Lee Gyu-suk, president and CEO of Hyundai Mobis, said on the 17th that the company will secure capabilities early in new growth areas such as vehicle semiconductors and key components for Robotics.
In greeting remarks at the 49th regular general shareholders meeting held the morning of the 17th at GS Tower in Yeoksam, Gangnam District, Lee said, "We will continue to energize advanced research this year to strengthen our technological competitiveness." Lee added, "In particular, we will reinforce collaboration through joint advanced development with global customers and activate localized strategies in key growth markets such as China and India."
Lee also reiterated a strategy to gradually expand the share of global component manufacturing customers to 40% by 2033. Hyundai Mobis achieved record results last year with 61.1181 trillion won in sales and 3.3575 trillion won in operating profit on a consolidation basis. Orders from nonaffiliated companies also reached $9.17 billion for the year, exceeding the target by 123%.
Hyundai Mobis on the 17th reappointed Chung Eui-sun, chairman of Hyundai Motor Group, as an internal director of Hyundai Mobis and appointed Senior Executive Director Seong Nak-seop, head of FTCI, as an internal director. With the approval of the reappointment, Chung will continue in the CEO role for an eighth year since March 2019. Seong will oversee major research and development areas, including advanced technology. Hyundai Mobis said the appointments were "to strengthen the board's technological expertise."
As outside directors, James Kim, chairman of the American Chamber of Commerce in Korea, and Park Hyun-joo, Korea head of BNY Mellon, were appointed.
Hyundai Mobis also approved a plan to hold and dispose of treasury shares to implement employee compensation and an employee stock ownership plan. The agenda item was submitted in line with the enforcement of the third amendment to the Commercial Act, which mandates general meeting approval for the holding and disposal of treasury shares.
Hyundai Mobis has said through CEO Investor Day and disclosures on plans to enhance corporate value that under a TSR 30%+ benchmark, it will flexibly adjust and carry out share repurchases/retirements and the payout ratio as part of its mid- to long-term value-up strategy. A Hyundai Mobis official said, "If the retirement of treasury shares we hold decreases, the structure leads to future dividends and dividends increasing, so there is no change in the scale of shareholder returns."