At the 44th regular shareholders’ meeting held at GS Tower in Gangnam-gu, Seoul on the 24th, President Cho, who was elected as an executive director and CEO, announced plans to focus on △Securing differentiated high-tech technologies △Creating new growth engines △Improving shareholder value this year. .
First, President Cho focuses on securing global technological competitiveness to secure growth momentum in the post-corona era. While reinforcing independent R&D capabilities, we will continue to expand open innovation, such as strategic investment and collaboration with promising technology companies.
Hyundai Mobis is actually expanding its investment in R&D every year. R&D expenditures from 835 billion won in 2018 increased to 9658 billion won in 2019, and reached 1.13 trillion won last year, exceeding 1 trillion won for the first time in history.
The ratio of R&D expenditure to sales also steadily increased from 2.38% in 2018 to 2.54% in 2019 and 2.77% last year. Hyundai Mobis aims to raise R&D expenses, which account for sales, to the 10% level by 2025. In particular, half of them are focused on future fields such as autonomous driving and connectivity.
To create new growth engines, we will diversify our product portfolio and expand sales to global customers. President Cho said, “We will do our best to increase the future value of the company,” and “We will transform our business model into a technology company focused on software and platform.”
As part of this, Hyundai Mobis changed the articles of incorporation to include the manufacturing and sales of aviation mobility parts and the manufacturing and sales of robots and robotic parts as business purposes. Earlier in December of last year, it participated in the acquisition of Boston Dynamics, an American robotics company, together with Hyundai Motor Company and Hyundai Glovis.
In the same month, it acquired Hyundai Otron’s semiconductor business division development manpower and assets for 133.2 billion won. This is to secure differentiated technological prowess in the field of future vehicle electric fields by enhancing professional design, development, and verification capabilities of automotive semiconductors. Focus on diversifying supply sources. As of last year, Hyundai Mobis’ dependence on Hyundai Motors and Kia reached 70%.
President Cho also practices various policies to enhance shareholder value. To this end, the transparent management committee within the board of directors was reorganized into the sustainability management committee at this shareholders’ meeting. In addition to the existing transparent management committee, the Sustainability Management Committee is expected to play a role as a practical control tower for environmental, social, and governance (ESG) management. President Cho emphasized, “I will further strengthen ESG management,” and “I will communicate with executives and employees and take care of specific tasks meticulously.”
On the other hand, Hyundai Mobis decided on the appointment of outside directors at the shareholders’ meeting on the same day as Professor Kim Dae-soo of the Department of Business Administration at Korea University and Professor Kang Jin-ah of the Graduate School of Technology Management Economics and Policy at Seoul National University. Professor Kang is the first female outside director of Hyundai Mobis. The dividend was 4,000 won per common share (4050 won for preferred shares), which was the same as the previous year.
Cho Sung-hwan, CEO of Hyundai Mobis (President, second right) is inaugurated as the CEO at the 44th General Shareholders’ Meeting held at GS Tower in Gangnam-gu, Seoul on the 24th. [사진=현대모비스 제공]