Dear shareholders,

I often say it’s a great time to be with Hyundai Motor Company (Hyundai Motor) and it’s truer than ever.

It is an honor to serve you, our shareholders, as well as our customers, employees, dealers, suppliers and other stakeholders.

I’m thankful to our Executive Chair, our new Vice Chair Jaehoon Chang, the board of directors and our shareholders for your trust and support. It’s been almost six years since our Executive Chair asked me to join Hyundai Motor and it’s been an incredible journey. The team has helped deliver incredible performance and growth and we have even higher ambitions for the next six years.

I continue to be impressed by the resilience and flexibility in how we quickly respond to changes in this dynamic industry – whether from new regulations, changing customer preferences or supply chain disruptions. Adapting to meet challenges is part of our DNA.

Hyundai Motor is delivering beautifully designed vehicles with features and technology that customers want, as evidenced by growing sales, share, brand value and industry accolades. As a result, Hyundai Motor Group (which includes KIA) is the third largest automaker in the world and ranks number two in EV sales in the U.S.

Last year our global sales volume remained stable at 4.1 million wholesale units. North America continues to be an engine of growth and had its fifth consecutive record year with sales up 9.7%. We see tremendous potential in India where we are now publicly traded and remain number two in market share. Hyundai Motor remains strong in the Korean domestic market, in the Middle East and has had stable performance in the saturated and regulated European markets. We also see growth potential in South America and ASEAN and are number two in market share in Vietnam. Our go to market plan in Japan is robust as is our growth plan in Australia.

With excess capacity, China remains a challenge for most automakers. Hyundai Motor and our partners are adjusting capacity to be in line with demand and are currently conducting a deep dive to evaluate mix, volume and brand opportunities.

There are opportunities for growth everywhere and we are applying a robust midterm planning process to both accelerate and find more efficiencies in key markets. For Hyundai and Genesis, we are targeting 5.55 million vehicle sales globally by 2030, an increase of over 30% compared to last year.

In 2024 Hyundai Motor achieved record revenue and profits. Revenue was up +7.7%. While operating profit decreased -5.9%, our operating profit margin was a very healthy 8.1%.

We’ve prepared the business to weather macroeconomic and geopolitical uncertainties this year. In 2025 we are targeting sales at 4.17 million units, on par with last year. We expect revenue growth from 3 - 4% and margins in the 7 - 8% range. This year we are investing KRW 16.9 trillion ($US 11.5 billion) in R&D, capital expenditures and strategic investments.

We are targeting a total shareholder return of 35%+ and quarterly dividend of KRW 2,500 per share, implying a minimum annual dividend of KRW 10,000 per share. Also, we have announced a maximum buyback of up to KRW 4 trillion over the next three years.

Our fundamentals are strong. We are building high quality, safety-focused, eco-friendly vehicles and are investing significant resources to maintain product leadership. Hyundai Motor has ten significant vehicle introductions this year, including the all new IONIQ 9 three-row EV, the new PALISADE full size SUV with both ICE and HEV powertrains and the new STARIA Electric Van.

More powertrain choices across our lineup are emblematic of our flexible approach and how we will respond to any potential changes to the U.S. policies.

While we continue to lead the transition to electrification, we understand that this business is based on consumer demand, which is why we continue to invest in hybrid electric vehicles, extended range electric vehicles and vehicles powered by internal combustion and even fuel cells.

We are looking forward to officially opening Hyundai Motor Group Metaplant America in Georgia. It is ramping up production of the 2025 IONIQ 5 EV which is already on sale and preparing to launch the IONIQ 9 EV at the end of Q1. Preparation to add hybrid production is already underway. The company and its partners are investing $12.6 billion in an assembly plant and two battery joint ventures, enabling additional production capacity. The decision to make this investment was made during the first Trump administration. Our localization strategy in the important U.S. market will help mitigate the impact of any potential policy change.

We’re having dialogue with the new U.S. administration to reinforce our significant investments, job creation and economic impact.

We’re expanding production in other growth markets as well as leveraging strategic partnerships with Amazon, Waymo, General Motors and others.

In the U.S. Hyundai vehicles are now available for purchase through Amazon Autos. We are the first and currently only brand to offer full end-to-end transactions on Amazon Autos. The digital shopping experience makes it easier for customers to purchase a new car online and pick it up from their local dealership. We expect more dealers to sign on as the program continues to evolve.

Genesis is both a priority and an opportunity. In ten short years, Genesis has managed to establish itself as a prominent luxury brand with a stunning lineup of vehicles that are holding their own against more established brands in the competitive luxury space. We’re launching standalone Genesis Space in Korea and exclusive dealerships in the U.S. where sales continue to grow. We’re also evaluating opportunities to improve our performance in Europe and China.

My priority is to continue executing our 2030 Strategy, which includes $90 billion in investments from now to 2030 to bring 21 new EVs, double our hybrid electric offerings to 14 from 7, sell two million EVs, add production capacity and improve battery technology, among a host of other initiatives and partnerships.

We will remain competitive if we continue to deliver superior products with technology that customers value, a superior sales and showroom experience and if we adopt the Korean “son nim” or honored guest philosophy in the way we approach customer service.

In addition, quality and safety remain top priorities for Hyundai Motor; these are principles on which we will never compromise. In order to maximize value for our customers, we strive to achieve the highest quality with every vehicle we design, manufacture, sell and service.

Hyundai Motor Group is investing in the future of mobility with robots and AI at Boston Dynamics, eVTOLs at Supernal, autonomous driving at Waymo, Motional and 42dot and in the hydrogen economy with HTWO. We have a compelling vision for how people and goods will move more safely, sustainably and conveniently in the future. And we have the resources to realize this vision. The Group and its 50+ affiliates that comprise it is unique in its ability to marshal resources.

In the face of macroeconomic and geopolitical uncertainty, we will continue to listen closely to our customers, partners and constituents to make sure we respond to any changes in an informed and decisive manner, leveraging the full strength of the Group.

Thank you for your continued trust in the Hyundai Motor Company.