Hyundai Department Store (069960) Investor presentation summary

Strategic financial targets and performance

• Targeting ROE above 6% and PBR above 0.4x within three years, both exceeding peer averages through profitability improvements and business expansion.

• Net income and market cap have fluctuated, with ROE and PBR surpassing peer averages due to operational efficiency and restructuring.

• Profit growth driven by new store openings, efficiency enhancements, and diversification across department store, duty-free, and furniture manufacturing segments.

• Shareholder returns prioritized via treasury share cancellations, acquisitions, and dividend increases, with annual dividends targeted to reach KRW 50.0B by 2027.

• Dividend payout and total shareholder return ratios have steadily increased, reflecting a strong commitment to shareholder value.

Business segment initiatives

• Department store segment expanding with major investments in new metropolitan hubs and premium outlets, focusing on innovative retail experiences and luxury MD enhancements.

• Duty-free segment maintains profitability through airport store expansion, luxury brand renewals, and operational efficiency, including a shift to a single downtown store.

• Furniture manufacturing segment strengthens its U.S. market position, enters new global markets, and improves cost competitiveness by optimizing production bases.

Shareholder return and market communication

• Treasury share cancellations and acquisitions executed in phases, with all treasury shares planned for cancellation by 2026.

• Dividends expanded with both interim and year-end payments, aiming for a stepwise increase to KRW 50.0B annually.

• Enhanced market communication through active C-level IR participation, quarterly committee meetings, and robust online/offline investor relations infrastructure.

• Recognized for excellence in investor relations, including selection as a top company in Korea IR Awards 2025.