Hanon : Q2 2022 Earnings Release

2Q 2022 Earnings Release

Aug. 10, 2022

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.

2Q 2022: Key Financial Metrics

(KRW in Billions)
	2Q22	2Q21	YoY %	1Q22	QoQ %
Revenue	2,107	1,852	13.8%	1,980	6.4%
COGS	1,906	1,627	17.1%	1,802	5.8%
% of Sales	90.5%	87.9%		91.0%
SG&A (Incl. R&D)	140	124	12.8%	148	-5.3%
% of Sales	6.7 %	6.7%		7.5%
EBITDA	198	225	-11.9%	162	22.3%
Margin (%)	9.4%	12.2%		8.2%
Operating Profit	60	100	-40.2%	30	97.2%
Margin (%)	2.9%	5.4%		1.5%
Net Income	15	100	-85.4%	22	-34.5%
Margin (%)	0.7%	5.4%		1.1%

Record high revenue on BEVs and weak KRW; OPM improved QoQ on cost recovery

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1H 2022: Key Financial Metrics

(KRW in Billions)
	1H 2022	1H 2021	YoY Variance
Revenue	4,087	3,721	366	9.8%
COGS	3,708	3,274	434	13.2%
% of Sales	90.7%	88.0%
SG&A (Incl. R&D)	289	252	37	14.4%
% of Sales	7.1 %	6.8%
EBITDA	361	447	-86	-19.3%
Margin (%)	8.8%	12.0%
Operating Profit	91	194	-103	-53.4%
Margin (%)	2.2%	5.2%
Net Income	37	160	-123	-76.9%
Margin (%)	0.9%	4.3%

Revenue on track to yearly guidance; OPM to improve in 2H as material costs peaked out in 2Q

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2Q 2022 Highlights

2Q22 Highlights

• Company reports highest quarterly revenue on eco-friendly programs despite industry headwinds
• OPM improves QoQ on cost recovery from customers; OPM to improve in 2H due to easing material cost pressure
• Robust New Business Wins from electrified vehicles with industry-leading technologies for BEVs

		Sales Breakdown (1H22)
By Region	By Customer
		Others
		16%
Europe	Korea	BMW 4%
31%	29%	Mercedes 3%	HMG
		Stellantis 4%
		47%
	Asia	GM 6%
	VW
Americas	14%
8%
26%		Ford
			12%

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Quarterly Sales

Consolidated Sales		Comments

(KRW in Billions)

	2,101			2,107
1,901			1,926	1,980
1,869	1,869
			1,704

1,195

• 2Q22 revenue is the highest quarterly sales in company history
• Americas, Europe and Korea YoY revenue up by 36%, 17% and 2% respectively; while China YoY revenue down by 20% due to lockdown
• Increase in YoY revenue on production recovery with Ford (+39%), BMW (+37%), Stellantis (+31%), HMG (+12%) and Mercedes (+10%)
• Less-than-plannedvolume due to supply disruption in Europe and China with GM (+1%) and VW (+0% YoY)

2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22

2Q Revenue Increase of 14% YoY Driven by Production Recovery from Chip Shortage

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