1 h13 hci_eng

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1 h13 hci_eng

  1. 1. Hyundai Commercial is… Investor Presentation Hyundai Commercial
  2. 2. 1 Solid Profit Underscores Strong Fundamentals Analysis and ForecastingIncome Statement (KRW Bn) Category 2011 2012 1H12 1H13 YoY Operating Revenue 324 349 168 174 3.3% Operating Expense 238 267 122 136 11.3% Interest Expense 148 164 81 79 -1.9% SG&A Expense 60 66 30 33 10.7% Bad Debt Expense 21 25 9 13 48.4% Other-Operating Expense 9 12 3 11 275.1% Operating Income 86 83 46 38 -18.0% Non-Operating Revenue 13 -17 -11 -8 -30.4% EBT 100 66 35 30 -14.1% Category Current State Outlook Revenue • Profit growth slowed down due to low-interest policy • Non-Auto Profit increased - Lease Profit : +44.2% • New model release will lead revenue growth • Portfolio Mix Change - Non-Auto portion continues to grow Expense • SG&A expense increased due to hiring experts in corporate financing • Bad debt expenses increased with asset growth • Other operating expenses increased due to government regulation • Asset quality will remain solid • Improved expertise will raise productivity
  3. 3. 2,3332,3332,3332,333 2,8822,8822,8822,882 3,2543,2543,2543,254 3,5093,5093,5093,509 2010 2011 2012 1H13 New Car Used Car Machine Tool Corporate Finance PF 2 Disciplined Asset Diversification 8.8% 85.4%85.4%85.4%85.4% 82.1%82.1%82.1%82.1% 80.7%80.7%80.7%80.7% 78.9%78.9%78.9%78.9% Asset Portfolio (KRW Bn) Highlight Strategic Direction • Growth in Non-Auto part - Corporate Finance and Machine Tool portions constantly grow • Stable Asset Growth with dominant Market Share - New Car MS : 80% - Used Car MS : 55% • Enhance specialty in Non-Auto part - Introduce a new HR system for experts - Specialize sales branches 55.7% 26.4% 4.3% 3.7% 9.9% 55.4% 30.0% 3.7% 3.5% 7.4% 53.2% 27.6% 4.2% 3.4% 11.7% 51.7% 27.2% 4.9% 3.2% 13.0%
  4. 4. 1.0% 0.8% 1.1% 0.7% 104.6% 101.5% 141.7% 137.1% 2010 2011 2012 1H13 3 Excellent Asset Quality & Conservative Reserve Policy Asset Quality Highlight Strategic Direction • Delinquency rate decreased despite the recession - Stringent Risk management policy • Conservative reserve policy - Total reserve well exceeded regulatory requirement • Closely monitor risky factors as portfolio mix changes • Maintain conservative reserve policy 30+ Delinquency Rate Total Reserve/Regulatory Requirement
  5. 5. 4 Solid Capital Base Leverage Trend & Capital Adequacy Ratio Highlight 14.5x 9.9x 11.5x 12.1x 10.1% 14.6% 11.7% 10.5% 2010 2011 2012 1H13 Capital Adequacy RatioLeverage Trend • Leverage increased and Capital adequacy ratio decreased - Natural change coming from asset growth Strategic Direction • Seek diverse leverage management policies such as True-Sale ABS issuance • Maintain Capital Adequacy Ratio above 10%
  6. 6. 5 Well Diversified Funding Portfolio Funding Portfolio (KRW Bn) Funding Plan in 2013 (KRW Bn) Sep Oct Nov Dec Bond 110 - 40 100 Funding Strategy • Long-term borrowings target > 60% • ALM index target > 130% • Cash held > 250 KRW Bn 2,4772,4772,4772,477 3,0273,0273,0273,027 3,4643,4643,4643,464 3,6893,6893,6893,689 2010 2011 2012 1H13 Bond Loan CP ABS 8.4% 2.7% 14.4% 74.5% 8.9% 6.1% 14.8% 70.2% 11.9% 4.6% 19.4% 64.1% 8.1% 13.0% 18.2% 60.7% LongLongLongLong----TermTermTermTerm BorrowingsBorrowingsBorrowingsBorrowings 61.5%61.5%61.5%61.5% 63.7%63.7%63.7%63.7% 61.8%61.8%61.8%61.8% 61.5%61.5%61.5%61.5%
  7. 7. 6 Strong Liquidity Position Liquidity Profile (Unit: KRW Bn) C/LCash Short-term Debt Coverage Ratio* * Short-term Debt Coverage Ratio = (Cash + Unused committed credit line)/ Short-term debt balance 2010 2011 2012 Short-term Debt 26.4% 41.0% 46.2% 47.8% 9,467 11,006 13,168 14,211 1,500 1,750 3,250 4,0501,000 2,760 2,828 2,738 2,500 4,510 6,078 6,788 1H13 Highlight • Solid short-term coverage - 3M Liquidity coverage - 1Y Current Ratio : 127% Strategic Direction • Strictly manage liquidity profile - Short-term funding < 40% - Liquidity coverage target > 3M - Flexibly reflect financial market monitoring results on liquidity strategy 3M Coverage
  8. 8. [Appendix] Fact Sheet - HCI (Unit : KRW Bn) 2008 2009 2010 2011 2012 1H13 Domestic Sales of Commercial Vehicles Sum(unit) 20,152 19,795 21,479 18,842 15,620 8,389 HMC/KMC M/S 54.0% 60.1% 64.2% 65.8% 62.3% 66.6% Asset Portfolio Total 1,050 1,439 2,333 2,882 3,254 3,509 Auto Sector 77.8% 86.4% 85.4% 82.1% 80.7% 78.9% Others 22.2% 13.6% 14.6% 17.9% 19.3% 21.1% Asset Quality Substandard & Below 1.2% 0.7% 0.9% 1.2% 1.5% 1.0% NPL 1.2% 0.6% 0.6% 1.0% 1.0% 1.0% 30+ Delinquency 2.1% 0.9% 1.0% 0.8% 1.1% 0.7% NPL Coverage ratio 140.8% 224.7% 172.5% 84.1% 114.8% 129.4% Profitability Operating Income 14.1 27.6 57.5 86.4 82.8 37.6 Asset & Capital Adequacy Ratio 7.8% 9.3% 10.1% 14.6% 11.7% 10.5% Leverage Borrowing Leverage 15.3X 15.0X 14.5X 9.9X 11.5X 12.1X Funding Portfolio Bond / Loan 91.1% 80.9% 78.9% 83.5% 85.0% 88.9% CP 8.9% 19.1% 13.0% 4.6% 6.1% 2.7% ABS - - 8.1% 11.9% 8.9% 8.4% Total 998 1,481 2,477 3,026 3,464 3, 689 CP Coverage 124.1% 34.2% 77.4% 322.1% 289.4% 673.0% Debt Maturity Debt Maturity - 1.37Y 1.69Y 1.79Y 1.66Y 1.70Y Maturity 2013 2014 2015 2016 2017 2018~ Volume 676 1,305 774 601 120 213

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