Hyundai Mobis improves shareholder value by ensuring sustainable growth
Seoul, South Korea, February 23, 2022 /PRNewswire/ — Hyundai Mobis has once again expressed its desire to improve shareholder returns based on medium to long-term growth after its previous 3-year policy. In the company’s recently released “Maximizing Shareholder Value Policy 2022”, Hyundai Mobis announced its strategy to maximize shareholder value based on total shareholder return (TSR), seeking both share price performance and shareholder returns.
TSR is an advanced measure of corporate performance that measures financial return to shareholders, including share price performance, dividends and redemptions. Shareholders can objectively calculate returns by looking at TSR, making it a leading performance index for creating shareholder value.
Hyundai Mobis also unveiled a plan to manage the cash needed to invest in future mobility over the next three years and to revamp the company’s mid- to long-term business model for UAM and robotics, among others. Essential plans include 3 KRW-4 trillion (approx. $3 billion) for external investments in semiconductors, software and autonomous driving; 3 KRW-4 trillion for investments in facilities aimed at electrification and ensuring a stable supply of parts, including essential parts; maintain the minimum amount of cash required to operate the business, for example, to respond to a global crisis in the supply chain.
This year’s dividend will be used flexibly at 20-30% of the payout ratio based on net profit. The payout ratio is an index that indicates how net profit is allocated to shareholders. The current interim dividend will also be maintained. Hyundai Mobis will buy 330 billion KRW (about. $277 million) treasury shares of which 62.5 billion KRW (about. $52 million) will be cancelled.
One of the main features of Hyundai Mobis’ shareholder value maximization policy is that it has completed the stability of shareholders’ investments, the predictability of dividends, the balance between future investments and shareholder returns. . The company has also actively reflected the views of shareholders and investors. It is also an extension of the medium and long-term shareholder return policy that Hyundai Mobis has implemented over the past three years.
Hyundai Mobis has faithfully achieved shareholder returns worth a total of KRW2,600,000,000,000 since 2019. The total dividend paid was KRW 1,100,000,000,000 and the quarterly dividend was also executed for the first time. The company bought KRW 1 trillion of treasury shares, withdrawn 2 million shares and newly purchased KRW 187.5 billion (734,000 shares) of treasury shares.
Hyundai Mobis’ new shareholder value maximization policy is also attracting attention from an ESG perspective. The recommendation committee of independent directors has recommended Hwajin Kimteacher in seoul National University School of Law, as an independent director specializing in corporate governance. Professor Kim is the most respected expert on corporate governance in Korea and is one of the leaders of the proxy voting advisory committee of the Korea Corporate Governance Service (KCGS).
This now means that the board of Hyundai Mobis is made up of five independent directors who emphasize diversity, expertise and independence. The addition of Professor Kim should strengthen the ESG corporate policy.
Hyundai Mobis plans to approve the dividend settlement of KRW3,000 per share at the 45and Annual General Meeting (AGM) scheduled for March 23, 2022. It is the same as the previous year and the total sum amounts to KRW4,000 per share including the KRW1,000 per share of the interim dividend.
About Hyundai MOBIS
Hyundai Mobis is the world’s 7th largest automotive supplier, with annual sales of nearly $30 billion. The company was founded in 1977 and is based in Seoul, Korea.
Hyundai Mobis aims to become a lifetime technology partner for vehicles and people. The company has outstanding expertise in sensors, sensor fusion in ECUs and software development for safety control. The company’s products also include various components for electrification, brakes, chassis and suspension, steering, airbags, lighting and automotive electronics.
Hyundai Mobis currently employs over 30,000 people worldwide. With R&D headquarters in Korea, Mobis operates 4 technology centers in Germany, China, India and United States.
For more information, please visit the website at http://mobis.co.kr/
Jihyun Han: [email protected]
Choon Kee Hwang: [email protected]