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Hyundai Motor Company 2012 1st Half Business Results

July 26, 2012

Cautionary Statement with Respect to Forward-Looking Statements


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 reductions
in 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.

Table of Contents
Sales Summary

Financial Summary Revenue & Profit Analysis


Appendix

Sales Summary

Retail Sales Wholesale

Sales Summary : Retail Sales


2011 1H 2012 1H
(Unit : 1,000 vehicles)

-4.6%
+4.4% +15.4%
344 328 323 357 350 365

+10.5%

202

233

Korea

E U

China

US

+8.1%
+12.7%

755

851

1,974 2011

2,134 2012

Others

Global Retail Sales

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

Sales Results by Key Region


(Unit : 1,000 vehicles)

Korea
46.6%
-4.6%

US
47.2%
5.1%
+10.5%

EU
4.9% 2.4%
+15.4%

3.0%

344
92 38

328
84 45

323
63

357
62

202
4 70

233
3 78

260
214 199

295
128 152

2011 1H

2012 1H

2011 1H

2012 1H

2011 1H

2012 1H

PC

RV

CV

M/S

PC

RV

M/S

PC

RV

CV

M/S

Despite of market demand


Strong sales of Santa Fe

decrease (5.9%) in 12 1H, M/S has increased

Maintained strong sales trend of


key models (YF 117k / MD 98k)

Despite of weak market demand

(yoy 7.6%) in 12 1H, sales of i40 and ix 35 increased

Lowest level of incentive


spending (12 1H Avg. : $875 / units)

Robust sales growth in countries


covered by direct sales subsidiaries (Germany yoy 27% / France yoy 41%)

(25k,103.5%), due to new model

launch
Source : Company data / Automotive News / ACEA

Sales Summary : Wholesale


Sales Volume by Plant
(Unit : 1,000 vehicles)

Sales Mix by Segment

+11.5%

2,183
Korea 992 China India US 373 Czech Turkey 325 Russia 43 113 2012 1H

8% 17%

6% 17% CV

1,958

907

18%

18%

RV Mid-Large PC Small PC

363 303 173 120 2011 1H 44 48 175 162

57%

59%

2011 1H

2012 1H

Sales volume by plant (Wholesale basis)

Financial Summary (K-IFRS)

Statement of Income Financial Summary by division Statement of Financial Position Cash Flow Highlights

Consolidated Statement of Income


(KRW Billion)

2011 1H
Sales Revenue Gross Profit
Margin (%)

2012 1H 42,105 10,047


23.9

Change
9.9% 10.9% 3.4% 19.6% 21.0% 15.5% 19.5%

38,325 9,063
23.6

SG&A
Portion (%)

5,240
13.7

5,420
12.9

Other Operating Income Operating Profit


Margin (%)

132 3,954
10.3

158 4,785
11.4

Recurring Profit
Margin (%)

5,449
14.2

6,293
14.9

Net Profit
Margin (%)

4,184
10.9

4,998
11.9

Depreciation Amortization EBITDA

776 312 5,042

824 420 6,028

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

Financial Summary by Division


(KRW Billion)

2011 1H
Sales Revenue
Automotive

2012 1H 42,105
36,323

Change
9.9% 10.4% 5.2% 9.8% 21.0%

38,325
32,898

Finance
Other

3,842
1,586

4,041
1,741

Operating Profit
Automotive
Finance Other
Consolidation adjustment

3,954
3,217
794 80 137

4,785
4,323
637 88 262

34.4%

19.9%
9.4%

Consolidated Statement of Income (K-IFRS)

Consolidated Statement of Financial Position


(KRW Billion)

2011
Assets
Current Assets Cash & Cash Equivalents*

2012 1H
116,695 53,725 18,543

Change
7,215 4,799 3,129

109,480 48,926 15,415

Liabilities
Current Liabilities Short & Long-Term Debt Provision

69,152
33,164 43,339

71,793
33,639 44,684

2,641
476 1,345

6,647
40,328
147.5 107.5

7,006
44,902
159.7 99.5

359
4,574

Equity
Current Ratio (%) Debt / Equity Ratio (%) Net Debt EBITDA / Interest Expense

27,924

26,141

1,784

20.3 x

26.6 x

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

Consolidated Cash Flow Highlights


(KRW Billion)

+ 1,243 + 4,998
Depreciation / Amortization

1,455 3,986
Tangible / Intangible Asset

7,032 6,232
Net Income Others

Beginning Cash Balance


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

Ending Cash Balance

Revenue & Profit Analysis

Sales Revenue Analysis


COGS and SG&A Net Non-Operating Income

Sales Revenue Analysis


Sales Revenue
(KRW Billion)

Positive / Negative Contributors

Positive Factors

42,105 + 3,780 38,325


( 9.9% )

Improved global sales Unit sales : + 11.5% (1,958K 2,183K) KRW depreciation against the USD USD / KRW 1,099.6 1,141.6 (3.8% )

36,323 32,898

Negative Factors
3,842 1,586 4,041 1,741

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

2011 1H
Automotive Finance

2012 1H
Others

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

COGS and SG&A


COGS
(% of Revenue)

SG&A and Other Operating Income / Expense


(% of Revenue, KRW billion)

SG & A
3.0%

0.3%pt

Salary & wage Marketing Expense Sales warranties Warranty Provision Other Other income/ expense (net) F/X transactions Other

5,109
2.7%

5,262
2.7%

76.4%

76.1%

3.6% 4.7% 0.2% 1.2%

5,240

5,420

0.3% 1.5%

5.2% 4.5% 0.04% 0.3%

132
2011 1H 2012 1H

0.4% 0.1%

158

2011 1H

2012 1H

Consolidated Statement of Income (K-IFRS)

Net Non-Operating Income


(KRW Billion)

Financial Income

Financial Expense

Equity Earnings

1,413

1,404

470 428 347 365

2011 1H

2012 1H

2011 1H

2012 1H

2011 1H

2012 1H

2011 1H : 1,494.3

Net Non-Operating Income

2012 1H : 1,508.3

Consolidated Statement of Income (K-IFRS)

10

Appendix

Overseas Plant Operations Statement of Income (Quarterly)

Overseas Plant : HMMA & BHMC


(Unit : 1,000 vehicles / KRW Billion)

US Plant (HMMA)
Sales Volume Revenue

China Plant (BHMC)


Sales Volume
Elantra Tucson Sonata Others

Revenue

Sonata

Elantra

2011 1H 2012 1H

Chg

173

175
Revenue

363 3,106 3,373


9%

373
Revenue

2011 1H 2012 1H

Chg

5,933

5,881 1%

72
66 63

102

79 42
107 112

66 61

170

144

2011 1H

2012 1H

2011 1H

2012 1H

Above figures are standalone results base

11

Overseas Plant : HMI & HAOS


(Unit : 1,000 vehicles / KRW Billion)

India Plant (HMI)


Sales Volume
i10 Eon i20 Others

Turkey Plant (HAOS)


Sales Volume
Accent Matrix i20

Revenue

Revenue

325 303
81 94 62 67 56
Revenue

2011 1H 2012 1H

Chg

2011 1H 2012 1H

Chg

2,533

2,612

3%

44

43

Revenue

694

743

7%

33 40

142

126

11 3
2011 1H 2012 1H

2011 1H

2012 1H

Above figures are standalone results base

12

Overseas Plant : HMMC & HMMR


(Unit : 1,000 vehicles / KRW Billion)

Czech Plant (HMMC)


Sales Volume
i30 Venga (Kia) ix20 ix35

Russia Plant (HMMR)


Sales Volume Revenue

Revenue

Solaris

Rio (Kia)

2011 1H 2012 1H

Chg

2011 1H 2012 1H

Chg

162
Revenue

1,918

2,933 53%

113

Revenue

627

1,471 135%

120
28 25

70 50

25

48
63 48

67

67

2011 1H

2012 1H

2011 1H

2012 1H

Above figures are standalone results base

13

Statement of Income (Quarterly)


(Unit : 1,000 vehicles / KRW Billion)

2011 1Q
Global Plant Sales Korea Plant 919 411

2012 2Q
1,039 496

2012 2Q vs.

1H
1,958 907

1Q
1,073 484

2Q
1,110 508

1H
2,183 992

2011 2Q 6.8% 2.3%

Overseas Plant
Sales Revenue Gross Profit
Margin (%)

508
18,233 4,157 22.8 2,434 13.4 105 1,827 10.0

543
20,092 4,906 24.4 2,806 14.0 27 2,127 10.6

1,051
38,325 9,063 23.6 5,240 13.7 132 3,954 10.3

589
20,165 4,639 23.0 2,548 12.6 192 2,283 11.3

602
21,940 5,408 24.6 2,872 13.1 34 2,502 11.4

1,191
42,105 10,047 23.9 5,420 12.9 158 4,785 11.4

10.9%
9.2% 10.2%

SG&A
Portion (%) Other Operating Income

2.3%

Operating Profit
Margin (%)

17.7%

Recurring Profit
Margin (%)

2,465
13.5 1,877 10.3

2,984
14.9 2,307 11.5

5,449
14.2 4,184 10.9

3,148
15.6 2,451 12.2

3,145
14.3 2,547 11.6

6,293
14.9 4,998 11.9

5.4%

Net Profit
Margin (%)

10.4%

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

14

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