2013년 3분기 ir 자료 en
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2013년 3분기 ir 자료 en 2013년 3분기 ir 자료 en Presentation Transcript

  • Hyundai Capital is... Hyundai Capital Investor Presentation 3Q13
  • Disclaimer These presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS or the Company”), solely for the use at this presentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice. Certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “considering,” “depends,” “estimate,” “expect,” “intend,” “plan,” “planning,”“planned,” “project,”“trend,” and similar expressions. All forward-looking statements are the Company’s current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements. Certain industry and market data in this presentation was obtained from various trade associations, and the Company have not verified such data with independent sources. Accordingly, the Company make no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Company and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase shares in any offering of shares of the Company should be made solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection with any offering of shares of the Company, if any. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
  • Key Highlights 3Q13 1 • Strong Fundamentals - Good profitability: Operating income of KRW 391 billion and an ROA of 2.3% - Stable asset quality: 30+ day delinquency rate of 2.6% - Strong capital structure: Leverage of 6.5x and capital adequacy ratio of 15.8% • Committed & Capable Shareholder Support - HMC showed resilient performance with global sales up 7.5% (YoY) - GE Capital continues to provide committed financial and operations support • Solid Credit Profiles - Global Ratings: S&P (BBB+), Moody's (Baa1), Fitch (BBB+) - Niche Markets: RAM (AAA), JCR (A+) - Domestic Ratings: AA+ • New Growth Engine: Global Expansion - Performance starting in China and UK, Record-high performance in the USA - True captive financing arm covering from the domestic market to global markets
  • Resilient Economic Growth and Steady Demand for New Cars 2 Despite of slower GDP growth, unemployment rate has been stabilized Sales slightly downed due to the sluggish consumption but, HMG’s M/S trended up with superior brand power GDP Growth Rate & Unemployment Rate GDP Growth Rate 3.6% Unemployment Rate 3.7% 3.4% Domestic Auto Sales (‘000s) HMC KMC 80.1% 3.2% 79.9% HMC+KMC Market Share 81.5% 81.6% 80.5% 78.2% 3.2% 1,394 6.1% Others 1,465 1,475 321 297 485 493 1,411 2.0% 832 (HMG) 1,020 816 (HMG) 1,014 482 188 198 339 482 413 3.6% 261 351 279 477 3Q12 3Q13 2.4% 703 660 684 668 0.2% 2009 2010 Source: Bank of Korea 2011 2012 3Q13 2009 2010 2011 2012
  • Low Risk-focused Product Portfolio 3 Maintain auto asset to non-auto asset in the proportion of 80:20 ⇒ balance btw stability & Profitability Over 90% of the total receivables have underlying assets such as vehicles or real estate Receivables Breakdown by Product (KRW Bn) 9.6% 18,788 9.9% 16,480 10.9% 9.9% 7.4% 7.2% 20,286 19,806 8.8% 20,378 1.7% 7.4% 1.5% 8.1% 9.1% 9.7% 9.9% 7.9% 6.9% 7.2% 17.3% 18.8% 19.4% 57.2% 57.6% 54.2% 52.5% 2010 2011 2012 3Q13 8.8% 8.7% 8.4% 16.3% 8.7% 15.8% 58.1% 2009 New Car Financing AutoAuto-related Assets 81.1% Auto Lease 81.9% Used Car Financing 82.8% Personal Loan Mortgage 79.9% GECK Others 79.2% Products (New Car, Auto Lease, Used Car)
  • Good Profitability Underscores Strong Fundamentals 4 Even in 2013, operating income decreased due to slower new car sales & bigger bad debt expense Return on assets increased up to 2.3% with one-time effect such as the disposal of office building Income Statement (KRW Bn) Return on Equity & Return on Assets 3Q12 9M13 ROE YoY 2010 2011 2012 Operating Revenues 3,274 3,331 3,542 2,496 2,373 -4.9% (Excluding FX effect) 2,889 3,125 ROA 3,071 2,300 2,200 -4.4% 21.3% 2,644 2,672 2,466 20.3% 2,953 2,015 1,982 -1.6% (Excluding FX effect) 2,259 22.0% 2,483 1,819 1,810 -0.5% Operating expenses 145 354 377 261 311 Operating income 630 659 589 481 391 -18.7% Net Income 489 507 432 355 356 Bad debt expense 14.7% 15.3% 14.7% 2.4% 2.3% 9M12 9M13 19.1% 2.6% 2.8% 2.6% 2.2% 0.2% 2009 2010 2011 2012
  • Stable Asset Quality and Conservative Reserve Policy 5 30+ Delinquency rate started to decrease due to the beginning of the macro economy recovery Maintained conservative reserve policy which is always higher than regulatory requirement 30+ Day Delinquency Rate (%) Total 30+ delinquency rate Total Reserve VS Regulatory Requirement (KRW Bn) New Car 30+ delinquency rate Regulatory Requirement Reserve under Accounting Principles Supplemental Reserve Total Reserve/ Regulatory Requirement 153.3% Exceptional Period* 118.0% 2.7%** 2.5%** 117.1% K-GAAP K-IFRS 610 1.6% 1.1% 265 1.1% 0.8% 0.6% 442 288 2009 2010 779 665 381 1.0% 0.7% 109.1% 2.6%** 2.6%** 2.0% 1.8% 108.8% 2011 2012 2Q13 3Q13 * After global financial crisis, applied too tighten underwriting policy ** Included NPL asset acquired from a commercial bank in 4Q12 2009 401 474 2010 280 611 385 521 345 2011 2012 714 398 3Q13
  • Sound Capital Structure Maintained 6 Leverage was controlled below conservative internal ceiling of 8X while following leverage regulation of 10X Capital adequacy ratio has been well controlling above the regulatory guideline of 7% Leverage Trend Total asset Capital Adequacy Ratio (KRW Bn) Adjusted Capital Total Assets / Total Shareholders' Equity CAR 15.8% 15.7% 9.3X Leverage Regulation < 10X 13.7% 8.3X 7.4X 7.2X 14.5% 13.0% FSS Guide Line > 7.0% 6.5X 3,234 2,954 20,749 21,919 21,885 2,622 20,378 2,432 2,375 3Q13 2009 2010 15,854 2009 2010 2011 2012 2011 2012 3Q13
  • Diversified Funding by Type, Duration & Region 7 In order to reduce risk of wholesale funding, maintain long-term funding > 65% Furthermore, funding sources are diversified into global markets as well as niche markets Funding Portfolio by Product ABS, 13.3% Loans, 8.8% CP, 2.4% Funding Strategies in 2013 LongⅠ. More Weight on Long-term Funding • Balance : KRW 17, 194Bn Bonds, 75.6% • Long-term funding: 70.7% • Long-term funding: 70% from 65% • ALM Target: 140% • Overseas funding: 35.5% Ⅱ. Expanding Alternative Funding • Structure finance : Auto lease ABS • Retail Bond, Bond with option Funding Portfolio by Currency 65.5% KRW 19.6% USD CHF 5.9% AUD 3.5% MYR 2.9% JPY 2.2% CNY 0.5% Key Issuance since 2012 • 144/RegS: 5.5yrs, $500M • Dimsum: 1.5yrs, RMB500M • Samurai: 1.5yrs/2yrs, JPY20Bn/8Bn • ABS: $500M • Kangaroo: AU$ 250M • Samurai: 2yrs, JPY25Bn Ⅲ. Strengthening Overseas Funding Capability • Product & Regional diversification • Target # of accessible markets : 6 global markets
  • Strong Liquidity Position 8 Liquidity coverage was extended to 6M from 3M in 2011 and since that, well-achieving the target ALM policy : Funding duration > asset duration Liquidity Profile (Unit: KRW Bn) Cash Credit Line Cash Flow Profile (KRW Bn) Short-term Debt Coverage Ratio* Financial Receivables 10,510 69.2% 63.5% 66.3% 5,758 2,516 ~1Y 36.0% 39.1% 6M Coverage 2-3Y 3-4Y 274 4-5Y 3,340 4,627 4,445 3,424 2,106 2,511 2,480 Over 5Y 2,613 1,405 2,365 549 Liabilities (Debt) 3,808 3,580 1-2Y 771 2,363 1,338 ~1Y 1-2Y 2-3Y 3-4Y 4-5Y -908 -1,842 60 Over 5Y -1,131 Net Cash Flow 1,367 5,883 739 1,027 1,297 1,100 1,313 977 489 2009 2010 2011 2012 3Q13 * Short-term Debt Coverage Ratio = (Cash + Unused committed credit line)/ Short-term debt balance ~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y
  • Global Expansion to Support HMG’s Sales and to Find New Growth 9 Why Global Business? Current Overseas Operations Corporate with Direct Funding Office/Corporation without funding Ⅰ. New Growth Engine • Limited growth within the domestic auto financing market • HMG's solid performance UK JV Established : Dec 2011 Financial receivables : £ 640mm Capital : £ 25mm Hyundai Capital Russia Capital : € 290,000 Stake : HCE 100% Established : Sep.1989 China JV Financial receivables : USD 20.2 bn Capital : USD 1.2Bn Established : Jun 2012 Stake : HCS 29.99% Ⅱ. Request from HMG • Needs of captive finance companies to support global sales Hyundai Capital America Established : May 2011 Stake : HMA 85%, KMA 15% Financial receivables : RMB 3.2 bn Hyundai Capital Europe Established : May 2010 Capital : RMB 500 mm Stake : HCS 46% Capital : € 2.8mm Hyundai Capital India Stake : HCS 100% Advisory Branch Established : Nov 2012 Local (Financial) Institution and the form of JVs • Alliance with the local financial institutions to lessen entry risk Brazil Post Hyundai Capital Germany Established : Sept 2009 Capital : € 2mm Australia Post Representatives dispatched Representatives dispatched Stake : HCS 30.01% (Financial receivables, Capital: as of Sep. 2013)
  • Business Strategy & Global Vision 10 Business Strategy StepⅠ. Captive finance focusing LineStep Ⅱ. Diversifying Product Line-up • Operating Business, focusing on New Car • Diversifying product line-up including used-car Stablization Financing within the Captive Markets financing • Acquiring Market Knowledge • Diversifying sources of profit based on auto financing Next step Global Auto Sales Volume (As of year 2012, Unit : 00000) HMG Total HMG Drivers Total 1,470 1,450 1,403 204 Ⅰ. High PTR Ⅱ. Usage ratio of 294 141 14 (6.9%) 135 (9.1%) China 81 (5.8%) 39 (19.2%) 15 (4.0%) 36 (12.3%) W-Europe India Brazil captive financing arm covering most 203 126 (8.7%) UK Effect Becoming a true 364 USA Global Vision Russia 115 (81.5%) Korea financing of global markets and the domestic market
  • HCS' Strategy & Commitment 11 Strategy in 2013 Commitment to Investors • New Car/Auto lease : Shifting a paradigm into marketing driven market and holding above 80% Product market share • Used Car : Utilizing our market position for future growth under new regulation • Moderate asset growth targeting 80% for auto assets and 20% for non-auto assets non• Ideal-balance between profitability and Idealsolid asset quality • Non-Auto : Taking advantage of X-sell • Implementing effective collection strategy Risk • Focusing on improving collection rate of early delinquent assets • Maintaining our current conservative treasury policy Treasury - 6M liquidity coverage • Strengthening financial stability by putting longmore focus on long-term funding ( >70%) • Entering new markets and products to complete diversification strategy - ALM-based funding - Diversification of funding resources • Expanding global business while Global Business • Performing in global market as UK & China • Germany & Canada : Plans to establish a captive financing arm simultaneously stabilizing existing global operations
  • Hyundai Capital Company Overview Hyundai Capital Investor Presentation 3Q13
  • I. Who is Hyundai Capital?
  • No.1 Consumer Finance Company 12 • Leading auto financier in Korea with dominant market share • Nine-year-long partnership between two global leaders; Hyundai Motor and GE Capital - Jointly formed boards ensure active oversight - GE Capital appoints key executives in risk management & finance • Increasingly profitable since the establishment of the joint venture • Captive finance company for Hyundai Motor Group in Korea, and GE Capital’s only operating platform in Korea ’ • Excellent credit ratings based on strong fundamentals - Fitch: BBB+(S) / S&P: BBB+(S) / Moody’s: Baa1(S) / Domestic: AA+(S)
  • Committed Shareholder Financial & Operational Support 13 Relationship with Shareholders - Leading auto maker in Korea GE Capital’s Financial Support 2013 -GE Capital total investment as of 3Q13 (US$ 1.6bn) 2012 - GE Capital extends credit line (Total investment as of 2012: US$ 1.9bn) 2009 - GE Capital increases its back-up credit Line to US$ 1 bn 2007 - GE Capital provides US$ 871mm in direct funding 2006 - HCS is GE Capital’s sole consumer finance business in Korea with approximately 80% market share 56.5% - Stable & solid operational base - Extensive sales network - Powerful financing arm - Effective marketing tool - Most successful joint venture - Sole consumer finance window in Korea 43.3% - Advanced knowledge on risk management - Financial support - Active involvement in daily operations as well as management - GE Capital provides US$ 600mm back-up credit line 2005 - GE Capital increases its holdings to 43.3% 2004 - GE Capital acquires 38% equity interest in HCS
  • Strategy : Capitalize on Our Leading Position 14 • Maintain leadership in auto financing while operating in non-auto financing sector to diversify business portfolio • Use innovative marketing to attract customers and keep them satisfied • Expand internationally through providing financing services to HMC/KMC’s global customers ’ • Place top priority on stringent risk management
  • Committed to Transparent Corporate Governance 15 Board of Directors • Members : 4 from HMC, 3 from GECC GECC’s veto right Risk Control Committee Executive Finance Committee Compliance Review Board • Member : 5 from HMC, 5 from GECC • Member : 4 from HMC, 3 from GECC • Member : 9 from HMC, 7 from GECC • Frequency : Monthly • Frequency : Monthly • Frequency : Quarterly • Function • Function • Function -Determination of risk indicator levels and appropriate course of actions in respect thereof GE Presence -Approval of various operating expenses, Capex, business and funding plans -Formulation and execution of compliance strategy, schemes, and improvements • C-Suite executives: Vice President, Deputy CFO, Deputy CRO, Deputy CMO, Controller • Working level : GE employees also involved in day-to-day operations • Transfer of advanced knowledge in various functions through best practice sharing program
  • II. Macro Environment
  • Korea’s Macro Environment 16 GDP Growth Rate & Government Debt to GDP ratio GDP Growth Rate Key Interest Rate & 3Y KTB Rate Key rate(%) Government Debt to GDP 5.32 37.9% 33.8% 33.4% 3.89 3.74 34.0% 3.00 3Y KTB(%) 2.50 2.00 3.68 2.82 3.25 2.50 2008 6.1% 2009 2010 2011 3Q13 * As of May 23th 2013, HCS’ bond rate with 3 year maturity is 3.32% Consumer Confidence Index & Unemployment Rate 3.6% 104 Korea Australia Canada 98 Japan 96 0.2% 2009 Germany 100 CCI 2.0% 102 2.4% U.K U.S.A France 94 2010 Source: Bank of Korea 2011 2012 3Q13 0% 2% 4% 6% 8% 10% Unemployment rate Source: OECD * CCI: Consumer confidence index / Unemployment rate (as of FY2012) 12%
  • Domestic Auto Market 17 Domestic Auto Sales (‘000s) HMC KMC Others HMC+KMC Market Share 72.0% 73.1% 1,143 1,014 188 198 339 482 477 3Q12 3Q13 73.6% 1,394 1,165 78.2% 81.5% 80.5% 351 76.9% 79.9% 81.6% 1,020 80.1% 1,219 322 1,154 278 1,474 320 296 1,411 261 267 320 313 252 271 571 581 625 571 2005 2006 2007 2008 413 272 1,465 485 493 482 316 703 2009 660 2010 684 2011 668 2012 Source: KAMA
  • Korean Consumer Finance Market’s Unique Features 18 • Conservative lending environment - Average auto loan life of 1.5Y (notional life of 36M + amortization structure) - Average down-payment for a car is approximately 30% - Low usage of revolving credit card products • Favorable market environment for captive finance companies - New car dealerships exclusively managed by automakers - Stable second-hand car market: high residual value of used cars • Strong credit infrastructure - Government’s strict regulation on LTV & DTI Ratios ’ · Average LTV ratio for mortgages is less than 50% (Commercial Banks) -Well developed credit bureau system
  • Hyundai Capital's Position in the Industry 19 Dominant Position in Industry** Incomparably Profitable and Sound • Industry Assets • Profitability: ROE (Net Income/Equity) HCS Total Industry Asset Size : KRW 45,865 bn HCS 47.5% Others 52.5% 21.3% Others 22.0% 20.3% 14.7% 5.8% Total Industry Operating Income Size: KRW 727 bn 0 0 HCS 50.8% 4.6% 4.6% 2009 • Industry Operating Income 5.5% 2010 2011 2012 3.2% 3.2% 2.8% 2.5% 1.8% 2009 * Source: Financial Statistics Information System, at end of June 2013 ** Installment Finance Industry 6.5% 2Q13 • Asset Quality: 30+Day Delinquency Rate 3.2% Others 49.2% 15.4% 3.5% 2.7% 2.0% 1.6% 2010 2011 * Source: Financial Statistics Information System 2012 2Q13
  • III. Asset Portfolio & Financial Performance
  • Historical Asset Portfolio Breakdown 20 Receivables Breakdown by Product (KRW Bn) New Car Financing Auto Lease Used Car Financing Personal Loan Mortgage 15,130 13,472 120,49 4.0% 7.4% 6.9% 8.1% 9.4% 12.6% 14.4% 7.7% 7.8% 16,030 10.9% 7.8% 16,480 8.8% 8.7% 9.9% 7.4% 7.2% Others 20,286 20,378 1.7% 7.4% 1.5% 8.1% 9.1% 9.7% 9.9% 7.9% 6.9% 7.2% 17.3% 18.8% 19,806 18,788 GECK 8.4% 16.3% 19.4% 8.0% 8.0% 14.3% 14.8% 58.1% 57.2% 57.6% 56.8% 54.2% 52.5% 3Q13 15.8% 68.0% 63.3% 59.9% 2005 Auto related 8.7% 2006 2007 2008 2009 2010 2011 2012 88.7% 87.1% 82.3% 79.5% 81.1% 81.9% 82.8% 79.9% 79.2%
  • Best in Class Risk Management 21 Strong governance for risk monitoring • Risk Control Committee (RCC) – Decision making for most supreme risk – Review portfolio risk performance Examples of pre-emptive risk management Category Strategy • Systematic New Product Risk Analysis - Two-stage RCC approval process - Pre-launch new product introduction and credit review point assessment New car • Risk Appetite Management – Establish guidelines for portfolio / asset quality – Determine risk management strategy per product Used car Actions taken Details • Limited funding during global financial crisis Asset slowdown (Y2008) • Reduce non-core businesses to focus on new car financing Risk-based pricing • Lower pricing for customers with better credit profile • Tightened underwriting policy Policy tightening preemptively (Y2010) • Sacrificed market share due to focus on asset quality • Portfolio Quality Review – Monitoring of main risk indices – Follow-up on effects of credit policy changes P-loan Cross-sell Mortgage Residual value insurance • Stress Test & Contingency Planning – Scenario analysis based on economic forecasting – Prepare action plans per contingency stage • More weight on cross-selling channels to new car customers • Reflecting volatile housing market conditions • Only company insured in Korea
  • Historical Asset Quality 22 30+ Day Delinquency Rate (%) Total 30+ delinquency rate New Car 30+ delinquency rate 3.5% 2.3% 1.7% 1.5% 1.2% 1.8% 1.6% 2006 2.6% 1.0% 1.1% 1.1% 2012 1H13 3Q13 2.0% 1.6% 1.3% 1.0% 0.7% 2005 2.7% 2.5% 2007 2008 0.6% 2009 2010 0.8% 2011
  • Solid Profit Underscores Strong Fundamentals 23 Income Statement (KRW Bn) K-IFRS K-GAAP 2008 2009 2010 2011 2012 9M12 9M13 YoY Operating Revenues 4,330 2,989 3,274 3,331 3,542 2,496 2,373 -4.9% (excl. FX effect) 2,384 2,485 2,889 3,126 3,071 2,300 2,200 -4.4% Operating Expenses 3,824 2,448 2,642 2,672 2,953 2,015 1,982 -1.6% (excl. FX effect) 1,879 1,944 2,259 2,466 2,483 1,818 1,810 -0.5% Interest expenses 674 679 890 956 895 682 599 -12.1% Lease expenses 587 550 557 505 517 384 377 -1.7% SG&A Expenses 498 496 586 603 637 442 481 8.7% 600 717 778 1,014 966 742 702 -5.4% 95 176 145 354 377 261 311 19.1% Operating Income 505 541 630 659 589 481 391 -18.7% Income before Tax 518 538 639 663 584 480 477 -0.7% Net Income 377 411 489 507 432 356 356 0.2% ROA 2.4% 2.6% 2.8% 2.6% 2.2% 2.4% 2.3% ROE 25.1% 21.3% 22.0% 20.3% 14.7% 15.3% 14.7% PPOP Bad Debt expenses
  • Historical Reserve & FSS Requirement Coverage Ratio 24 Total Reserve VS Regulatory Requirement (KRW Bn) Regulatory Requirement 195.4% 164.0% Reserve under Accounting Principles 158.5% 151.6% Total Reserve/ Regulatory Requirement Supplemental Reserve 153.3% 118.0% 117.1% 108.8% 109.1% 779 665 610 381 280 265 714 611 423 469 382 364 240 2005 222 2006 442 241 2007 279 2008 K-GAAP 401 474 288 2009 2010 521 385 345 2011 2012 K-IFRS 398 3Q13
  • Historical Leverage Trend 25 Leverage Trend Total Assets / Total Shareholders' Equity 16.0x 12.6x 9.7x 9.7x 2005 2006 8.3x 7.4x 10.3x 2004 9.3x 2007 2008 2009 7.2x 2010 2011 2012 6.5x 3Q13
  • Historical Capital Structure 26 Capital Adequacy Ratio (KRW Bn) Adjusted Capital CAR 15.8% 15.7% 12.7% 13.7% 12.8% 11.7% 11.3% 14.5% 13.0% 11.5% 2,954 1,825 1,540 1,033 2005 2,375 2009 2010 2,622 1,591 1,337 2004 2,432 3,234 2006 2007 2008 2011 2012 3Q13
  • IV. Funding & Liquidity
  • Diversification of Funding Portfolio Over Time 27 Funding Principles • Maintain ABS under 20%, CP under 10% • Diversify funding portfolio in terms of currency, region and product • Maintain the average liability to asset maturity ratio above 100% Managed Borrowings (KRW Bn) Bond-domestic ABS-overseas Total 13,213 17.7% 6.9% 31.0% 12,568 17.2% 13.3% 9.1% 14.2% 36.9% 14.1% 34.0% ABS-domestic CP 16,560 14,335 12,597 11.5% 2.9% Bond-overseas Bank loans 9.9% 12.9% 7.1% 18.3% 13,412 14,378 10.6% 6.8% 8.2% 16.9% 10.3% 8.3% 10.4% 11.9% 8.7% 5.7% 8.7% 8.5% 7.4% 9.8% 17,330 17,338 17,194 4.3% 8.7% 3.4% 9.4% 2.4% 8.8% 9.1% 9.1% 7.1% 3.9% 6.2% 27.5% 28.1% 46.7% 47.5% 5.9% 6.7% 10.7% 25.7% 29.1% 26.5% 29.3% 31.0% 38.4% 26.3% 30.7% 39.1% 41.9% 42.9% 2004 % of LT Funding 2005 2006 2007 2008 2009 2010 2011 2012 3Q13 39.1% 47.6% 57.5% 57.9% 59.0% 59.3% 63.5% 65.4% 70.1% 70.7%
  • Funding by Currency & Outstanding Global Bonds 28 Funding Portfolio by Currency Outstanding Global Bonds* Issue Date Maturity Amount Nov.’09 5.5 years USD 500m Jan.’11 ’ 5.5 years USD 700m Mar.’12 5.5 years USD 500m Nov. ‘12 1.5 years JPY 20,000m Nov. ‘12 2 years JPY 8,000m Oct. ‘13 2 years JPY 25,000m Jul. ’10 5 years CHF 150m Oct. ’10 4 years CHF 200m May ’11 2.5 years CHF 150m May’11 5 years CHF 150m Feb.’12 5 years CHF 200m May ’11 2.5 years MYR 650m Feb.’12 5 years MYR 320m May ’12 3 years MYR 370m Australian Dollar Jun. ’12 3 years AUD 175m through swap transactions entered into at the Kangaroo May ’13 4 years AUD 250m time of bond issuance. Dim Sum Sep. ‘12 1.5 years RMB 500m CNY AUD 3.5% 0.7% 0.7% JPY 2.2% 144A/Reg S MYR 2.9% CHF 5.9% KRW 65.5% Samurai USD 19.6% Swiss Franc • Funding Balance: KRW 17,194 Bn Malaysian Ringgit • Foreign Exchange Risk: -100% of foreign currency exposure is hedged (*As of Sep, 2013)
  • Historical Liquidity Position 29 Liquidity Profile (Unit: KRW Bn) Cash Credit Line Short-term Debt Coverage Ratio* 63.5% 25.0% 30.4% 36.0% 39.1% 3,808 69.2% 66.3% 3,580 3,340 23.7% 16.0% 4.6% 2,365 2,106 2,511 2,480 1,789 1,332 370 652 1,338 1,336 1057 1,082 931 1,367 938 370 405 401 398 2004 2005 2006 2007 2,363 707 739 2008 2009 * Short-term Debt Coverage Ratio = (Cash + Unused committed credit line)/ Short-term debt balance 1,027 2010 1,297 1,100 977 2011 2012 3Q13
  • V. Others
  • Credit Ratings & Rationale 30 HCS’ Global Credit Ratings* Credit Rating Rationale AAA A+(S) Baa1(S) BBB+(S) • Strong Standalone Profile – Sustainable track record of strong profit performance and robust credit fundamentals BBB+(S) – Low risk-focused product portfolio and prudent risk management – Adequate liquidity and sound capitalization Moody's S&P Fitch JCR RAM – Strong market position as HMC's key captive financing arm HCS & Competitors’ Domestic Credit Ratings AA+ • Capable & Willing Shareholder Support AAA+ A+ A Hyundai Capital W Financial A Capital (*As of Sep, 2013) W Capital N Capital - Solid backup line provided by GE Capital through its capital and managerial support - Strong likelihood of HMC’s assistance in contingency given its strong relationship with the parent evident in its capital contribution, board members and business base.
  • Performance of Hyundai Motor Company 31 Strength Performance Total Sales (‘000s) Product Mix 61% 3,612 15% Mid & Large Compact 18% RV Commercial 2010 Korea US 2011 3,209 3,500 2012 3Q12 3Q13 10.4% 10.0% 10.7% 2011 2012 3Q12 3Q13 7,167 6,864 3Q12 3Q13 OP Margin 39.3% 15.9% 4,392 5% Market Diversification 13.9% 4,059 8.8% Others 2010 9.6% 21.8% 9.1% Europe China Brand Value • Increase in residual value of vehicles due to strengthened brand awareness • Boost in luxury car sales has increased the average selling price Net Profit (KRW Bn) 8,105 9,056 6,001 2010 2011 2012
  • Investor Relations Contacts Jungsang Kim, Head of Investor Relations Phone +82 2 2167 7034 jungsang.kim@hyundaicard.com Suh ye Choi, Manager of Investor Relations Phone +82 2 2167 7541 sychoi@hyundaicard.com Jay Moon, Assistant Manager of Investor Relations Phone +82 2 2167 5312 jaymoon@hyundaicapital.com Justin Lee, Manager of Investor Relations Phone +82 2 2167 8082 justin.j.lee@hyundaicard.com Hyunyoung Jang, Assistant Manager of Investor Relations Phone +82 2 2167 6955 hyunyoung.jang@hyundaicard.com http://ir.hyundaicapital.com/