EV can be produced? Yeah, [Foreign language]...전년 대비해서는 150% 정도 이상 증가한 수준이고, 전분기 대비해서는 4% 정도 증가한 수준입니다. Excuse me, thank you for your question. Your first question regarding the incentive level, what is the appropriate level or what is the expected incentives for the U.S. market? So based on Q2 standards, we are currently using $3,100 for the incentive, which is about a little over 50% year-on-year and a little over 4%, compared to the previous quarter. [Foreign language] 1,157달 정도 평균 좀 쓰고 있는 수준이라, 저희도 시장 평균 수준의 인센티브를 지금 유지를 하고 있고요. 시장은 근데 특히 그 전분기 대비해서 1.8% 지금 성장, 성장이 아니라 그 증가하는 경향을 보였습니다. If we compare with the market average, the market average for the incentive is currently $3,157, so we are pretty much on average. As for the quarterly basis, however, the market average is up by 8%. [Foreign language] 당사는 이런 시장 변화에 대비해서 금년 사업계획에 이미 인센티브 상승을 상당 부분 반영했으며, 현재까지 사업계획 수준에서 관리가 되고 있습니다. To prepare for such fluctuations, we already have reflected our incentive changes in our business plan, and we are within our expected range. [Foreign language] 그래서 하반기에 예상되는 인센티브도 지금 수준에서 또 내려가면 내려갔지, 올라가지는 않을 것으로 저희가 지금 예상을 하고 있고, 그 정도 수준이 저희 사업계획 수준이고, 그 정도에서 관리를 해 나갈 예정입니다. So for the second half, we believe the incentive level will maybe go down, but it won't go up, and the current level is already within the BP range, so it will continue to be within the business plan range. [Foreign language] 첫째, 질문 주신 거에 대해서 말씀드리겠습니다. To answer your second question. [Foreign language] 지금 현재 그 미국이 대선 레이스에 들어가 있고, 바이든이 이젠 그 후보직에서 사퇴하면서, 해리스를 지명했고, 해리스가 지금 대통령 후보가 확실시 되고 있는데, 지금 아마 박빙으로 가고 있는 것 같습니다. To answer your second question regarding the presidential election in the U.S. So Biden has decided to step down, and Harrison will be taking his place, and we believe that it's going to be a very close call between Harrison and Trump. [Foreign language] 바이든이 후보직을 사퇴하고 대통령직에 집중하겠다고 한 것으로 볼 때, 바이든은 트럼프 2기에 대비해 자신의 주요 정책 심기에 나설 가능성이 있습니다. Considering that Biden has decided to step down and give his full support for Harris to become the president, we believe that he will be concentrating all his resources so that the policies can be executed to defend what Trump is trying to do. [Foreign language] 자신의 업적이면서 트럼프가 폐기를 예고한 IRA, 또 반도체 법 등을 부각시키기 위해 보조금 지급을 보다 앞당겨 시행할 가능성도 염두에 두고, 지속적인 모니터링 및 준비를 하고 있습니다. We are certain that he probably wants to protect his achievements, which is IRA, as well as the semiconductor incentives. So, to prevent those being scrapped, it's most likely that he will be pulling forward the incentive payment timing, but we will keep a close eye on the market to see what's happening. [Foreign language] 트럼프가 만약에 집권을 한다고 하더라도, 이제 보편적, 보편적 관세 부과, IRA 폐지 또는 축소, 친환경 규제 완화, 중국의 최혜국 지위 박탈 등의 정책이 시행될 가능성이 높다고 보고 있습니다. If Trump does win the election, it's most likely that there will be universal tariff imposing levy on imports, maybe IRA will be scrapped, and also the eco-friendly policies will be mitigated. It's most likely that the favorable relationship status for China will also be scrapped. [Foreign language] 이에 대해서도 지금 당사는 계속 지속적으로 유불리를 따져 대응해 나갈 것입니다. 보편적 관세 부과는 아직 뭐 아시겠지만, 그 FTA 국가까지 적용을 할지 말지, 이런 부분이 아직 정해지지 않았고, IRA 폐지를 하겠다고 했는데, 지금 IRA의 수혜를 입고 있는 주 대다수가 경합주이고, 공화당이 지금 지배하는 주이기 때문에, 폐지는 쉽지 않을 거라고 저희는 예측을 하고 있습니다. 만약에 트럼프가 집권을 하더라도. 그다음에 그 친환경 규제의 완화는 저희한테 어떤 그 비용 측면에서, 규제 대응 비용을 좀 아낄 수 있는 기회가 될 수도 있고요. So we are going to take our responses, kind of measuring what the pros and cons are. Regarding the universal tariffs, it's not decided yet whether this will be reflected and applied to its FTA partners as well. So we have to keep an eye on that. As for the scrapping of IRA, the thing is, most of the beneficiaries of IRA are located in states which is very Republican friendly, so we don't know if that actually will take place. As for the lowering of the eco-friendly regulations and lightening that, if that does happen, it also will be an opportunity for us to save cost. [Foreign language] IRA 축소 등에 대비해서는 저희가 이제 EV 퇴조와 맞물리면서, 현대자동차의 강점인 유연한 생산을 바탕으로 하이브리드 판매 물량을 대폭 늘릴 계획을 검토 중에 있으며... 이것에 대해서는 저희가 모두에게 말씀드린 CEO Investor Day에서 자세하게 말씀드릴 수 있을 것 같습니다. As for the stopping of IRA in particular, I think it's something that we need to respond to so that we can better be prepared for the EV chasm. However, using one of our biggest strength with this flexibility in terms of production, we will be reviewing the possibility of increasing the hybrid models. And more further details on this will be presented during our CEO Investor Day in the late August, August. [Foreign language] 그 다음에 또 마지막으로 물어보셨던 게 뭐 비율에 대해서 여쭤보셨는데요. 지금 저희가 HMGMA 공장에 하이브리드 생산 시설하고, 또 저희가 이제는 새로 하이브리드하고, 그 어떤 비율이나 이런 부분에 대해서도 저희가 팔월 달에 열리는 그 CEO Investor Day에서 또 자세하게 말씀드릴 수 있도록 하겠습니다. To address your last question, with regard to the ratio in terms of the production flexibility of HMGMA. Further details on that will be explained also during our CEO Investor Day in late August. [Foreign language] 다음 질문 받겠습니다. Thank you. Next question, please. is Yoon Chul Shin from Kiwoom Securities. The next question will be presented by Yoon Chul Shin from Kiwoom Securities. 네, 안녕하세요, 키움증권 신윤철입니다. 저는 세 가지 질문드리고 싶습니다. 아까 이제 하반기 빅 이벤트 예시로 인도 법인 IPO 추진 말씀을 주셨는데요. 그 혹시 IPO 좀 목표 일정 관련 타임라인이랄지, 혹시 또 가능하시다면 추진하시게 된 배경 말씀 주시면 감사하겠습니다. 그리고 두 번째 질문은, 그 6월에 이제 미국 시장에서 CDK 사태 여파로 좀 역성장이 발생이 산업 전체적으로 일어났었는데, 혹시 그게 7월 판매 실적으로 좀 그대로 이연이 돼서 저희가 회복이 눈에 보이시는지, 아니면 좀 부침이 있으신지 궁금하고요. 마지막 세 번째 질문은, 영업이익 증가율 사이에서 기타가 KRW 750 billion 설명 좀 부탁드리겠습니다. 감사합니다. Thank you, thank you for giving me the opportunity. My name is Yoon Chul Shin of Kiwoom Securities. I have three questions. The first question, you mentioned about a big event in the latter half of the year, the IPO of HMI. So could you give us a rough timeline of when this will happen, and what is the background of pursuing the IPO for HMI? My second question is regarding the CDK hacking crisis that happened in June. We did see some reverse growth in the retail industry because of this. Do you think that the recovery will be seen in July, or will this still have an impact in your sales? Last question is regarding the increase in operating profit. You said that the KRW 750 billion was due to other sales. Could you give an elaboration of what this other is due to? [Foreign language] 예, 말씀드리겠습니다. 그 첫 번째로 그 인도 IPO 일정에 대해서 질문을 주셨는데요. 지금 현재 저희가 DRHP를 제출을 해놓은 상태고, SEBI에서 심사가 진행 중에 있습니다, 인도 증권거래소에서. 그리고 저희는 이제 그 Roadshow를 진행 중에 있고요. SEBI에서 최종 승인이 아니라 이제 그 어떤 검토 보고서가 나오면, 그거에 맞춰서 RHP를 저희가 제출을 하고, RHP를 제출한 이후에, 저희가 이제는 공모 절차를 거쳐서 listing 상장을 할 예정입니다. 상장 일정은 그 SEBI에서의 어떤 검토 일정이 언제 나오느냐에 따라 좀 달라질 텐데, 저희가 기대하고 있는 거는 올 연말 안으로 상장을 추진할 예정입니다. Thank you for your question. So to answer your first question regarding the timing of the IPO, so you understand that we have already submitted our DRHP and SEBI, the Indian Securities agency, is currently reviewing our documents, and we are currently conducting a roadshow around the world to promote our IPO. So depending on when SEBI completes its review of our report, I think the timeline will be decided. But once that report and the review is complete by SEBI, we will be submitting our RHP, and then subscription can begin, and then it can be listed. So it really depends on when SEBI completes the review. However, our internal goal is to get the subsidiary listed within the year. [Foreign language] 네, 첫 번째 질문의 두 번째 카테고리로 가면, 이제 인도를 왜 선택했느냐라고 했는데, 인도 증권시장이 지금 글로벌로 볼 때는 탑 4등입니다. 그러니까 전체 글로벌 시장에서 인도 증권시장이 상당히 좋고요. 그다음에 인도라는 HMI 법인 자체가 물량이나 수익 측면에서 굉장히 견고하고 타이트합니다. And as a follow-up answer to your question, why India? Because we got a lot of questions regarding that. Because the securities market of India is actually the global number fourth, it's the fourth biggest and the strongest. And in terms of HMI's capacity, they have a very strong volume as well as PNL. [Foreign language] 네, 인도 HMI가 설립된 지 28년, 근 30년이 됐기 때문에, 그리고 저희가 이제는 아시다시피, 제3 공장인 푸네 공장을 인수했습니다. 그거하고 맞물려서, 뭐, 제2의 도약을 저희가 지금 할 방안을 여러 가지를 검토했고, 그중에 하나로 인도 상장을 하게 됐습니다. The Indian subsidiary plant is now close to almost 30 years. It's coming into its 28th year, and you understand that we've recently acquired our third plant in Pune. So we want to make our second leap in this market, and one of the ways to do that, we believe, was to list the company. [Foreign language] 네. CDK 문제가 발생해서, 이 부분이 7월에도 영향이 좀 있지 않을까, 이런 부분을 질문 주셨는데. 아, 6월에 CDK 영향을 받았고요. 그래서 7월에 저희가 지금 원래는 8월부터 일반적으로 해오던 Summer Event를 지금 7월에 조기 시행해서, 만회를 지금 하고 있습니다. Now, I'd like to answer your second question regarding how the CDK hacking affected the retail sales in June and whether the recovery has been made. To answer your question, in a nutshell, yes, we were also affected by the CDK hacking crisis in June. So to overcome that, we usually have a Summer Event in August. However, we have pulled this event forward to be conducted in July so that the loss is made can be overcome. [Foreign language] 마지막에 질문 주신 게 이제는 기타 부분에서 증가된 KRW 750 billion 정도가 무엇이냐라고 이렇게 여쭤보셨는데요. 그중에서 그 판매 보증 충당금 중에서 그 환율, 환율이 좀 올라간 효과가 있어 가지고, 그게 이제 전 분기 대비해서 이번 분기에 한 KRW 42 정도 환율이 올라갔습니다. 그 효과가 한 KRW 200 billion 수준 정도 올라갔고요. 그다음에 뭐 이자율이 조금 떨어지면서 현재 가치 할인 차금으로, 현재 가치로 할인하면서 금액이 늘어난 부분이 좀 있고요. Now, to answer your last question, what was the 750 billion increase in the other 12 operating profit accountable for? First of all, it's our sales provision, and also that was affected largely by the FX rate. Compared to the previous quarter, the FX rate has gone up by 42 Korean won. So overall, the effect is about KRW 200 billion worth, and also the interest rate has gone down, so there was a discount effect in that. [Foreign language] 그리고 저희가 이제는 그 충당금을 할 때, 그 단가를 산정하는 데 있어서 어떻게든 그 단가라는 게 뭐 임금이라든지, 부품의 물가 상승률, 이런 부분을 감안을 해야 되기 때문에, 그런 부분에 대해서 좀 올라간 부분, 그게 KRW 100 billion 정도 됩니다. 그래서 뭐 특별히 이상한 비용이라든지, 특별한 품질 비용이 발생되지는 않았습니다. 나머지는 경상적으로 모든 비용이 조금 조금씩 올라간 수준이라고 보시면 됩니다. Also, when we calculate the unit cost for the provisions, we take into consideration the normal inflation as well as the usual rate. Overall, that accounted for about KRW 100 billion. So, it's largely due to the FX rate as well as the adjustment in the interest rates overall. So nothing new, nothing that's kind of extraordinary was caused, was a cause to this big increase in the operating profit. It's nothing to do with quality cost whatsoever. So just little tweaks regarding the current. 네, 다음 질문 받겠습니다. Thank you. Next question, please. [cross talk] The next question will be presented by Theodoros Stamoulis from J.P. Morgan Asset Management. Yeah, thank you much for the call. I just have two questions. The first one is, do you have any update on the U.S. lawsuit, the dealership group? What should we expect on that? And the second one is, in terms of your net cash position for the automotive division as of the second quarter, if you can share that. Thank you. Regarding the lawsuit, Dr., we are still looking into that issue. We will definitely update the market if there is any results. For your second question, the net cash position as of Q2 for the auto business is KRW 15.2 trillion. [Foreign language] 네, 두 번째 질문과 답변에서 통역해 드리겠습니다. 안녕하세요, 저는 J.P. Morgan Asset Management의 Theodoros Hatzivitsas입니다. 두 번째 질문인데요. 첫 번째는 미국에서 현재 진행되고 있는 딜러단의 소송 관련해서 혹시 업데이트가 있는지에 대한 질문이었는데요. 현재까지 진행 중이고, 업데이트가 있다면, 이제 시장에 곧 업데이트 드릴 예정입니다. 두 번째 질문은 순현금, 자동차 부문의 순현금, 에 대한 질문이었습니다. 이 분기가 어떻게 될지에 대해서 질문이 왔었는데요. 현재 순현금 수준은 15.0조 정도입니다. [Foreign language] 다음 질문 받겠습니다. Next question, please. [cross talk] The next question will be presented by Jun Sung Kim from Meritz Securities. [Foreign language] 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 세 가지 여쭙고자 합니다. 첫 번째는 재료비 부분인데요. 원가율 78.4%는 거의 10년 만에 본 숫자인 것 같습니다. 재료비 하락에 대한 이야기를 계속해 주셨고, 그 효과가 계속 똑똑히 나오고 있다고 보여지는 것 같은데요. 3분기, 그리고 4분기, 올해 하반기 이 재료비의 방향성이 어떻게 될지 궁금합니다. Spot가를 알고 계시기 때문에 input cost에 대한 예상도 가능할 것 같은데, 뭐 3분기, 그리고 가능하다면 4분기까지 예상-...이 흐름을 좀 말씀 주시면은 원가 조정에 도움이 될 것 같고요. 두 번째는 금융 사업입니다. 이 매출 성장이 지금 작년 4분기부터 굉장히 강하게 나오고 있는데, 현대, 기아 판매가 다소 정체해 보이고 있는 점 생각해 보면, 금융 사업의 외형 성장 그리고 이익 성장이 굉장히 인상적인 것 같습니다. 아까 이제 하반기 건전성 부분에 대해서는 상당히 강조를 해주셨는데, 이 성장성 부분은 하반기에도 계속 이어질 수 있는지에 대해서 color를 주시면은 도움이 될 것 같습니다. 마지막 세 번째 질문은 연초부터 이제 저희가 신규 주주가치 제고 방안에 대한 검토를 하고 있다고 커뮤니케이션이 되어 왔습니다. 이 8월 28일 CEO Investor Day에서 이 부분에 대한 이야기가 공개될 수 있는 걸로 보면 되는 건지 궁금하고요. 올해의 경우에 이제 8월 28일에 이제 신규 자사주 매입이나 아니면 배당이나 정책들이 발현되게 된다면은 8월에 되어서야 작년에 벌었던 이익에 근거한 주주 환원이 이루어지는 건데, 올해도 실적이 좋습니다. 내년 같은 경우에는 올해처럼 이렇게 여름이 다 끝나는 지점에 와서 진행이 되는 건지, 아니면 기아가 그랬듯 내년에는 연초에 이 주주가치 제고, 올해 벌 이익에 대한 주주 환원이 진행된다고 볼 수 있는 건지 궁금합니다. 감사합니다. Thank you. Thank you for giving me the opportunity. I also have three questions. First is regarding the material cost. You said that the material cost saving was at 74.8%, which is a very surprising number that I haven't seen for years. So, what do you think will be the direction regarding material costs for Q3 2023, and if possible, for Q4 as well? Because once you know the spot price, maybe it's possible to also predict what the input cost will be. The second question is regarding the financial business for Q4 as well, because the revenues is pretty strong for the financial business, compared to the fact that the sales at Hyundai and Kia is not as strong. So how do you think the financial sector will grow in Q4? And my last question is regarding the shareholder returns. So you said at the beginning of this year that you're continuously trying to improve the value of the new shares. So do you think the details regarding this will be announced, and will it be shared during the CEO Investor Day on the twenty-eighth of August? Because it really depends on when we buy the shares. The returns will only be provided once this announcement is made. However, these returns will be based on the profit that was made in the previous year. So we just want to get a hold of when we will be able to get the shareholder returns. And for the next year, will it also be the similar timing at the end of summer, or will it be like similar to what Kia did at the beginning of the year? [Foreign language] 예, 첫 번째 질문에서 말씀드리겠습니다. 지금 원가율이 78.4%인데, 이것이 이제 3분기, 4분기에도 그대로 유지될 수 있는지, 이거에 대해서 질문하셨는데요. 원가율이 개선된 효과를 보면, 이제 믹스 개선이라든지, 그다음에 환율 변동, 원자재가 하락, 그다음에 내부의 원가 절감 활동, 이런 것들이 이제 섞여서 그 매출원가, 재료비, 재료비가 아니잖아요. 매출원가율이 지속적으로 이제 하락을 하고 있는 건데요. Thank you for your question. So if I could answer your first question, which was regarding the cost rate, at 74.8%. I think this is accountable to various items, for example, the improvement of the mix, the FX rate, as well as the drop in resources, costs, as well as the internal saving efforts that we have made. Whatever the case, cost is going down. [Foreign language] 예, 하반기에도 저희가 믹스 개선이라든지, 이런 부분은 지속적으로 해 나갈 거고, 지금 원자재의 어떤 추이도 보면 약간 상반기보다는 조금 떨어지는 속도가 조금 둔화될 것으로 예상은 되고 있지만, 그래도 원자재는 안정적인 방향으로 좀 흘러갈 거기 때문에. 그다음에 환율 또한 저희가 볼 때는 저희가 생각했던 것보다 하반기에도 달러 강세가 유지가 될 것으로 보입니다. 그래서 지금 수준에서 매출원가율은 크게 변동이 없을 것으로 저희는 예상하고 있습니다. Of course, in the second half of the year, we will continue to improve our mix, and we believe that the raw material cost will continue to go down. However, it won't go as rapidly as it has done in H1. However, it still will be steady. As for the FX rates, we believe the dollar will still stay strong. So all in all, the cost rate for H2 will not change significantly. [Foreign language] 예, 두 번째 질문에 대한 답변은 현대캐피탈 쪽에서 부탁드리겠습니다. [Foreign language] 네, 현대캐피탈 이형석입니다. 먼저 저희의 매출은 현대차의 경우에는 그 해 판매량이 그 해 매출로 잡히는데 반해, 저희는 한 해의 취급액들이 쌓여서 현재 저희 리스와 할부를 이용 중인 고객분들의 자산에서 발생을 합니다. 그렇기 때문에 현대차에 비해서는 저희 중장기적인 판매의 영향을 더 받는다고 생각하시면 되고요. 그래서 지난 3년 동안의 현대차의 퍼포먼스가 지속적으로 우상향했기 때문에, 여전히 저희는 올해 판매량이 작년과 유사하더라도, 우상향하는 트렌드는 여전히 보일 것으로 예상하고 있고요. 두 번째 요인은 이제 금리가 2-3년 전에 상당한 저금리였다가 한국, 미국 마찬가지로 금리 수준이 확 올라와서, 저희는 이제 고객으로부터 받는 이자 수익, 리스 수익이 주요 매출이기 때문에 성장세가 이어질 수밖에 없는 부분이 있습니다. 그 성장의 어떤 수준을 보면, 미국의 경우에는 penetration rate마저 높기 때문에 한국보다 더 큰 성장세가 예상이 되고, 다만 국내에서는 대손 비용이 안정화됐기 때문에 외형의 성장세는 미국보다 적지만, 손익의 성장세는 뭐, 미국, 한국이 유사할 것으로 예상하고 있습니다. 감사합니다. Hyundai Capital will be answering the second question. So whereas Hyundai Motor Company based their revenue on their annual sales, we tend to accumulate the volume that we have acquired through lease and installment. So we are more based on mid to long term revenue. However, HMC has seen an increase in sales and revenue for the past three years. So although the volume sales might be similar to the previous year, because it has been making constant growth, we believe that we also will be showing growth as well. And the second reason would be due to the interest rate. In the past two to three years ago, the interest rate had hit rock bottom. However, it has been climbing in the recent years. So most of our revenue is due to the interest rate profit, which also comes through lease. So for us, it's a very big growth driver as well. As for the penetration rate, the US is going up, and it's much higher than Korea as well. So although, on the other hand, Korea, the external growth might not be as big as the US, however, the profit rate is pretty much similar to the US market. [Foreign language] Yes, 8월 28일, 저희가 8월 말에 예상하고 있는 CEO Investor Day에서 전체적인, 주주가, 주주 환원 정책에 대해서, 언급을 할 예정이고요. 그 정책은 지금 뭐 단기적인 것도 들어 있겠지만, 좀 장기적인 것도 저희가 검토를 하고 있습니다. 그래서 단기적인 주주 환원을 전체를 아우르는, 그런 어떤 방향성에 대해서 시장하고 소통할 수 있을 것으로 생각됩니다. To answer your third question, on our shareholder return policy, yes, it will be mentioned during the CEO Investor Day that is to be held in late August. Not only the short term policies, but also the long term policies are also being reviewed. So I think the overall direction of our shareholder return policy can be covered during the CID. [Foreign language] 예, 시간 관계상 마지막 질문 받겠습니다. Due to time constraint, we'll be receiving the last question. Thank you. [Foreign language] 마지막으로 질문해 주실 분은 메릴린치 증권의 황경재님입니다. The last question will be presented by Kyung Jae Hwang from Merrill Lynch. [Foreign language] 네, 안녕하세요, 메릴린치 황경재입니다. 그 믹스 개선에 따른 영업이익 증가 효과 KRW 950 billion 중에서 저희가 장표 페이지를 보면은 사실 예전과 다르게, 이제 그 차급별, 이 세그먼트의 그 믹스 개선보다도 실제로는 하이브리드가 늘고 전기차가 줄어드는 이 powertrain 믹스의 변화가 굉장히 컸던 걸로, 일단 퍼센티지 변화율로 봤을 때는 그렇게 보여지는데요. 제 질문은 지금 현재 연초에 이제 저희한테 대략적인 수익성 레벨을 이제 말씀해 주셨습니다만, 원자재도 많이 변했고, 재고 수준도 변했고 해서 하이브리드가 현재 전기차랑 비교했을 때, IC 평균하고 비교했을 때, 이제 영업이익률이 대략 어느 정도까지 와 있는지, 그리고 재고 수준도 여전히 미국에서는 계속 타이트하다면, 이제 어느 정도인지 대략적인 좀 숫자를 말씀해 주시면 도움이 될 것 같고요. 향후 신공장에서의 어떤 powertrain 계획은 이제 Investor Day 때 말씀을 해주신다고 했기 때문에, 제가 궁금한 거는 이제 하반기로 가면서, 지금 유월 기준으로 미국 쪽의 하이브리드 침투율이 생각했던 것보다 이제 굉장히 빨리 올라오는 걸로 보입니다. 근데 그거에 대해서 사업 계획 대비 업사이드는 적어도 선선 분기 가면서 좀 자신감 있게 보고 계시는지, 그 요인들이 있는지 좀 말씀 부탁드리겠습니다. Thank you. So you said that due to the improvement in your mix, the OP has gone up by KRW 950 billion. And as you can see on slide 5, the mix is not within the segments. However, it seems that you just increased the proportion of your hybrid compared to the EV, just based on the percentage. That is my conclusion. But you mentioned in the earlier, this year on the level of profitability, the OP rate that you want to achieve. However, the raw material prices have changed and the inventory situation has changed. So, what do you believe the OP rate will be for hybrid compared to the other average segments? And what is the inventory level currently in the US? Because you say that the inventory level is pretty low and there are some issues. I understand the new plant in the U.S. will soon go into operation. And if you look at the hybrid penetration rate in the U.S. in June, it's pretty fast and expected. So do you think that for Q3 and Q4, the penetration rate for hybrid in the U.S. will be much higher than your original business plan? [Foreign language] 예, 그, 답변 드리도록 하겠습니다. 지금 그 수익성에 대해서 말씀을, 주셨는데요. 그, 예전에도 계속 저희가 말씀드렸던 게 EV보다 하이브리드가 수익성이 더 좋다, 이 말씀은 계속 드렸고. 그 하이브리드 수익성이 저희가 내연기관하고 큰 차이가 없다, 이렇게 지금 말씀을 드렸었습니다. 그래서 정확한 숫자를 말씀드리긴 어렵겠지만, 하이브리드는 더블 디지트 정도의 수익성이 있고요. Thank you for your question. So, your first question was regarding the profitability for hybrid, and we have been repeatedly emphasizing that the profitability for hybrid is much bigger and higher than EV, and it's not much different from that of ICE vehicles. We cannot give you the exact figures, however, the hybrid's profitability is of double-digit standard. As for the EV profitability, because of EV capping, incentives are going up, meaning that it is lower than our expectations. However, we still are maintaining a low single digit profitability. [cross talk] You also mentioned about the PT production plans for the new plant in the U.S., but that also will be covered during our CEO Investor Day in the latter half, in late August. And your follow-up question was regarding the penetration rate of hybrid vehicles in this market. [cross talk] Yes, so if I could answer your last question regarding the penetration rate of hybrid vehicles in the US market. The penetration rate is continuously going up. In Q2 last year, it was at 11%. This year, Q2, it's at 15%, and we've newly launched the Santa Fe Hybrid. So we believe that the sales will continue to go up in the latter half of the year. You also mentioned about inventory levels. At this time, we believe it's at mid two-month worth of inventories, and we will be making efforts to maintain this level throughout the latter half of the year. [cross talk] Thank you for your time. Now we would like to conclude the earnings report for HMC 2024 Q2. Thank you.