Hyundai Capitalis...Hyundai Capital Investor Presentation 3Q2012
DisclaimerThese presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS or the Company”), solel...
Key Highlights 3Q2012                                                                                    1 • Strong Fundam...
Resilient Economic Growth and Steady Demand for New Cars                                                                  ...
Low Risk-focused Product Portfolio                                                                                        ...
Good Profitability Underscores Strong Fundamentals                                                                        ...
Excellent Asset Quality and Conservative Reserve Policy                                                                   ...
Sound Capital Structure Maintained                                                                                        ...
Diversified Funding by Type, Duration & Region                                                                            ...
Strengthened Liquidity Position                                                                                           ...
Hyundai CapitalCompany OverviewHyundai Capital Investor Presentation 3Q 2012
I. Who is Hyundai Capital?
No.1 Consumer Finance Company                                                                          9 • Leading auto fi...
Committed Shareholder Financial & Operational Support                                                                     ...
Strategy : Capitalize on Our Leading Position                                                                      11   • ...
Committed to Transparent Corporate Governance                                                                             ...
II. Macro Environment
Korea’s Macro Environment                                                                                                 ...
Domestic Auto Market                                                                                                    14...
Korean Consumer Finance Market’s Unique Features                                                                          ...
Hyundai Capitals Position in the Industry                                                                                 ...
III. Asset Portfolio &    Financial Performance
Historical Asset Portfolio Breakdown                                                                                      ...
Best in Class Risk Management                                                                                             ...
Historical Asset Quality                                                                                                  ...
Solid Profit Underscores Strong Fundamentals                                                                              ...
Historical Reserve & FSS Requirement Coverage Ratio                                                                       ...
Historical Leverage Trend                                                                                                 ...
Historical Capital Structure                                                                                  23Capital Ad...
IV. Funding & Liquidity
Diversification of Funding Portfolio Over Time                                                                            ...
Funding by Currency & Outstanding Global Bonds                                                                            ...
Historical Liquidity Position                                                                                             ...
V. Others
Credit Ratings & Rationale                                                                                                ...
Performance of Hyundai Motor Company                                                                                      ...
Global Expansion                                                                                                          ...
Investor Relations ContactsJungsang Kim, Head of Investor Relations      Minchul Seo, Deputy General Manager of Investor R...
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Hcs 영문

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Hcs 영문 3Q

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  1. 1. Hyundai Capitalis...Hyundai Capital Investor Presentation 3Q2012
  2. 2. DisclaimerThese presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS or the Company”), solely for the use at this presentation andhave not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, theaccuracy, 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 thispresentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice andits accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any suchinformation 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 canbe 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 futureevents and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-lookingstatements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-lookingstatements.Certain industry and market data in this presentation was obtained from various trade associations, and the Company have not verified such data withindependent sources. Accordingly, the Company make no representations as to the accuracy or completeness of that data, and such data involves risksand 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 anypart of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract orcommitment whatsoever. Any decision to purchase shares in any offering of shares of the Company should be made solely on the basis of theinformation contained in the offering document which may be published or distributed in due course in connection with any offering of shares of theCompany, 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 wholeor in part, for any purpose.
  3. 3. Key Highlights 3Q2012 1 • Strong Fundamentals - Good profitability: Operating income of KRW 481 billion and an ROA of 2.4% - Excellent asset quality: 30+ day delinquency rate of 2.3% - Sound capital structure: Leverage of 5.6x and capital adequacy ratio of 14.9% • Committed & Capable Shareholder Support - HMC showed resilient performance with global sales up 6% (YoY) - GE Capital continues to provide committed financial and operations support • Continuous Credit Rating Improvement - JCR : upgraded rating to A+ - Moodys: upgraded rating to Baa1 - S&P: BBB+, Moodys: Baa1, Fitch: BBB+, JCR: A+, RAM: AAA
  4. 4. Resilient Economic Growth and Steady Demand for New Cars 2GDP Growth Rate & Unemployment Rate Domestic Auto Sales (‘000s) GDP Growth Rate Unemployment Rate HMC KMC Others HMC+KMC Market Share 81.6% 3.6% 3.5% 80.1% 79.9% 79.5% 3.2% 78.2% 3.0% 2.9% 76.9% 1,465 1,474 1,394 6.1% 321 297 279 1,154 1,106 1,020 267 227 413 485 493 188 3.6% 316 367 351 2.2% 1.6% 703 660 684 571 512 482 0.2% 2008 2009 2010 2011 3Q12 2008 2009 2010 2011 9M11 9M12Source: Bank of Korea Source: KAMA
  5. 5. Low Risk-focused Product Portfolio 3 Receivables Breakdown by Product (KRW Bn) 9.6% 7.4% 19,806 19,952 18,788 8.8% 1.5% 7.4% 7.4% 8.8% 16,480 9.1% 9.6% 16,030 9.9% 10.9% 8.7% 9.9% 7.9% 7.2% 10.9% 8.4% 7.4% 7.8% 17.3% 7.2% 18.9% 8.0% 16.3% 15.8% 14.8% 57.2% 57.6% 54.4% 56.8% 58.1% 2008 2009 2010 2011 3Q12 New Car Financing Auto Lease Used Car Financing Personal Loan Mortgage GECK Others
  6. 6. Good Profitability Underscores Strong Fundamentals 4Income Statement (KRW Bn) Return on Equity & Return on Assets ROE ROA 25.1% 2009 2010 2011 9M11 9M12 YoY 21.3% 22.0% 20.3% 16.3%Operating Revenues 2,989 3,274 3,331 2,788 2,496 -10.5%(Excluding FX effect) 2,485 2,889 3,125 2,369 2,302 -2.8% 2.8% 2.4% 2.6% 2.6% 2.4%Operating expenses 2,448 2,644 2,672 2,184 2,015 -7.7% 2008 2009 2010 2011 3Q12(Excluding FX effect) 1,944 2,259 2,466 1,765 1,821 3.2% Key Highlights Bad debt expense 176 145 354 229 261 13.9% Operating income decreased YoY due to:Operating income 541 630 659 604 481 -20.4% - Slower new car sales in 2012 year to date - Greater one-time effect in the corresponding period last yearNet Income 411 489 507 462 355 -23.1% Return on assets (ROA) maintained at high level of 2.4%
  7. 7. Excellent Asset Quality and Conservative Reserve Policy 530+ Day Delinquency Rate (%) Total Reserve VS Regulatory Requirement (KRW Bn) Total 30+ delinquency rate New Car 30+ delinquency rate Regulatory Requirement Reserve under Accounting Principles Supplemental Reserve Total Reserve/ Regulatory Requirement 152.7% 153.3% 118.0% 117.1% 111.0% 647 610 2.3% 474 279 2.3% 265 2.0% 1.8% 1.6% 208 1.4% 583 521 0.9% 442 0.8% 426 401 345 0.7% 368 0.6% 288 279 265 2008 2009 2010 2011 3Q12 2008 2009 2010 2011 3Q12
  8. 8. Sound Capital Structure Maintained 6Leverage Trend Capital Adequacy Ratio (KRW Bn) Adjusted Capital CAR Total Assets / Total Shareholders Equity Managed Borrowings / Total Shareholders Equity 15.7% 14.9% 13.7% 13.0% 11.5% 9.7x 9.3x 8.3x 7.4x 2,989 8.7x 7.1x 2,622 2,432 2,375 7.5x 6.7x 1,825 6.5x 5.6x 2008 2009 2010 2011 3Q12 2008 2009 2010 2011 3Q12
  9. 9. Diversified Funding by Type, Duration & Region 7Funding Portfolio by Product Funding Portfolio by Currency KRW 65.5% ABS CP 4.2% 11.3% USD 21.7% Loans, CHF 5.9% 8.8% 8.8% MYR 2.9% Bonds JPY 1.6% 75.9% AUD 1.5% CNY 0.5% Other 0.3% • Funding Balance: KRW 17,063 Bn • Recent Key Issuances: • Long-term funding: 69.5% -Dim sum – 1.5yr – RMB 500m -Samurai – 1.5yr, 2yr – JPY 20 Bn, 8 Bn -ABS- 500m
  10. 10. Strengthened Liquidity Position 8Liquidity Profile (Unit: KRW Bn) Cash Flow Profile (KRW Bn) Cash Credit Line Short-term Debt Coverage Ratio* Financial Receivables 72.8% 63.5% 10,655 2,392 36.0% 39.1% 5,668 658 185 393 30.4% 3,808 3,794 ~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y Liabilities (Debt) 2,365 5,213 1,995 1,581 2,511 2,616 4,073 3,587 615 2,106 1,789 ~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y 1,338 Net Cash Flow 1,367 1,082 1,297 1,178 5,443 1,027 707 739 1,595 -1,195 -1,336 -1,396 -222 2008 2009 2010 2011 3Q12 * 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
  11. 11. Hyundai CapitalCompany OverviewHyundai Capital Investor Presentation 3Q 2012
  12. 12. I. Who is Hyundai Capital?
  13. 13. No.1 Consumer Finance Company 9 • Leading auto financier in Korea with dominant market share • Eight-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)
  14. 14. Committed Shareholder Financial & Operational Support 10Relationship with Shareholders GE Capital’s Financial Support - Leading auto maker in Korea 2012 -GE Capital extends credit line with approximately 80% market share (Total investment as of 3Q12: US$ 2.3bn) - Stable & solid operational base56.5% - Extensive sales network 2009 - GE Capital increases its back-up credit Line to US$ 1 bn - Powerful financing arm 2007 - GE Capital provides US$ 871mm in direct - Effective marketing tool funding - Most successful joint venture - Sole consumer finance window in Korea 2006 - HCS is GE Capital’s sole consumer finance business in Korea - GE Capital provides US$ 600mm back-up credit line43.3% - Advanced knowledge on risk management 2005 - GE Capital increases its holdings to 43.3% - Financial support - Active involvement in daily operations as well as management 2004 - GE Capital acquires 38% equity interest in HCS
  15. 15. Strategy : Capitalize on Our Leading Position 11 • 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
  16. 16. Committed to Transparent Corporate Governance 12 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 -Approval of various operating -Formulation and execution of and appropriate course of actions in expenses, Capex, business and compliance strategy, schemes, and respect thereof funding plans improvements • C-Suite executives: Vice President, Deputy CFO, Deputy CRO, Deputy CMO, Controller GE • Working level : GE employees also involved in day-to-day operations Presence • Transfer of advanced knowledge in various functions through best practice sharing program
  17. 17. II. Macro Environment
  18. 18. Korea’s Macro Environment 13GDP Growth Rate & Key Interest Rate & 3Y KTB RateGovernment Debt to GDP ratio Key rate(%) 3Y KTB(%) GDP Growth Rate Government Debt to GDP 5.32 3.89 3.74 3.68 33.8% 33.4% 34.0% 2.77 30.1% 2.50 3.25 3.00 2.00 2.75 6.1% 2008 2009 2010 2011 Oct.12 Consumer Confidence Index & Unemployment Rate 103 3.6% 102 Germany 101 100 Australia 2.2% 99 Korea CCI 1.6% 98 Canada 97 France Japan U.K 96 U.S.A 0.2% 95 0% 2% 4% 6% 8% 10% 12% 2008 2009 2010 2011 3Q12 Unemployment rate Source: OECDSource: Bank of Korea * CCI: Consumer confidence index / Unemployment rate (as of FY2011)
  19. 19. Domestic Auto Market 14Domestic Auto Sales (‘000s) HMC KMC Others HMC+KMC Market Share 80.0% 79.8% 81.6% 79.5% 78.1% 76.9% 73.3% 73.1% 73.6% 72.0% 1,466 1,475 1,395 1,219 321 297 1,165 1,154 279 1,143 1,094 1,106 1,020 322 313 267 227 320 292 493 188 413 485 272 316 252 271 367 252 351 703 660 684 571 581 625 571 550 512 482 2004 2005 2006 2007 2008 2009 2010 2011 9M11 9M12 Source: KAMA
  20. 20. Korean Consumer Finance Market’s Unique Features 15 • 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
  21. 21. Hyundai Capitals Position in the Industry 16Dominant Position in Industry** Incomparably Profitable and Sound • Industry Assets • Profitability: ROE (Net Income/Equity) HCS Others Total Industry Asset Size : KRW 44,331 bn 25.1% HCS Others 21.3% 22.0% 49.2% 20.3% 50.8% 17.4% 11.3% 8.3% 6.0% 5.8% 5.5% 2008 2009 2010 2011 1H12 • Industry Net Income • Asset Quality: 30+Day Delinquency Rate Total Industry Net Income Size: Others 3.2% 3.2% KRW 330.6 bn 3.0% 3.0% 35.0% 2.8% HCS 2.3% 2.0% 2.1% 65.0% 1.8% 1.6% 2008 2009 2010 2011 1H12* Source: Financial Statistics Information System, at end of 1H12 * Source: Financial Statistics Information System** Installment Finance Industry
  22. 22. III. Asset Portfolio & Financial Performance
  23. 23. Historical Asset Portfolio Breakdown 17 Receivables Breakdown by Product (KRW Bn) New Car Financing Auto Lease Used Car Financing Personal Loan Mortgage GECK Others 19,806 19,952 18,788 1.5% 7.4% 7.4% 8.8% Non-Auto Non- 16,480 9.1% 9.6% 16,030 20% 8.7% 15,130 9.9% 7.9% 7.2% 10.9% 7.7% 8.4% 13,472 7.4% 7.8% 12,049 4.0% 7.8% 7.2% 17.3% 11,179 18.9% 7.4% 8.0% 16.3% 8.0% 6.9% 9.4% 15.8% 4.9% 8.1% 14.3% 14.8% 5.6% 14.4% 8.7% 12.6% Auto 80% 57.6% 54.4% 57.2% 58.1% 59.9% 56.8% 68.0% 63.3% 71.7% 2004 2005 2006 2007 2008 2009 2010 2011 3Q12 Auto 86.0% 88.7% 87.1% 82.3% 79.5% 81.1% 81.9% 82.8% 80.5%related
  24. 24. Best in Class Risk Management 18Strong governance for risk monitoring Examples of pre-emptive risk management Category Actions taken Details• Risk Control Committee (RCC) – Decision making for most supreme risk • Limited funding during global – Review portfolio risk performance Asset slowdown financial crisis Strategy (Y2008) • Reduce non-core businesses• Systematic New Product Risk Analysis to focus on new car financing - Two-stage RCC approval process - Pre-launch new product introduction and credit review Risk-based • Lower pricing for customers point assessment New car pricing with better credit profile• Risk Appetite Management • Tightened underwriting policy – Establish guidelines for portfolio / asset quality Policy tightening preemptively – Determine risk management strategy per product Used car (Y2010) • Sacrificed market share due to focus on asset quality• Portfolio Quality Review – Monitoring of main risk indices • More weight on cross-selling – Follow-up on effects of credit policy changes P-loan Cross-sell channels to new car customers• Stress Test & Contingency Planning • Reflecting volatile housing Residual value market conditions – Scenario analysis based on economic forecasting Mortgage insurance – Prepare action plans per contingency stage • Only company insured in Korea
  25. 25. Historical Asset Quality 1930+ Day Delinquency Rate (%) Total 30+ delinquency rate New Car 30+ delinquency rate 5.2% 3.5% 2.3% 2.3% 2.7% 2.0% 1.7% 1.8% 1.6% 1.6% 1.5% 1.2% 1.3% 1.0% 0.9% 0.7% 0.8% 0.6% 2004 2005 2006 2007 2008 2009 2010 2011 3Q12
  26. 26. Solid Profit Underscores Strong Fundamentals 20Income Statement (KRW Bn) K-GAAP K-IFRS 2007 2008 2009 2010 2011 9M11 9M12 YoY Operating Revenues 2,245 4,330 2,989 3,274 3,331 2,788 2,496 -10.5% (excl. FX effect) 2,045 2,384 2,485 2,889 3,126 2,369 2,302 -2.8% Operating Expenses 1,770 3,824 2,448 2,642 2,672 2,184 2,015 -7.7% (excl. FX effect) 1,569 1,879 1,944 2,259 2,466 1,765 1,821 3.2% Interest expenses 561 674 679 890 956 717 682 -4.9% Lease expenses 507 587 550 557 505 379 384 1.2% SG&A Expenses 439 498 496 586 603 406 442 8.8% PPOP 533 600 717 778 1,014 834 742 -11.0% Bad Debt expenses 58 95 176 145 354 229 261 13.9% Operating Income 476 505 541 630 659 604 481 -20.4% Income before Tax 475 518 538 639 663 608 480 -21.1% Net Income 333 377 411 489 507 462 355 -23.1% ROA 2.3% 2.4% 2.6% 2.8% 2.6% 3.2% 2.4% ROE 24.4% 25.1% 21.3% 22.0% 20.3% 25.3% 16.3%
  27. 27. Historical Reserve & FSS Requirement Coverage Ratio 21Total Reserve VS Regulatory Requirement (KRW Bn) Regulatory Requirement Reserve under Accounting Principles Supplemental Reserve Total Reserve/ Regulatory Requirement 239.9% 195.4% 164.0% 158.5% 153.3% 151.6% 118.0% 117.1% 111.0% 647 610 474 279 265 208 583 511 521 469 382 442 423 401 364 345 368 279 288 265 213 240 222 241 2004 2005 2006 2007 2008 2009 2010 2011 3Q12 K-GAAP K-IFRS
  28. 28. Historical Leverage Trend 22Leverage Trend Total Assets / Total Shareholders Equity Managed Borrowings / Total Shareholders Equity 22.0x 14.6x 16.0x 10.7x 12.6x 9.7x 9.7x 9.3x 8.3x 7.4x 10.3x 7.1x 9.5x 8.7x 7.5x 6.5x 6.7x 5.6x 2004 2005 2006 2007 2008 2009 2010 2011 3Q12
  29. 29. Historical Capital Structure 23Capital Adequacy Ratio (KRW Bn) Adjusted Capital CAR 15.7% 14.9% 13.7% 12.7% 12.8% 13.0% 11.7% 11.5% 11.3% 2,989 2,622 2,432 2,375 1,825 1,591 1,540 1,033 1,337 2004 2005 2006 2007 2008 2009 2010 2011 3Q12
  30. 30. IV. Funding & Liquidity
  31. 31. Diversification of Funding Portfolio Over Time 24 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) 17,330 17,063 Bond-domestic Bond-overseas ABS-domestic 16,560 4.3% 4.2% ABS-overseas Bank loans CP 8.5% 8.7% 8.7% Total 14,335 14,378 7.4% 6.8% 13,213 13,412 9.1% 6.8% 12,597 12,568 10.6% 4.5% 8.2% 9.8% 5.9% 17.7% 16.9% 10.3% 17.2% 13.3% 8.7% 6.7% 8.3% 27.3% 6.9% 9.9% 10.4% 10.7% 29.1% 9.1% 11.9% 8.7% 25.7% 12.9% 14.2% 5.7% 31.0% 7.1% 26.5% 11.5% 29.3% 18.3% 2.9% 31.0% 14.1% 48.6% 41.9% 42.9% 36.9% 38.4% 39.1% 34.0% 30.7% 26.3% 2004 2005 2006 2007 2008 2009 2010 2011 3Q12 % of LT 39.1% 47.6% 57.5% 57.9% 59.0% 59.3% 63.5% 65.4% 69.5%Funding
  32. 32. Funding by Currency & Outstanding Global Bonds 25 Funding Portfolio by Currency Outstanding Global Bonds* AUD 1.5% Issue Date Maturity Amount JPY 1.6% Nov.’09 5.5 years USD 500m MYR 2.9% 144A/Reg S Jan.’11 5.5 years USD 700mCHF 5.9% Mar.’12 5.5 years USD 500m Nov. ‘12 1.5 years JPY 20,000m KRW Samurai 65.5% Nov. ‘12 2 years JPY 8,000m USD Jul. ’10 5 years CHF 150m 21.7% Oct. ’10 4 years CHF 200m Swiss Franc 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 • Funding Balance: KRW 17,063 Bn Malaysian Ringgit Feb.’12 5 years MYR 320m • Foreign Exchange Risk: May ’12 3 years MYR 370m -100% of foreign currency exposure is hedged through swap transactions entered into at the Australian Dollar Jun. ’12 3 years AUD 175m time of bond issuance. Dim Sum Sep. ‘12 1.5 years RMB 500m (*As of Nov. 14, 2012)
  33. 33. Historical Liquidity Position 26Liquidity Profile (Unit: KRW Bn) Cash Credit Line Short-term Debt Coverage Ratio* 72.8% 63.5% 3,808 3,794 39.1% 36.0% 30.4% 25.0% 23.7% 16.0% 4.6% 2,365 2,511 2,616 2,106 1,789 1,338 1,332 1,336 1,367 1057 1,082 931 938 652 1,297 370 1,027 1,178 707 739 370 405 401 398 2004 2005 2006 2007 2008 2009 2010 2011 3Q12 * Short-term Debt Coverage Ratio = (Cash + Unused committed credit line)/ Short-term debt balance
  34. 34. V. Others
  35. 35. Credit Ratings & Rationale 27HCS’ Global Credit Ratings* Credit Rating Rationale AAA A+(S) • Strong Standalone Profile – Sustainable track record of strong profit performance and robust credit fundamentals Baa1(S) BBB+(S) BBB+(S) – Low risk-focused product portfolio and prudent risk management – Adequate liquidity and sound capitalization Moodys S&P Fitch JCR RAM – Strong market position as HMCs key captive financing armHCS & Competitors’ Domestic Credit Ratings AA+ • Capable & Willing Shareholder Support - Solid backup line provided by GE Capital through A+ A+ A+ its capital and managerial support A - 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. Hyundai W Financial A Capital W Capital N Capital Capital (*As of Nov. 14, 2012)
  36. 36. Performance of Hyundai Motor Company 28Strength Performance Product Mix Total Sales (‘000s) 4,059 60% 3,612 3,106 3,023 3,209 18% 16% 6% Compact Mid & Large RV Commercial 2009 2010 2011 9M11 9M12Market Diversification OP Margin 10.4% 10.4% 11.1% 39.5% 8.8% 7.0% 15.0% 16.8% 18.2% 10.5% Korea US Europe China Others 2009 2010 2011 9M11 9M12 Brand Value Net Profit (KRW Bn) 8,105 7,164 6,001 6,102 • Increase in residual value of vehicles due to strengthened brand awareness 2,962 • Boost in luxury car sales has increased the average selling price 2009 2010 2011 9M11 9M12
  37. 37. Global Expansion 29 Office/Corporation without fundingUK JVEstablished: Dec. 2011Capital: £20 mm China JVStake: HCS 29.99% Established: Jun. 2012 Hyundai Capital America Russia Capital: RMB 0.5 bn Stake: HCS 46% Established: Sep. 1989 Capital: $1 bn Stake: HMA 94%, KMA 6% Hyundai Capital Europe Established: May 2010 India Office Capital: €2.8 mm Representative Office Stake: HCS 100% Established: Jul. 2010 Hyundai Capital Germany Established: Sep. 2009 Australia Office Brazil Office Capital: €2mm Representatives Dispatched Representatives Dispatched Stake: HCS 30.01% • Support Global Sales Growth of HMG • Minimize Entry Risk HCS’ HCS’ – Provide auto financing and related services – New market entry through joint ventures with Strategy for HMC/KMC customers local partners
  38. 38. Investor Relations ContactsJungsang Kim, Head of Investor Relations Minchul Seo, Deputy General Manager of Investor RelationsPhone +82 2 2167 7034 Phone +82 2 2167 7051jungsang.kim@hyundaicard.com mcseo@hyundaicapital.comBrett Moffat, Manager of Investor Relations Jay Moon, Manager of Investor RelationsPhone +82 2 2167 5510 Phone +82 2 2167 5312brett@hyundaicapital.com Jay.moon@hyundaicard.comhttp://ir.hyundaicapital.com/
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