1

January 27, 2012

2011 Business Results

2

Notes for Investors

This presentation has been prepared with unaudited

4th quarter results of year 2011 for investors’ convenience.

Therefore, some numbers may change upon

the review of Kia’s independent auditors.

3

Sales Results

Income Statement

Statement of Financial Position

Cashflow Statement

Revenue Analysis

COGS / SG&A / Other Operating Income & Expense

Financial Income & Expense / Investment in Associates Income

II. 2012 Business PlanI. 2011 Business Results

2012 Sales Plan

2012 Management Policy

#. Appendix

▪

2011 Sales Results (Quarterly)

▪

Income Statement (Quarterly)

▪

2012 Sales Plan by Region(Korea, US, Europe, China, RoW)

Table of Contents

4

I. 2011 Business Results

5

*

Sales Results(Unit : Thousand)

2011

Retail Sales 2,088 2,478 +18.6

US

Europe

China

Korea

356 485

258 290

333 433

483 492

RoW 657 778

+36.3

+12.2

+29.9

+18.4

+1.7

2010 change(%)

2,130 +19.2Ex-factory

Sales 2,538

1,400 +12.9

483 +1.7Domestic

917 +18.8Export

1,581

492

1,089

Korea

730 +31.2

230 +9.9Slovakia

333 +29.9China

957

252

433

Overseas

167 +62.9US 272

20112010 change(%)

* Europe = EU + EFTA countries

6

Income Statement

2010 2011 Change(%)

(Unit : Billion Won)

Revenue 35,827 100 +20.643,191 100

Cost of Sales 27,905 77.9 +18.833,139 76.7

Gross Profit 7,922 22.1 +26.910,052 23.3

Operating Profit

Pretax Profit

Net Profit

2,490 7.0 +41.6

3,323 9.3 +42.1

2,698 7.5 +30.4

3,525 8.2

4,722 10.9

3,519 8.1

as % of rev.

as % of rev.

7

Statement of Financial Position

2010 2011

Assets

Current Assets

26,275 +3,980

9,764 +1,311

30,255

11,075

(Cash) (2,914) (3,934) +1,020

Liabilities

Debt

(Net Debt)

16,027 +718

6,341 -733

(3,427) -1,754

16,745

5,607

(1,673)

Equity

Debt-to-Equity Ratio

Net Debt-to-Equity Ratio

10,248 +3,262

61.9% -20.4% p

33.4% -21.0% p

13,510

41.5%

12.4%

* Cash = Cash + ST Financial Instruments

** Net Debt-to-Equity Ratio = Net Debt / Equity

(Unit : Billion Won)

Change(%)

Change(%)Change(%)

8

Cashflow Statement

3,519Net Profit

990Depreciation & Amortization

48Others

4,557Net Operating Cashflows

-1,902Increase in Tangible/Intangible Assets

-500Investment in Associates

-2,402Net Investment Cashflows

-199Dividend Payment

-1,467Net Financial Cashflows

-889Decrease in Debt (net)

Beginning Cash Balance 1,616

(including ST Financial Instrument)

(2,914)

Ending Cash Balance 2,304

(including ST Financial Instrument)

(3,934)

Net Increase in Cash +688

(including ST Financial Instrument)

(+1,020)

-379Acquisition of Subsidiaries

(Unit : Billion Won)

9

Revenue Analysis

(Unit : Billion Won)

35,827

26%

27%

26%

21%

Revenue by Region Sales by Segment

Korea : KMC domestic revenueN. America : KMA/KCI wholesales revenue + KMMG OEM revenueEurope : Europe Sales Subsidiaries’ wholesales revenue + KMS OEM revenueOthers : KMC direct export revenue + KMAU/KMNZ wholesales revenue

Korea

North America

Europe

Others

+20.6%

2010 2011

2010 2011

A+B+C D+E RV Others

53.9%

5.8%

10.3%

30.0%51.8%

5.1%

10.8%

32.3%

* Based on global retail sales (excluding China)

ASP Improvement (Korea Plant) Domestic (mn. KRW) : 18.2 →

18.6 (+1.8%) Export (thou. USD) : 11.8 →

13.1 (+11.4%)

FX Rate (USD / KRW) 1,156 →

1,110 (-3.9%)

43,191

22%

32%

25%

21%

10

COGSㆍSG&AㆍOther Operating Income & Expense

Cost of Sales SG&A

77.9%76.7%

Other OperatingIncome/Expense

-1.2%p

-0.3%p

2010 2011

Salary & Wages

Marketing Expense

ExportExpense

WarrantyExpense

Others

0.3% 0.1%

-0.2%p15.5%

2.3

5.0

2.1

2.5

3.6

2010 20112010 2011

15.2%

2.1

4.9

2.1

2.5

3.6

(Unit : Billion Won)

(as % of rev.) (as % of rev.) (as % of rev.)

11

Financial Income & Expense / Investment in Associates Income

2010 2011

Financial Income

Financial Expense

320

982

1,337

346

197

180 -140

+355

-149

1,161

176

2010 833 2011 1,197+363

(Unit : Billion Won)

Investment in Associates Income

DisposalIncome

EquityIncome

12

II. 2012 Business Plan

13

2012 Sales Plan

2012(P)

RetailSales 2,7122,478 +9.5

US

Europe

China

Korea

534485

356290

460433

500492

RoW 862778

+10.0

+22.8

+6.4

+10.8

+1.7

*

2011 change(%)

272 +7.4Middle East/Africa

227 +20.5Eastern Europe

253

188

(176) +17.0

76 +16.7Canada

104 +18.2Asia/Pacific

(150)

65

88

(Russia)

183 -0.4Latin America 184

2012(P)2011 change(%)

* Europe = EU + EFTA countries

Sales Plan for RoW Market

(Unit : Thousand)

14

2012 Management Policy

Strengthen custom

글로벌

사업구조

고도화

지속성장

기반

확충

• Achieve global tier 1 brand

• Deliver innovative experiences to domestic customers

• Advance competence of overseas sales

• Strengthen the position in emerging markets

• Continuously innovate quality of customer experiences

• Strengthen corporate social responsibility management

• Build innovative corporate culture

• Develop global human resources

Value Innovation

Strengthen customer oriented management

Advance global business structure

Expand basis on sustainable growth

15

Appendix

16

Sales Results (Quarterly)

YoY(%)2010 20111Q 2Q 1Q 2Q3Q 3Q4Q

Retail 470 533 542 543 2,088 565 638 623 651 2,478 +18.6

Korea 105 123 124 132 483 125 122 119 125 492 +1.7

US 77 93 98 88 356 105 140 122 118 485 +36.3

Europe 68 68 60 63 258 63 73 74 79 290 +12.2

China 85 76 77 95 333 95 95 111 132 433 +29.9

RoW 136 174 183 164 657 176 208 197 197 778 +18.4

Ex- factory

475 515 513 628 2,130 619 622 612 685 2,538 +19.2

Korea 300 350 341 409 1,400 394 394 371 422 1,581 +12.9

Domestic 105 123 124 132 483 125 122 119 125 492 +1.7

Export 196 227 217 277 917 269 272 252 297 1,089 +18.8

Overseas 174 165 172 218 730 225 228 241 263 957 +31.2

US 41 34 35 57 167 62 65 75 70 272 +62.9

China 85 76 77 95 333 95 95 111 132 433 +29.9

Europe 48 55 60 67 230 67 69 55 61 252 +9.9

4Q

(Unit : Thousand)

Ex-factory

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Income Statement (Quarterly)

2010 20111Q 2Q 1Q 2Q3Q 3Q4Q

Revenue 7,795 9,252 8,695 10,085 10,658 11,581 9,990 10,963

Cost of Sales 6,173 7,210 6,636 7,887 8,333 9,035 7,540 8,230

% of revenue 79.2 77.9 76.3 78.2 78.2 78.0 75.5 75.1

Gross Profit 1,622 2,042 2,059 2,198 2,325 2,546 2,450 2,732

margin(%) 20.8 22.1 23.7 21.8 21.8 22.0 24.5 24.9

Operating Profit 442 662 679 707 840 1,032 828 826

margin(%) 5.7 7.2 7.8 7.0 7.9 8.9 8.3 7.5

Pretax Profit 636 837 876 974 1,271 1,423 874 1,154margin(%) 8.2 9.0 10.1 9.7 11.9 12.3 8.7 10.5

Net Profit 499 676 705 819 953 1,128 648 790margin(%) 6.4 7.3 8.1 8.1 8.9 9.7 6.5 7.2

4Q

(Unit : Billion Won)

18

Korea

(Unit : Thousand)

483

10%

26%

64%

Sales & Market Share

+1.7%

2012 Outlook & Plan

2010 2011 2012(P)

492

11%

27%

62%

500

10%

23%

67%

CV

RV

PC

31.1% 31.1%

+1.7%

□

Industry Demand (1.5mn units, -2.2% yoy)

【Positive】

Private consumption tax cut, Large/SUV model launches,

Replacement demand

【Negative】

Weak economic growth, Increase of imported car sales

□

Plan & Strategy

▪

Strengthen product competitiveness

→

New model launches : K9, Sorento F/L, K7 F/L

▪

Improve brand image→

Enhance dealership infrastructure →

Brand marketing (GBCS), Sports marketing

▪

Enhance flexibility to meet different segment demand

→

Full model line-ups (Compact to Luxury & SUV)

* Industry demand based on KARI data (including imported cars)

Expectation for replacement demand

19

US

356

47%

53%

+10.0%

2010 2011 2012(P)

485

42%

58%

534

32%

68%RV

PC

3.1%

3.8%

+36.3%

□

Industry Demand (13.5mn units, +5.7% yoy)

【Positive】

Pent-up demand, Recovery in consumer confidence

【Negative】

Macro uncertainties, Intensifying competition

□

Plan & Strategy

▪

Strengthen product competitiveness

→

Expand volume models from 3 to 5

(Sorento, Soul, Forte + Optima, Rio)

▪

Improve brand image→

Sports marketing (Super Bowl Games, NBA) →

Residual value management

▪

Enhance sales power

→

Increase dealerships and improve SPD

→

Diversify auto financing program

* Industry demand based on Global Insight data

Sales & Market Share 2012 Outlook & Plan

Supply increase from Japanese automakers

(Unit : Thousand)

20

Europe

258

0.2%

20%

80%

+22.8%

2010 2011 2012(P)

290

0.1%

29%

71%

356

25%

75%

CV

RV

PC

1.9%

2.1%

+12.2%

□

Industry Demand (13.8mn units, +1.9% yoy)

【Positive】

Pent-up demand (current demand at the lowest level)

【Negative】

Tightening monetary policy, Intensifying competition

□

Plan & Strategy

▪

Strengthen product competitiveness

→

Increase volume : Morning, Rio (largest segment) →

New model launch : cee’d

▪

Improve brand image (Sports marketing)→

Euro 2012, London Olympics, Brand marketing (GBCS)

▪

Enhance sales power

→

Extend auto financing programs

→

Develop fleet/lease sales network

Sales & Market Share 2012 Outlook & Plan

* Industry demand based on Global Insight data (PC only)

Demand shift to small cars

(Unit : Thousand)

21

China

333

24%

76%

+6.4%

2010 2011 2012(P)

433

25%

75%

460

25%

75%

CV

RV

PC

3.0%

3.6%

+29.9%

□

Industry Demand (13.1mn units, +9.9% yoy)

【Positive】

Easing of tightening policy

【Negative】

Less government subsidy, Fierce pricing competition

□

Plan & Strategy

▪

Strengthen product competitiveness

→

Expand volume models from 2 to 3 (Forte, Sportage + K2)

▪

Improve brand image→

Reinforce brand power via new & volume models

▪

Enhance sales power

→

Expand dealer network (focus on western inland cities)

Sales & Market Share 2012 Outlook & Plan

* Industry demand based on Global Insight data (PC only)

Demand growth from western inland cities

(Unit : Thousand)

22

Rest of World

657

8%

28%

64%

+10.8%

2010 2011 2012(P)

778

6%

31%

63%

862

6%

31%

63%

CV

RV

PC

+18.4%

2011 2012(P)GrowthRate(%)

Rest of World 100% 100% +10.8%

Middle East/Africa 33% 32% +7.4%

Eastern Europe 24% 26% +20.5%(Russia) (19%) (20%) (+17.0%)

Latin America 24% 21% -0.4%

Asia/Pacific 11% 12% +22.6%

Canada 8% 9% +16.7%

□

Sales by Region

□

Plan & Strategy

▪

Strengthen sales momentum

- Picanto(Morning), Rio(K2), Optima(K5), Sportage etc.

- Increase dealer network & focus on brand marketing

▪

Increase volume to major growth markets

- Eastern Europe (Russia), Asia/Pacific, Canada etc.

Sales & Market Share 2012 Outlook & Plan

(Unit : Thousand)

23

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