Hyundai Motor Company.1H2012 Earnings Presentation

7/31/2019 Hyundai Motor Company.1H2012 Earnings Presentation

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July 26, 2012

Hyundai Motor Company

2012 1st Half Business Results


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Cautionary Statement with Respect to Forward-LookingStatements

In the presentation that follows and in related comments by Hyundai Motors management, our

use of the words expect, anticipate, project, estimate, forecast, objective, plan,

goal, outlook, target, pursue and similar expressions is intended to identify forward

looking statements.

The financial data discussed herein are presented on a preliminary basis before the audit from

Independent Auditor; final data will be included in HMCs Independent auditors report. While these

statements represent our current judgment on what the future may hold, and we believe these

judgments are reasonable, actual results may differ materially due to numerous important factors.

Such factors include, among others, the following : changes in economic conditions, currency

exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market

acceptance of the corporations new products; significant changes in the competitive environment;

changes in laws, regulations and tax rates; and the ability of the corporation to achieve reductionsin cost and employment levels to realize production efficiencies and implement capital

expenditures at levels and times planned by management.

We do not intend or assume any obligation to update any forward-looking statement, which speaks

only as of the date on which it is made.


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Sales Summary

Financial Summary

Revenue & Profit Analysis

Table of Contents

Appendix


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Sales Summary

Retail Sales

Wholesale


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2011 1H 2012 1H

1

Sales Summary : Retail Sales

Source : Company data (Includes shipment of LCV / Excludes CKD sales)

(Unit : 1,000 vehicles)

+4.4%

-4.6%

+10.5%

2,1341,974

2011

365350233202

+15.4%

851755

+12.7%

2012

+8.1%

328344

357323

E U China

Korea

US

Others

Global Retail Sales


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128 152

707834

2011 1H 2012 1H

PC RV CV

260295

63

62

2011 1H 2012 1H

PC RV

2

Korea US EU

Sales Results by Key Region

Source : Company data / Automotive News / ACEA

Despite of market demanddecrease (5.9%) in 12 1H, M/Shas increased

Strong sales of Santa Fe(25k,103.5%), due to new modellaunch

Maintained strong sales trend ofkey models (YF 117k / MD 98k)

Lowest level of incentivespending(12 1H Avg. : $875 / units)

Despite of weak market demand(yoy 7.6%) in 12 1H, sales of i40and ix 35 increased

Robust sales growth in countriescovered by direct sales subsidiaries(Germany yoy 27% / Franceyoy 41%)


M/S M/S M/S

214 199

38 45

92 84

2011 1H 2012 1H

PC RV CV

47.2%46.6%

344 328

-4.6%

4.9%5.1%

323357

+10.5%

3.0%2.4%

202233

+15.4%


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Sales Volume by Plant Sales Mix by Segment

Sales volume by plant (Wholesale basis)

Sales Summary : Wholesale

57% 59%

18% 18%

17% 17%

8% 6%

2011 1H 2012 1H

CV

RV

Mid-LargePC

Small PC

162173 175

303325

363373

907

992

48 113

44 43

120

2011 1H 2012 1H

Korea

China

India

US

Czech

Turkey

Russia

1,958

2,183+11.5%


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Statement of Income

Statement of Financial Position

Financial Summary (K-IFRS)

Cash Flow Highlights

Financial Summary by division


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2011 1H 2012 1H Change

Sales Revenue 38,325 42,105 9.9%

Gross Profit 9,063 10,047 10.9%

Margin (%) 23.6 23.9

SG&A 5,240 5,420 3.4%

Portion (%) 13.7 12.9

Other Operating Income 132 158 19.6%

Operating Profit 3,954 4,785 21.0%

Margin (%) 10.3 11.4

Recurring Profit 5,449 6,293 15.5%

Margin (%) 14.2 14.9

Net Profit 4,184 4,998 19.5%Margin (%) 10.9 11.9

Depreciation 776 824

Amortization 312 420

EBITDA 5,042 6,028

(KRW Billion)

Consolidated Statement of Income

Consolidated Statement of Income (K-IFRS), Business results of BHMC is accounted in equity income accounting Net Profit includes non-controlling interest


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2011 1H 2012 1H Change

Sales Revenue 38,325 42,105 9.9%

Automotive 32,898 36,323 10.4%

Finance 3,842 4,041 5.2%

Other 1,586 1,741 9.8%

Operating Profit 3,954 4,785 21.0%

Automotive 3,217 4,323 34.4%

Finance 794 637 19.9%

Other 80 88 9.4%

Consolidationadjustment

137 262

Consolidated Statement of Income (K-IFRS)

Financial Summary by Division

(KRW Billion)


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6

2011 2012 1H Change

Assets 109,480 116,695 7,215

Current Assets 48,926 53,725 4,799

Cash & Cash Equivalents* 15,415 18,543 3,129

Liabilities 69,152 71,793 2,641

Current Liabilities 33,164 33,639 476

Short & Long-Term Debt 43,339 44,684 1,345

Provision 6,647 7,006 359

Equity 40,328 44,902 4,574

Current Ratio (%) 147.5 159.7

Debt / Equity Ratio (%) 107.5 99.5

Net Debt 27,924 26,141 1,784

EBITDA / Interest Expense 20.3 x 26.6 x

Consolidated Statement of Financial Position

(KRW Billion)

Consolidated Statement of Financial Position (K-IFRS) Cash & Cash Equivalents : Cash & cash equivalents + Short-term financial instruments


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7 Consolidated Cash Flow Highlights (K-IFRS)Above figures includes consolidation adjustments by business division (Automotive / Finance / Others)

Consolidated Cash Flow Highlights

BeginningCash Balance

EndingCash Balance

(KRW Billion)

6,232

7,032

+ 1,243

+ 4,9983,986

1,455

Net Income

Depreciation /Amortization

Tangible /Intangible Asset

Others


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Sales Revenue Analysis

COGS and SG&A

Net Non-Operating Income

Revenue & Profit Analysis


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1,586 1,7413,842 4,041

32,89836,323

2011 1H 2012 1H

8

KRW appreciation against the EUREUR / KRW 1,550.0 1,481.3 (4.4% )

Sales Revenue Analysis

Positive Factors

Sales Revenue Positive / Negative Contributors

Negative Factors

(KRW Billion)

Consolidated sales revenue excludes sales revenue of BHMC Consolidated sales revenue by business division (Automotive / Finance / Others)

Improved global sales Unit sales : + 11.5% (1,958K 2,183K)

KRW depreciation against the USDUSD / KRW 1,099.6 1,141.6 (3.8% )

Automotive Finance Others

38,325

42,105 + 3,780

( 9.9% )


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9

SG&A andOther Operating Income / ExpenseCOGS

(% of Revenue) (% of Revenue, KRW billion)


F/Xtransactions

Other

WarrantyProvision

Saleswarranties

MarketingExpense

SG & A

Other income/expense (net)

Other

Salary & wage

COGS and SG&A

2011 1H 2012 1H

76.4% 76.1%

0.3%pt

2011 1H 2012 1H

132

5,240

158

5,420

5,1095,262

3.0%

2.7%

4.7%

0.3%

1.5%

0.1%

4.5%

0.4%

2.7%

3.6%

0.2%1.2%

0.3%

5.2%

0.04%


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10

Financial Income Financial Expense

Net Non-Operating Income2011 1H : 1,494.3 2012 1H : 1,508.3

Equity Earnings

(KRW Billion)

Net Non-Operating Income


2012 1H2011 1H

428470

347365

2012 1H2011 1H

1,413 1,404

2012 1H2011 1H


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Appendix

Overseas Plant Operations

Statement of Income (Quarterly)


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11

2011 1H 2012 1H Chg

Revenue 3,106 3,373 9%

2011 1H 2012 1H Chg

Revenue 5,933 5,881 1%

US Plant (HMMA) China Plant (BHMC)

Sales Volume Revenue Sales Volume Revenue

Above figures are standalone results base

(Unit : 1,000 vehicles / KRW Billion)

Overseas Plant : HMMA & BHMC

107 112

66 63

2011 1H 2012 1H

Sonata Elantra

175173

170144

4261

7966

72 102

2011 1H 2012 1H

Elantra Sonata

Tucson Others

363 373


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12

2011 1H 2012 1H Chg

Revenue 2,533 2,612 3%

2011 1H 2012 1H Chg

Revenue 694 743 7%



India Plant (HMI) Turkey Plant (HAOS)


Overseas Plant : HMI & HAOS

142 126

6756

62

94

81

2011 1H 2012 1H

i10 i20

Eon Others

325303

11

3

33

40

2011 1H 2012 1H

Accent Matrix i20

44 43


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13

2011 1H 2012 1H Chg

Revenue 1,918 2,933 53%

2011 1H 2012 1H Chg

Revenue 627 1,471 135%


Czech Plant (HMMC) Russia Plant (HMMR)



Overseas Plant : HMMC & HMMR

67 67

25 25

28

70

2011 1H 2012 1H

i30 ix20

Venga (Kia) ix35

162

120

4863

50

2011 1H 2012 1H

Solaris Rio (Kia)

113

48


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14

2011 2012 2012 2Q

vs.

2011 2Q1Q 2Q 1H 1Q 2Q 1H

Global Plant Sales 919 1,039 1,958 1,073 1,110 2,183 6.8%

Korea Plant 411 496 907 484 508 992 2.3%

Overseas Plant 508 543 1,051 589 602 1,191 10.9%

Sales Revenue 18,233 20,092 38,325 20,165 21,940 42,105 9.2%

Gross Profit 4,157 4,906 9,063 4,639 5,408 10,047 10.2%

Margin (%) 22.8 24.4 23.6 23.0 24.6 23.9

SG&A 2,434 2,806 5,240 2,548 2,872 5,420 2.3%

Portion (%) 13.4 14.0 13.7 12.6 13.1 12.9

Other Operating Income 105 27 132 192 34 158

Operating Profit 1,827 2,127 3,954 2,283 2,502 4,785 17.7%

Margin (%) 10.0 10.6 10.3 11.3 11.4 11.4

Recurring Profit 2,465 2,984 5,449 3,148 3,145 6,293 5.4%

Margin (%) 13.5 14.9 14.2 15.6 14.3 14.9

Net Profit 1,877 2,307 4,184 2,451 2,547 4,998 10.4%

Margin (%) 10.3 11.5 10.9 12.2 11.6 11.9

Consolidated Statement of Income (K-IFRS), Business results of BHMC is accounted in equity income accounting Net Profit includes non controlling interest

Statement of Income (Quarterly)


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Hyundai Motor Company.1H2012 Earnings Presentation