Hyundai Mobis came up with a master plan to raise shareholder values based on total shareholder return (TSR). The company revealed its plan to invest a maximum of 8 trillion won in future car sectors, such as semiconductors, software, self-driving tech and EV parts. These initiatives were announced by Hyundai Mobis on Feb. 22.
The steps will be submitted to a plenary shareholders’ meeting slated for March 23. As soon as these steps are approved, they will be translated into action, the company said.
Hyundai Mobis will be the first company among Hyundai Motor Group to introduce the TSR system. TSR is a measure of financial performance, indicating the total amount an investor reaps from an investment — specifically equity or stock.
A Hyundai Mobis official said shareholders’ return can be calculated objectively based on TSR, a global corporate evaluation method, and in Korea, a few companies, including Samsung Electronics, adopt the TSR system.
Hyundai Mobis revealed the plan to invest a maximum of 8 trillion won. The plan targets mid- and long-term projects such as robotics, and urban air mobility to raise shareholders’ values.
Specifically, the company will set aside between 3 trillion won and 4 trillion won to acquire stakes in global companies specializing in semiconductor, software and self-driving car sectors while channeling between 3 trillion won and 4 trillion won for facility investments to supply core EV parts.
Hyundai Mobis has decided to flexibly manage propensity to dividend between 20 percent and 30 percent this year, while maintaining mid-term dividend.
The company plans to buy back its own stock worth 330 billion won this year and cancel its own stock worth 62.5 billion won.
The company has released its policies to return profit to shareholders.
Hyundai Mobis purchased its own stock worth 1 trillion won and distributed dividends worth 1.1 trillion won for the past three years.
The company plans to buy back its own stock and give dividends this year, similar to annual average levels of the three years.
A Hyundai Mobis company said the company will make efforts to raise shareholders’ values and secure the objectivity and transparency of governance in accordance with ESG management trends.
Hyundai Mobis Breaks New Record in Global Lamp Orders Last Year
Hyundai Mobis is expanding export of a high value-added product, automotive lamps, despite the COVID-19 pandemic, which has had a negative effect on the global market.
Hyundai Mobis aims to win more deals from global automakers with a differentiated strategy for building a competitive advantage by developing cutting-edge lamp technology for future mobility.
Hyundai Mobis announced that it has logged over KRW 1 trillion (approx. USD 830 million) worth of orders from global automakers just in the automotive lighting sector, which has been driven by diversifying the customer base in the global market, including customers such as a European automaker and new EV makers.
Last year, Hyundai Mobis won global deals worth USD 2.5 billion (approx. KRW 3 trillion) with an extensive product portfolio ranging from core parts to electronic units.
About one third of the exports consisted of lamps, high value-added products.
Hyundai Mobis has demonstrated its global competitiveness in state-of-the-art automotive lamps as it has expanded orders to include multiple global automakers.
Notably, most of the orders were for high value-added products, such as matrix beam headlights and high-performance rear lamps.
This was all made possible thanks to Hyundai Mobis’ technical prowess, which has reached a global level. Indeed, the company is enhancing its brand power by being the first to develop Advanced Adaptive Driving Beam (AADB), which works in sync with Advanced Driver Assistance Systems (ADAS), and HLED, which integrates the tail and the stop light in a single LED with only 5.5mm thickness, thus taking the lead with next-generation lighting technology.
Hyundai Mobis is also strengthening its competitiveness in the global automotive lighting market with the development of next-generation lamp technology.
Starting with new challenges in the latest lamp technology, such as lamps that work with ADAS, a slimmer and differentiated design, together with controller integration, the company will continue to focus on developing high-end products that reflect the elements that are specialized in future mobility.
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