Hello, this is Michael Yun, Head of IR Group. Welcome everyone to Hyundai Motor Company's 2025 Q3 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 2025 Q3 Business Results" on our IR website. This presentation includes quarterly key messages, sales performance, and profit analysis, and for quarterly summarized cash flow statements and detailed regional sales breakdowns, please refer to the appendix. First, Q3 key messages. Despite concerns over tariff impact and the resulting slowdown in demand, strong sales performance led to the highest third-quarter revenue on record. Particularly in the U.S. market, we reached a record high quarterly market share of 6.3% post-COVID, driven by strong sales of volume models and hybrids such as Palisade. This led to an all-time high hybrid sales mix of 20.4%. Finally, following the previous quarter in which the combined share of hybrid and Genesis sales surpassed 20% for the first time ever, this third quarter also recorded 21%. Next, the sales performance. In the third quarter of 2025, global wholesale records recorded 1.04 million units, an increase of 2.6% compared to the previous year, while retail sales also reached 1.04 million units, reflecting a 4.8% increase year over year. Next, I will go over details about the increase or decrease in wholesale sales through key market summaries. In the U.S. market, sales increased by 2.4% year over year, totaling 257,446 units. We continued to see strong growth led by SUV and hybrid sales, and especially hybrids accounted for a record high, 20.4% of total sales. Sales of eco-friendly vehicles, including EVs and hybrids, rose 16.4% year over year, reaching 70,680 units. Due to concentrated demand ahead of the termination of EV subsidy programs, EV retail sales surged 90.3% year over year. Going forward, we will leverage the launch of the new Palisade hybrid to drive incremental growth and strengthen our market share. In Europe, sales increased 8.3% year over year, totaling 150,123 units. Growth in key markets such as the UK during the September peak season, as well as Turkey and Spain, contributed to the overall sales expansion in the region. Sales of eco-friendly vehicles rose 41.6% year over year, reaching 73,990 units, driven by a strategic increase in the share of electrified models. Despite reductions in EV subsidies across major markets, we continue to expand our EV sales mix, reaching 49.3%, driven by the strong performance of the Inster. We will pursue our annual sales targets through strategic allocation of new models such as the Inster and IONIQ 9, alongside optimized sales strategies tailored to each market. In the domestic market, sales increased by 6.3% year over year, totaling 180,558 units. Driven by the new model effects of the Palisade and IONIQ 9, we maintained a high proportion of SUV sales. Sales of eco-friendly vehicles reached 69,259 units, a 28.7% year-over-year increase supported by the strengthening of our EV lineup. Despite intensified competition from rival hybrid model launches, strong sales of the Palisade hybrid drove hybrid sales to grow 22.6% year on year. Next, I will explain the sales analysis by vehicle types. Global SUV sales, including Genesis, totaled 659,024 units, accounting for 63.5% of total sales. Global passenger vehicle sales reached 327,099 units, representing 31.5% of total sales. The trend of a high proportion of SUVs continues, supported by the enhancement of our key SUV lineup, including the new Palisade. Eco-friendly vehicle sales increased by 24.8% year on year, driven by a shift towards eco-friendly models in Europe to meet emission regulations and strong sales in the U.S. market. EV sales rose 24.6% year on year, supported by robust EV growth in Europe, while hybrid sales continued their strong momentum, growing 22.9% year on year. This concludes the discussion on sales, and I will now provide an explanation regarding profits and losses. This page first summarizes our income statement. Consolidated revenue increased by 8.8% year over year to KRW 46.7 trillion, and operating income decreased by 29.2% year over year to KRW 2.5 trillion. The automotive division's revenue increased by 7.9% year over year due to favorable FX environment and expansion in high-value segments, especially hybrid vehicles. The operating profit decreased by 48.7% year over year with tariff impact in the U.S. market and general increase in incentives. Revenue from finance division increased by 10.7% year over year due to continuous growth in the US market penetration rate and asset size. Operating profit increased by 32.4%. Net income decreased by 20.5% year over year to KRW 2.5 trillion. Next is quarterly revenue and operating income analysis. Revenue benefited from favorable exchange rates, contributing KRW 849.3 billion, and increased global wholesale sales added a volume effect of KRW 617.8 billion. Additionally, an improved mix driven by higher hybrid and Genesis sales contributed KRW 1.23 trillion. Combined with growth in the financial segment, total revenue rose 8.8% year on year. Despite the record high third-quarter revenue, unfavorable business conditions negatively impacted our profitability, including the full effect of tariffs, negative foreign exchange impact on sales, warranty provisions due to quarter-end exchange rate increase, and higher incentives driven by intensified competition in key markets. Although contingency plan partially offset tariff effects, the operating profit decreased by 29.2% year over year. Our Q3 cost of goods sold ratio recorded 82.3%, a 2.1 percentage point increase year over year. SG&A recorded KRW 5.7 trillion, which is a 16.9% increase compared to last year due to the increase of marketing-related expenses and warranty. Finally, our net profit decreased by 20.5% to KRW 2.5 trillion. That concludes the end of the presentation of the 2025 Q3 business result. Thank you. Next, Executive Vice President Seung Jo Lee, the Head of Planning and Finance Division, will assess the company's business results in Q3. Good afternoon. This is Executive Vice President Seung Jo Lee, Head of the Finance Division. I will now present Hyundai Motor Company Q3 2025 business performance and Q3 dividend and shareholder return policies. Sales revenue reached 46.7 trillion KRW, an increase of 3.8 trillion KRW compared to the same quarter last year. This was driven by strong sales in the North American market and an overall increase in sales volume. Additionally, the rising proportion of hybrid vehicle sales contributed to the growth, along with increased sales of high-value models. Operating profits saw a 1.8 trillion KRW decline due to the full impact of tariffs. However, the tariff impact was partially offset by the proactive implementation of contingency plans. Moreover, due to the rising trends in average market incentives across major regions, incentives increased by 212.1 billion KRW compared to the same quarter last year. Despite a KRW 26 increase in the average one-dollar exchange rate compared to the same period last year, a sharp rise in the exchange rate at the end of the quarter resulted in a negative FX effect of KRW 280.7 billion. Nonetheless, the combined share of hybrid and Genesis vehicle sales based on wholesale volume reached 21%, surpassing the 20% mark for the second consecutive quarter, a first in history. This improvement in fundamentals, along with active efforts to mitigate tariff impacts, enabled the company to achieve operating profit of approximately KRW 2.5 trillion and an operating margin of 5.4% in line with market consensus. For the full year 2025 performance, in line with the updated annual guidance shared during the recent CEO Investor Day, we expect to achieve a sales growth rate of 5%-6% and an operating margin of 6%-7%. Next, let me address the dividend for the third quarter of 2025. In accordance with the Value-up program announced in August 2024, we plan to distribute a quarterly dividend of 2,500 KRW per share for both common and preferred stocks. The record date for the Q3 dividend is November 30th, and the payment date is December 31st. Next, I would like to elaborate on our approach for our shareholder return policy, which targets a TSR of at least 35%. This shareholder return policy, or TSR, also reflects a dividend policy with a minimum payout ratio of 25%, and the basis for calculating TSR, similar to the payout ratio, is annual net income attributable to controlling shareholders. Accordingly, at the time of Q4 earnings call in January 2026, we plan to disclose the final dividend amount that meets the minimum TSR of 35%, along with plans for share repurchases or cancellations. Considering the timing required to calculate TSR based on final net income after the annual closing, we will provide further details then. We intend to maintain the same approach going forward. While share purchases and cancellations may be executed at any time during the year through board resolutions, given the nature of our shareholder return policy, which is based on profit, the portion of share repurchases and cancellations required to meet the TSR target of 35% will be finalized at the time of annual results announcement. Despite an increasingly uncertain business environment driven by tariff impacts and other factors, we have been making every effort as an individual company to maximize profitability and strengthen fundamentals. This includes implementing contingency plans to actively offset the tariff impact. Additionally, the final agreement on a 15% tariff will reduce the burden compared to previous levels. In the medium to long term, we anticipate that this will contribute to achieving the annual operating profit target ranges outlined during the CEO Investor Day in September. We will provide additional communication to the market as soon as possible. We sincerely appreciate the continued support of our shareholders and investors. Thank you for listening. Next, Vice President Hyung-seok Lee, the Head of Planning and Finance Division of Hyundai Capital, will assess the Q3 results for the finance business. Good afternoon. I'm Hyung-seok Lee, Head of Finance at Hyundai Capital. Let me now present the finance sector's Q3 2025 performance and Q4 outlook. In the third quarter, Hyundai Capital and Hyundai Capital America continue to support vehicle sales as the group's captive finance companies, delivering solid results. I will now continue with the detailed performance by company. First is Hyundai Capital. Despite sluggish domestic demand and weakened consumer sentiment, we expanded collaboration with the group and launched specialized financing products for SUVs and Genesis models, driving active sales efforts. As a result, new car installment volume rose 40.1% year over year, leading to a 2.7% increase in product assets. The share of auto finance within total assets rose to 83%. Although loan interest income declined due to regulatory impacts, lease interest income and gains on sales of loans receivable increased, resulting in a slight year-over-year growth in operating revenue, excluding FX effect and derivatives. We have achieved 75% of our annual funding target, including green bonds in April, sustainability-linked bonds in July, and social bonds in September. 21% of our domestic bonds were issued as ESG bonds. We also continued efforts to reduce funding costs through a diversified portfolio, including overseas bonds and ABS, leading to a 2.8% year-over-year decrease in interest expenses. In terms of asset soundness, while the capital industry overall saw deterioration due to real estate PF and unsecured loans, Hyundai Capital maintained a sound portfolio centered on auto finance and actively solved distressed debt. As a result, our delinquency rate hit a record low of 0.77% in Q3, and credit loss expenses also declined. Operating expenses fell 2.1% year over year, and operating profit rose 34.7%, and including equity method gains from overseas subsidiaries, pre-tax profit increased 44.6% year over year. In the fourth quarter, we will continue our efforts to defend profitability through cost and funding efficiency, while proactively securing liquidity to strengthen financial stability amid rising market volatility. We also plan to ramp up operations at our newly launched Indonesian subsidiary in September and diversify our auto finance offerings to further support the group's global vehicle sales. Next is Hyundai Capital America, or HCA. In the third quarter, supported by strong vehicle sales across the group, HCA's acquisition rate rose to 75.1%. Combined with the expansion of EV lease volumes, total product assets grew 18.6% year over year. Driven by growth in eco-friendly vehicle leases and rising product interest rates, operating revenue increased 7.3% compared to the same period last year. On the funding side, HCA successfully issued $2 billion in bonds in September, achieving 88% of its annual funding target. Despite volatility in the U.S. financial market, cumulative bond issuance reached $11.3 billion this year. As a result, total borrowings increased and interest expenses rose 16.9% year over year in Q3. In terms of asset soundness, over 85% of customers are prime-rated and less than 1% are subprime, reflecting our strict credit management. This contributed to a decline in delinquency rates. However, additional provisions were made in response to macroeconomic uncertainty, and asset growth led to a 6.3% increase in operating expenses. Reflecting this, our operating profit rose 28% year over year. Looking ahead to Q4, we expect a challenging environment due to continued inflation, reduced consumer purchasing power, determination of IRA subsidies, and slowing demand. However, HCA has secured $19 billion in liquidity as of the end of September and is actively managing residual value risk through remarketing efforts. We will continue to strengthen business synergies with the group through sales finance collaboration, closely monitor market conditions, and respond flexibly. This concludes my presentation. Thank you for listening. With that, we will conclude the presentation and take your questions. 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 *1번을 누르시기 바랍니다. 질문을 취소하시려면 *2번을 누르시면 됩니다. Now Q&A session will begin. Please press *1, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press *2, that is star and two on your phone. 처음으로 질문해 주실 분은 시티증권의 폴 공 님입니다. The first question will be provided by Paul Gong from City Securities. Please go ahead with your question. 네, 안녕하세요. 시티증권의 폴 공입니다. 관세 관련해서 하나랑 실적 관련해서 하나, 두 가지 질문 드리고 싶은데요. 첫 번째로 이제 기다리고 있던 관세가 드디어 15%로 타결이 됐는데, 뭐 세부적인 수치는 아니더라도 이제 종합적으로 어떤 큰 방향성으로 이제 관세 타결된 거에 대해서 바라보고 계시고, 이제 뭐 단기적인 아니면 중장기적으로 이제 저희 현대차 전략이나 대응 방안이나 좀 더 이제 구체적으로 검토되고 있는 걸 시도할 수 있는 게 있으시면요. 그런 거 위주로 조금 코멘트 첫 번째 부탁드리고요. 두 번째로 이제 실적 관련해가지고 저희 그 3분기 때 이제 관세 영향은 이제 명기해 주셨는데. 저희 가격 요소 말고 이제 비가격 요소 통해가지고 원래 가이드라인이 이제 관세 영향이 한 40% 정도 이제 미리 개입하고 싶다라고 말씀하셨었는데. 3분기에는 어떤 내용 등을 통해가지고 한 어느 정도 미리 개입을 했으며. 여기서 이제 향후에 더 추가적으로 할 수 있는 여지가 남아 있다면은 뭐 이거를 뭐 계량화가 되든 아니면 내용적이 되든 어떤 것들이 더 추가적으로 여기서 더 나올 수 있는지 요거에 대한 질문이랑 믹스 쪽에 계속해서 조금 오피 헤드윈도 되고 있는데. 이제 저희 믹스 영향을 4분기나 내년도를 봤었을 때는 현 시점에서는 좀 어떻게 바라봐야 되는지 이거에 대한 view 같이 질문 드리겠습니다. 감사합니다. Good afternoon. Thank you for giving me the opportunity. I am Paul Gong from City Securities. I have two questions. First, regarding tariff. Next, regarding performance. So going on to my first question. So just today, it's been confirmed that our tariff will be 15%. You might not be able to give us much details, but what would be the overall direction now that you know that the tariff is set to 15%? For example, what would be the mid to long-term strategy, and what would be the direction that Hyundai Motors will be taking? So if there's anything concrete or details that you can share, that would be appreciated. My second question is regarding performance. You did mention in Q3 that the effective tariff, what that was. But what are the non-tariff effects that will take into account that you need to take into account? You said that you were able to buffer off tariff by 40% in Q3, and mitigate it by that percent. But is there any more room to further mitigate the impact of tariff, and how can you quantify that effect by what? So is there an example they give us? And finally, the effect of the mix, the product mix, what do you see the changes in that in terms of Q4 and for the next year? 답변 드리도록 하겠습니다. 첫 번째 질문, 관세 관련해서 여쭤보셨습니다. 우선 저희도 이제 어젯밤에 15%로 양국이 합의를 했다라고 그렇게 전해 들어가지고 굉장히 반가웠습니다. 이게 이제는 아직까지 명확하게 지금 물어보신 게 앞으로 어떻게 전망되는 뭐 숫자가 어떻게 되는지를 여쭤보셨는데, 지금 뭐 정부의 발표대로라면 11월 1일로 소급 적용할 가능성이 높다라고 했는데, 아직까지 명확한 날짜는 정해지지 않았습니다. 근데 11월 1일부로 소급한다라는 전제 하에서 저희가 뭐 정부가 최선의 노력을 다 해줄 것이기 때문에 그 전제 하에서 지금 정확한 금액은 계산을 하고 있는 중입니다. 그거는 추가적으로 소통을 할 수 있도록 하겠습니다. Thank you for your question. To answer your first question regarding tariff, yes, we did see good news regarding that 15% agreement on tariff. So that's very good news for us, but regarding specific numbers or detailed numbers for the future, we still are in the process of calculating these numbers because the government has recently announced that it will be retrospectively reflected as of 1st of November, but the specific date and what direction the government is going to take has not been announced, so and I think the government is still in the process of trying to see how we can maximize the benefits on this. So, my answer to your question would be that the numbers are still being calculated. 정부의 협상 노력이 이제 결실을 맺게 됨에 따라서 가장 큰 거는 저희가 이제 관세의 불확실성이 해소됐다, 이런 측면에서 향후에 운영하는 데 있어서 예측 가능한 사업 운영이 될 수 있는 부분이 그 가장 큰 금액 외의 효과가 있다라고 생각하고요. So with the government's efforts, making fruitful results, right? I think the biggest win for us was that the unclearness, the uncertainties regarding tariff is now cleared. We now know what the conclusion is. So that we now know how to operate in the future, and we now have a clearer direction on which way we need to operate. So that would be the biggest benefit and impact for us regarding non-price factors. 그리고 뭐 구체적인 대응 방안이라든지 전략 같은 거에 대해서 그거 시행할 수 있는 부분이 있는지 이런 부분을 여쭤보셨는데, 저희가 이제 연초부터 계속해서 말씀드렸던 것처럼 관세로 인한 원가의 증가를 계기로 해서 저희는 이번 기회에 저희의 핵심 역량에 대한 것을 재진단하고 내부적으로 펀더멘탈을 개선하는 기회로 삼겠다. 그래서 미래 경쟁력을 더 확보하는 계기로 삼을 것이다라고 지속해서 소통해 왔습니다. Regarding what we can share in terms of any specific number of strategies or our response, we have been emphasizing from the very beginning of the year is that with the cost going up due to tariffs, this will be taken as an opportunity for us to rediagnose what our core competitiveness is, what our capacity is, and also an opportunity for us to change our fundamentals so that we can secure our future competitiveness. 현재 이제 수많은 개선 과제와 완성차의 근본 경쟁력을 강화하기 위해서 전사 협업 과제를 발굴했고요. 발굴된 과제에 대해서는 주기적으로 점검을 통해 성과를 창출할 수 있도록 관리해 나갈 예정입니다. And as part of that process to improve our fundamentals, we are looking into identifying various collaborative projects that are out there, and we are regularly checking what performance are being made through these projects. 몇 가지를 그 예를 들어서 설명을 좀 드릴게요. 뭐 구체적으로 저희가 다 계획은 수립돼 있지만 그걸 전체적으로 공유하기는 좀 힘들고 기존에 이제 신차의 원가 절감에 저희가 이제 굉장히 집중을 해왔었습니다. 근데 이제는 뭐 물론 양산차도 해왔지만 이제는 신차 원가 절감만큼 양산차의 원가 절감에도 R&D의 역량을 강화할 예정입니다. So I'll just give you a couple of examples. I mean, we do have plans for all of these projects, but we cannot share everything. So just to point out some of the key examples, in the past we focused our cost saving efforts on new models. Of course, some efforts were being made for models that were already being produced. However, as of this year, we will be making same efforts for cost reductions for not just the new cars, but also the cars that are already in production by improving our R&D competitiveness. 그리고 여러분들도 아시겠지만 저희가 하이브리드 판매를 지속적으로 확대를 하고 있고, 하이브리드의 수익성이 IC에 버금가는 수익성을 확보를 하고 있습니다. 그래서 하이브리드 시스템의 원가 경쟁력을 확보하는 것이 그 어느 때보다도 중요하다라고 저희는 판단을 하고 있고, 그래서 기존에 관리하고 있던 하이브리드 시스템의 중장기 원가 절감 로드맵을 재검토하기로 했습니다. And also with hybrid becoming ever more important, and we're also expanding sales of our hybrid models, and we are able to, through this effort, secure profitability that is pretty much on par with ICE vehicles as well. So we believe that improving and securing the cost competitiveness of hybrid systems are extremely important, and now we have made this opportunity where we can review the mid- to long-term cost structure of our hybrid models. 또 저희가 이제는 예전에는 그 공용화를 확대한다고 했을 때 그 부품 공용화 이런 부분에서의 어떤 포커스를 맞춰서 했다 그러면 그거는 당연히 하는 거고, 제조에 있어서의 어떤 공용화 확대 이런 부분도 저희가 검토를 해서 제조 경쟁력을 강화하고 제조 비용을 절감할 수 있는 방안을 지금 수립하고 있습니다. Another example would be in the past we were emphasizing how we are going to expand the commonalization of parts, common use of parts, and now that is just a given, you know, that is something that we need to do. But from now on, we're also trying to expand the common use and commonalities for manufacturing itself. How we can share the manufacturing cost and competitiveness is something that we're focusing on. 현재 진행 중인 어떤 저희의 어떤 그 경쟁력을 강화하기 위한 프로젝트에 대한 성과는 26년도부터 점진적으로 나올 거고요. 저희가 뭐 잘 아시다시피 타 OEM 대비해서 코로나 시기에도 저희가 발빠른 대응을 통해서 지속해서 성장을 해왔고 그 위기를 기회로 삼아서 해온 전력이 있기 때문에 이번에도 저희는 이번 기회를 바탕으로 저희의 어떤 핵심 경쟁력을 되돌아보고 다시 한번 강화하는 그런 위기를 기회로 삼는 계기로 진행할 예정입니다. The other efforts that are currently in progress regarding these projects, we believe that the outcome and the actual performance will be seen as of next year, and you know that during COVID-19, we were one of the few OEMs that were able to continue growth and take the crisis as an opportunity. So we do have that experience, and even right now we believe that it will be a big chance for us to reflect on our key competitiveness and also to continue strengthening our competitiveness. 예, 그다음에 비가격 요소를 두 번째 질문은 비가격 요소를 통해서 관세 영향 만회한 거에 대해서 공유를 좀 해줄 수 있냐 이런 질문이 있으셨는데 저희가 그 관세에 영향받는 금액의 한 60% 정도는 만회를 지금 하고 있습니다. 만회를 하고 있고 거기에는 뭐 가격적인 요소보다는 비가격적인 요소가 더 많습니다. 저희가 가장 재료비 절감이 되든지 그다음에 경상 예산에서 절감하는 것도 연간으로 보면 한 7천억 이상이 지금 되고 있고요. 그다음에 뭐 기타 믹스 개선, 그다음에 전 뭐 서비스 영역 전 부분에 대해서 저희가 지금 다 들여다보고 원가를 절감할 수 있는 거, 비용을 줄일 수 있는 부분을 매달 매달 체크를 해나가면서 지금 보고 있는 상황이라 전 부분이라고 보시면 되고요. 비가격적인 요소, 가격적인 요소는 지금 뭐 시장을 계속해서 저희가 패스트 팔로우 전략을 한다고 했기 때문에 어떻게 됐든 시장을 면밀히 모니터링하면서 지금 그 어떻게 할지는 그거를 시장 모니터링 상황에 따라서 결정을 추후에 결정을 할 예정이지만 기본적인 바탕은 고객 가치를 훼손하지 않는 범위 내에서 할 것이다 이렇게 말씀드릴 수 있겠습니다. Now to address your second question, what were some of the non-price efforts that were made to offset the tariff? Actually, we've already offset the tariff impact by 60%, and a majority of the efforts that we have made were non-price efforts rather than price. For example, saving the material costs and also regarding the current account, I think we saved over KRW 700 billion in terms of the final effect. We also are looking to all other areas, for example, the product mix as well as the service areas. So I cannot really pinpoint out a specific area that we are looking into because we are covering everything in all areas on regarding how we can save costs. As for the price area, like we said that we are trying to take the fast follower strategy, so we are closely monitoring the market to see what actions we can take, and the decision will be made later on when that kind of monitoring result is seen. However, our key fundamental is not to hurt the customer value. 사분기에 대한 믹스 영향도 말씀드리고 내년도 전망을 말씀드렸습니다. 저희는 지금 하이브리드 판매 비중하고 제네시스 판매 비중은 지속적으로 높여가겠다는 게 지금 뭐 과거 실적에서도 보시면 아시겠지만 내년도도 그렇게 전망이 되고 있고요. 사분기 같은 경우하고 내년도 같은 경우에도 조금 더 설명을 드리면, 내년도에는 뭐 신차도 굉장히 좀 저희가 본격적으로 출시가 될 것 같고 그러면서 모델 사이클이 신차들이 계속 출시되는 골든 사이클로 전향이 뭐야 진입을 할 것으로 예상되기 때문에 그 지금 신차가 나오면 저희가 인센티브라든지 이런 비용이 굉장히 떨어집니다. 그래서 그런 부분에 대해서 내년도 전망은 믹스는 지속해서 개선이 될 것이다 이렇게 말씀드리고 싶습니다. And you also asked regarding what will be the mix impact for Q4 and next year. You already know that we are continuously trying to expand our sales proportion for hybrid and Genesis, so that effort will continue. And next year we will be aggressively launching new cars, which will allow us to go into a golden model cycle. And with the launch of new cars, the incentive will obviously go down. So next year we will continue to improve our mix. 네, 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 다올투자증권의 유지우 님입니다. The following question will be presented by Yoo Ji-woo from Daol Investment & Securities. Please go ahead with your question. 네, 안녕하세요. 저 다올투자증권의 유지우입니다. 질문 기회 주셔서 감사드립니다. 두 가지 질문 드리겠습니다. 전기차는 지금 저희 회사에서 미국 시장에서는 어떠한 전략을 갖고 있는지 궁금합니다. 4분기는 사실 판매량이 이제 감소할 것으로 예상이 돼서 저희 회사 입장에서는 분명히 지금 인센티브가 높아서 손익 개선 요인으로 이제 작용을 하겠지만 언젠가는 다시 보조금이 없는 상태로 시장에 사실상 재진입을 해야 될 수도 있는 상황이 아닌가 싶거든요. 그래서 좀 더 이제 단기적인 이제 상황, 그다음에 이제 2027, 2028년 저희가 어떻게 대응할 건지 말씀 부탁드리고요. 그다음에 지금 저희 주력 차종 팰리세이드를 포함해서 저희 주력 SUV 차량들은 모두 미국 시장으로 수출을 하고 있습니다. 관세가 지금 25%에서 15%로 내려오게 되면 분명히 이제 기존보다 상황이 나아진 거는 맞는데요. 저희 경쟁사들은 분명히 미드 사이즈 SUV 세그먼트를 미국 현지에서 대응하는 경우가 워낙 많을 것 같습니다. 그래서 주력 차종들을 현재 저희가 생산하지 않고 있는 차종들, 특히 앞으로 미국에서 어떻게 대응을 하실 계획인지 공유해 주셨으면 도움이 될 것 같습니다. 감사합니다. Hello, I'm Eugene from Daol Investment & Securities. Thank you for the opportunity. I have two questions. My first question is regarding the EV strategy in the US market. As we see, the fourth quarter the sales volume will go down and then the incentives will go up, which will obviously help you to improve your profitability. However, someday when the subsidies are gone, then there should be a new strategy for you to make a re-entry into this market. So I was wondering what kind of short-term and also the long-term response strategy in the coming years, 2027 and 2028. My next question is regarding our key models such as Palisade. So I know that you are currently making exports to the U.S. market for our key models like Palisade and other SUVs. And like you said, the current situation of tariff rate going down from 25%-15% is indeed favorable to HMC. However, if you see your competitors that in the mid SUV segment, a lot of them are locally producing vehicles in the U.S. So I was wondering what kind of response strategy you have for the key models that you are not producing in the U.S. market. 첫 번째 질문에 대해서 답변을 드리도록 하겠습니다. 뭐 아까 저희가 손익하고 3분기 실적에 대해서 설명을 할 때 모드에서도 말씀드렸다시피 IRA 보조금이 빠지면서 저희가 9월 달에 풀 재고를 굉장히 줄이기 위해서 판촉을 좀 강화를 해서 전기차 판매가 굉장히 일시적으로 급증을 했습니다. 그래서 지금 말씀 주신 것처럼 4분기에는 인센티브 레벨이 좀 떨어질 거고요. 전기차에 대한 어떤 2027년도, 2028년도에 대해서는 저희가 유럽 같은 경우에는 전기차가 지속적으로 판매가 돼야 되고 거기는 나름대로 환경 규제가 있기 때문에 규제를 충족하기 위해서 전기차를 판매가 확대가 될 거고 미국도 역시 저희가 HMGMA 공장이 물론 지금 그게 이제 전기차 공장으로 저희가 지금 설계가 됐지만 지금은 뭐 모든 모델을 생산할 수 있는 그런 걸로 지금 변화하는 그런 거를 추진을 하고 있고요. 검토를 하고 있고 추진을 하고 있고 그렇기 때문에 미국에서의 전기차도 뭐 2, 3년 내에는 단기적으로는 그렇게 폭발적인 성장은 없겠지만 향후 장기적으로 볼 때는 어느 정도 2030년도 이후에는 저희가 CID 때도 발표했다시피 전기차가 어느 정도 회복은 될 것이다. 저희가 처음에 예측했던 캐즘이 왔을 때 2, 3년 내에 하고 그 회복이 될 거라고 말했던 것보다는 조금 더 늦어지겠지만 언젠가는 회복된다 이렇게 믿고 있습니다. Please let me answer your first question. You asked about profitability and the third when we look at the profitability and the third quarter performance. Of course, with the IRA subsidy gone in September, in order to retain our inventory level in the U.S., we have increased our promotional activities, which has resulted in EV sales going up. So like you said, in the fourth quarter, the incentive level will go down. In the coming years, in 2027 and 2028, in the EU, obviously we need to ramp up our EV sales in order to respond to the emissions regulations. And in the U.S., we have originally designed the HMGMA plant as an EV dedicated plant. However, we are trying to produce all the different kinds of model, not just the EV plant and EV models. So therefore, when we think about the U.S., the EV will not make up a significant growth in the short period of time, but in the long term, from 2030 or so on, the EV volume will likely recover. That may be a little bit slower than the two years that have been initially expected with the EV case going up, but we are expecting the EV volume to recover in the long run. 4분기가 감소할 거라고 그리고 아까 말씀 주신 것 중에서 뭐 조금 제가 이해를 잘못했는지 모르겠지만 4분기는 감소를 할 것이다. 그렇게 하면서 또 인센티브를 개선해서 시장을 재진입한다 뭐 이렇게 말씀을 주셨던 것 같은데 저희는 시장에서 이렇게 물러난 적이 없고 시장에서 계속 그 뭐라 그럴까요 판매를 계속해서 할 거고요. 그다음에 그 부분 제가 좀 말씀드리고 싶고 그다음에 아까 그 저희 경쟁력을 강화하기 위해서 뭐 여러 가지 활동을 하는 거에 대해서 공유를 드렸었는데 뭐 시간 관계상 제가 PE 부품에 대해서는 말씀을 안 드렸습니다. 근데 PE 부품에 대해서도 저희가 PE 부품이라 하면은 이제 배터리라든지 모터라든지 전기차의 어떤 전용 부품인데, 그거에 대해서 저희는 이제 그 예전에는 뭐 전 그 배터리하고 모터 그다음에 뭐 그런 거에 좀 집중 원가 절감이라든지 그런 거를 집중을 해왔다고 하면 지금은 모든 부품에 대해서 지금 다시 바라보고 있습니다. 그래서 전체 PE 부품을 금액의 그 크고 작은을 떠나서 어차피 장기적으로는 전기차의 원가 경쟁력이 그 회사의 경쟁력이 될 수도 있기 때문에 그 부분도 저희가 지금 집중해서 노력을 하고 있는 중입니다. I'm not quite sure I understood your question regarding the incentive improvement and the re-entry into the market, but you said in the fourth quarter if there will be a decrease in the volume then the incentive will likely improve and you may think about the re-entry into the US market. I'd like to clarify that we have never backed out from the market. We will continue to increase our sales volume going forward. And about the competitiveness enhancement activities, although I have not shared you all the details due to time constraints such as PE parts, but we are actually engaging in various activities to enhance competitiveness, and PE part is one of them. And for PE parts activities, we can say that batteries and motors and other EV dedicated parts are included. And previously we only focused on reducing the raw material cost of these parts, which is battery and motors, but now we are re-examining all the different types of parts because irrelevant of how costly or non-costly it is, I think in the long run all the parts are important for the competitiveness of our EVs. So that is why we're reviewing all the different activities. 두 번째 질문에 대해서 말씀드리겠습니다. 질문하신 것처럼 저희가 이제는 그 미드 사이즈 SUV급을 현지 생산이 지금 안 되고 있는 건 맞고요. 투싼은 지금 현지 생산을 하고 있습니다. 그건 뭐 미드 사이즈급이 아닌 미국 기준으로 볼 때는. 그래서 저희가 이제는 그 미국 현지 생산 비중을 점진적으로 늘려가겠다라고 CID 때 말씀을 드렸고요. 그다음에 그거 관련해가지고 일단 Palisade 하이브리드가 4분기에 신차, 그러니까 New Palisade 신형 Palisade 하이브리드가 4분기부터 판매가 됩니다. 근데 다행스럽게도 이게 관세가 25%에서 15% 떨어지면서 Palisade가 수익성이 굉장히 좋은 차인데 그게 이제 손익 개선에 4분기에는 수익 개선에 도움이 많이 될 것 같고 hybrid Palisade hybrid의 미국 현지 생산을 하는 거를 지금 그 내부적으로 뭐 검토를 하고 있습니다. 그래서 지금 확정적으로 말씀을 드릴 수는 없고 점진적으로 현지 생산을 늘려가겠다는 저희의 전략에 대해서는 CID 때 말씀을 드린 바가 있습니다. Yes, regarding your second question, like you said, we are not currently locally producing our mid SUV segment, but we are locally producing Tucson. Like we have mentioned at our CID, we are increasing our proportion of U.S. local production. From the fourth quarter, the new Palisade hybrid model will be launched and will start selling that model. Thanks to the good news of yesterday of rate decrease from 25%-15%, since Palisade is a very profitable model, we will likely to improve our profit on this model as well. Regarding the local production of Palisade hybrid model in the U.S., we are internally reviewing this matter. Now, although nothing has been confirmed as of yet, we will likely increase the production incrementally of this model, like we said at the CID. 네, 시간 관계상 마지막 질문을 받도록 하겠습니다. 마지막으로 질문해 주실 분은 JP Morgan Asset Management의 테오 하디자자 님입니다. The last question will be presented by Theo Hadirajaja from J.P. Morgan Asset Management. Please go ahead with your question. Yeah, thank you very much for taking my questions. I have two questions. So the first one is, I think following up on earlier question about your US EV strategy, you mentioned that you are not planning to back down on your original plan. So can you confirm that it is the plan for you to continue with your EV strategy in the US? And also, I guess in relation to this, I understand that you also have a number of JVs in the US producing batteries. What are your general plans on those JVs producing batteries for EVs in the US? Thank you. 네, 질문 주셔서 감사합니다. 저는 JP Morgan의 테오 하디라자입니다. 두 가지 질문 드리겠습니다. 첫 번째는 아까 언급이 됐던 미국 EV 전략에 대해서인데요. 전략에 변함이 없다라고 말씀을 주셨는데 혹시 이게 맞는지 EV 전략은 지속해서 시행을 하실 것인지에 대한 질문입니다. 두 번째는 미국에 또 배터리 장비가 많으신 걸로 몇 가지가 있으신 걸로 알고 있는데 혹시 이 JV의 생산 계획은 어떻게 되시는지 미국에서 생산한 EV에 투입이 될 계획이 있는지 궁금합니다. Yeah, hi, Theo. This is Jayun Koo. Basically, on your first question, I think our CFO has actually answered many of that before. Basically, you know our EV strategy will continue. As you earlier mentioned, you know I think the timing is a bit pushed back, but nevertheless we do believe that the EV will continue to grow. In the past, we had anticipated there will be maybe in the next two or three years. However, as we had pointed out in the CEO Investor Day, we are looking more at hybrids, at least for the short to medium term, but EV from a longer term is on schedule basically from that perspective. Again, although it is a bit delayed. 네, 질문해 주셔서 감사합니다. 사실 첫 번째 질문에 대해서는 저희 부사장님이 답변을 여러 차례 드린 것 같은데요. EV 전략은 지속이 될 예정입니다. 물론 시간상 약간 늦춰질 수는 있겠지만 저희는 아직까지 EV의 성장이 지속될 것이라고 굳게 믿고 있기 때문에 한 2, 3년 예상했던 거에 그런 중기적으로는 하이브리드가 차지를 할 것 같지만 장기적으로는 EV가 대세라고 생각하기 때문에 EV 전략은 변하지 않았습니다. And your second question was on the battery JV. Yes, as you know, we do have two battery JVs, one with LG and the other is SK. You know that is actually continuing. We don't have an exact timetable, but it will hopefully be in the next in the short term. Basically, I cannot give you an exact timing, but nevertheless we will be working with LG and SK in acquiring or getting the batteries in for the U.S. market. 두 번째 JV 배터리 JV 질문 주셨는데요. 말씀하신 대로 저희가 현지 미국에서 LG와 SK와 이제 협력을 하여서 배터리 생산을 기대하고 있습니다. 정확하게 언제쯤 생산이 될지에 대해서는 저희가 말씀을 못 드리겠지만 어쨌든 저희도 단기적으로 좀 현지에서 생산한 배터리가 EV에 투입이 될 수 있기를 기대하고 있습니다. And again, this is a little bit more related to the timing of the EVs in general. So I mean we are definitely moving along, moving ahead with the joint venture, but nevertheless the exact timing I cannot give you as I mentioned earlier. 사실 전반적으로 EV의 이제 전체적인 타이밍과 맞물려 있는 것 같은데요. 정확하게 타이밍이 어떻게 될지 구체적으로 말씀드리기는 어렵겠지만 어찌 됐든 계속해서 진전하여 나가고 있는 것은 확실합니다. 네, 이것으로 2025년 3분기 현대자동차 실적 발표 컨퍼런스 콜을 모두 마치겠습니다. 경청해 주셔서 감사합니다. That ends the Q3 2025 earnings call for Hyundai Motor Company. Thank you for your time. 추후 궁금하신 사항은 현대자동차 IRC로 연락 바랍니다. 경청해 주셔서 대단히 감사합니다. If you have any questions, please contact Hyundai Motor Company's IR Group. Thank you very much for your help.