Hyundai Mobis Accelerates Plan to Maximize Shareholder Value... CEO Chung Eui-sun Reappointed

Resolution on Appointment of Shareholder-Nominated Outside Directors and Introduction of Electronic Voting System at Regular Board Meeting on the 14th

[Asia Economy Reporter Kim Ji-hee] Hyundai Mobis is implementing various policies to enhance shareholder value, including the appointment of shareholder-nominated outside directors and the introduction of electronic voting. Additionally, it has decided to reappoint Chung Eui-sun, Vice Chairman of Hyundai Motor Group, whose term as an inside director expires in March.

At the regular board meeting held on the 14th, Hyundai Mobis resolved ▲ the appointment of shareholder-nominated outside directors ▲ implementation of mid- to long-term shareholder return policies ▲ introduction of electronic voting ▲ expansion of investments for future corporate value. Among the matters resolved that require shareholder approval, the agenda will be submitted to the regular shareholders' meeting scheduled for the 18th of next month.

Lee Eui-seop, Executive Director in charge of IR at Hyundai Mobis, explained, “By strengthening the diversity, expertise, and independence of the board, we expect to establish a swift and responsible advanced management system that maximizes shareholder value and provides firm trust to shareholders and the market.”

At the board meeting, Hyundai Mobis finally recommended Jang Young-woo, CEO of Young&Co, as a candidate for outside director responsible for protecting shareholder rights. Candidate Jang Young-woo is a financial expert who has served as head of Merrill Lynch, Goldman Sachs, and UBS Seoul branch. Based on over 30 years of industry experience and networks, he will participate in major decision-making by listening to shareholders' opinions and conveying them to the board.

Earlier this year, Hyundai Mobis conducted a public recruitment for outside directors through shareholder recommendations. Among several candidates recommended by individuals and institutions, Jang was selected as the final candidate after review by an independent external advisory panel and approval by the Outside Director Candidate Recommendation Committee. Jang will be officially appointed after final approval at the regular shareholders' meeting next month.

Furthermore, Hyundai Mobis decided to reappoint Chung Eui-sun as CEO, whose term expires next month. As Vice Chairman of Hyundai Motor Group, he is expected to play a central role in leading Hyundai Mobis's core future vehicle sectors based on his leadership.

Current outside director Dr. Karl Thomas Neumann will also be reappointed for a three-year term. Dr. Neumann, originally from Germany, is a strategy and business planning expert who has served as CEO of global automakers and parts companies such as Opel, Volkswagen China, and electric vehicle startups. He has actively participated in establishing Hyundai Mobis's future vehicle management strategy, attending 100% of board meetings held last year.

In addition, starting from the shareholders' meeting next month, Hyundai Mobis will introduce electronic voting to allow shareholders to exercise their voting rights without attending the meeting in person. This is part of efforts to expand participation opportunities and convenience for small shareholders, including individuals.

Meanwhile, Hyundai Mobis intends to continuously implement the mid- to long-term shareholder value maximization plan announced last year. First, the dividend policy will be maintained at 20-40% of the annual free cash flow (FCF), with dividends maintained at 4,000 KRW per common share annually. The quarterly dividend introduced last year will also continue.

According to the share repurchase plan announced last year, Hyundai Mobis will repurchase about one-third of the total 1 trillion KRW worth of shares over three years this year as well. Having canceled 2 million shares in April last year and 252,000 shares in February this year, Hyundai Mobis plans to cancel approximately 62.5 billion KRW worth of treasury shares from the additional repurchases this year.