Hanon : Q4 2022 Earnings Release

4Q 2022 Earnings Release

Feb. 9, 2023

Disclaimer

Hanon Systems does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Any information expressed herein on this date is for understanding purposes before the audit, and may be subject to change without notice.

4Q 2022: Key Financial Metrics

(KRW in Billions)

	4Q22	4Q21	YoY %	3Q22	QoQ %
			21.8
Revenue	2,345	1,926	21.8%	2,196	6.8%
COGS	2,081	1,722	20.9%	1,991	4.5%
% of Sales	88.8%	89.4%		90.7%
SG&A (Incl. R&D)	160	143	11.5%	142	12.0%
% of Sales	6.8%	7.4%		6.5 %
EBITDA	249	194	28.5%	205	21.5%
Margin (%)	10.6%	10.0%		9.3%
Operating Profit	104	61	71.7%	62	68.9%
Margin (%)	4.4%	3.2%		2.8%
Profit Before Tax	37	95	- 60.9%	26	45.5%
Margin (%)	1.6%	5.0%		1.2%
*Net Income	15	98	- 84.6%	19	- 20.4%
*Margin (%)	0.6%	5.1%		0.9%

Revenue and Operating Margin Improved based on Chip Supply and Cost Recovery

2	Note: *Net Income without one-timenon-cash taxation of 36bW in 4Q 2022 due to tax law revision in South Korea

FY 2022: Key Financial Metrics

(KRW in Billions)
	FY 2022	FY 2021	YoY Variance
Revenue	8,628	7,351	1,276	17.4%
COGS	7,781	6,502	1,278	19.7%
% of Sales	90.2%	88.5%
SG&A (Incl. R&D)	590	523	67	12.9%
% of Sales	6.8%	7.1%
EBITDA	814	834	- 20	- 2.4%
Margin (%)	9.4%	11.3%
Operating Profit	257	326	- 69	- 21.2%
Margin (%)	3.0%	4.4%
Profit Before Tax	107	355	- 247	- 69.7%
Margin (%)	1.2%	4.8%
*Net Income	71	311	- 240	-77.1%
*Margin (%)	0.8%	4.2%

Increased Revenue as Supply Chain Disruptions Ease; One Timers Impacted Net Income Variance YoY

3	Note: *Net Income without one-timenon-cash taxation of 36bW in 4Q 2022 due to tax law revision in South Korea

FY 2022 Highlights

2022 Highlights

• Accelerated revenue growth based on higher EV production and improved chip supply
• Cost improvements and better pricing helped normalize profitability in 4Q 2022
• Achieved record-highNew-win orders based on EV platform from global carmakers in Europe and the U.S.
  Sales Breakdown (FY2022)

By Region	By Customer
		Others
		15%
Europe	Korea	BMW 4%
30%	28%	Mercedes 3%	HMG
		Stellantis 4%
				47%
		GM 7%
	Asia	VW
Americas	16%
8%
26%		Ford

12%

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Quarterly Sales

Consolidated Sales		Comments

(KRW in Billions)

2,107

1,869	1,869	1,926	1,980
		1,704

2,345

2,196

• 4Q22 Quarterly Comments
• • Americas, Europe, and Korea 4Q22 YoY revenue up by 37%, 34% and 7% respectively; China down 12% YoY
  • Increase in GM (+81%), VW (+46%), Stellantis (+44%), BMW (+ 19%), HMG (+18%) and Ford (+11%) in 4Q22
• 2022 Full Year Comments
• • Americas, Europe, and Korea 2022 YoY revenue up by 36%, 19% and 6% respectively; China down 5% YoY
  • Increase in GM (+35%), BMW (+ 28%), Stellantis (+24%), VW (+18%), HMG (+16%) and Ford (+15%) in 2022

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

3Q22

4Q22

2022 Revenue Increase of 17% YoY Driven as Production Recovery and Favorable Foreign Exchange Rate

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