Kia 2004 Annual Report Download

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Kia Motors competed head
to head with the world's
best in 2004, developing
and producing top quality
automobiles and
accelerating its advance
into the future.
GEARING UP
Annual Report 2004
http://www.kia.co.kr
http://www.kmcir.com

Table of contents

  • Page 1
    Annual Report 2004 GEARING UP Kia Motors competed head to head with the world's best in 2004, developing and producing top quality automobiles and accelerating its advance into the future. http:/ / w w w .kia.co.kr http:/ / w w w .km cir.com

  • Page 2
    ... New Platform For Human Society Five-Years Summary History Global Networks This annual report contains performance results, financial data as well as the business outlook and strategies of Kia Motors Corp. The statements herein represent Management's objective judgment, but Kia Motors' actual...

  • Page 3
    ... state-of-the-art autom obile plants in Korea (at Hw asung, Sohari and Gw angju) as w ell as in China. The Main R&D Center at Nam yang, Korea is linked to com pany research facilities in the US, Germ any and Japan to create core technologies for the future. A global netw ork of subsidiaries and...

  • Page 4
    Kia's goal is to lead the w orld autom obile m arket, providing custom ers around the w orld w ith cutting-edge, future-oriented technologies and environm ent-friendly autom obiles.

  • Page 5
    ...world player Dream maker Trusted company who satisfies customers Kia Motors aim s to build a global leading brand by offering w orld-class quality, designs and services that m ake autom obiles that are both "exciting and enabling". If it's built by Kia, it's a brand that brings future rew ards. Kia...

  • Page 6
    Chairman's Message Kia Motors Corporation Chairm an & CEO Mong-Koo Chung 06 KIA Motors_2004 Annual Report

  • Page 7
    ...- class autom aker. From n ow on , Kia M ot ors w ill firm ly m ain t ain it s p osit ion as a global auto m anufacturer, by securing product quality trusted by c u st o m ers, i m p ro v i n g i t s b ran d v al u e, en h an c i n g ri sk m anag em ent , est ab lishing a g lob al b usiness syst em...

  • Page 8
    ... Kia Motors Corporation President & CEO Ik-Hwan Kim "Innovation for Humanity" Enhanced Brand Value • Successfully Execute our Global Brand Strategy • Develop Global 'Hit' Model • Achieve and m aintain the Global top-level in Quality Accelerated Global Management • Establish a global...

  • Page 9
    ... new m odels such as the European-style Morning(sub-com pact car), Cerato(com pact sedan), Bongo (sm all truck/ com m ercial van) and Sportage(com pact SUV). Of course, the steadily im proving quality of Kia-built vehicles has helped to boost overseas sales as w ell. Kia has im proved the fastest on...

  • Page 10
    ... our global production netw ork expansion - the engine that w ill drive future grow th. We exp ect 2005 to b e our m ost challenging year ever and a tim e of trem endous change for Kia Motors. The phrase "Innovation for Hum anity" sum m arizes our m id- and long-term vision. To this end, w e w ill...

  • Page 11
    Financial Highlights SUMMARIZED NON-CONSOLIDATED STATEMENTS OF INCOME (Korean w on in m illions) 2004 Sales Cost of sales 2003 2002 15,257,742 12,421,361 12,839,881 10,084,078 12,158,113 9,581,392 Gross profit Selling and adm inistrative expenses 2,836,381 2,333,926 2,755,803 1,943,363 2,...

  • Page 12
    ... of its global production netw ork in 2004. In April, ground w as broken for Kia Motors Slovakia (KMS), w hich w ill pave the w ay for greater penetration of the European m arket. The plant, w hich is scheduled for start-up in the second half of 2006, w ill produce C-segm ent passenger cars, key for...

  • Page 13
    ... over 16,400 units w ere sold after three m onths. By the end of the year, the sales figure had reached 27,513. The hugely popular new Sportage has em erged as the best-selling vehicle in Korea in 2004. It solves the driver com fort problem s experienced w ith other SUVs in its class, and cabin room...

  • Page 14
    ...global markets to become a major global player. From the US, at the heart of the global market, to China, with the world's greatest growth potential...Gearing Up | For High Kia Motors is becoming recognized as a top-tier automaker for technology and design worldwide, even by the demanding European...

  • Page 15
    ... ent in p erform ance com p arison t est s conducted by leading autom otive trade journals in Germ any, the UK, Austria, and France. > > Dongfeng Yueda Kia Motors' sales reached 62,506 units, up 22.5% year on year for a 2.5% m arket share and 12th ranking am ong autom akers doing business in China.

  • Page 16
    760,786 16 KIA Motors_2004 Annual Report Units

  • Page 17
    ... of the company overseas. Every new model launched by Kia in 2004 - the European style Morning (Picanto), Cerato (New Spectra) and the New Sportage - has been incredibly well received by buyers in all global regions. Kia Motors is constructing new offshore production bases and has added three new...

  • Page 18
    ... to automobiles) 2004 Impact Award at the New York Auto Show in April. The New York Times gave the Opirus very high marks for design and called the Kia sedan "outstanding" in terms of luxury for price. Kia started to export the Sportage to the US m arket in Novem ber. This co m p act SUV can...

  • Page 19
    50.9% 19 KIA Motors_2004 Annual Report

  • Page 20
    44.4% 20 KIA Motors_2004 Annual Report

  • Page 21
    ...). The Morning ("Picanto" in Europe) has been particularly popular w ith European drivers looking for both econom y and style. Sales took off in April 2004, and 58,625 Picanto were purchased during the year, making this mini-car model Kia's best seller in the European market. The Picanto has been...

  • Page 22
    ... Yueda Kia Motors' sales reached 62,506 units, up 22.5% year on year for a 2.5% market share and 12th ranking among automakers doing business in China. Currently, a second plant w ith an annual capacity of 300,000 units is under construction. After its completion at the end of 2006, Kia's business...

  • Page 23
    No.1 Customer Satisfaction in the small car segment 23 KIA Motors_2004 Annual Report

  • Page 24
    The true value of Kia Motors comes from ceaseless innovation. Increases in units sold, sales revenue and unit price, coupled with higher corporate credit ratings, are all testament to Gearing Up | For New Kia Motors' rising stature as a global carmaker. Behind these impressive achievements lie ...

  • Page 25
    > > Kia Motors Slovakia (KMS), the plant under construction at Zillina, Slovakia, w ill have an annual capacity of 200,000 units, w hich can be expanded to 300,000, depending on the m arket conditions. Platform > > The 2005 Opirus (exported as Am anti) boasts the new Lam bda 3.8-liter V6 engine ...

  • Page 26
    ... a full lineup locally and aim s to introduce a series o f h ig h ly co m p et it ive n ew m o d els t o Ch in ese buyers. • SOP: FY2006 • Capacity:200-300k • Ow nership: 100% • Line-up: C-seg Sedan,SUV Europe Engineering Center, Germany KMS, Slovakia 26 KIA Motors_2004 Annual Report

  • Page 27
    ... • Groundbreaking : Apr 2004 DYK, China Hyundai-Kia Motors Design & Technical Center Hyundai-Kia Motors California Proving Ground • Operation: FY2002 • Capacity: 130K(1st Plant) 300K(2nd Plant) • Ow nership: JV 50% • Line-up: TianLiMa, Optim a, Carnival 27 KIA Motors_2004 Annual Report

  • Page 28
    ... as a basic color • Cherry Black Pearl flake added for greater elegance and sophistication • Smoky Brown Brown a new favorite as a fashion statement • Smart Blue Sporty and youthful, high color saturation, dynamic and appealing to younger people 28 KIA Motors_2004 Annual Report

  • Page 29
    ... White Satin Silver Grayish Silver Greenish Gold Vert Jade Pearl Natural Olive Volcanic Red Sm oky Brow n Sm art Blue • Vert Jade Pearl Pearl and metallic flakes portray add another dimension for a soft and enigmatic image Cherry Black The Sportage com pact SUV received the 2004 Korea Best Color...

  • Page 30
    ... increasingly diverse customer needs. The advanced 3.6 Lambda V6 engine delivers high performance and high efficiency for better environm ental friendliness. This next-generation power plant for full-sized sedans was co-developed by Kia Motors and Hyundai Motor. 30 KIA Motors_2004 Annual Report

  • Page 31
    ... 4-speed autom atic transm ission. The environm ent -friend ly and fuel efficient Thet a eng ine has w on global recognition for its superior perform ance. Daim ler Chrysler and Mitsubishi Motors are nam es included in the buyers' list. The engine w ill be m ounted on upcom ing new m odels next year...

  • Page 32
    ...back. The moment you sit in the driver's seat you can feel the youthful passion from steering wheel design to pedals, switches and dashboard color and lighting. The allure and the excitement continue. Korea's Best-selling Minivan The Carnival II prom ises stability and reliability under all driving...

  • Page 33
    ..., the Sorento is beautiful. Curtain-type airbags and upgraded features take safety and luxury to new heights for added value and greater satisfaction. of the Chevrolet Aveo and Toyota Echo). The New Pride rep resents Kia Motors' confidence in the original Pride's popularity as a national brand.

  • Page 34
    ... vehicle" by the San Diego based research firm , Strategic Vision, Inc. in the m id-sized car category. It reflects positive reception of the brand in t h e US m arket . Su ch ach ievem en t s w ere m ad e p o ssib le b y Kia's con t in uous effort in q ualit y en h an cem en t , con seq uen t ly...

  • Page 35
    We dream the best autom obile sales & service com pany. You can im agine the quality life through us.

  • Page 36
    ... people above all else, helping to make life more enjoyable and happier for everyone. For the future, environmental issues are a top priority at Kia Motors, while sports Gearing Up | For Hum are a means for sharing some fun. Kia aims to create the kinds of value that can be felt immediately...

  • Page 37
    >> The slogan "The Pow er to Surprise" and sponsorship of m ajor sporting events such as the Australian Open are helping to boost corporate im age w hile prom oting a healthy enjoym ent of life. an Society >> All Kia em p lo yees are aw are o f t h e n eed t o p ro t ect t h e en viro n m en t ,...

  • Page 38
    Environment All Kia employees are aware of the need to protect the environment, and they are committed to minimizing the environmental impact from developing to producing vehicles. 38 KIA Motors_2004 Annual Report

  • Page 39
    ... Environm ent Management Award in the Enterprise category at the 30th annual National Quality Management Conference, sponsored by the Ministry of Commerce, Industry & Energy in November 2004. All three plants in Korea were certified compliant with ISO 14001 requirem ents in 2003, and Kia Motors w as...

  • Page 40
    ...and services - to convey the unique benefits and image that Kia Motors can give its customers. Kia has sponsored the World Inline Cup (WIC), an official event under the International Roller Sports Federation (FIRS), in major world cities. The company also launched the Kia-Verducci International Team...

  • Page 41
    Identity a World njoyed by All 41 KIA Motors_2004 Annual Report

  • Page 42
    ...for children), contributions to provincial communities in Korea (support for joint research between companies and academic institutes, medical care and child care assistance for foreign workers) and environmental preservation initiatives ( support for NGO campaigns, etc.). 42 KIA Motors_2004 Annual...

  • Page 43
    gether The Kia slogan for social contribution activities is "a World that Moves Together," an expression of the company's ongoing commitment to creating a better world by partnering with society. 43 KIA Motors_2004 Annual Report

  • Page 44
    ...| 45 Management's Discussion & Analysis 54 Independent Auditors' Report 56 Non-Consolidated Balance Sheets 58 Non-Consolidated Statements of Income 59 Non-Consolidated Statements of Appropriation of Retained Earnings 60 Non-Consolidated Statements of Cash Flows 62 Notes to Non-Consolidated Financial...

  • Page 45
    Management 's Discussion & Analysis Sales Result 2004 Sales Result Kia Motors (the Company) sold 250,643 built-up vehicles in Korea in 2004, down 22% from the previous year. However, exports went up 41% to 760,786 units, for 1,011,429 total built-up units sold, 18% higher than in 2003. 2004 Sales...

  • Page 46
    ... vehicles in Europe during 2004. That figure is 48.7% higher than in 2003, when sales growth jumped 41.9%. The Company's share of the European market has now surpassed a 1% mark for the first time. Evidenced highest growth rate of all automaker in Europe for the past two years, the Company's market...

  • Page 47
    ... launched Sportage is bolstering the Company's RV sales mix and should play a leading role in expanding market share in Europe. To m eet European custom er needs, the Com pany w ill focus on new product developm ent w ith high quality, elegant design, a diverse sales line-up and competitive prices...

  • Page 48
    ...to replace the existing Rio and Carnival. In 2005, the plant capacities at Sohari and Hwasung will be slightly adjusted in terms of units per hour (UPH), but overall annual capacity has been set at 1.25 million, similar to that of 2004. The Company plans to raise its utilization rate to 85% of total...

  • Page 49
    ... upgrade its management and financial soundness, while the synergy effect from the merger with Hyundai Motors played a part. Kia's increasing share in the European and Chinese markets also helped boost its credit ratings. Despite additional plant construction in China and Europe, a stable financial...

  • Page 50
    ... 1,972 In terms of product mix, the passenger car segment accounted for 48.4% of total sales, up 10.6% points year on year. The change was led by sales of the Morning (Picanto), the company's strategic export model. On the other hand, the portion of RVs, the company's mainstream business, in the...

  • Page 51
    ...which allowed the company to face fewer warranty claims and lessen per-unit warranty reserve even though increased exports led to the growing number of vehicles under warranty and public recalls. Another factor is the Won/Dollar rate at the end of 2004 fell 154 from the previous year to 1,044. More...

  • Page 52
    ...efficient management of liquid assets. The share of "ultra-short-term" financial instruments with a maturity within 90 days shrank, but the share of relatively high-yield short-term financial instruments with various maturities increased in the Company's portfolio. 52 KIA Motors_2004 Annual Report

  • Page 53
    ... on the books as current debentures and current long-term debts within one year of maturity. The surge in overseas sales volume was expected to boost overall warranty provision (including both short and long term) significantly with the growing number of vehicles under warranty and expansion in...

  • Page 54
    Independent Auditors' Report To the Shareholders and Board of Directors of Kia Motors Corporation: We have audited the accom panying non-consolidated balance sheets of Kia Motors Corporation as of Decem ber 31, 2004 and 2003, and the related non-consolidated statem ents of incom e, appropriations ...

  • Page 55
    ... accounting procedures and auditing standards and their application in practice. Deloitte HanaAnjin LLC (A Mem ber Firm of Deloitte Touche Tohm atsu) Seoul, Korea March 5, 2005 Notice to Readers This report is effective as of March 5, 2005, the auditors' report date. Certain subsequent events...

  • Page 56
    ... 3,251,294 2,803,710 3,114,863 Non-current assets: Long-term investm ent securities, net of unam ortized present value discount of 5,234 m illion in 2003 (Note 4) Equity securities accounted for using the equity m ethod (Note 5) Property, plant and equipm ent, net of accum ulated depreciation of...

  • Page 57
    ... w on (in millions) Translation into U.S.dollars (Note 2) (in thousands) 2004 LIABILITIES AND SHAREHOLDERS' EQUITY 2003 2004 2003 Current liabilities: Short-term borrow ings (Note 10) Current m aturities of long-term debt and debentures, net of discount on debentures issued of m illion in...

  • Page 58
    Non-Consolidated Statements of Income For the Years Ended December 31, 2004 and 2003 Korean w on (in millions, except per share amounts) Translation into U. S. dollars (Note 2) (in thousands, except per share amounts) 2004 Sales (Note 25) 2003 12,839,881 2004 14,617,496 2003 12,301,093 15,...

  • Page 59
    For the Years Ended December 31, 2004 and 2003 Non-Consolidated Statements of Appropriation of Retained Earnings Korean w on (in millions) Translation into U.S.dollars (Note 2) (in thousands) 2004 Unappropriated retained earnings: Beginning of year Changes in retained earnings using the equity m...

  • Page 60
    ...of discount on debentures issued, net Com pensation expenses on stock options, net Loss on valuation of derivatives Loss on disposal of accounts receivable Miscellaneous loss Changes in operating assets and liabilities: Decrease in trade notes and accounts receivable Decrease (Increase) in long-term...

  • Page 61
    ...,049 (1,166,289) Cash outflow s from investing activities: Acquisition of short-term financial instrum ents Acquisition of long-term investm ent securities Acquisition of equity securities accounted for using the equity m ethod Acquisition of property, plant and equipm ent Acquisition of intangible...

  • Page 62
    ... Non-Consolidated Financial Statements As of December 31, 2004 and 2003 1. THE COMPANY: Kia Motors Corporation (the Company ), incorporated in December 1944 under the laws of the Republic of Korea, is one of the leading motor vehicle manufacturers in Korea, producing and offering for sale a range...

  • Page 63
    ...restated. The significant accounting policies followed by the Company in the preparation of its non-consolidated financial statements are summarized below. REVENUE RECOGNITION Sales, including long-term instalment sales, are recognized at the time of shipment of motor vehicles and parts, which is...

  • Page 64
    ... economic useful life (not exceeding three years) from the usable date of the related productions. Ordinary development and research expenses are charged to current operations. Cost in excess of net identifiable assets acquired (goodwill) is amortized over five years and industrial property rights...

  • Page 65
    ... monthly pay to the Fund. STOCK OPTIONS The Company computes total compensation expense to stock options, which are granted to employees and directors, by fair value method using the optionpricing model. The compensation expense has been accounted for as a charge to current operations and a credit...

  • Page 66
    ...accounts with balances denominated in foreign currencies are recorded and reported in the accompanying non-consolidated financial statements at the exchange rates prevailing at the balance sheet dates. The balances have been translated using the Basic Rate announced by Seoul Money Brokerage Services...

  • Page 67
    ... of shares, previous year: 299,435 - (299,435 Dilutive securities as of December 31, 2004 are as follows. Exercise period Stock option Number of dilutive shares 345,711 shares 430,000 shares Exercise price 5,500(US$5.27) 8,200(US$7.86) 2003.3.18 ~ 2008.3.17 2006.2.20 ~ 2011.2.19 3. INVENTORIES...

  • Page 68
    ...-Consolidated Financial Statements As of December 31, 2004 and 2003 4. LONG-TERM INVESTMENT SECURITIES (1) Long-term investment securities as of December 31, 2004 and 2003 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) 2004 Available-for-sale securities...

  • Page 69
    ... included in long-term investment securities as of December 31, 2004 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Acquisition cost Governm ent and m unicipal bonds Corporate bonds: Acrow ave Co., Ltd. Book value 2,413 Book value 2,312 2,413 89...

  • Page 70
    ... years 6 ~ 10 years Korean w on (In millions) 1,729 773 2,502 U.S. dollars (Note 2) (In thousands) 1,656 741 2,397 (4) The Company has pledged the following long-term investment securities as collateral for respective investees and performance guarantees as of December 31, 2004: Number of shares...

  • Page 71
    ... Autom otive Parts Co. Ltd. TRW Steering Co., Ltd. Dym os Inc. e-HD.com Inc. Hyundai Hysco Co., Ltd. Autoever System s Co., Ltd. Hyundai Card Co., Ltd EUKOR Car Carriers, Inc. Yan Ji Kia Motors A/ S NGVTEK Com Kia Service Philippines Co. EUKOR Car Carriers Singapore Pte. Acquisition cost 66,798...

  • Page 72
    Notes to Non-Consolidated Financial Statements As of December 31, 2004 and 2003 Equity securities are valued based on the unaudited financial statements with adjustments made for the effects of any significant events or transactions. Also, significant unrealized profit (loss) on intercompany ...

  • Page 73
    ... to equity method accounting for the year ended December 31, 2003 are as follows: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Beginning of year Hyundai MOBIS Kia Tigers Co., Ltd. Dong Feng Yueda-Kia Motors Co., Ltd. Haevichi Resort Co., Ltd. TRW Steering Co., Ltd. Dym os Inc...

  • Page 74
    ... Autom otive Parts Co. Ltd. TRW Steering Co., Ltd. Dym os Inc. e-HD.com Inc. Hyundai Hysco Co., Ltd. Autoever System s Co., Ltd. Hyundai card Co., Ltd EUKOR Car Carriers, Inc. Yan Ji Kia Motors A/ S(*) NGVTEK Com (*) Kia Service Philippines Co.(*) EUKOR Car Carriers Singapore Pte. (*) Gain / Loss...

  • Page 75
    ... the valuation of equity securities accounted for using the equity method as of December 31, 2004 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Company Kia Motors Am erica, Inc. Kia Canada, Inc. Kia Motors Deutschland Gm bH Cumulative losses - 16,250 17...

  • Page 76
    ... to Non-Consolidated Financial Statements As of December 31, 2004 and 2003 (6) The market price of listed equity securities as of December 31, 2004 is as follows: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Company Hyundai MOBIS Hyundai Hysco Co., Ltd. Price per share 65,500...

  • Page 77
    ...The changes in book value of property, plant and equipment in 2004 are as follows: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Beginning of year Land Buildings and structures Machinery and equipm ent Vehicles Dies, m olds and tools Other equipm ent Construction in progress End...

  • Page 78
    ...to Non-Consolidated Financial Statements As of December 31, 2004 and 2003 As of December 31, 2004, the Company's property, plant and equipment are pledged as collateral for various long-term debt to a maximum of (US$776,507 thousand). 810,518 million The published value of the Company-owned land...

  • Page 79
    ... consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) 2004 Long-term deposits Long-term trade notes and accounts receivable, net of unam ortized present value discount of in 2004 and 1,416 m illion 2003 56,423 2004 17,100 2003 54,055 17,849 1,447 m illion...

  • Page 80
    ... Local currency loans as of December 31, 2004 and 2003 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) 2004 Reorganization claim s: Korea Developm ent Bank Kyobo Life Insurance Co. SG ABS Ltd. Korea Developm ent Leasing Corp. Hanaro Finance Korea Investm...

  • Page 81
    ...currency loans as of December 31, 2004 and 2003 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) 2004 Reorganization claim s: Korea Developm ent Bank Bankers Trust Com pany Woori Bank First Citicorp Leasing Inc. Korea Non-Bank Lease Financing Citibank Korea...

  • Page 82
    ... with European Parliament directive regarding End-of-Life vehicles (ELV). 13. DISPOSAL OF RECEIVABLES, LONG TERM INVESTMENT SECURITIES AND PROPERTIES The Company entered into a trust contract for maintenance and disposal of receivables, long-term investment securities and properties (book value of...

  • Page 83
    ... addition, the Asia Motors-invested financial institutions and Hyundai Motor Consortium were granted pre-emptive rights under the same conditions as described above. The Company completed stock retirement of 12.5 million shares of treasury stock on May 28, 2004, which had been acquired for 136,700...

  • Page 84
    ... 2004 and 2003 consist of the following: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Description Treasury stock Loss on valuation of derivatives Stock option cost Gain on valuation of long-term investm ent securities (see Note 4) Gain on valuation of equity securities accounted...

  • Page 85
    ... require at least two-year continued service, are exercised, new shares or treasury stock will be issued in accordance with the decision of the Board of Directors. The Company calculates the total compensation expense using the option-pricing model. In the model, the risk-free rate of 10.0 percent...

  • Page 86
    ... tax in financial accounting and taxable income pursuant to Corporate Income Tax Law of Korea is as follows: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Description Incom e before tax Perm anent differences Tem porary differences Other adjustm ents Taxable incom e 2004 829,469...

  • Page 87
    ...Korean w on (in millions, except per share amount) U.S. dollars (Note 2) (in thousands, except per share amount) Description Num ber of shares eligible for dividend Face value per share Face value dividend rate Dividend Dividend to net incom e Dividend yield ratio 2004 346,210,586 5,000 7.00% 121...

  • Page 88
    ... and related balances for the year ended and as of December 31, 2004 are summarized below. Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Description Hyundai Motor Com pany Hyundai MOBIS Hyundai Hysco Co., Ltd. Hyundai Capital Services, Inc. Hyundai Pow ertek Co., Ltd. Dym os Inc...

  • Page 89
    ... and related balances for the year ended and as of December 31, 2003 are summarized below. Korean w on (In millions) U.S. dollars (Note 2) (In thousands) Description Hyundai Motor Com pany Hyundai MOBIS Hyundai Hysco Co., Ltd. Hyundai Capital Services, Inc. Hyundai Pow ertek Co., Ltd. Dym os Inc...

  • Page 90
    Notes to Non-Consolidated Financial Statements As of December 31, 2004 and 2003 24. SELLING AND ADMINISTRATIVE EXPENSES: Selling and administrative expenses in 2004 and 2003 are as follows: Korean w on (In millions) U.S. dollars (Note 2) (In thousands) 2004 Salaries and w ages Sales prom otion ...

  • Page 91
    26. APPROVAL OF THE FINANCIAL STATEMENTS: The 2004 financial statements of the Company to be submitted to the shareholders meeting are subject to approval by the Board of Directors, which is tabled at their meeting on March 5, 2005. 27. SUMMARY OF RESULTS OF OPERATIONS FOR THE LAST QUARTER: Results...

  • Page 92
    ... for 2003 Operating Results and 2004 Business Plan • Annual General Shareholder' s M eeting • Annual Report Release (Korean) • Non-Deal Road Show in US April • Annual Report Release (English) • Conference for 1st Quarter Operating Results May • Corporate Credit Ratings Review (M oody...

  • Page 93
    ...KIA MOTORS SHARE PRICE VS. KOSPI The price movement of Kia Motors shares mainly followed the KOSPI average, and return remained slightly lower than the market rate. Even though the company bought back and cancelled 12.5 million shares, the share price lagged because the number of outstanding shares...

  • Page 94
    Five-Years Summary (Units, Korean w on in m illions) 2004 Sales Volume Dom estic Export 2003 2002 2001 2000 1,011,429 250,643 760,786 858,697 319,795 538,902 894,268 444,444 449,824 899,788 411,321 488,467 856,045 408,378 447,667 Revenue Dom estic Export 15,257,742 4,241,228...

  • Page 95
    ... • Deputy Head of Hyundai Motor/ Kia Motors After-Sales Division • Deputy Head of Hyundai Motor/ Kia Motors Planning Division • Head of Kia Motors Planning Office • Currently, Kia Motors President & CEO • Received Ph.D. degree in accounting from Yonsei University • Treasurer for Yonsei...

  • Page 96
    ... e, an d b y developing its ow n first new m odel, Kia gained technological com petitiveness in the global m arket. A change of nam e from Kia Industries to Kia Motors, along w ith a new logo, helped bring Kia into the ranks of full-line autom obile m anufacturers. 96 KIA Motors_2004 Annual Report

  • Page 97
    ... (New Rio) 2005 _ Ranked first for sales grow th in the w estern European m arket for tw o consecutive years ('03, '04) 2005 _ Opirus: selected as "the Most Delightful Vehicle" in the US 2005 _ Hyundai-Kia Motors: selected as FIFA ' s Official Autom obile Partner 97 KIA Motors_2004 Annual Report

  • Page 98
    ...Production & Sales Subsidiary (China) • Sohari Plant • Hwasung Plant • Gwangju Plant Pride / New Rio, Carnival / Sedona Sorento, Carens, Opirus / Am anti, Cerato / New Spectra, Optim a / Magentis, etc. Bongo , Sportage, Military Vehicles, Large Bus, etc. 98 KIA Motors_2004 Annual Report

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    Kia Motors is earning a lot of new names: Major world player Dream maker Trusted company who satisfies customers

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    For Environmental protection, this catalog can be recycled Copyright 2004 by KIA M OTORS Corp. Produced by IR-Plus 231, Yangjae-Dong, Seocho-Gu, Seoul, Korea, 137-938 TEL : 82-2-3464-1114 w w w .kia.co.kr w w w .km cir.com